Tradeoff Table: Most things involve a tradeoff, use a framework like this to try to explain the tradeoff.
/By Duncan Anderson. To see all blogs click here.
Reading time: 5 mins
Summary: With decisions, product proposals, etc there is almost always a tradeoff. If you can’t explain the tradeoff you normally don’t think there is a tradeoff (ie have a blind spot for the tradeoff). So you think your proposal is great, when normally each proposal / idea / decision is some helpful and some harmful. I try to explain the tradeoff and if the proposal is a net step forwards OR which of the two options put forward is a net step forwards.
A framework to try to figure out the tradeoff: Building a Tradeoff Table
1. Is there a tradeoff (hint: there almost always is)?
2. How do you explain the tradeoff? Some quick suggestions:
2.1 Pick at least two alternatives (eg existing outcome + proposed new outcome, or two alternatives of what you could do)
2.2 Build a MECE’d model of the problem space
I’ve at times in the past called this a ‘100% coverage problem space model’. Other relevant links - link & link.
Oftentimes it makes sense to have more than one lens on the end problem space through which to view the tradeoffs. Eg Lens 1. Attributes of a problem space, Lens 2. Segments of the user base. At times you need 2-5x lenses on a single problem space.
2.3 Calibrate the 2+ alternatives against the problem space model in a ‘Tradeoff Table’.
Jingle: If you can’t explain the tradeoff to your team, then you might get traded off the team!
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Examples
Example 1: Generic non work example - Which restaurant to go to?
2.1 Pick at least two alternatives
Let’s say you are trying to decide between going to Restaurant A or Restaurant B.
2.2 MECE’d model of the problem space
You MECE out the following 4 ‘pieces’ (variables): deliciousness, nutritiousness, cost and distance.
2.3 Calibrate the 2+ alternatives against the problem space model in a ‘Tradeoff Table’.
How do you weight these factors and make a decision? You might do the following:
‘On Friday night I don’t worry about cost, nutritiousness or distance.’ - Duncan.
Link if you want to play with the model.
The model says go with Restaurant A
‘On Tuesday, I want a quick and nutritious lunch.' - Duncan
The model says go with Restaurant B
Possible ways to mess up figuring out the tradeoff
Possible problem 1: You leave out a factor (piece of the picture) like cost. Then your recommendation of which restaurant to go to is off.
Possible problem 2: In the discussion each person is only considering one piece (variable). E.g. Person A thinks deliciousness is all that matters and Person B thinks that nutritiousness is all that matters.
"If you just focus on the smallest details, you never get the big picture right." - Leroy Hood
Possible problem 3: you don’t weight variables.
Either everything is equally important or everything is not equally important. Normally not everything is equally important.
But more than that, some variables (pieces) can be deal breakers. I.E. not having this variable included means everything else doesn’t matter.
Possible problem 4: including a variable (piece) that doesn’t belong in the picture.
Example 2: Non generic work example - You are trying to decide on whether video or written answers are better for maths questions.
2.1 Pick at least two alternatives
Alternative 1: Video answers
Alternative 2: Written answers
2.2 MECE’d model of the problem space - how much the students understand
Lens 1: User understanding types
Segment 1: Understand the theory
Segment 2: Some conceptual understanding of the theory
Segment 3: Significant misconceptions about the theory
Lens 2: Product features
Feature 1: Understanding the worded question
Feature 2: Mathematical calculations
Feature 3: How to use a calculator
2.3 Calibrate the 2+ alternatives against the problem space model in a ‘Tradeoff Table’.
Lens 1: User understanding types
Comment:
If a student has a strong understanding of the theory then a video answer isn’t deemed as helpful as a written answer as a student doesn’t need to watch all of the video.
However, if a student has significant misconceptions about the theory then a video is deemed far more helpful than a written answer as the concepts will be explained more fully with verbal explanation.
So the tradeoff here helps one segment of students and harms the other, perhaps in equal measures.
Perhaps here you provide both a written and video answer but need to train students and teachers to be able to pick which option suits them best.
Lens 2: Product features
Comment
Lens 2 shows some ego distortions / blind spots of Lens 1.
Basically, video answers likely have significant value and are likely worth building (if you have unlimited time and money).
So the overall outcome here is to build both Written and Video answers, and to train students to use the right one in the right place.
Example 3: How to find out about tradeoffs the hard way
Don’t go through the Tradeoff Framework (or something similar):
1. Is there a tradeoff? (Hint: there almost always is)
2. How do you explain the tradeoff? Some quick suggestions:
2.1 Pick at least two alternatives
2.2 Build a MECE’d model of the problem space
2.3 Calibrate the 2+ alternatives against the problem space model in a ‘Tradeoff Table’.
Just make a decision or build a product / feature and then implement. Reality will point out the tradeoff soon enough and likely a lot of unnecessary pain could have been avoided.
I don’t think you’ll be able to see 100% of the tradeoffs ahead of time, but hopefully you can see more than 0%. Experience (past felt tradeoffs) and an ability to try and model out possible future tradeoffs should allow you over time to see a higher and higher percentage of tradeoffs ahead of time.
Put another way, hopefully the quality of your decision making improves over time.
If you only take away one thing?
I’ve found trying to figure out the tradeoffs is difficult… but that you will find out about the tradeoffs at some point (ie the parts of the picture you are missing, a better alternative you didn’t consider, etc).
They say what gets you into trouble are ‘ego distortions and blind spots’. I’ve found that trying to explain a tradeoff through a Tradeoff Table like that in this blog is a great way to find ego distortions and blind spots.
For key decisions at work I try to build a model (Tradeoff Table) to understand and explain the tradeoff.