This article by Annegret Widmer in MeisterPlan.com describes three methods which you can apply to prioritize projects. Let’s take a look at each of them.
The Ranking Method
This method prioritizes projects solely on the basis of which ones meet your criteria. If ROI is the criteria, the project with the best ROI will be no. 1, and so forth. By choosing just one project to be no. 1, you can develop clear criteria and processes in order to rank projects, and this is the biggest advantage of this method. However, this project only uses one or two criteria to determine ranks, and therefore cannot be employed for more complex evaluations.
Some Ranking Factors That Can Be Used Include:
- Customer benefit against necessary investment
- Strategic contribution vs necessary investment
The Scoring Method
This method lets you develop a more sophisticated rating system and point values to evaluate projects. In order to compare projects, your criteria must be converted into scores. Some of the criterias used can be broadly listed as Economic Benefits, Strategic Importance and Benefits, Urgency and Zero-based Budgeting/Risk.
This method scores each project, and the one with the highest score is deemed to be the highest priority project. For this method to work, the quality of the data needs to be of a high-standard.
The Decentralized Domain Approach
To successfully employ this method, delegation is something that will need to be embraced – especially if one is dealing with 1,000+ projects. According to this approach, you are called on to create domains within your company, which are cross sections across the departments – these domains should remain in place for several years. Now, the interdisciplinary domains assume the responsibility for project prioritization in their respective areas of interest. Here, they can choose to use the scoring or ranking method to prioritize projects.
The advantage of the domain approach is that the respective domains take responsibility of prioritization, and the portfolio board no longer needs to put all the projects to the test.
Click on the following link to view the original article in full: https://meisterplan.com/blog/project-prioritization-ranking-scoring/