When
a group or multiple individuals get together to make choices or decisions by
reaching a consensus on an issue or a set goal, it is referred to as a group
decision-making process. There are various methods of group decision-making
with their own advantages and disadvantages. Examples of group decision-making
methods include the Delphi method, the majority vote, brainstorming, Pareto
analysis, nominal group technique, and consensus decision-making.
The
Delphi method
The
Delphi method was developed by the RAND corporation in the 1950s and is known
for its structured and iterative group decision-making technique. The Delphi
method is designed for making consensus decisions or forecasting future
outcomes and is often characterized by anonymity. It uses a systematic
technique to collect and aggregate input from a panel of experts or
stakeholders. The Delphi method involves the selection of experts and
individuals from diverse backgrounds with relevant knowledge and expertise in
the selected subject matter, the development of questionnaire responses, and
feedback compilation (Brady, 2015). The iterative process of this method means
that selected members of the panel or experts receive feedback on the initial
round of decision-making at the same time as new questionnaires are
administered to them (Sieh,
2020). They are allowed to review and revise their initial opinions
based on the feedback. This is done over several rounds with the aim of
achieving a consensus.
Pareto
Analysis of group decision-making method
This
is another type of group decision-making method known as the 80/20 rule. The
Pareto principle is a decision-making and problem-solving technique that
emphasizes identifying and focusing on the most significant factors or causes
that lead to a particular outcome or problem.
Comparing
and contrasting the Delphi and the Pareto Analysis Method.
Method:
The Delphi method: It is an iterative process during which inputs from a
panel of experts or professionals are aggregated through a series of
questionnaires or surveys. The responses are aggregated and shared with the
group, and the process continues until a consensus is reached or a deeper
understanding of the issue is achieved.
Pareto analysis is a quantitative approach that involves identifying and
prioritizing the most significant factors or causes contributing to a problem
or decision. It relies on data analysis and ranking.
Purpose:
The Delphi method: Its primary purpose is harnessing a group's collective
expertise and diverse viewpoints to make predictions about uncertain or complex
issues.
Pareto analysis: Its purpose is to allocate resources effectively by
focusing on the factors that have the most substantial impact on a problem and
the decision arrived at.
Application:
The Delphi method is commonly used in forecasting, policy development,
technology assessment, and strategic decision-making. It is particularly
valuable when dealing with uncertain or poorly understood problems, while Pareto
analysis is often used in quality control, resource allocation, project
management, and process improvement (Anysz et al., 2021). It is suitable for
situations where there are numerous contributing factors and resources need to
be allocated efficiently.
Comparison:
Focus on Factors: Both methods aim to identify and
focus on critical factors, but they do so in different ways. The Delphi method
focuses on achieving consensus among experts, while Pareto analysis identifies
factors based on quantitative analysis.
Anonymity: Anonymity is a
prominent feature of the Delphi method but is not typically a factor in Pareto
analysis.
Iterations: The Delphi method
involves multiple iterations to reach a consensus or a deeper understanding of
the issue, whereas Pareto analysis is a one-time quantitative analysis.
Complexity: The Delphi method
is suitable for complex, uncertain, or ambiguous problems where expert opinions
are valuable. Pareto analysis is effective for situations with many
contributing factors where resource allocation is a concern.
References
Anysz, H., Nicał, A., Stević, Ž., Grzegorzewski, M., & Sikora, K.
(2021). Pareto Optimal Decisions in Multi-Criteria Decision Making Explained
with Construction Cost Cases. Symmetry, 13(1), 46. https://www.mdpi.com/2073-8994/13/1/46.
Brady, S. R. (2015). Utilizing and Adapting the Delphi
Method for Use in Qualitative Research. International Journal of Qualitative
Methods, 14(5). https://doi.org/10.1177/1609406915621381
Sieh, C. J., Fifić, M. & Yang, C. T. (2020). A new measure of group decision-making
efficiency. Cogn. Research 5, 45 (2020). https://doi.org/10.1186/s41235-020-00244-3
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