Putting the Characteristics Together

Each of the three characteristics of a business decision that contribute to its business value evaluates a
different aspect of the corresponding Decision Model. Whereas assessing each of these characteristics
individually provides insight into the cost and value of one aspect of the Decision Model, putting them
altogether conveys a holistic view of the worth of the Decision Model to the business.

In this regard, Figure 3.4 depicts the interplay among the three major categorization schemes.

The horizontal axis represents the operative context, from Unordered on the extreme left to Ordered on
the extreme right, divided into the Cynefin Framework gradations of Chaotic, Complex, Complicated,
and Simple.

The left portion of Figure 3.4 represents business decisions that operate in the unordered context and
are primarily pattern based. The right portion of the figure represents business decisions in the ordered
context that are primarily fact based.

The vertical axis of the graph demonstrates the volume-based economic impact as discussed by Taylor
and Raden. Because the axis represents two values that are inverses of each other, Figure 3.4 represents
them by a split bar. The split bar on the right indicates the relative frequency of business decisions
where the frequency rises from top to bottom. The split bar on the left represents the economic value of
each business decision that rises from top to bottom. Therefore, the business decisions higher on the
vertical axis occur in the most volume and have the lowest individual economic impact. Conversely, the
business decisions lower on the vertical axis occur in the least volume and have the highest individual
economic impact.

Each bubble represents a “business decision type.” A “business decision type” is simply a named set of
business decisions guiding a specific business activity. For example, the business decision type named
Operational Transactions represents all business decisions that come to conclusions during the
execution of daily business transactions. Another example is the business decision type named Crisis
Management, which represents all business decisions that come to conclusions during emergency
business situations. The business decision types in the diagram are broad in nature and illustrative only.
Obviously, there are unique business decision types with corresponding positions on the grid for
different industries and different organizations.

Also, Figure 3.4 arbitrarily divides the business decision types among strategic, midlevel, and operational
management levels.

The size of the bubble is indicative of the business logic complexity of its business decision. Figure 3.4
shows all business decisions types as the same relative size, indicating that the business logic behind
each is roughly equivalent in complexity. By representing business logic complexity as the relative size of
the bubble, such a diagram becomes useful in comparing the level of effort required for different
business decisions in different areas of the enterprise.
The business decisions ideally suited for complete coverage in a Decision Model are those that operate
in the simple or complicated domain, hence are fact based, and provide guidance in business processes.
These are the business decisions on the right side of the diagram. Their corresponding Decision Models
are useful for documenting, sharing, measuring, and managing changes in such business decisions.

On the left of the graph are decisions that arise from unforeseen events or complex changes in the
business. The usefulness of corresponding Decision Models is to reduce complexity and invent decision
solutions in unordered environments.