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Trade-Off
A form of decision making in which a balance is achieved between two desirable but incompatible features; a compromise.

A trade-off is considered appropriate if the organization understands where it is has made compromises and those compromises are in alignment with the organization’s objectives.




Methods



Types of trades
Trade-offs always occur when trying to balance/optimize between the following:

       Group A trade-offs
  • The triple-net bottom line of  people (P), planet (P) and profit (P)
  • The decision making criteria of risk (R), cost (C) and performance (P)
      Group B Trade-offs - Cultural

Functional silos will defeat the organization. Rather, integration, collaboration and alignment are some of the critical success factors.
Fig. Functional silos will defeat the organization. Instead: integration, collaboration and alignment are some of the critical success factors.


The principles of ISO 55001 help to ensure that optimization is achieved through mindful balance and measured trade-offs between decision-making criteria
Fig. The principles of ISO 55001 help to ensure that optimization is achieved through mindful balance and measured trade-offs between decision-making criteria.


Subjectivity and bias always play a role when people are involved in decision-making
Fig. Subjectivity and bias always play a role when people are involved in decision-making around risk, cost and performance.


Comparing the Maintenance-Repair-Renewal (MRR) trade-offs at different organizations.
Fig. Comparing the Maintenance-Repair-Renewal (MRR) trade-offs at different organizations.


Alignment across different decision-making criteria (such as risk, cost and performance) is required for ISO 55000 conformity
Fig. Alignment across different decision-making criteria (such as risk, cost and performance) is required for ISO 55000 conformity.


Making inevitable trade-offs and finding consensus with different stakeholder groups
Fig. Making inevitable trade-offs and finding consensus with different stakeholder groups.



See also:
  • m


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