DEFINE
AND REFINE
CRITERIA
2014 v1.0
DEFINE
DECISION
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Purpose of Define Decision
Prepare for the decision and
socialize the process
Build the foundational elements of
the model
Preparation in a facilitated process
Participate
using brainstorm, cluster, define,
and refine steps to develop criteria
hierarchy
Preparation
Develop Rating Scales for the criteria
Add Alternatives and Participants to the model
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Preparation Inputs
Pre-modeling work includes gathering as much
information as possible about the decision
What specifically is the decision goal?
 Annual budget, multi-year planning, source selection
Are there any assumptions to document?
 Limiting scope to a subset of the portfolio, time to complete
decision
Is this a new or different approach?
 Buy-in challenges to overcome, additional meetings or demos
needed to support buy-in
Who are all the key players?
 Leadership, subject matter experts, others
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Preparation Inputs cont.
How and when will leadership be brought into the
decision?
 Does leadership have a vote or serve as final approvers only?
What are the choices or alternatives that we are
evaluating?
 Projects, investments, strategies, etc. under consideration
What strategic imperatives will affect the decision?
 Are they documented or will they be developed new?
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Define Decision: Identity Criteria
Define
Identify
Criteria
Build
Ratings
Scales
Identify
Alternatives
Identify
Participants
1. Brainstorm
2. Cluster
3. Define
4. Refine
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Building Your Decision Model Criteria Tree
A structured four step process of criteria development
works well
1. Brainstorm – Develop ideas for criteria
2. Cluster – Build hierarchy by grouping like criteria
3. Define – Describe the meaning of each criterion
4. Refine – Finalize criteria structure and definitions
Criteria are the driving factors used to define success
for a specific decision, represent either a broad goal or
specific objective against which an alternative is
evaluated, and are specific to the decision goal
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Define Criteria
Definitions are critical for consistently and effectively
weighing the criteria’s importance. In a home model,
what defines relaxation features? What do we mean by
increased entertainment? What are modern amenities?
Can you differentiate between your criteria? Do the
definitions sound very similar?
Begin with “This criterion will be used to assess…”
Example for Increased Entertainment
 This criterion will be used to assess how the home remodeling
project increases the entertainment value of the home as a
whole.
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Define Criteria
1
Select the criterion you want to
define, click on the
to enter the
definition
2
Define the criterion in the box using
specific terminology and explanatory
adjectives. Click SAVE
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Refine Criteria
While dependencies may exist, criteria should be as
mutually exclusive, collectively exhaustive (MECE) as
possible
Stay within 2 – 3 tiers and keep it simple!
The ideal number of criteria at the highest level is 7
Human Cognitive
Capacity
Magic number
of
seven plus or
minus two
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Refine Criteria
Are there any parent criteria that should have children
that currently don’t?
 High priority criteria with multiple attributes
 Reporting requirements (i.e., which investment supports which
compliance requirement vs. whether an investment supports
compliance)
Are there any overlapping criteria that could be
combined? Can you clearly explain the differences?
Are all criteria differentiators or would all investments
rate the same for a particular criterion?
Can you get data about each criterion for the alternatives
you will evaluate?
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Best Practices for Criteria Development
Brainstorm with a few key players and SMEs to create a
strawman proposal (don’t start with too many cooks in the kitchen)
Let the broader set of stakeholders throw darts at the
strawman
 What’s missing? What is duplicative? What is unclear in the
definitions?
Conduct either a top down or a bottom up approach
 Top down – begin with objectives and drivers
 Bottom up - pick two different alternatives and list pros and cons;
important differentiators, are likely factors to consider for all
alternatives
Ensure that all voters have a chance to provide feedback
prior to Collecting Priorities – buy-in is best achieved when
stakeholders feel “vested” in the model
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Best Practices for Criteria Development cont.
Keep it simple! Criteria hierarchies should not be an
exhaustive list
Criteria development is more of an art than a science
– there are no concrete right or wrong answers
Criteria can be action oriented, but remember to keep
criteria and solutions (alternatives) separate
Verify that you can get data to support the criteria in
your model – if not, evaluate suitability of the criteria
Cost is not necessarily a criterion
 It may be a resource to allocate based on the value delivered
by the alternatives
 If used, how will you evaluate the criterion? What is
considered a “good” cost vs. a “bad” cost?
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Learn more at
DLU.decisionlens.com