Identifying and Evaluating Options
Once the situation is understood, candidates must generate and compare options. Know the option identification sources: do nothing, do the minimum, process improvement, buy/configure a package, build custom, or outsource. Evaluation requires criteria - typically cost, benefit, risk, feasibility, timescale, and strategic fit - and a transparent method such as a weighted scoring matrix, cost-benefit analysis, or options appraisal. Understand feasibility in its three forms: technical, financial, and organisational (sometimes called business feasibility). Also know the distinction between tangible and intangible benefits, and the idea of do nothing as a genuine baseline against which every option is compared.
Traps
A common error is treating the do-nothing option as invalid; it is a legitimate comparator that reveals the cost of inaction. Another trap is weighting criteria after seeing results, which biases the choice - define weights first. Questions may also blur option with solution: options are alternative ways to meet the need; the solution is the chosen one, later defined in detail. Watch for options that compare on cost alone while ignoring risk or strategic fit.
Rule of thumb
Agree criteria and weights before scoring, and always include do-nothing so the benefit of change is explicit.
Worked example
Three options for a reporting need: do nothing (ongoing manual cost), buy a BI tool (medium cost, fast), or build in-house (high cost, slow, high control). Weighted scoring on cost, speed, risk and fit may favour buying - but only because the weights were set first.