Why So Risky: Understanding Risky Decisions in Design Teams
The ability to effectively manage risk throughout the design process is crucial to product success. Current risk management strategies frequently lead to failure in this area with 33% of products failing at launch. One area not addressed by formal design methods is differences in individual risk attitudes. The designer's risk attitude has been shown to impact a wide range of engineering activities from concept generation to complex system design choices. However, most engineering decisions are made in teams and little is understood about how individual risk attitudes affect team behavior. The proposed project will use a mix of human subjects experiments and quantitative modeling techniques to examine how individual characteristics may affect team behavior such as risky shifts and sensitivity to problem framing. These insights will lead to the creation of support tools and processes to help teams make better decisions in these situations and create better products.