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Decision Audit
Definition
A Decision Audit is the structured review of how an important decision was made in order to evaluate the quality of the decision-making process rather than the outcome alone. It examines whether objectives were clearly defined, evidence was appropriate, assumptions were documented, alternatives were evaluated fairly, risks were considered, and governance requirements were followed.
Decision Audits are typically conducted after significant strategic initiatives such as acquisitions, market entry, technology investment, major product launches, or organizational transformation. The objective is organizational learning rather than assigning blame.
A high-quality audit distinguishes between poor outcomes caused by unforeseeable external events and poor outcomes resulting from weaknesses in the original decision process.
Why It Matters
Organizations improve decision quality by learning from previous decisions systematically rather than relying on memory or anecdotal experience. Decision Audits strengthen governance, organizational learning, accountability, and future decision-making.