The Value Rating methodology produces a special kind of composite measure. It is adaptable to a wide range of organizational, industrial, and individual decision situations.
What makes the Value Rating so powerful? It deftly untangles your preferences across different attributes that need not be on par with one another.
Personalization is Essential
Suppose, for example, you are evaluating hospitals. Lower death rates would strike most people as dominant when compared with patients’ general recommendations for a particular hospital. Nonetheless, patient recommendations may very well deserve a role in influencing one’s choice. Although these attributes lack parity, the Value Rating methodology can include both, adjusting their influences — as it matters to you.
Or, consider what matters to you when buying a house:
What importance do you assign to bedroom count compared to overall square footage or finish quality? Value Ratings properly standardize and weight the alternatives into a single number, personalized to your preferences:
The Value Ratings offer more than just rankings
Viewed through the lens of your Preference Profile, this complex decision is much simpler. We see that Property E and Property B are strong leaders, followed by Property A in a somewhat distant third place. Moreover, we can compare the best and worst Value Ratings to understand that there is a more than two-fold difference between these available choices.
It’s important to emphasize that results are personalized for you. Value Ratings for other people will differ because they have different preferences.
Moreover, the units of measurement among attributes are free to vary. Whatever the application — miles per gallon, sticker price, cabin decibels, etc. The methodology standardizes data like these, an essential step in constructing a composite measure.
And for highly sensitive decisions, Value Ratings have an additional property: they signal the Evidence Strength associated with each option you face. You can read more about Evidence Strength here.