Subtitle: An Executive's Guide to Using Probabilistic Thinking to Manage Risk and to Make Better Decisions. Patrick Leach draws on his extensive consulting and teaching experience to present a compelling, insightful, and understandable case for using probabilistic analysis as part of every day business decision-making. Practical examples and case studies are clearly presented.
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Mr. Leach is an experienced conference speaker, business trainer, and consultant. He makes a clear, concise case for appropriate implementation of probabilisitic analysis. Rather than get bogged down with equations and complexity, he shares his insight and the benefits of his experience (and some key research by others) in a way that is readable, useful, and memorable.
Executives routinely make major decisions in the face of high uncertainty. In fact, managing risk and uncertainty is one of the key functions of any senior manager. Techniques for estimating the probabilities of multiple scenarios (and the impact of those scenarios) have existed for years, yet many of the men and women in executive positions do not understand how to use the results of these analyses appropriately.
This book supplies that understanding in language that non-statisticians can understand. The emphasis is on the practical; real-life examples illustrate the key points throughout the book. Example topics include: why major projects are so often late and over budget, when to spend money on more information (and when not to), the benefits of a risk-neutral approach, psychological weaknesses humans have when dealing with uncertainty, and tools to use and traps to avoid.
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