In the world of alternative investments, making critical decisions can be a daunting task. The pressure of potentially impacting the finances of individuals, families, and institutions can be overwhelming.
In a 2021 survey, Gartner found that 65% of decisions made are more complex (involving more stakeholders or choices) than they were two years prior. “The current state of decision making is unsustainable,” Gartner states.
That’s why it’s crucial to create and implement a decision-making process that is free from human emotion and cognitive bias and is instead built on a fact-based and time-tested approach that increases your chances of success.
Technology can play a significant role in enhancing your decision-making process if technology is used effectively. Because unforeseen circumstances such as social, political, and economic changes can contribute to uncertain outcomes, it’s vital to develop a documented process through which you’re able to leverage technology for success.
That’s where the Arootah Decision Manager app comes in. In this article, we’ll explore how the Decision Manager app can assist you in making better decisions.
What Is the Arootah Decision Manager App?
The Arootah Decision Manager app is a tool we created to help leaders, teams, and organizations navigate complex decision-making processes and achieve better outcomes. Our app leverages an algorithm that allows users to evaluate potential solutions objectively and impartially.
The app provides users with a structured decision-making process based on a set of predefined, weighted criteria, that enables them to analyze options in a more systematic way. It allows users to input their decision-making criteria, then it evaluates potential options based on those criteria. The app then assigns each option a score based on how well it meets the criteria, enabling users to make a more informed and objective decision.
Why Was the Decision Manager App Developed?
The Arootah Decision Manager app was developed by Rich Bello, CEO and founder of Arootah, as part of a suite of tools used in combination with the firm’s advisory and coaching services that support organizations, teams, and individuals in unlocking peak performance. Rich has more than 30 years of experience in the alternative investments industry and has served as the co-founder and COO of Blue Ridge Capital, which had over $10 billion in assets under management at its peak. While at Blue Ridge Capital, Rich operated a fund of funds and was responsible for allocating the fund’s capital to dozens of alternative investments. He also served as the COO for several significant funds during his tenure.
Having seen where other allocators struggle, Rich’s vast experience in allocating capital led him to create the Decision Manager App, which includes criteria templates for selecting fund managers. With the app, he has been able to use his expertise to guide others to make more data-driven, unbiased decisions.
Decision Manager App Use Cases
The Decision Manager app is a versatile tool organizations can use to make a range of different decisions. It’s particularly useful for selecting fund managers, a critical task for allocators looking to maximize investment returns. By guiding allocators through a time-tested process that focuses on gathering the most relevant and current data, the app helps them ensure they select the best possible fund managers and improves their odds of success.
In addition to selecting fund managers, organizations can use the Decision Manager app for other purposes, such as:
- Talent acquisition (e.g. selecting candidates for fractional vs. full-time roles)
- Vendor selection
- Software selection
- Investment and operational due diligence
How Does the Decision Manager App Work?
Analyzing the Data
Arootah’s Decision Manager app uses a vetting process to analyze options and ensure that resources continue to perform by providing users with a straightforward selection process based on the criteria they choose to prioritize during evaluation.
Eliminating Cognitive Bias
Additionally and critically, the app can help users reduce cognitive biases. By mitigating biases such as herd mentality and sunk cost bias, individuals can gain the ability and confidence they need to make informed decisions based on logic, not emotions. This systematic and objective approach can take the guesswork out of making decisions.
Taking Advantage of Industry Templates
The Decision Manager app provides templates for selecting managers or choosing funds, which makes it easy for users to get started while also giving them the flexibility to tailor the templates to their specific needs. By using these industry templates as a starting point and incorporating the criteria most important to you, you can streamline your decision-making process and ensure that you are focusing on the factors that matter most.
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How to Use the Decision Manager App
Let’s walk through an example of how you can use Arootah’s Decision Manager app to select a fund manager.
1. Manage Your Decisions
Upon logging in to the app, you’ll see a dashboard that contains all your decision-making processes. This dashboard offers you a quick summary glimpse of those statuses.
2. Select Investment Criteria
Select up to 10 criteria for success that align with your values. If you’re taking advantage of Arootah’s industry templates, you can enhance the templates with the criteria you wish to prioritize.
3. Weigh Investment Criteria
Weigh each criterion according to the values of your firm or LPs because not every requirement is equally important. Track record, for example, might be a significant criterion when choosing a fund manager so you’ll need to rank it higher than other criteria.
4. Select Operational Criteria
Evaluate key operational and business criteria that can impact your fund’s ability to achieve top performance consistently over time.
5. Weigh Operational Criteria
Weigh each criterion according to your firm’s or LPs’ values. Again, not every requirement is equally important in your unique decision-making process.
6. Choose the Fund(s) to Score
You’ll keep a log of your choices here.
7. Score Investment Criteria
One by one, score each option based on each investment criterion.
8. Score Operational Criteria
One by one, score each option by each operational criterion.
9. Select Your Winning Fund
Choose your winner or make a short list of multiple winners.
10. View Your Winning Fund
Similar to your dashboard, the winners of your decisions will all reside in one place (unless circumstances change and you need to revise your decision).
The Bottom Line
Decision making can be challenging, especially with the vast range of options available to you. Firms making alternative investments, in particular, require a thorough understanding of the market and a well-planned strategy for success. Arootah’s Decision Manager app is the perfect solution to assist you in making informed decisions. The app assists in reducing cognitive biases and ensures that you make investment decisions based on logic rather than emotion.
Ready to make informed investment decisions? Arootah Business Advisory offers expert guidance to support you in choosing the right fund managers. Our advisors can walk you through our proprietary Manager Selection Decision Manager app, the same model Arootah CEO/Founder and Blue Ridge Capital COO/Co-Founder Rich Bello used for years to invest in managers and make critical decisions. Book a free consultation today to get started.
Disclaimer: This article is for general informational purposes only and does not constitute legal, investment, financial, accounting, or tax advice, or establish an attorney-client relationship. Arootah does not warrant or guarantee the accuracy, reliability, completeness, or suitability of its content for a particular purpose. Please do not act or refrain from acting based on anything you read in our newsletter, blog, or anywhere else on our website.