PowerPoint Presentation
DEFINE AND REFINE CRITERIA
2014 v1.02Define Decision
2Purpose of Define Decision3PreparationPreparationPrepare for
the decision and socialize the processBuild the foundational
elements of the modelParticipate in a facilitated process using
brainstorm, cluster, define, and refine steps to develop criteria
hierarchy
Develop Rating Scales for the criteriaAdd Alternatives and
Participants to the model
3Preparation InputsPre-modeling work includes gathering as much
information as possible about the decisionWhat specifically is the
decision goal?Annual budget, multi-year planning, source
selectionAre there any assumptions to document? Limiting scope to a
subset of the portfolio, time to complete decisionIs this a new or
different approach? Buy-in challenges to overcome, additional
meetings or demos needed to support buy-inWho are all the key
players?Leadership, subject matter experts, others4Ok, now that we
have begun the thought process, here are some preparation
considerations.4Preparation Inputs cont.How and when will
leadership be brought into the decision?Does leadership have a vote
or serve as final approvers only?What are the choices or
alternatives that we are evaluating? Projects, investments,
strategies, etc. under considerationWhat strategic imperatives will
affect the decision? Are they documented or will they be developed
new?
55Define Decision: Identity Criteria6Identify CriteriaIdentify
ParticipantsBrainstormClusterDefineRefineIdentify AlternativesBuild
Ratings ScalesDefine6Building Your Decision Model Criteria TreeA
structured four step process of criteria development works well
Brainstorm Develop ideas for criteria Cluster Build hierarchy by
grouping like criteria Define Describe the meaning of each
criterion Refine Finalize criteria structure and definitions
7Criteria are the driving factors used to define success for a
specific decision, represent either a broad goal or specific
objective against which an alternative is evaluated, and are
specific to the decision goalDefine CriteriaDefinitions are
critical for consistently and effectively weighing the criterias
importance. In a home model, what defines relaxation features? What
do we mean by increased entertainment? What are modern
amenities?Can you differentiate between your criteria? Do the
definitions sound very similar?Begin with This criterion will be
used to assessExample for Increased EntertainmentThis criterion
will be used to assess how the home remodeling project increases
the entertainment value of the home as a whole.8
Define Criteria9Select the criterion you want to define, click
on the to enter the definitionDefine the criterion in the box using
specific terminology and explanatory adjectives. Click SAVE
21
Refine CriteriaWhile dependencies may exist, criteria should be
as mutually exclusive, collectively exhaustive (MECE) as
possibleStay within 2 3 tiers and keep it simple!The ideal number
of criteria at the highest level is 7
10Magic numberof seven plus or minus two Human Cognitive
Capacity
Refine CriteriaAre there any parent criteria that should have
children that currently dont?High priority criteria with multiple
attributesReporting requirements (i.e., which investment supports
which compliance requirement vs. whether an investment supports
compliance)Are there any overlapping criteria that could be
combined? Can you clearly explain the differences?Are all criteria
differentiators or would all investments rate the same for a
particular criterion?Can you get data about each criterion for the
alternatives you will evaluate?11Best Practices for Criteria
DevelopmentBrainstorm with a few key players and SMEs to create a
strawman proposal (dont start with too many cooks in the
kitchen)Let the broader set of stakeholders throw darts at the
strawmanWhats missing? What is duplicative? What is unclear in the
definitions?Conduct either a top down or a bottom up approachTop
down begin with objectives and driversBottom up - pick two
different alternatives and list pros and cons; important
differentiators, are likely factors to consider for all
alternativesEnsure that all voters have a chance to provide
feedback prior to Collecting Priorities buy-in is best achieved
when stakeholders feel vested in the model12Best Practices for
Criteria Development cont. Keep it simple! Criteria hierarchies
should not be an exhaustive listCriteria development is more of an
art than a science there are no concrete right or wrong
answersCriteria can be action oriented, but remember to keep
criteria and solutions (alternatives) separateVerify that you can
get data to support the criteria in your model if not, evaluate
suitability of the criteriaCost is not necessarily a criterionIt
may be a resource to allocate based on the value delivered by the
alternativesIf used, how will you evaluate the criterion? What is
considered a good cost vs. a bad cost?13Learn more
atDLU.decisionlens.com
