Example - It Project prioritization

Example: Prioritizing IT Projects

This example is designed to give an idea of how TransparentChoice can be used to

select the most efficient IT portfolio. This model is inspired by Gartner’s

recommendations for picking IT projects.

The problem we solve

The problem is one of collaboration and structure, not of information

50% failure rate

Most significant decisions are made with group input and multiple trade-offs/criteria

How we solve the problem

Structure the decision, eliminate bias

Gather opinion and build consensus

Deliver results and recommendations

The scenario

• We are selecting the portfolio of IT projects.

• Projects can be requested online.

Criteria

• Criteria make implicit assumptions about priorities explicit.

• They are the structure that allows us to break down a complex decision into manageable parts.

• Criteria help build a common language and make trade-offs visible.

• Clear criteria make it difficult to “game” the system.

Criteria

• We have started with Gartner’s recommended model for project prioritization (essentially the top-level of the criterion hierarchy) and have then expanded on this model as an example of how it might be used in practice

• This model was not put together by Gartner. Rather, it was built from publically-available information about Gartner’s recommended project prioritization process.

Criteria

Prioritize your projects

Financial return

Cost reduction

Payback

Reducing business

operating costs

Reducing IT costs

Increase sales contribution

Project risk

Organizational complexity

Project complexity

Strategic impact

Brand building

Business development

Customer intimacy

Product excellence

Technical architecture fit

Alignment with architecture

Capability

The Decision Team

• In this example, the executives define priorities, which are represented as weighted criteria.

• Subject matter experts score each project against criteria.

• Then the executives review the overall weighted scores and make their decision based on which projects will deliver the best value for money

Final Decision Meeting

Executives Set Priorities (Weight Criteria)

Subject Matter Experts Score Projects

The Decision Team

Weighting criteria

• Criteria map to your priorities

• Defining these priorities is one of the most important steps in any decision

• Each person (Execs, in this example) answers “A vs. B” questions about which criterion is more important

• These votes are then brought together to discover where disagreements or misunderstandings are getting in the way of the decision

Building consensus Voting differences can be due to special knowledge, simple mistake or could even be an attempt to inappropriately influence the decision

Building consensus The process of building consensus is not a “fluffy feel-good process”. Decisions with more buy-in get executed better

Building consensus By avoiding discussions about items for which consensus already exists, and by having very contained discussions where there is disagreement, the process can reduce the amount of time spent on a decision.

Making your choice

Your recommendations is made with clear justification and transparency. It is based on clear criteria with explicit weighting – in other words, you explicitly see the priorities and trade-offs involved in making the decision. Decision makers understand exactly what they are being asked to decide and why. Sensitivity analysis gives them visibility into the robustness of the recommendation.

• This example is available on your TransparentChoice account.

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