This series of papers has been developed from our work in upgrading TenStep's PortfolioStep™. For more information on TenStep's internal consulting methodology, please visit http://
www.portfoliostep.com/
0.0.0PortfolioStep
Homepage.htm

Published here January, 2008.

PART 4 | Tips on Step 5 - Prioritize the Work (Prioritization)
Ranking the Portfolio Components | Resolving Ranking Issues 
Tips on Step 6 - Balance and Optimize the Portfolio (Balancing)
Techniques That Help | Tips on Step 7 - Authorize the Work (Authorization) | PART 6

Resolving Ranking Issues

Ranking is fraught with difficulties, not because it is fundamentally difficult, but because of the competing interests. There are a number of ways to resolve project-ranking issues, especially when there are multiple projects on a similar level to consider and it is difficult to keep all in mind at once.

Choosing From a Lot of Projects

Probably the simplest approach to choosing from among a lot of portfolio components is to establish an agreed hierarchy and mark every component accordingly. You can see this explained here: issacons/iac1004e/index.htm

Simple Comparative Matrix

The next simplest method is to compare pairs of projects in a matrix format. This can be done by an individual, or in a teamwork session. The comparison of any two projects relies on the participants' personal knowledge, objectivity and sound judgment. The result is strictly qualitative, but with the right people involved, this is probably as good as any.

The approach is as follows:

  1. Number the components from 1 to n in no particular order
  2. Compare the components in pairs using the chart shown in Figure 5
  3. The winner of each pair is flagged in the score line
  4. The ranking follows from the number of flags in the score line
Figure 5: Comparison Matrix Chart

Multiple Criteria Weighted Ranking

Where you have to take into account multiple rating criteria for project ranking, you can develop a spreadsheet along the lines shown in Figure 6. Even then, you may need to invoke the Simple Comparative Matrix described above to resolve competition between closely ranked projects within a given criterion.

Proj#

Criticality

Project Success

Benefits

 

1-9

Rank

Prob

Cost

PxC

Rank

Prob

Value

PxV

Rank

Score

Priority

A

7

2

80%

$1M

0.8

4

50%

$20M

10

5

3.7

4=

B

4

3

65%

$2.5M

1.6

2

75%

$40M

30

1

2

1

C

2

4

70%

$500K

0.35

5

95%

$20M

19

2

3.7

4=

D

9

1

45%

$3M

1.35

3

40%

$30M

12

4

2.7

2

E

1

5

90%

$7M

6.3

1

25%

$70M

18

3

3

3

Note: Projects A and C score equally, and since they are low on the list may have to be resolved subjectively.

Figure 6: Ranking projects using multiple criteria
Ranking the Portfolio Components  Ranking the Portfolio Components

Home | Issacons | PM Glossary | Papers & Books | Max's Musings
Guest Articles | Contact Info | Search My Site | Site Map | Top of Page