Strategy and criteria decision matrix: A framework for decision making
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Re: Strategy and criteria decision matrix: A framework for decision making
#2I often use the same approach except I lock the weight to rank with unique numbers. I.e. 5 weight items?, can’t use a rating of 5 twice. This forces me to further itterate the criteria selection. Using the same principle across further helps to pick a clear winner but depends on the # of items on the list and how far you want to think without overthinking it.
Re: Strategy and criteria decision matrix: A framework for decision making
#3:)
Re: Strategy and criteria decision matrix: A framework for decision making
#4This framework is very similar to an a priori, multi-objective optimization using linearly scalarized weights[0]. It is a priori because the weights are chosen before scoring and kept constant.
I've found this approach works generally well for humans, however results may not be pareto-optimal.
[0] https://en.wikipedia.org/wiki/Multi-objective_optimization#S...
Re: Strategy and criteria decision matrix: A framework for decision making
#5Interesting stuff!
Reminds me of the process of designing scientific experiments. State exactly what you care about and measure it directly (not the proxies). Define the metrics before conducting the experiment and a way to aggregate these metrics. Pitch different approaches against each other by evaluating them on these metrics and choose the best one in a fair manner by detaching yourself from any approach.
The blog puts forth a nice framework that one can actually remember to apply in real life. I often unintentionally treat scientific decisions differently than real life decisions (not as quantitatively). So this is a nice way to force you to define your preferences to the best extent that you can. I also like the aspect of having this framework in a team and understanding everyone's POVs, allowing for more transparency. Often in larger groups, discussions tend to meander with viewpoints all over the place. This should also force people to start with and end with 1 objective metric at a time. I bet this exercise is quite fun when done with a team.
Re: Strategy and criteria decision matrix: A framework for decision making
#6The major problem with this approach is that you go into the analysis with an opinion as to what is the better solution, then you tweak the weights and scores to match that opinion. This is not data-driven or even rational, it's just a way to express "numerically" what your guts tell you.
Clearly someone who disagrees with you will just tell you you got the weights and scores wrong.
The main value of this exercise is to sit down and think about a problem in a slightly deeper way and try to rationalize why we think solution A is better than solution B. That is good in itself. But people shouldn't mistake a mental exercise for a quantitative analysis.
Re: Strategy and criteria decision matrix: A framework for decision making
#7Most of my decisions deal with investments, here bringing in a net-present-value measure as well as a metric for opportunity cost has been useful as well.
Quantitative people can be scared of attributing numbers to fuzzy ideas, and non-quantitative people can be afraid of these uncomfortable glyphs altogether.
Yet, it is a helpful exercise to establish a way to compare alternatives, and this seems to be the least ridiculous method.
Re: Strategy and criteria decision matrix: A framework for decision making
#8This looks like a good way to pick something everyone will feel good about, but not necessarily the best strategy. Pretty much quantitate way to design by committee
Re: Strategy and criteria decision matrix: A framework for decision making
#9This looks like a good way to pick something everyone will feel good about, but not necessarily the best strategy. Pretty much quantitate way to design by committee
That's a great point. I suspect though, the critique applies to decision making by consensus more broadly.
Decisions made by consensus are not necessarily the optimal strategy (as defined by efficacy to achieve targets). This method simply reflects that.
However, the benefit of this method is that all participants are forced to be more rigorous about why they hold certain beliefs, and then making an attempt to aggregate those preferences to drive an outcome.
Re: Strategy and criteria decision matrix: A framework for decision making
#10Minor adjustment.
When following this kind of approach I typically define the criteria before the solutions. This reduces the chance of adding bias to your criteria.