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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