Decision quality

Decision quality (DQ) is the quality of a decision at the moment the decision is made, regardless of its outcome. Decision quality concepts permit the assurance of both effectiveness and efficiency in analyzing decision problems. In that sense, decision quality can be seen as an extension to decision analysis. Decision quality also describes the process that leads to a high-quality decision. Properly implemented, the DQ process enables capturing maximum value in uncertain and complex scenarios.

Fundamental to all decision quality concepts is the distinction between the decision and its outcome. They are different because of the uncertainties when making a choice—a high quality decision can still result in a poor outcome, and vice versa. In the face of uncertainty, the decision maker only has control over the decision, but no control over the outcome of external circumstances. Consequently, the outcome of a decision does not allow an assessment about its quality. A decision has quality at the time it is made, which is not changed by hindsight. Concepts of decision quality focus on measuring and improving the quality of the decision at the time it is being made.

The confidence a decision maker has in its choice, and related to it the commitment a decision maker has to act upon that choice, depends on the quality of the decision at the time of making the decision. A high-quality decision is characterized by the following elements:

Quality in decision making requires quality in each of the elements listed above, and the overall quality of the decision is limited by the weakest element. Decision quality is achieved when for each element the cost to obtain additional information or insight to improve its quality exceeds the added value.

A variety of specific tools and processes exist to improve the quality of each element.

The first element to achieve decision quality is framing. Having the appropriate frame ensures the right decision problem is addressed. Quality in framing is achieved when the decision makers have alignment on purpose, perspective, and scope of the decision problem to be solved. It means the right people will work the right problem the right way.

A decision cannot be better than the best available option (alternative). A wide variety of approaches, tools, and methods exist to generate high quality alternatives, ranging from systematic search approaches to identify alternatives to approaches that aim to creatively synthesize alternatives. Quality in alternatives is achieved by applying a suitable alternatives generation process, where the process itself leads to a variety of feasible and diverse alternatives, which are hybrid solutions of originally considered alternatives that combine their best features, and where for each alternative an understanding of its implementation exists.

...
Wikipedia