DTU ProjectLab - User contributions [en-gb]

Choosing by Advantages Decision-Making System

2021-02-27T11:45:39Z

Kendra: /* Limitations */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>

Special Methods for Complex and Very Complex Decisions
* Special Methods for Money Decisions.
* Other Special Methods for Complex and Very Complex Decisions.

Simple Methods for Simple Decisions
* The Tabular Method.
* The Two-List Method.
* The Simplified Tabular Method.
* The Simplified Two-List Method.
* Instant CBA.

Very Simple Methods for Very Simple Decisions
* The Recognition-Response Process.
* Other Very Simple Methods for Very Simple Decisions.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but not for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:39:42Z

Kendra: /* Steps */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>

Special Methods for Complex and Very Complex Decisions
* Special Methods for Money Decisions.
* Other Special Methods for Complex and Very Complex Decisions.

Simple Methods for Simple Decisions
* The Tabular Method.
* The Two-List Method.
* The Simplified Tabular Method.
* The Simplified Two-List Method.
* Instant CBA.

Very Simple Methods for Very Simple Decisions
* The Recognition-Response Process.
* Other Very Simple Methods for Very Simple Decisions.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:39:32Z

Kendra: /* Steps */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>

Special Methods for Complex and Very Complex Decisions
* Special Methods for Money Decisions.
* Other Special Methods for Complex and Very Complex Decisions.

Simple Methods for Simple Decisions
* The Tabular Method.
* The Two-List Method.
* The Simplified Tabular Method.
* The Simplified Two-List Method.
* Instant CBA.

Very Simple Methods for Very Simple Decisions
* The Recognition-Response Process.
* Other Very Simple Methods for Very Simple Decisions.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|left|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:36:55Z

Kendra: /* CBA Methods */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>

Special Methods for Complex and Very Complex Decisions
* Special Methods for Money Decisions.
* Other Special Methods for Complex and Very Complex Decisions.

Simple Methods for Simple Decisions
* The Tabular Method.
* The Two-List Method.
* The Simplified Tabular Method.
* The Simplified Two-List Method.
* Instant CBA.

Very Simple Methods for Very Simple Decisions
* The Recognition-Response Process.
* Other Very Simple Methods for Very Simple Decisions.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:36:25Z

Kendra: /* CBA Methods */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below.

Special Methods for Complex and Very Complex Decisions
* Special Methods for Money Decisions.
* Other Special Methods for Complex and Very Complex Decisions.

Simple Methods for Simple Decisions
* The Tabular Method.
* The Two-List Method.
* The Simplified Tabular Method.
* The Simplified Two-List Method.
* Instant CBA.

Very Simple Methods for Very Simple Decisions
* The Recognition-Response Process.
* Other Very Simple Methods for Very Simple Decisions.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:35:50Z

Kendra: /* CBA Methods */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below.

Special Methods for Complex and Very Complex Decisions
* Special Methods for Money Decisions.
* Other Special Methods for Complex and Very Complex Decisions.

Simple Methods for Simple Decisions
* The Tabular Method.
* The Two-List Method.
* The Simplified Tabular Method.
* The Simplified Two-List Method.
* Instant CBA.

Very Simple Methods for Very Simple Decisions
* The Recognition-Response Process.
* Other Very Simple Methods for Very Simple Decisions.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:32:02Z

Kendra: /* CBA Methods */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below.

[[Special Methods for Complex and Very Complex Decisions]]
* Special Methods for Money Decisions.
* Other Special Methods for Complex and Very Complex Decisions.

[[Simple Methods for Simple Decisions]]
* The Tabular Method.
* The Two-List Method.
* The Simplified Tabular Method.
* The Simplified Two-List Method.
* Instant CBA.

[[Very Simple Methods for Very Simple Decisions]]
* The Recognition-Response Process.
* Other Very Simple Methods for Very Simple Decisions.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:27:49Z

Kendra: /* CBA Methods */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below.

[[File:CBAmethods.png|200px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false|CBA methods presented in Jim Suhr's book.]]

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:26:54Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below.

[[File:CBAmethods.png|500px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false|CBA methods presented in Jim Suhr's book.]]

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:24:45Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

This concise sub-section aims to briefly mention the existing methodologies of the CBA tool. Depending on the complexity or the simplicity of the decision that must be made, the method that must be applied differs. It must be stated, that this article focus on a general overview of the CBA technique, meaning that it does not go into detail with the methods that will be mentioned below.

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

File:CBAmethods.png

2021-02-27T11:15:00Z

Kendra:

Choosing by Advantages Decision-Making System

2021-02-27T11:14:04Z

Kendra: /* CBA Methods */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:13:54Z

Kendra: /* CBA Methods */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

==== CBA Methods ====

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:13:39Z

Kendra: /* == Importance in Program, Portfolio and Project Management == */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== CBA Methods ==

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:13:30Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

==== Importance in Program, Portfolio and Project Management ====

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== == Importance in Program, Portfolio and Project Management == ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== CBA Methods ==

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:13:08Z

Kendra: /* == Importance in Program, Portfolio and Project Management == */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== == Importance in Program, Portfolio and Project Management == ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== CBA Methods ==

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:12:25Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== == Importance in Program, Portfolio and Project Management == ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== == Importance in Program, Portfolio and Project Management == ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== CBA Methods ==

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:12:06Z

Kendra: /* Importance in Program, Portfolio and Project Management */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== == Importance in Program, Portfolio and Project Management == ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== CBA Methods ==

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Top-down vs bottom-up estimations

2021-02-27T11:11:35Z

Kendra: /* Big idea */

'' Written by Oliver K. Vittrup ''

== Abstract ==
When starting a new project, an important task for the project manager, is the estimation process. This can both be an estimation regarding cost and time-frames. It is important to get the project off to a good start, given that success of the project depends on the estimation - both in regards to time and cost. When estimating (or in other words 'predicting the future'), the project manager can use the following methods:

- Top-down estimating 
- Bottom-up estimating

By choosing the top-down approach, the project manager chooses to make an overall scope of the project. From here, the major elements of the project is being listed and estimated separately. This approach creates a rough idea of the project size and the different timeframes of the project elements. The advantages of using the top-down approach is less time consuming and requires a limited amount effort. The estimates created by this method often turns out larger than the ones, which has been found using the bottom-up approach. <ref name="apm"> Rowland, M. 2019. Three ways to approach cost estimation. [online] Available at: https://www.apm.org.uk/blog/three-ways-to-approach-cost-estimation/ [Accessed February 18th 2021].</ref> 
The bottom-up approach is on the other hand a very time-consuming and costly method, but it gives a more accurate estimate of the project time and cost. By using the bottom-up approach, the cost and time frame is being calculated for every activity related to the project. The values and time frames are then aggregated in order to estimate the total cost and project time. <ref name="PMI-Project"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide), 6th Edition (2017) </ref> The bottom-up approach is often used in order to gain stakeholders to buy in on the project.

== Big idea ==

The term 'estimating' in terms of project management can be defined as "''the process of predicting the cost and time needed to deliver project products''". <ref name="study">
Bugajenko, O. Top-Down & Bottom-Up Estimating Techniques in Project Management. [online] Available at: https://study.com/academy/lesson/top-down-bottom-up-estimating-techniques-in-project-management.html [Accessed February 18th 2021].</ref> The estimation part is an important step on the way to a get a good product, which satisfies the costumer and/or the user, when it is delivered in the end. The estimation proces is used in order to predict the cost and the duration of a given project, which is making it possible to make the decisions, which will benefit the project. When estimating, it is also possible to make a decision regarding the viability of the project, when the financial requirements has been determined. 
The duration of a project is important to know in regards to costumer expectations and in order to know when the product can be delivered. From the estimation process, the project manager can use the determined time frames for time scheduling, which is relevant informations for interested stakeholders. During the project, the project manager can hold the real time data up against the estimated values in order to monitor the performance of the project. <ref name="study"/> 
Project estimations can be a fast task, but it can also be very time consuming. This all comes down to how the project manager wishes to prioritize the estimation, and is a decision on whether the time used on estimating is worth the effort in the end. The estimation process can be carried out by using top-down estimating as well as the bottom-up estimating.

==== Top-down estimating ====

Top-down estimating, also refered to as analogous estimating, defines the way of estimating based on the information which is available about the project at the moment. The tool often uses similar projects as guide lines in regards to tasks, cost and project durations. The top-down approach is a fast and efficient way of estimating, but can leave out information, which is unique to the particular project, and the result can therefore be different from the real price and duration. <ref name="pmstudy"> Usmani, F. 2020. 4 Tools to Estimate Costs in the Project Management. [online] Available at: https://pmstudycircle.com/2012/06/4-tools-to-estimate-costs-in-the-project-management/ [Accessed February 18th 2021]</ref>

Top-down estimating can be done in four different ways. <ref name="projectmanagementinfo2"> Sebastian. Analogous Estimating. Definition, Examples, Pros & Cons. [online] Available at: https://project-management.info/analogous-estimating/ [Accessed February 18th 2021]</ref>:
* a single-point estimate
* a ratio estimate
* an estimate range
* a three-point estimate

==== Bottom-up estimating ====

The bottom-up estimating approach is to be used, when a detailed estimate is needed for the project. By using the bottom-up estimation, the project cost and duration is estimated on a task specific level, allowing the project manager to plan each and every task. The task costs and durations can then be aggregated in the end, which will result in a very detailed project estimate. This approach also makes it possible to estimate the amount of resources needed for the project. <ref name="projectmanagementinfo1"> Sebastian. Bottom Up Estimating. Definition, Examples, Pros & Cons. [online] Available at: https://project-management.info/bottom-up-estimating-definition-example-pros-cons/ [Accessed February 18th 2021].</ref> 

The big differences between the to estimation techniques is that the top-down estimating can be used for any level of of the project phase, even when information may be limited. On the other hand, it is fairly common that the bottom-up approach is used, when a lot of knowledge has been obtained about the project.

== Application ==

The two different tools used for estimation purposes can be used in different times of the project phase.

==== Top-down estimating ====

The top-down estimating strategy can be put into work when
* the project has a limited amount of information available
* the project manager wants a fast and cheap estimation of the project cost and duration
* the project manager needs to see the big picture and an accurate estimate is not needed

The top-down estimating can be used as a starting point for the bottom-up estimate. This gives a quick introduction to the project, which if needed, can be analyzed further. The technique works best and gives the most reliable estimates, when the project is similar to an earlier finished project, and the assumptions regarding the similarities is correct.<ref name="projectmanagementinfo2"/> As mentioned earlier, the top-down estimation can be performed in four different ways, which will be briefly described. 
 
'''Single-point estimate''' 
This technique within the top-down estimation, defines the way of estimating the project from the most similar project performed earlier. Therefore, the project is analyzed and compared to projects in the same category as itself, and then estimated on the background of the most similar one. If the reference project cost 500.000 DKK, the top-down estimate for the new project would then be similar equal to 500.000 DKK.<ref name="projectmanagementinfo2"/>. A visual example of the single-point estimation technique can be seen from the following figure.

[[File:One-Point-Estimate.png|700px|thumb|center|Example of a 'Single-point estimation'. Inspired by figure found at https://project-management.info/analogous-estimating/]]
 
'''Ratio estimate''' 
A ratio estimate compares the new project to a reference project with enough similarities. The two projects are then compared in regards to size, which gives a ratio between them. As an example, the project estimators, would believe that the new project would take 130% of the reference project.<ref name="projectmanagementinfo2"/>. A visual example of the ratio estimation technique can be seen from the following figure. 
 
'''Estimate range''' 
An estimate range shows the price range between a series of earlier performed projects similar to the new project planned. The estimate range is then going from the cheapest project up to the most expensive. The estimate range would often be made with a 'most likely'-estimate.<ref name="projectmanagementinfo2"/>
[[File:Estimation-range.png|700px|thumb|center|Example of an 'Estimate range'. Inspired by figure found at https://project-management.info/analogous-estimating/]]
 

'''Three-point estimate''' 
This approach requires the project manager to make three estimates, which includes an optimistic estimate, a pessimistic estimate and a most likely estimate. They are then to be converted into a final estimate.<ref name="projectmanagementinfo2"/>

==== Bottom-up estimating ====

The bottom-up estimating can be used for estimating
* the needed time for the project (aggregated task durations)
* the resources needed for the project
* the project cost

The bottom-up estimating technique should be put into work when the project is in a place, where it needs accurate predictions regarding future. This can be, as shown in the bulletpoints, in regards to duration, cost and resources. 
The different estimates can also depend on each other. The task duration will often depend on the resources, which has been assigned to the specific task. The cost is estimated from the time- and resource estimates by multiplying them with the price per unit.<ref name="projectmanagementinfo1"/> This is differentiated from company to company. 
The bottom-up estimating is performed at the lowest level with-in the 'Work breakdown structure', which is where all of the activities within a given project has been named and listed. An example of this can be seen from the following figure.

[[File:Bottom-up-estimating.png|800px|thumb|center|Example of bottom-up estimating. Inspired by figure found at https://project-management.info/bottom-up-estimating-definition-example-pros-cons/]]

== Limitations ==

The two different estimation techniques each have their limitations, when being used for cost- and duration estimations. These will be listed below:

==== Top-down estimating ====

The main limitations, or consequences, which is present when using the top-down estimating technique, is listed below.<ref name="projectmanagementinfo2"/>

* The use of the top-down estimation gives a rough and not quite accurate picture of the project.
* When comparing the current project to an earlier finished reference project, the assumptions regarding similarities between them has to be correct. If the assumptions were wrong, the determined estimate would then be useless for the project.
* The potential inaccuracy in regards to the results, makes it harder to make decisions and project planning based on the estimates found from using the top-down approach.

==== Bottom-up estimating ====

The main limitations, or consequences, which is present when using the bottom-down estimating technique, is listed below.<ref name="projectmanagementinfo1"/>

* The bottom-up estimation technique is expensive to do, both in regards to effort and time, and from this resources needed for the process.
* The estimation regarding the cost of the project relies on the estimated time frames, which is then relying on the estimated resources needed for the project. From this, the estimation could be incorrect, if error occurs in one of these estimates.
* If the project is at a large scale, the estimates made with the bottom-up estimation could be ignoring the possibility of integration efforts in regards to the listed project tasks.

== Annotated Bibliography ==

*'''project-management.info''' offers a broad palette of information within the field of project management. It also offers a more detailed description of the tools described in this article. The articles on project-management.info also shows the tool in a visual manner, which makes the theory easier to understand and use.
*'''apm.org.uk''' is the official site of the Association for Project Management. They describe their goal as "''Inspiring communities to deliver meaningful change for societal benefit by advancing the art, science, theory and practice of project management.''"
*'''pmstudycircle.com''' is a website made from a student, frustrated about the missing information about project management available on the web, when he was writing his exam. Here he has gathered a lot of relevant information about project management.

== References ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:10:42Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== Importance in Program, Portfolio and Project Management ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== CBA Methods ==

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

File:Definitions.png

2021-02-27T11:02:47Z

Kendra: Kendra uploaded a new version of "File:Definitions.png"

Choosing by Advantages Decision-Making System

2021-02-27T11:01:53Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== Importance in Program, Portfolio and Project Management ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|500px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:01:37Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== Importance in Program, Portfolio and Project Management ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definitions.png|700px|thumb|left|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:01:15Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== Importance in Program, Portfolio and Project Management ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.
[[File:Definition.png|700px|thumb|center|link=https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf|Definition of key words according to Jim Suhr (1999).]]

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T11:00:03Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== Importance in Program, Portfolio and Project Management ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T10:59:50Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== Importance in Program, Portfolio and Project Management ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

To begin with the description of this methodology, it is important to first define some key words that this tool considers along the whole methodology.

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

File:Definitions.png

2021-02-27T10:57:52Z

Kendra:

Choosing by Advantages Decision-Making System

2021-02-27T10:53:34Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

== Importance in Program, Portfolio and Project Management ==

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. It is the case of the Program, Portfolio and Project Management, as it involves assessing alternatives, making decisions and evaluating risks in order to stick to the budget while choosing the best option for the project. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T10:42:59Z

Kendra: /* Application */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T10:42:28Z

Kendra: /* Limitations */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and used in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T10:36:03Z

Kendra: /* Definition of the methodology */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*'''Presentation of alternatives''': Must be presented '''neutrally''' to the decision-makers.
*'''Evaluation of the alternatives''': Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*'''Decision-making''': Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*'''Rationale''': Specifically stating the rationale for a decision supports rational and auditable decision-making.
*'''Documentation''': A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and use in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T10:28:06Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and use in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T10:24:52Z

Kendra: /* Summary/Abstract */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and use in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-27T10:24:12Z

Kendra: /* Summary/Abstract */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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'''. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and use in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T12:38:40Z

Kendra: /* Limitations */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

It has been clearly stated during the whole article that the CBA methodology is an easy tool that can be implemented and use in any case that involves making a decision. However, some limitations can be found regarding the application of this decision-making system.
*When talking about sustainable decision-making, not all the manufacturers have an Environmental Product Declaration, in which the data collection can be challenging.
*Intensive time may be used in data collection.
*May be not possible to get all stakeholders together Face-to-Face in the same room at the moment of the decision.
*Time for analysis can exceed the expectation of the team.

These are some examples of situation in which can be challenging or even impossible to apply the CBA methodology, but it must be highlighted that every project is different, special requirements and different people involved, which means that it may work for one particular study case but to for another. <ref name=''UsingCBA''> Paz Arroyo, Iris D. Tommelein and Glenn Ballard: Using 'Choosing by advantages' to select ceiling tile from a global sustainable perspective. https://iglcstorage.blob.core.windows.net/papers/attachment-b77feb1d-ad49-4eff-9f0f-97785347b261.pdf</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:30:43Z

Kendra:

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''Limitations''' ==

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:23:08Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|center|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:22:02Z

Kendra: /* Steps */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|center|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:21:04Z

Kendra: /* Steps */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px|thumb|link=https://www.researchgate.net/publication/264829796_Choosing_By_Advantages|Steps of CBA according to Jim Suhr.]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:19:44Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|thumb|link=https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:17:43Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|Visualisation of the CBA's background. Source:https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:17:31Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|Visualisation of the CBA's background.]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref> 

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:16:28Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|Visualisation of the CBA's background. Source:https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref> 

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-26T09:16:19Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|Visualisation of the CBA's background. Source:https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref> 

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

File:Introduction.png

2021-02-25T16:20:25Z

Kendra:

https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true

Choosing by Advantages Decision-Making System

2021-02-25T16:18:59Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|Visualisation of the CBA's background. Source:https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=true]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-25T16:18:18Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|Visualisation of the CBA's background. Source:https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-25T16:15:55Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px| Can be found at https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-25T16:15:07Z

Kendra: /* Introduction */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px| https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />

Choosing by Advantages Decision-Making System

2021-02-25T16:14:20Z

Kendra: /* Steps */

''Developed by Kendra Ana Rodríguez López''

== '''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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref>
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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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. <ref name="Jim_Suhr"> The Choosing By Advantages Decisionmaking System by Jim Suhr. https://books.google.dk/books?id=TulbgUyU2GsC&printsec=frontcover&hl=es#v=onepage&q&f=false</ref> 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. <ref name="ProjectManagement"> Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition. [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-</ref>

== '''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. <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

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.

[[File:Introduction.png|700px|]]

The decision-making stage appears in any procedure that involves differentiating between diverse alternatives in order to find the most suitable one. When making a decision, different factors must be considered, and one of the most relevant ones is balancing risks.
Risk appetite of the key portfolio stakeholders in terms of balance between opportunities and threats is a factor that needs to be taken into account when managing portfolio risk. The tradeoffs between threats and opportunities, short- and long-term impacts, and environmental considerations have a fundamental impact on the selection or termination of portfolio components. In addition, the absence of a deterministic environment makes the decision-making process more difficult due to the uncertainties that limit effective response strategies. In most cases, the portfolio manager is faced with several suboptimal solutions where all solutions have various strengths and weaknesses, but there is no clear path to an optimized management approach. When having to face these kind of situations, the decision-making tools facilitate the process of selection. <ref name="ProjectManagementInstitute"> Project Management Institute: The Standard for Portfolio Management — Fourth Edition. https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=5180852</ref>

== '''Definition of the methodology''' ==

In order to reach a decision, two preconditions have to be met: the evaluation of alternatives needs to be completed and the decision-makers need to have the authority to make the decision. Typically the decision makers and the designer of the system are not the same people. Implementing new solutions often leads to interferences with and changes to existing systems that have substantial consequences. The designers of the system typically cannot have the authority to decide on these consequences. The process of making a decision can be divided as: <ref name="ZüstTroxler"> Züst & Troxler: No more Muddeling Through: Mastering complex projects in engineering and management. https://findit.dtu.dk/en/catalog/2305335675</ref>

*Presentation of alternatives: Must be presented neutrally to the decision-makers.
*Evaluation of the alternatives: Subsequently the evaluation of the alternatives has to be presented. This includes the selected criteria, the evaluation methods, together with the reasons for their selection and application. In this phase, decision-makers might want to impose different values or add additional knowledge.
*Decision-making: Apart from the results of a formal evaluation, the decision-makers’ personal interests, intuitions and emotions are part of the decision.
*Rationale: Specifically stating the rationale for a decision supports rational and auditable decision-making.
*Documentation: A clear presentation of the reasons and the considerations that led to a decision are the basis for a smooth implementation of the selected solution.

Choosing By Advantages is a sound system to make decisions using well-defined vocabulary to ensure clarity and transparency in the decision-making process. Making sound decisions aids in successful implementation of the decision the suits the most. CBA, allows the engineer to explicitly consider multiple alternatives that meet various 'must' and 'want' criteria. The factors and criteria developed to evaluate the decision alternatives reflect the values of the various project team members involved in the process of making the decision. Because decision-making is subjective, it is important to document why and on what basis decisions are made so they can be revisited at a later time on that project, should new considerations or facts become available, and on future projects. Decision-makers using CBA list the attributes and advantages (the beneficial difference between two alternatives) of each alternative and then assign a degree of importance to each advantage relative to the one that is least preferred. <ref name="ParrsihTommelein"> Parrish, K., Tommelein, I.: "Making design decisions using choosing by advantages". https://asu.pure.elsevier.com/en/publications/making-design-decisions-using-choosing-by-advantages</ref>
In addition, the tool itself involves key definitions, models and principles.
There are four key principles:
# Decisions must be based on the importance of the beneficial differences between alternatives.
# Decisions must be linked to relevant facts.
# Different types of decisions require different sound methods of decision-making.
# Decision-makers must learn and skillfully use sound methods of decision-making.

As it can be observed from the description of the principles above, the third one involves a number of diverse methods for different types of decisions. Those vary from simple binary decisions with no resource implications to complex ones with many alternatives each with its own set of resource implications. It must be considered that the CBA avoids the pitfalls of unsound methods such as Kepner-Tregoe, choosing by pros and cons, using advantages and disadvantages, pair-wise comparison and weighting rating and calculating (WRC) systems including criteria weighting, factor weighting & cost-benefit analysis. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''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 different stages. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

'''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:

#Summarize the attributes of each alternative.
#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.
#Decide the importance of each advantage.
#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.

[[File:CBA.png|500px| Can be found at https://www.researchgate.net/publication/264829796_Choosing_By_Advantages]]

== '''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. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

The Choosing By Advantages offers a systematic way for all stakeholders to manage the process of deciding between large numbers of alternatives without being overwhelmed. In addition, it ensures that the number of alternatives considered in the complex decisions is not artificially limited. The tool creates an open, transparent and auditable decision process that acknowledges the complexity of most projects. The methodology that is being presented is also well able to handle both objective and subjective data within a single decision process. <ref name="AlanMossman"> Alan Mossman, Feb 2012: "The Change Business". https://www.researchgate.net/publication/264829796_Choosing_By_Advantages</ref>

== '''References''' ==
<references />