Robust Executive Analysis of Decision Information
The READI framework is a method for determining the uncertainty and corrective action plans for key decisions. In our approach, we do not help make decisions; rather, we inform on the uncertainty in the expected outcomes.
Rather than making key judgments based on limited data, the READI framework ensures such decisions are statistically informed on the sources of uncertainty and their degree, as well as the capability of different corrective actions in mitigation.
With the READI framework, we break new ground in executive decision-analysis as an engineering analysis activity of outcomes under uncertainty. We use Design of Experiments to understand the behavior of systems within which decisions are made and to predict the consequences of alternatives. We develop a novel protocol to debias elicited subjective responses. To do this, we consider the organization, their knowledge, data bases, and procedures as a measurement system. To evaluate its quality, we thereby use methods from Measurement System Analysis.
We report on the work in our paper Engineering Design for Decision Analysis, International Conference on Engineering Design, August 2007, Cite des Sciences et de L'Industrie, Paris, France. We report on two in situ company experiments, both a global IT services provider and an global electronics manufacturer. Results support the validity, statistical significance, and managerial efficacy of our method.