Strategic Project Alignment
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Strategic Project AlignmentStrategic Project Alignment
With Team Expert Choice
Team Expert Choice allows you to:Team Expert Choice allows you to:
Identify and structure strategic goals of a decision.
Derive priorities for goals based on stakeholder analysis .
Make decisions, like Prioritizing a project portfolio based on hard data & expert evaluation in light of goals.
Optimize project selection for maximum benefit.
Justify project selection and funding requests.
Strategic Project Alignment StepsStrategic Project Alignment Steps
Phase I- Identify and Measure Business Goals.
Phase II- Determine Project’s Benefit.
Phase III- Determine Project’s Risk.
Phase IV- Allocate Resources to Projects.
Phase I- Goal ID & MeasurementPhase I- Goal ID & Measurement
Brainstorm for Strategic Business Goals.
Structure Goals into Decision Hierarchy.
Derive Importance of Goals Using Pairwise Comparison Process (AHP).
Analyze Weighted / Prioritized Business Goals.
Structuring, seen above, is where decision makers brainstorm and cluster decision goals and objectives.
Brainstorm for Decision Goals
Phase 1: Goal ID
The hierarchy is automatically built. It displays decision objectives that will be used for prioritization and evaluation of initiatives/projects.
Structured Strategic Goal Hierarchy
Phase 1: Structured Hierarchy
Decision Makers use keypads to compare each pair of criteria in pairs to determine their relative importance. Jennifer is saying Improve Knowledge Management is Moderately more important than Growing Revenues.
Prioritize Goals Using Paired Comparisons
Phase 1: Measuring Goals
The Priorities Graph, shows the priorities derived from the pairwise comparisons as relative measures of the importance of each objective.
Graphical Analysis of Prioritized Goals
The inconsistency ratio measures how consistent the group was in judgments concerning the relative importance of the objectives. If inconsistency is greater than .10, the judgments should be reviewed for accuracy.
Phase 1: Goal Analysis
Hierarchical View of Weighted Goals
Phase 1: Weighted Hierarchy View
Phase II- Prioritize Project BenefitPhase II- Prioritize Project Benefit
Develop Custom Ratings Scales for Assessing Projects.
Assess Projects Against Strategic Goals.
Synthesize Project Evaluations to Calculate Benefit.
Build Custom Ratings Scales
Decision-makers derive a numerical rating scale with verbal ratings intensities. Values are derived through pairwise comparisons or assigned using existing scales
Phase II: Develop Ratings Scale
EC2000 synthesizes the priorities of the objectives, data and ratings to determine the overall priorities of the projects/initiatives.
The Total column represents the strategic value of each project
Phase II: Evaluating Projects
EC’s sensitivity graphs enable you to test the sensitivity of the decision to changes in priorities by changing the weights of your objectives to instantly see the impact on your alternatives.
By dragging the objective’s priorities back and forth in the left column, the priorities of the alternatives will change in the right column. If a decision-maker thinks an objective might be more or less important than originally indicated, the decision-maker can drag that objective's bar to the right or left to increase or decrease the objective’s priority and see the impact on project scores.
The component view of the Dynamic Sensitivity graph is shown in both graphs.
Phase II: Strategic Alignment
Perform Sensitivity Analysis
Phase III- Identify & Prioritize RiskPhase III- Identify & Prioritize Risk
Identify and Structure Risk Factors.
Create Custom Rating Scale for Assessing Risk.
Rate Projects for Likelihood of Success.
Graphically Analyze Project Risk.
Risk Model With Weighted Risk Factors
Expert Choice also used to prioritize project risks. The results of the risk analysis feeds into the optimization.
Phase III: ID Project Risk Factors
Rate Projects Against Risk Factors
Phase III: Rate Project Risks
The performance graph shows the weights of the risk factors as the vertical bars. The relative scores of the alternatives as the colored lines are read using the right axis.
Phase III: Graphically Analyze Project Risks
Phase IV- Allocate Resources to ProjectsPhase IV- Allocate Resources to Projects
Select the Optimal “Mix” of Projects for the Portfolio based on Benefit, Risk and Cost.
Add Constraints Such as Project Interdependencies.
Check Portfolio Against Various Budget Levels to Find the Best Level of Funding.
EC2000 benefit priorities from the Data Grid export directly into its Excel optimization tool to help organizations with investment portfolio management. Above is a simple fund or not fund model where the projects with the highest overall benefit for their costs will be fully funded. More complex budget constraints can easily be included.
Total Portfolio Value Score
Optimization Using Expert Choice Priorities
Phase IV: Resource Allocation
Likelihoods of Success
Benefits *Risks Costs DVS
Funded Costs B/C
Universal Life Insurance 0.816 0.992 0.809472 5500 1 0.809472 5500 1.471767273Repricing Term Life Insurance 0.495 0.694 0.34353 4200 1 0.34353 4200 0.817928571Bank Owned Life Insurance 0.659 0.296 0.195064 7800 0 0 0 0.250082051Enhanced Second to Die 0.108 0.196 0.021168 3990 0 0 0 0.053052632Universal Life Financial Re-Insurance 0.939 0.871 0.817869 5717 1 0.817869 5717 1.430591219Enhance Client Database 0.321 0.167 0.053607 550 0 0 0 0.974672727Web Interface to Existing Banking Products 0.869 0.942 0.818598 1200 1 0.818598 1200 6.82165Web Enable Upscale Investors 0.505 0.28 0.1414 3120 0 0 0 0.453205128
Total Portfolio Value 2.789469 16617Budget 17000 (Thousands)
Strategic Alignment Process BenefitsStrategic Alignment Process Benefits
Make project prioritization and selection an explicit process.
Link project performance to strategic goals and financial indicators
Improve coordination of activities within and across departments
Effectively track and improve portfolio performance over time
Terminate non-productive projects before they drain valuable resources
Decision-Making SpectrumDecision-Making Spectrum
Strategic Planning Resource Allocation Partner & Vendor Selection Technology Selection R&D Assessment Facilities Management Capital Planning Human Resource Management Marketing Planning
EC has been used to justify decisions in:EC has been used to justify decisions in:
Who Uses The ProcessWho Uses The Process
Ford Motor Company Fidelity Investments
Lockheed Martin Co. Xerox Corporation
Department of Defense Principal Financial Thousands more…
Solution for Maximizing Portfolio Value Solution for Maximizing Portfolio Value & Organizational Knowledge:& Organizational Knowledge:
Team Expert Choice Software. Team Hardware: Wireless Keypads,
Web / Network Server.EC’s Portfolio Optimization Component.Model Development & Integration
Services.TeamEC & Facilitation Training.