PMI

PMI stands for 'Plus/Minus/Interesting'. It is a valuable improvement to the 'weighing pros and cons' technique used for centuries.

PMI is an important Decision Making tool: the mind tools used so far in this section have focused on selecting a course of action from a range of options. Before you move straight to action on this course of action, it is important to check that it is going to improve the situation (it may actually be best to do nothing!) PMI is a useful tool for doing this.

How to Use the Tool:

In the column underneath 'Plus', write down all the positive results of taking the action. Underneath 'Minus' write down all the negative effects. In the 'Interesting' column write down the implications and possible outcomes of taking the action, whether positive, negative, or uncertain.

By this stage it may already be obvious whether or not you should implement the decision. If it is not, consider each of the points you have written down and assign a positive or negative score to it appropriately. The scores you assign may be quite subjective.

Once you have done this, add up the score. A strongly positive score shows that an action should be taken, a strongly negative score that it should be avoided.

Back

Keywords:

venture, venture capital, capital, financial institutions, financial services, finance, finance in india, sources of finance