Contributed by Kevin Ford
While we all wish we had a cornucopia to draw from, the sad truth is there are only so many sweet yams to go around this holiday season. To make matters even more complicated, your family – if anything like mine – consists of a diverse mix of varying dietary tribes with competing needs, values, and constraints. Sound familiar? Whether at work or at home, we are constantly faced with the question of how to allocate our limited resources across groups of individuals with competing interests. So how do we find the right mix of investments to maximize our return-on-investment?
Ever talk politics at the Thanksgiving dinner table? I bet you have seen board rooms with less tension. Rather than try to force consensus by arguing over whose department is more important than whose, let’s break it down. If you had just one more dollar to dole out, what would you want to know to help make the decision?
If each department’s alternatives can be evaluated against common criteria, perfect, Decision Lens software can run a Pareto Analysis to strategically identify which alternative we can fund that would maximize our return-on-investment.
But what if each department has different criteria? In that case, let’s focus on what we care most about – what does my dollar buy me in terms of a representative metric? By connecting models through the performance outcome bought by each department at varying investment levels, a corporate decision model can be used to strategically allocate resources based on prioritized metrics. If you want your departments to be even more thankful this season, consider taking advantage of Decision Lens’ dependencies and force fund features to set Minimal Investment Levels for equity-sake with additional investment allocations based on what marginal value can be gained. By selecting the optimal mixture of investment levels, these allocations can be communicated back to the departments with all the transparency and holiday cheer that comes with a structured decision process.
By: Kevin Ford, Ph.D., Solutions Engineer, Decision Lens