Portfolio Decision Quality

Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 162)

Abstract

The decision quality framework has been useful for integrating decision analytic techniques into decision processes in a way that adds value. This framework extends to the specific context of portfolio decisions, where decision quality is determined at both the project level and the portfolio level, as well as in the interaction between these two levels. A common heuristic says that the perfect amount of decision quality is the level at which the additional cost of improving an aspect of the decision is equal to the additional value of that improvement. A review of several models that simulate portfolio decision-making approaches illustrates how this value added depends on characteristics of the portfolio decisions, as does the cost of the approaches.

Keywords

Marketing Coherence Assure Celona 

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Management Science and Information Systems Department, College of ManagementUniversity of Massachusetts BostonBostonUSA

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