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.

## 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

### 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.