Category: publications-research

  • Applying Decision Analysis to Diverse Domains: An Introduction to the Special Issue

    Applying Decision Analysis to Diverse Domains: An Introduction to the Special Issue

    Decision analysis (DA) is one of the key tools in operations research (OR). DA is particularly effective at mapping the real world to the model representation to enable the application of formal analysis. DA is a flexible modeling paradigm that has existed since the 1960 s, based on statistical decision theory, elements of utility from economics, probability theory, dynamic programming, and stochastic programming. It aims to identify an optimal course of action for decision problems with uncertainties that affect outcomes and values. Optimal here means expected-utility maximizing, which decision theory shows to be equivalent to following axioms of rationality given a set of beliefs.

    DA articles have appeared with some regularity in Interfaces (the predecessor to INFORMS Journal on Applied Analytics (IJAA)), with early applications focusing on policy and later ones on research and development in consumer products, pharmaceuticals, and oil and gas, quite naturally because these applications have distinct decision points when investments are continued or cut off (which is the meaning of the Latin root decidere). A 1992 special issue of Interfaces, “Decision and Risk Analysis,” highlighted applications that used rich representations of decision problems, such as influence diagrams as an abstraction of the decision tree, strategy tables to define complex alternatives, and practical techniques involving value-focused thinking and value hierarchies to implement multiattribute utility theory.

    All these developments help capture the knowledge and concerns of problem owners through model specification and judgment elicitation. In addition, DA models often interface with or subsume separate sophisticated technical or financial models. And DA representations aid in communicating the implications of models via, for example, tornado charts, portfolio diagrams, cumulative distributions, and risk profiles.

    In recent years, DA has added sophisticated computational abilities. Although to this day many DA applications ultimately reduce to decision tree calculations or the equivalent, software has improved to include modular graphical development that interfaces with spreadsheets and programming environments such as R and Python. Theory connected to DA also continues to advance, for example, group decision theory and extensions of utility theory to multiparty situations in which considerations such as equity are important. There is a substantial amount of adjacent computerintensive work on Bayes nets, machine learning, and inference. The science of elicitation has grown exponentially, ranging from increased understanding of judgmental biases, wisdom of crowds, and other ways to combine judgments of multiple experts to increased mathematical and computational sophistication, most recently advancing with copulas to represent correlations of different natures between variables. As seen in this issue, DA is increasingly well linked with other OR techniques, such as math programming for portfolio DA, leading to innovations in scholarship and practice. Thus, DA is an exciting field of interest to IJAA readers on its own merits but also as a field that can add value to other areas of OR.

    Saurabh Bansal, Jeffrey M. Keisler, Johannes U. Siebert, Karen E. Jenni (2023) Applying Decision Analysis to Diverse Domains: An Introduction to the Special Issue. INFORMS Journal on Applied Analytics 53(3):173-177. https://doi.org/10.1287/inte.2023.1163

  • Defining and Aligning Supply Chain Objectives Before, During, and After the COVID-19 Pandemic 3

    Defining and Aligning Supply Chain Objectives Before, During, and After the COVID-19 Pandemic 3

    In order to deal with the COVID-19 pandemic, many companies face numerous strategic decisions of utmost importance for their future. Being aware of one‘s objectives is a prerequisite for sound decision making. However, decision and policymakers are often not aware of their objectives when facing important decisions in “normal” times. In addition, specific objectives have to be identified in times of crisis such as theCOVID-19 pandemic.

    In this article, we provide guidelines for managers that illustrate the following. (i) How to identify company objectives? (ii) How to align them within their supply chains and with governmental objectives of policy makers? (iii) How to adjust objectives during and after theCOVID-19 pandemic? Furthermore, we suggest comprehensive sets of relevant objectives and propose an iterative process to define, align, and adjust objectives.

    The study may help practitioners from business and public administration when making decisions and policies. Researchers may be inspired by the outlined viewpoints on decision-making processes and the addressed perspectives for future research.

    Siebert, Johannes U.; Brandenburg, Markus; Siebert, Jana. “Defining and aligning supply chain objectives before, during and after the COVID-19 pandemic”, IEEE Engineering Management Review, 48(4), 2020, 72-85, doi: 10.1109/EMR.2020.3032369

  • Comparative Analysis of Terrorists’ Objectives Hierarchies

    Comparative Analysis of Terrorists’ Objectives Hierarchies

    To develop effective counterterrorism strategies, it is important to understand the capabilities and objectives of terrorist groups. Much of the understanding of these groups comes from intelligence collection and analysis of their capabilities. In contrast, the objectives of terrorists are less well understood. In this article, we describe a decision analysis methodology to identify and structure the objectives of terrorists based on the statements and writings of their leaders. This methodology was applied in three case studies, resulting in the three objectives hierarchies of al-Qaeda, Islamic State of Iraq and the Levant (ISIL), and Hezbollah. In this article, we propose a method to compare the three objectives hierarchies, highlight their key differences, and draw conclusions about effective counterterrorism strategies. We find that all three terrorist groups have a wide range of objectives going far beyond the objective of killing and terrorizing people in the non-Muslim world. Among the shared objectives are destroying Israel and expelling Western powers from the Middle East. All three groups share the ambition to become a leader in the Islamic world. Key distinctions are the territorial ambitions of ISIL and Hezbollah versus the large-scale attack objectives of al-Qaeda. Objectives specific to ISIL are the establishment of a caliphate in Iraq and Syria and the re-creation of the power of Sunni Islam. Hezbollah has unique objectives related to the establishment of a Palestine State and to maintain the relationship with and support of Iran and Syria. Al-Qaeda’s objectives remain focused on large-scale attacks in the West. We also note a recent shift to provide support for small-scale attacks in the West by both al-Qaeda and ISIL. Our method can be used for comparing objectives hierarchies of different organizations as well as for comparing objectives hierarchies over time of one organization.

    Veröffentlichung

    Siebert, Johannes U.; von Winterfeldt, Detlof. „Comparative Analysis of Terrorists’ Objectives Hierarchies“, Decision Analysis (INFORMS) June 2020, 17(2), 97-114, https://doi.org/10.1287/deca.2019.0400

  • Effects of Proactive Decision Making On Life Satisfaction

    Effects of Proactive Decision Making On Life Satisfaction

    Veröffentlichung

    Siebert, Johannes U.; Kunz, Reinhard, Rolf, Philipp. “Effects of Proactive Decision Making on Life Satisfaction”, European Journal of Operational Research, 280(1) 2020, 1171-1187,  doi.org/10.1016/j.ejor.2019.08.0111)

    Proactive decision making, a concept recently introduced to behavioural operational research and decision analysis, addresses effective decision making during its phase of generating alternatives. It is measured on a scale comprising six dimensions grouped into two categories: proactive personality traits and proactive cognitive skills. Personality traits are grounded on such theoretical constructs as a proactive attitude and proactive behaviour; cognitive skills reflect value-focused thinking and decision quality. These traits and skills have been used to explain decision satisfaction, although their antecedents and other consequences have not yet been the subject of rigorous hypotheses and testing.

    This paper embeds proactive decision making within a model of three possible consequences. We consider—and empirically test—decision satisfaction, general self-efficacy, and life satisfaction by conducting three studies with 1,300 participants. We then apply structural equation modelling to show that proactive decision making helps account for life satisfaction, an explanation mediated by general self-efficacy and decision satisfaction. Thus proactive decision making fosters greater belief in one’s abilities and increases satisfaction with one’s decisions and with life more generally. These results imply that it is worthwhile to help individuals enhance their decision-making proactivity.

    Demonstrating the positive effects of proactive decision making at the individual level underscores how important is the phase of generating alternatives, and it also highlights the merit of employing “decision quality” principles and being proactive during that phase. Hence the findings presented here confirm the relevance of OR, and of decision-analytic principles, to the lives of ordinary people.

  • Can Novices Create Alternatives of The Same Quality as Experts?

    Can Novices Create Alternatives of The Same Quality as Experts?

    Veröffentlichung

    Siebert, Johannes U. “Can Novices Create Alternatives of the Same Quality as Experts?”, Decision Analysis (INFORMS) 2016, 13(4), 278-291, https://doi.org/10.1287/deca.2016.0339

    The quality of alternatives is crucial for making good decisions. The process of generating high-quality alternatives can be enhanced by using decision makers’ objectives as prompts. This paper examines empirically the impact and interrelation of experience and the prompting with objectives on decision makers’ ability to create alternatives for an important decision. The study confirms with high significance that both experience and prompting with objectives enhance the quality of alternatives. We are able to show that all participants, irrespective of their experience, enhance the quality of their alternatives when they are prompted with objectives; i.e., the relationship between being prompted with objectives and the quality of alternatives is not moderated by experience. In contrast to gaining experience, prompting a participant with objectives can be utilized immediately without a long learning phase and is able to substitute for experience in certain decision contexts. Furthermore, we analyze how prompting with objectives affects the creation of alternatives. We find evidence that the relation between being prompted with objectives and the quality of alternatives is partially mediated by the number of objectives considered while creating alternatives.

  • A Media-Specific Balanced Scorecard Based on Value-Focused Thinking

    A Media-Specific Balanced Scorecard Based on Value-Focused Thinking

    Veröffentlichung

    Kunz, Reinhard; Siebert, Johannes U.; Mütterlein, Joschka. „A Media-Specific Balanced Scorecard Based on Value-Focused Thinking“, Journal of Media Business Studies, 13(4), 2016, 257-275. http://www.tandfonline.com/doi/full/10.1080/16522354.2016.1220114

    Objectives are fundamental to strategic management. However, while research exists on objectives of media companies, we know little about the relationships between them. In order to advance research in this field, we used value-focused thinking to investigate the objectives of a media company and the balanced scorecard as a framework to demonstrate their relationships.

    In interviews with 23 managers and employees of a German medium-sized local newspaper company, we found 698 distinct objectives and 1009 relationships. By concentrating on the most important objectives, we derived a balanced scorecard with 33 objectives and 65 relationships organised in seven perspectives. The results were then validated in a second case study on a Czech national media group.

  • Combining Value‐Focused Thinking and Balanced Scorecard to Improve Decision‐Making in Strategic Management

    Combining Value‐Focused Thinking and Balanced Scorecard to Improve Decision‐Making in Strategic Management

    Veröffentlichung

    Kunz, Reinhard; Siebert, Johannes U.; Mütterlein. “Combining Value-Focused Thinking and Balanced Scorecard to Improve Decision-Making in Strategic Management”, Journal of Multi-Criteria Decision Analysis, September-December, 2016, 225-241DOI: 10.1002/mcda.1572

    Goal orientation is key to strategic management. In this field, the Balanced Scorecard is one of the most widely used management tools. It structures a company’s main objectives from different perspectives based on the strategy of the firm and uses performance indicators to measure the achievement of objectives and strategy. However, its method of creation is not theoretically sound. Value‐focused thinking is a decision‐making philosophy that fits perfectly with Balanced Scorecard creation. It provides methods and techniques for the identification and structuring of objectives that are suitable to systematically derive a scorecard from a means‐ends network. However, such a means‐ends network is often too complex for enduring use in strategic management. By adapting the network’s structure to the Balanced Scorecard’s layout, the profound and clear set of derived objectives and their measures serve as a reasonable basis for applying methods of multi‐criteria decision‐making in an organization.

    This paper aimed to outline a procedure that merges the Balanced Scorecard and value‐focused thinking by preserving each concept’s strengths while eliminating their weaknesses. A six‐step process was developed theoretically and employed empirically in a case study. This process included (1) identifying objectives; (2) structuring objectives; (3) characterizing clusters of objectives; (4) formulating mission, vision, and strategy; (5) designing the scorecard; and (6) monitoring and adapting to change. On the basis of this approach, a Management Scorecard was produced that enabled strategy development and execution, put forth a clear and comprehensive means‐ends network, and visualized a company’s most important objectives and their relationships structured through perspectives roughly following the Balanced Scorecard. It acts as a foundation for research to generalize and compare findings regarding goals of organizations. Our procedure demonstrates how scientific methods, such as value‐focused thinking, can yield benefits to practitioners’ instruments, like the Balanced Scorecard, and how management tools can likewise improve scientific methods.

    a

  • Developing and Validating the Multidimensional Proactive Decision-Making Scale

    Developing and Validating the Multidimensional Proactive Decision-Making Scale

    Veröffentlichung

    Siebert, Johannes U.; Kunz, Reinhard. “Developing and Validating the Multidimensional Proactive Decision-Making Scale”. Special Issue „Behavioral Operations Research“ in European Journal of Operational Research, 249(3) 2016, 864-877.dx.doi.org/10.1016/j.ejor.2015.06.066

    On the basis of an extensive interdisciplinary literature review proactive decision-making (PDM) is conceptualised as a multidimensional concept. We conduct five studies with over 4,000 participants from various countries for developing and validating a theoretically consistent and psychometrically sound scale of PDM.

    The PDM concept is developed and appropriate items are derived from literature. Six dimensions are conceptualised: the four proactive cognitive skills ‘systematic identification of objectives’, ‘systematic search for information’, ‘systematic identification of alternatives’, and ‘using a ‘decision radar’’, and the two proactive personality traits ‘showing initiative’ and ‘striving for improvement’. Using principal component factor analysis and subsequent item analysis as well as confirmatory factor analysis, six conceptually distinct dimensional factors are identified and tested acceptably reliable and valid.

    Our results are remarkably similar for individuals who are decision-makers, decision analysts, both or none of both with different levels of experience. There is strong evidence that individuals with high scores in a PDM factor, e.g. proactive cognitive skills or personality traits, show a significantly higher decision satisfaction. Thus, the PDM scale can be used in future research to analyse other concepts. Furthermore, the scale can be applied, e.g. by staff teams to work on OR problems effectively or to inform a decision analyst about the decision behaviour in an organisation.

  • Identifying and Structuring the Objectives of the Islamic State of Iraq and The Levant (Isil) and its Followers

    Identifying and Structuring the Objectives of the Islamic State of Iraq and The Levant (Isil) and its Followers

    Veröffentlichung

    Siebert, Johannes U.; von Winterfeldt, Detlof; John, Richard. “Identifying and Structuring the Objectives of the “Islamic State of Iraq and the Levant” (ISIL) and its Followers.” Decision Analysis (INFORMS), 2016, 13(1), 26-50, dx.doi.org/10.1287/deca.2015.0324

    This study addressed three questions: 1. What are the objectives of the leaders of ISIL? 2. What are the objectives of the followers of ISIL? 3. How are the two sets of objectives related? To answer these questions we analyzed the transcripts of interviews and presentations of 59 subject matter experts (SMEs) and conducted a separate analysis of speeches of ISIL leaders and selected Internet sources. In both efforts we identified and structured the strategic, fundamental, and means objectives of ISIL and its followers.

    The results indicate that ISIL’s leaders pursue four strategic objectives: Establish a Caliphate in Iraq and the Levant, Control and Govern the Caliphate, Expand Islam and Sharia Law Worldwide, and Recreate the Power and Glory of (Sunni) Islam. The followers’ objectives can be partitioned into three strategic objectives: Humanitarian Fulfillment, Religious Fulfillment and Personal Fulfillment.

    The objectives identified from the SME interviews were similar to those identified from ISIL leaders’ statements and the Internet. However, the Internet search revealed many more personal objectives of ISIL followers. The results further indicate that ISIL’s leadership objectives are closely aligned with those of its followers. There also is a sharp contrast between the objectives of ISIL and those of Al Qaeda, particularly ISIL’s emphasis on occupying and controlling territories in Iraq and Syria vs. Al Qaeda’s focus on worldwide jihad.

  • Creating More and Better Alternatives for Decisions Using Objectives

    Creating More and Better Alternatives for Decisions Using Objectives

    Veröffentlichung

    Siebert, Johannes U.; Keeney, Ralph L. “Creating More and Better Alternatives for Decisions Using Objectives”. Operations Research, September/October 2015, 63(5), 1144-1158. dx.doi.org/10.1287/opre.2015.1411

    The quality of alternatives is crucial for making good decisions. This research, based on five empirical studies of important personally relevant decisions, examines the ability of decision makers to create alternatives for their important decisions and the effectiveness of different stimuli for improving this ability. For decisions for which the full set of potentially desirable alternatives is not readily apparent, our first study indicates that decision makers identify less than half of their alternatives and that the average quality of the overlooked alternatives is the same as those identified. Four other studies provide insight about how to use objectives to stimulate the alternative-creation process of decision makers and confirm with high significance that such use enhances both the number and quality of created alternatives. Using results of the studies, practical guidelines to create alternatives for important decisions are presented.