Revision as of 20:11, 12 February 2018

Decision making processes are important due to its significant impacts on the actual outcome. Decisions can be affected by experiences, arguments, biases and time restrictions that all can lead to unintended results. Two examples of decision processes are System 1 and 2 ^[1] and 'Last responsible moment' ^[2] that can lead to the 'cobra effect' ^[3]. Using a sound decision process is essential to achieving sound results.

Choosing by Advantages (CBA) is a decision-making system that include a wide variety of decision-making methods, definitions, principles and models. The purpose of the CBA system is to help decision makers to differentiate alternatives and understand the importance of those. It hinders double-counting through focusing on decisions based on the importance of advantages, not advantages and disadvantages ^[4]. The CBA system allows for visual and transparent decision making that acknowledges that decisions are essentially subjective. Values and culture of Lean/IPD program management are aligned with an emphasis on project's value for stakeholders and the use of data. Virtually, the CBA system can be applied in all decision making processes and not only the major ones ^[5]. Although, the CBA system demands use of more resources in comparison with for example experienced based decisions, and is used when a need for sound methods due to the importance of the decisions.

The principles in the CBA system are explained by the definitions and models, where the methods applies the principles. The CBA system is based on four central principles^[6]:


1. The foundation principle of sound decision making - the importance of prospective differences among the alternatives


2. The fundamental rule of sound decision making - the importance of advantages


3.The principle of anchoring: Sound methods anchor - make decisions based on relevant facts

4. The pivotal sound–decision-making - professional decision makers, such as engineers and architects, need to learn and skillfully use sound methods of decision making

The CBA system follows the seven steps^[7]: 1. Identify alternatives, 2. Define factors, 3. Define criteria for each factor, 4.Describe attributes for each alternative, 5. Decide advantages for each attribute, 6. Evaluate importance of each advantage and if costs is of importance the final step is to 7. Evaluate cost.

This article looks into the CBA concept, purpose, current state, a concrete example on application of CBA concept and its limitations.

Big idea

Concept

Purpose

Current state

Application

Guidance

Applicable

Limitations

Annotated bibliography

1. ↑ https://en.wikipedia.org/wiki/Thinking,_Fast_and_Slow
2. ↑ https://effectivesoftwaredesign.com/2014/03/27/lean-software-development-before-and-after-the-last-responsible-moment/
3. ↑ https://en.wikipedia.org/wiki/Cobra_effect
4. ↑ http://www.lcicanada.ca/wp-content/uploads/2015/12/Basic-Principles-of-Sound-Decisionmaking.pdf
5. ↑ https://books.google.dk/books?id=TulbgUyU2GsC&pg=PA168&lpg=PA168&dq=which+sector+uses+choosing+by+advantages&source=bl&ots=Yp5XrzxbfM&sig=54JkAckakisp_6QxI8RsjFtx7f4&hl=no&sa=X&ved=0ahUKEwiIz_T9-aDZAhUlsKQKHdp2BkEQ6AEISjAE#v=onepage&q=sector&f=false
6. ↑ http://www.lcicanada.ca/wp-content/uploads/2015/12/Basic-Principles-of-Sound-Decisionmaking.pdf
7. ↑ http://leanconstructionblog.com/applying-choosing-by-advantages-step-by-step.html