Choosing by Advantages Decision-Making System

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Contents

Summary/Abstract

This article aims to provide a deeper insight into the Choosing by Advantages Decision-Making System. The model described in this article is a collaborative and transparent decision making system developed by Jim Suhr in 1999.

The basis for the whole methodology relies on providing assistance to simplify the decision-making process. With this tool, decision-makers can reach consensus, focus on outcomes, and understand all of the factors considered during the decision-making process.[1] For instance, it is useful to apply the CBA system in situations where it is complex to have a clear visualization of the proper decision to take. It must be mentioned that decision-making often involves the decision-makers' personal interests, intuitions and emotions, which can sometimes lead to a domination of the personal interests among the rational decisions. [2]

In order to assess this issue, multiple tools can be used to facilitate the decision-making procedure. The main objective of this technique is to apply this type of methodology in any case that involves making an important decision. This means that it is suitable for either big or small companies, as it supports sound decision-making by using comparisons among advantages of the diverse alternatives. Furthermore, the CBA system involves a multiple step procedure that aims to facilitate the implementation of the tool. The first step involves defining the existing issues, the second one aims to identify the alternatives, the third one describes the advantages of each alternative, the fourth involves reviewing the decision and the last one consists on executing the implementation. [3] The implementation of these steps is flexible, meaning that can be removed or combined depending on the situation they are applied. Furthermore, it must be highlighted that the decision-making techniques such as the CBA not just evaluate the advantages, but also can be useful to identify and assess the possible risk of each alternative. As a result, decision-making techniques can help prioritize risk response strategies. [4]

Introduction

The Choosing by Advantages methodology is a tool used in the decision-making stage. This stage is included in a selection phase where it is made transparent what are the options to choose from, how are they evaluated and how a decision for one solution is reached. The selection is then divided into two different but correlated parts; the "evaluation" and the "decision". With this, it is intended to prepare the decision by gathering all the relevant information involved so that the actual decision can be taken. [5]

In order to understand the whole technique, it is necessary to comprehend its background. The basis for it relies on the fact that outcomes are mainly caused by actions, which at the same time are caused by decisions. As a consequence, if the decisions are improved, the outcomes will achieve higher levels of success.

Introduction.png

That is the

Definition of the methodology

Steps

In order to apply this decision-making methodology, it is important to facilitate to all the people involved in the procedure useful training or mentoring to ensure that the implementation of the tool is as simple and efficient as it is supposed to be. To confirm that the whole process is covered, the CBA process is described. This procedure involves a five-step criteria where the tool is divided into five stages. [6]

1. Stage Setting Phase. The first stage focuses on defining the objective and identifying the issues.

2. Innovation Phase. In the second step it is intended to recognize the alternatives in order to evaluate or determine the main differences between each of them.

3. Decision Making Phase. The third phase provides a list of the main advantages of each option in order to decide which alternative has the most beneficial outcome. The following sub-steps can be helpful to succeed in this stage:

  1. Summarize the attributes of each alternative.
  2. Decide the advantages of each alternative.
    • Select the least-preferred attribute in each of the factors.
    • Identify the differences between those attributes, so that those differences become the advantages.
  3. Decide the importance of each advantage.
  4. Choose the alternative with the greatest total importance of advantages.

4. Reconsideration Phase. The fourth stage basically involves reviewing the draft decision, so that all the options have been properly evaluated prior to committing to the final choice.

5. Implementation Phase. The last step assesses what to do in order to apply the final decision.

By splitting the methodology in these five steps it is assured a successful implementation of the Choosing By Advantages system. It is crucial to perform a correct identification stage in order to assess all the possible alternatives and their advantages. For this reason, the third step can be considered as one of the most important phases of the whole process.

Application

When referring to the application of the tool, it has been stated previously that the technique described is relevant as well as useful for any decision-making process. As a result, it can be applied in any kind of companies, big or small, as well as in any department or team. It is a methodology that it is independent in which field or area the company or the organization is specialised in. For instance, it can be implemented in any decision, such as the following ones:

  • Deciding whether or not to bid or accept a contract.
  • Selecting and managing projects and programs.
  • Selecting consultants, contractors, and suppliers.
  • Selecting and purchasing materials, equipment, and other products.
  • Choosing combination of design alternatives.
  • Choosing between competing alignments for road and rail projects.

As it can be observed, the examples presented above differ completely from each other, meaning that CBA can be applied to any decision. However, it is important to offer some training to learn how to use it. For instance, CBA basics are being taught in primary and secondary schools in the US.

Limitations

References

Lean Construction Institute; "Choosing by Advantages" (Visited on 12/02/21). https://www.leanconstruction.org/media/docs/chapterpdf/israel/Choosing_by_Advantages.pdf

Züst & Troxler: "No more Muddeling Through: Mastering complex projects in engineering and management" (Visited on 12/02/21). https://findit.dtu.dk/en/catalog/2305335675

Jim Suhr: "The choosing by Advantages Decisionmaking System" (Visited on 16/02/21). https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false

"Project Management: A guide to the Project Management Body of Knowledge" (PMBOK guide) 6th Edition. (Visited on 12/02/21). https://app-knovel-com.proxy.findit.dtu.dk/web/view/khtml/show.v/rcid:kpGPMBKP02/cid:kt011DXLA1/viewerType:khtml//root_slug:11122-data-analysis/url_slug:project-ri-data-analysis?kpromoter=federation&b-toc-cid=kpGPMBKP02&b-toc-root-slug=&b-toc-url-slug=project-ri-data-analysis&b-toc-title=Guide%20to%20the%20Project%20Management%20Body%20of%20Knowledge%20(PMBOK®%20Guide)%20(6th%20Edition)&page=60&view=collapsed&zoom=1

Alan Mossman, Feb 2012: "The Change Business" (Visited on 16/02/21). https://www.researchgate.net/publication/264829796_Choosing_By_Advantages

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