Structuring multi-criteria portfolio analysis models

Multi-Criteria Portfolio Analysis (MCPA) models have been extensively employed as an effective means to allocate scarce resources for investment in projects or services, considering different organisational areas and balancing costs, benefits & risks. However, structuring this type of models in practice is not a trivial task. How should be areas defined? Where should new projects be included? How should one define the criteria to evaluate performance? As far as the authors are aware, there is very little indication in the literature on how to structure this kind of models. This paper suggests different approaches to structuring MCPA models and illustrates their use in two action-research projects. From these interventions it then suggests a general framework for the structuring of MCPA models in practice.

[1]  L. Alberto Franco,et al.  Problem structuring methods as intervention tools: Reflections from their use with multi-organisational teams , 2009 .

[2]  Gilberto Montibeller,et al.  Supporting the allocation of software development work in distributed teams with multi-criteria decision analysis , 2008 .

[3]  Ralph L. Keeney,et al.  Generating Objectives: Can Decision Makers Articulate What They Want? , 2008, Manag. Sci..

[4]  D. N. Kleinmuntz.  Advances in Decision Analysis: Resource Allocation Decisions , 2007 .

[5]  Carlos A. Bana e Costa,et al.  Transparent prioritisation, budgeting and resource allocation with multi-criteria decision analysis and decision conferencing , 2007, Ann. Oper. Res..

[6]  Detlof von Winterfeldt,et al.  Advances in decision analysis : from foundations to applications , 2007 .

[7]  Valerie Belton,et al.  Causal maps and the evaluation of decision options—a review , 2006, J. Oper. Res. Soc..

[8]  L. Phillips,et al.  Constructing organisational preferences: a study of within-criterion weighting , 2006 .

[9]  L. Alberto Franco,et al.  GSS for Multi-Organizational Collaboration: Reflections on Process and Content , 2005 .

[10]  Colin Eden,et al.  Analyzing cognitive maps to help structure issues or problems , 2004, Eur. J. Oper. Res..

[11]  Cathal M. Brugha,et al.  Structure of multi-criteria decision-making , 2004, J. Oper. Res. Soc..

[12]  Theodor J. Stewart,et al.  Multiple Criteria Decision Analysis , 2001 .

[13]  Hans Vrolijk,et al.  Behavioral and procedural consequences of structural variation in value trees , 2001, Eur. J. Oper. Res..

[14]  Leonardo Ensslin,et al.  Decision Support Systems in action: Integrated application in a multicriteria decision aid process , 1999, Eur. J. Oper. Res..

[15]  C Leake,et al.  Decision Analysis for Management Judgement (2nd Edn) , 1998, J. Oper. Res. Soc..

[16]  Simon French,et al.  Problem formulation for multi-criteria decision analysis: Report of a workshop , 1998 .

[17]  W. Ocasio.  Toward an attention-based view of the firm , 1998 .

[18]  Paul Goodwin,et al.  Decision Analysis for Management Judgment , 1998 .

[19]  Cathal M. Brugha.  The structure of development decision-making , 1998 .

[20]  C. Huxham.  Creating Collaborative Advantage , 1997 .

[21]  W. Ocasio.  TOWARDS AN ATTENTION-BASED VIEW OF THE FIRM , 1997 .

[22]  Valerie Belton,et al.  Integrated Support from Problem Structuring through to Alternative Evaluation Using COPE and V·I·S·A , 1997 .

[23]  T. Rickards.  Sense making in organizations , 1997 .

[24]  Chris Huxham.  Group Decision Support for Collaboration , 1996 .

[25]  K. Weick.  FROM SENSEMAKING IN ORGANIZATIONS , 2021, The New Economic Sociology.

[26]  Colin Eden.  Problem construction and the influence of OR , 1995 .

[27]  J. Dutton,et al.  SELLING ISSUES TO TOP MANAGEMENT , 1993 .

[28]  L. Phillips,et al.  Faciliated Work Groups: Theory and Practice , 1993 .

[29]  S. French.  Value‐focused thinking: A path to creative decision making, Keeney, R. L., Cambridge, MA: Harvard University Press, 1992, ISBN 0‐674‐93197‐1 , 1993 .

[30]  C. Eden.  A framework for thinking about Group Decision Support Systems (GDSS) , 1992 .

[31]  P. C. Nutt.  Formulation Tactics and the Success of Organizational Decision Making , 1992 .

[32]  S. French.  Planning under Pressure: The Strategic Choice Approach , 1988 .

[33]  D. Winterfeldt,et al.  The effects of splitting attributes on weights in multiattribute utility measurement , 1988 .

[34]  S. R. Watson,et al.  Decision Synthesis: The Principles and Practice of Decision Analysis@@@Strategic and Tactical Decisions , 1989 .

[35]  M. Jackson,et al.  New Directions in Management Science , 1987 .

[36]  Colin Eden,et al.  Problem solving or problem finishing , 1987 .

[37]  Dennis M. Buede.  Structuring Value Attributes , 1986 .

[38]  A. Donnellon,et al.  Communication, Meaning, and Organized Action. , 1986 .

[39]  Ken Bowen,et al.  Messing About in Problems. An Informal Structured Approach to their Identification and Management , 1984 .

[40]  Liam Fahey,et al.  Toward understanding strategic issue diagnosis , 1983 .

[41]  R. Volkema.  Problem Formulation in Planning and Design , 1983 .

[42]  Colin Eden,et al.  Messing about in problems: An informal structured approach to their identification and management , 1983 .

[43]  R. Graham.  PROBLEM CONSTRUCTION AND THE INFLUENCE OF O.R. , 1982 .

[44]  Marjorie A. Lyles.  Formulating strategic problems: Empirical analysis and model development , 1981 .

[45]  Marjorie A. Lyles,et al.  Organizational Problem Formulation: An Empirical Study. , 1980 .

[46]  Henry Mintzberg,et al.  The Structure of "Unstructured" Decision Processes , 1976 .

[47]  T. R. Featheringham,et al.  On systemic problem solving and the error of the third kind , 1974 .

[48]  G. A. Miller.  THE PSYCHOLOGICAL REVIEW THE MAGICAL NUMBER SEVEN, PLUS OR MINUS TWO: SOME LIMITS ON OUR CAPACITY FOR PROCESSING INFORMATION 1 , 1956 .