[Impact Roadmap] Decision-Making Tools

By Aaron Boddy🔸 @ 2023-07-05T10:47 (+19)

This post is intended to outline useful Decision-Making Tools you'll likely refer to many times throughout the Roadmap.

There is a separate post on Creative-Thinking Tools.

Additionally, a lot of this is based on the work of Charity Entrepreneurship - an overview can be found at this EAG talk by Joey Savoie, or a deeper dive can be found in the Charity Entrepreneurship Handbook - How to Launch a High-Impact Nonprofit.

This also just seems like an opportune place to recommend applying to the Incubation Program if you're interested in this kind of stuff :)

Meta tools

Multi-Factor Decision-Making

I want to highlight that this tool in particular will likely be used significantly throughout the Roadmap.

Creating a set of criteria, assigning weightings for each, and then going through multiple options to generate a score to help you assess the best options. This enables you to combine a large number of factors into a single score, and be transparent about your reasoning. Often created in a spreadsheet.

Rationality

Using the tools of rationality to make decisions more effective, such as understanding biases, bayesian reasoning, and epistemic modesty.

Scientific Method

Understanding the relative strengths of different types of evidence when reviewing the literature, as well as concepts such as randomisation and falsification if you need to undertake primary scientific research.

Effective Altruism

Using the insights gleaned from the EA community (themselves often derived from Economics and Philosophy) to improve your decisions.

Independent Experts

Try to distinguish good advice from bad advice, then try to apply the good advice

Task Planning

The ability to prioritise and focus on high-impact tasksdeep workmaintaining healthy habits etc.

Problem-Solving

Long-term Planning

Being able to generate an overall goal, while also knowing what level of detail you should plan ahead (i.e. a month-to-month plan should be more detailed than a one-year plan, which in turn should be more detailed than a five-year plan).

You will achieve less than you expect in 1 year and more than you expect in 5 years

Cost-Effectiveness Analysis (CEA)

A Cost-Effectiveness Analysis (CEA) is basically a calculation aimed at creating a single number representing a benefit (such as a health metric, like DALYs or Lives Saved) for a given cost (normally some currency). E.g. “the result of the CEA showed a life could be saved for “$5,000”.

You’ll likely want to start with a spreadsheet tool like Google Sheets (a tool like Guesstimate can be used for complex CEAs you may develop in future, in particular for CEAs with high levels of uncertainty). The design of your CEA will likely split up each broad idea within your CEA into its own sheet:

To keep your CEAs consistent with others (like GiveWell’s) you’ll likely want to use similar formatting, such as colour-coding cells based on data type:

Bear in mind that there is diversity among existing CEAs. Charity Entrepreneurship suggests that there are the following levels:

Finally, it’s worth remembering that the CEA is a map, not the territory. It’s likely to be imperfect and/or missing key data. Whilst it’s often a very useful tool, there are shortcomings, and it should be one tool among a few to help you make decisions.

[More details on developing a Cost-Effectiveness Analysis can be found in chapter 14 of the Charity Entrepreneurship Handbook - “How to Launch a High-Impact Nonprofit” (and also likely elsewhere…), additionally it’s worth referring to this list of ways in which cost-effectiveness estimates can be misleading, it’s a useful checklist to assess if important considerations haven’t been missed).]

Monitoring, Evaluation, and Learning (MEL)

Monitoring refers to the routine monitoring of project resources, activities, and results, and analysis of the information to guide project implementation.

Evaluation refers to the periodic assessments and analysis of ongoing or completed projects

Learning is the process through which information generated from M&E is reflected upon and intentionally used to continuously improve a project’s ability to achieve results

It’s worth noting here that MEL systems often don’t get it right the first time, rather they evolve over time, based on internal learning (and external accountability).

Monitoring

A good place to start with Monitoring is a Logframe. A Logframe essentially takes your Theory of Change (or a Programme Theory) and transforms it into a table, allowing you to inspect each step, and pull out the data that can be used to verify that the change is taking place. You take each step (Objective) and then explicitly state what you’re going to track (Indicators/Metrics), how you’ll verify and store the data related to this tracking (Sources of Verification), and finally any risks, assumptions or externalities within this step, that may result in no impact, even if the Objective is achieved (Threats). While your final Monitoring system may end up outgrowing the Logframe, this is a great place to start.

[The CART Principles are a useful methodology for Monitoring - and are summarised in the Programme Development Methodologies Appendix.]

Evaluation

Evaluation is most useful when scheduled as a periodic appraisal. In particular, it’s useful to specify ahead of time what actions should be taken based on findings, with an organisational commitment (and resources) to do so. Such as:

[The Network on Development Evaluation (EvalNet) criteria are a useful methodology for Evaluation - and are summarised in the Programme Development Methodologies Appendix.]

Learning

Your Monitoring systems and Evaluation appraisals provide an opportunity for reflection and continuous improvement.

For example at a Project level:

And at an Organisational level:

To facilitate this Learning, you might: