MoP Practice: Prioritize 3. How to build a prioritization model?

Dia1The purpose of the prioritize practice is to support senior management, portfolio board or portfolio governance body to answer the following questions:

  • Which initiatives are the right projects to invest in?
  • What are the most important initiatives?
  • What initiatives must be resourced above all other initiatives?

The official MoP manual stated that answering these questions is only possible when all initiatives have been prioritized. This prioritization can be done for the portfolio as a whole or when the portfolio has been divided into several categories or segments, for each category or segment.

In this article I will emphasis on the how. I will look at the approach and will go a step further than the manual to give you more in depth details what you have to do. E.g. the manual stated “Agree the importance of each criterion by assigning a weighting or percentage of relative importance – and ensure that the total percentages of all criteria add up to 100”. Sounds easy, but how can you decide and calculate which weighting or percentage of relative importance you have to use for each criterion?

Dia15This article is divided into the following paragraphs:

  • Different types of metrics or selection criteria
  • Single criterion analysis
  • Multi-criteria analysis (MCA)
  • Keys to successful prioritization

To download: MoP (practice prioritize, 140908) v0.1

This post will be used in a new book MoP practices in practice, for portfolio managers who want to embed the MoP theory in their organization. In the coming months several blog posts and articles will be published waiting for your feedback. To see all, select the tag MoP_practices_in_practice.

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