Decision Making in Systems Engineering and Management, 3rd Edition

Chapter 6Value Modeling

When values are clear, decisions are easy.

—John Spence, Executive Coach

6.1 INTRODUCTION

In all system engineering and systems decision support projects, there are many options available for modeling the benefits that stakeholders hope to achieve with new or revised systems. Most commonly, this is done under a return‐on‐investment (ROI) notion using utility or value return constructs. The quantitative dimension of the systems decision process (SDP) takes a value return approach based on soliciting accurate representations of stakeholder values.

Value modeling explicitly recognizes that measures alone are insufficient for making systems decisions because while they may be accurate, stakeholders must individually translate the various measure level results into their value context while recognizing biases and applying priorities. This complicates decisions, especially when consensus or a balance of conflicting priorities is needed. The value modeling approach adopted for the SDP accommodates these considerations as part of decision support. Three other considerations further support taking a value modeling approach:

• Values differ among stakeholders for a system of interest. Consequently, while stakeholders from one organization may have common values, this may not be the case when the stakeholder pool is expanded to include multiple vested interests.
• Anticipated value return levels justify (or not) costs in the minds of stakeholders, more so when ...