This document provides an introduction and overview of Choosing By Advantages (CBA), a decision-making methodology. CBA uses specific language and steps to make transparent, anchored decisions. It involves identifying alternatives and their attributes, determining advantages between attributes, and having stakeholders assess the importance of advantages. The document demonstrates applying CBA to choose between two heating hot water system alternatives, identifying their attributes, advantages, and having stakeholders determine the total importance of each alternative's advantages. CBA aims to make decisions grounded in relevant facts and stakeholder values.

1. *Introduction to
Choosing By Advantages
Katherine Blume, PE
Southland Industries
Lean Construction Institute
kblume@southlandind.com
19 October 2012

2. * Choosing By Advantages (CBA)
A decision making system for yielding sound, reliable, transparent
grounded choices.
- Jim Suhr
- http://www.decisioninnovations.com/

3. * CBA - Purpose & Description
* A methodology for transparent decision making that consider
all factors, especially subjective and non-monetary
* Methods Decisions Actions Outcomes
* If the outcome matters, then the method matters
* CBA uses very specific language to ensure all discussion are
consistent.

4. * CBA - Application
* Strategic Planning
* Selection of subcontractor or vendors on a project
* Selecting personnel in an organization
* Value Engineering
* Selecting equipment for a project
* System selection on projects

5. * CBA - Principles
*Decisions must be anchored to the relevant facts
*Stakeholders contribute relevant subjective data
*Decisions must be based upon stakeholder values
*Decisions must be based on the importance of
advantages

6. * Building a Bridge
Question:
What is the most important consideration in a new
bridge to span the canyon?
 Aesthetics
 Economics
 Safety
 Speed of Construction
Answer:
This question cannot be answered. Items above are
factors, unrelated & unanchored. They are not
Advantages, so they cannot be compared.

7. *
Alternative – Two or more mutually exclusive people,
things, or plans from which one is to be chosen
 EX: Choose site location for new office building
Factor – Element for comparison of Alternatives
 EX: Proximity to freeways, proximity to airport,
city zoning requirements, address
 Usually many factors to consider, chosen by
Stakeholders
 Cannot compare or rank factors – unrelated to each
other, no anchoring
 Cost is not treated as a factor, but will be
addressed in the last step in the CBA process.

8. * CBA – Buying a New Car – 1
Alternatives & Evaluation Factors
New Car Alternatives
Factors A B C
1. Passengers
2. Interior
3. Hwy MPG
4. Airbags

9. *
Anchoring – All decisions, attributes, questions,
& importance must be based on (anchored to)
relevant factual data.
Acquire correct data
Organize the data correctly
Use the data correctly

10. *
Criteria – Must or Want conditions of a Factor
 EX: Want easy access to freeway, must be
located in San Jose, must be walking distance to
BART station
Attribute – Character, quantity, or quality of one
alternative
 EX: Within 1 mile of 280, 5 minute walk to BART

11. *
New Car Alternatives
Factors A B C
1.
Passengers
2. Interior
3. Hwy MPG
4. Airbags
Criteria:
1 - Want min. 6 passenger capacity 2 - Want fancy interior
3 - Must have min. 28 MPG 4 – Must have min. 4 airbags

12. *
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
C: Min. 6
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
C: Fancy
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
C: Min. 28
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
C: Min. 4

13. *
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
C: Min. 6
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
C: Fancy
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
C: Min. 28
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
C: Min. 4

14. *
Advantage – Difference between Attributes of two
Alternatives OR benefit, gain, improvement, or
betterment
EX: Quieter, more quiet, quietest
Comparative words (‐‐er or ‐‐est) OR with/without
If Advantages are equal, they are not a basis for a
decision.
An Advantage = a disadvantage
 Advantage of one Attribute is disadvantage of another
 Double counting creates error, unsound choices
Advantages → posi ve process
Disadvantages → nega ve process

15. *
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
Advantage: +1 passenger +3 passengers
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
Advantage: More appealing Appealing
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
Advantage: +6 mpg +2 mpg
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
Advantage: +2 airbags

16. *
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
Advantage: +1 passenger +3 passengers
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
Advantage: More appealing Appealing
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
Advantage: +6 mpg +2 mpg
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
Advantage: +2 airbags

17. *
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
Advantage: +1 passenger +3 passengers
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
Advantage: More appealing Appealing
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
Advantage: +6 mpg +2 mpg
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
Advantage: +2 airbags

18. * CBA Vocabulary
Alternative
Two or more people, things, or plans from
which one is to be chosen
Factor (subjective)
Element for comparison of Alternatives
Criteria (subjective)
Must or Want condition of a Factor

19. * CBA Vocabulary
Attribute (objective)
 Character, quantity, or quality of one alternative
Least Preferred Attribute (subjective)
 Stakeholder choice for each Factor
Advantage (objective)
 Difference between Attributes of two Alternatives
OR benefit, gain, improvement, or betterment
Anchoring
 All decisions, attributes, questions, & importance
must be based on (anchored to) relevant factual
data.

20. *
 Importance – Stakeholders’ subjective
comparison of Advantages across all Alternatives
& Factors
 No score for least preferred Advantages for each
Factor
 Identify one most preferred Advantage for each
Factor
 Maximum value for one “Paramount Advantage”
 Importance of the remaining Advantages is ranked
in comparison to the Paramount Advantage
 Total Importance
 Sum of Importance ratings for one Alternative
 Arithmetic is an objective process

21. * CBA – Buying a New Car – 8
Paramount Advantage Importance
(Subjective
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
Advantage: +1 passenger +3 passengers
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
Advantage: More appealing Appealing
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
Advantage: +6 mpg +2 mpg
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
Advantage: +2 airbags 100

22. * CBA – Buying a New Car – 9
Importance of Advantages (Subjective
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
Advantage: +1 passenger 30 +3 passengers 40
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
Advantage: More appealing 40 Appealing 30
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
Advantage: +6 mpg 70 +2 mpg 50
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
Advantage: +2 airbags 100
Criteria:
1 - Want min. 6 passenger capacity 2 - Want fancy interior
3 - Must have min. 28 MPG 4 – Must have min. 4 airbags

23. * CBA – Buying a New Car – 10
Total Importance (Objective)
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
Advantage: +1 passenger +3 passengers
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
Advantage: More appealing Appealing
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
Advantage: +6 mpg +2 mpg
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
Advantage: +2 airbags 100
160

24. * CBA – Buying a New Car – 11
Cost Data
New Car Alternatives
Factors A B C
1.
Passengers
Attributes: 4 passengers 5 passengers 7 passengers
Advantage: +1 passenger 30 +3 passengers 40
2. Interior Leather seats, Leather seats,
Attributes: wood trim vinyl trim Vinyl seats & trim
Advantage: More appealing 40 Appealing 30
3. Hwy MPG
Attributes: 32 mpg 26 mpg 28 mpg
Advantage: +6 mpg 70 +2 mpg 50
4. Airbags
Attributes: 4 airbags 6 airbags 4 airbags
Advantage: +2 airbags 100
Total
Importance 110 160 90
Cost $20,000 $25,000 $30,000

25. * Not CBA - Weight, Rate, Calculate
Unanchored Judgments → Unsound Decisions
Weighted
Ranks &
Review Scores
are unrelated
& unanchored

26. *CBA Steps
1. Identify the alternatives.
2. Identify the factors & assign want or need criteria to
each factor.
3. Identify the attributes for each alternative & factor.
4. Identify the least desirable attribute for each factor.
5. Determine the advantage of the remaining attributes
over the least desirable.
6. Identify the paramount advantage.
7. Rank the remaining advantages .
8. Compare alternatives based upon their advantages.

27. *CBA Recap
 Sound outcomes require sound decision making
methods
 Methods → Decisions → Ac ons → Outcome
 Decision makers must learn & use sound methods
 Decisions must be anchored to relevant factual data
 Specific Vocabulary: Alternative, Factor, Criteria,
Attribute, Advantage, Anchoring, Importance
 Decisions must be based on the importance of
advantages

28. Choosing By Advantages Study of: Heating Hot Water System
Alternative 1 Alternative 2
Central Plant Heating Hot Distributed Heating Hot
Water System Water
Factor:
Criteria: Attribute
Advantage
Factor:
Criteria: Attribute
Advantage
Factor:
Criteria: Attribute
Advantage
Factor:
Criteria: Attribute
Advantage
Factor:
Criteria: Attribute
Advantage
Factor:
Criteria: Attribute
Advantage
Total Importance 0 0
Capital Cost

29. Choosing By Advantages Study of: Heating Hot Water System
Alternative 1 Alternative 2
Central Plant Heating Hot Distributed Heating Hot
Water System Water
Factor: Square feet of Mechanical Space Required
Criteria: Attribute
Advantage
Factor: Access for Maintenance
Criteria: Attribute
Advantage
Factor: Quantity of Boilers & Standby
Criteria: Attribute
Advantage
Factor: Ability to do Boiler Stack Heat Recovery
Criteria: Attribute
Advantage
Factor: Pumping Energy
Criteria: Attribute
Advantage
Factor: Construction Schedule
Criteria: Attribute
Advantage
Total Importance 0 0
Capital Cost

30. Choosing By Advantages Study of: Heating Hot Water System
Alternative 1 Alternative 2
Central Plant Heating Hot Distributed Heating Hot
Water System Water
Factor: Square feet of Mechanical Space Required
5100 sq ft required/17
Criteria: Attribute 3200 square feet rooms
Advantage
Factor: Access for Maintenance
Criteria: Attribute Outside secure perimeter Inside secure perimeter
Advantage
Factor: Quantity of Boilers & Standby
Criteria: Attribute 3 duty plus 1 standby 20 duty +7 Standby
Advantage
Factor: Ability to do Boiler Stack Heat Recovery
10% increase in boiler
Criteria: Attribute efficeincy Not required
Advantage
Factor: Pumping Energy
More required due to long Less required due to shorter
Criteria: Attribute distribution runs piping runs
Advantage
Factor: Construction Schedule
Longer due to site Shorter - no site distribution
Criteria: Attribute distribution required
Advantage
Total Importance 0 0
Capital Cost

31. Choosing By Advantages Study of: Heating Hot Water System
Alternative 1 Alternative 2
Central Plant Heating Hot Distributed Heating Hot
Water System Water
Factor: Square feet of Mechanical Space Required
5100 sq ft required/17
Criteria: Attribute 3200 square feet rooms
Advantage 1300 Sq Ft.
Factor: Access for Maintenance
Criteria: Attribute Outside secure perimeter Inside secure perimeter
Advantage Outside rather than in
Factor: Quantity of Boilers & Standby
Criteria: Attribute 3 duty plus 1 standby 20 duty +7 Standby
Advantage Less total boilers
Factor: Ability to do Boiler Stack Heat Recovery
10% increase in boiler
Criteria: Attribute efficeincy Not required
Advantage Reduction X therms
Factor: Pumping Energy
More required due to long Less required due to shorter
Criteria: Attribute distribution runs piping runs
Advantage 500,000 KwH per year
Factor: Construction Schedule
Longer due to site Shorter - no site distribution
Criteria: Attribute distribution required
Advantage 2 weeks
Total Importance 0 0
Capital Cost

32. Choosing By Advantages Study of: Heating Hot Water System
Alternative 1 Alternative 2
Central Plant Heating Hot Distributed Heating Hot
Water System Water
Factor: Square feet of Mechanical Space Required
5100 sq ft required/17
Criteria: Attribute 3200 square feet rooms
Advantage 1300 Sq Ft. 2
Factor: Access for Maintenance
Criteria: Attribute Outside secure perimeter Inside secure perimeter
Advantage Outside rather than in 4
Factor: Quantity of Boilers & Standby
Criteria: Attribute 3 duty plus 1 standby 20 duty +7 Standby
Advantage Less total boilers 5
Factor: Ability to do Boiler Stack Heat Recovery
10% increase in boiler
Criteria: Attribute efficeincy Not required
Advantage Reduction X therms 8
Factor: Pumping Energy
More required due to long Less required due to shorter
Criteria: Attribute distribution runs piping runs
Advantage 500,000 KwH per year 10
Factor: Construction Schedule
Longer due to site Shorter - no site distribution
Criteria: Attribute distribution required
Advantage 2 weeks 1
Total Importance 19 11
Capital Cost

33. *
Alternative Apples
Factors MacIntosh Granny Smith Fuji
1. Tartness
Criteria: W-low
Attributes:
Advantage:
2. Sweetness
Criteria: W-med
Attributes:
Advantage:
3. Crispness
Criteria: M-high
Attributes:
Advantage:
Total Importance

34. * CBA Exercise 2
Vacations
You will receive free airfare and hotel at one of the
following locations:
 New York City
 Orlando, Florida
 Napa, California
 Yellowstone National Park
Choose a location.
1. As a team decide who the stakeholders are
2. Identify at least 4 factors and provide attributes for
each factor.
3. Identify the advantages and use them to determine
the location of your vacation!
4. Be creative and have fun with this!