Published on March 10, 2014
Collaborative prioritization INCLUSION › TRANSPARENCY › COMMITMENT
Collaborate prioritization is part of every business. Every day.
Why collaborative prioritization? Benefit from collective competencies Uncover opinions and perspectives Increase mutual understanding Negotiate most desirable outcome Obtain acceptance and commitment Legitimize decisions
There are numerous applications Performance evaluation Product selection Project portfolio management Risk identification Recruitment Business strategy Office location Investments
Even to legitimize controversial decisions København Århus Herning Aalborg Malmø Ballerup Ørestaden Why did you chose Copenhagen? What makes Copenhagen better?
4 Examples of Pitfalls in Prioritization
Prioritization hijacking happens… The first person to speak The (annoying) loud person “The experienced elderly” The “pro” debater The Boss “The perception of the expected outcome” The business case/ cost wizard Emotions or “speak with data”
Criteria and weights are not negotiated 58% 10% 23% 9% Linda’s criteria Acceleration Design Options Color 25% 11% 64% Bob's criteria Seats Color Safety
When you agree, do you agree? AS MARKETING PRIORITIZE IT AS FINANCE PRIORITIZE IT 5 3 3 3 1 3 PROJECTS BY IMPORTANCE Project A Project B Project C Agree to start 3 out of 7 projects What about relative importance? Consequence of perceptions?
The business case trap Are you driven by objectives or by business cases? 2 1 3
And the winner is…
Stay focused – separate Criteria Alternatives Cost
Collaborative prioritization process Identify criteria and hierarchy Evaluate criteria in pairs of two Perform consistency check Aggregate priority ratios in hierarchy Accumulate effect of priorities Map priorities against alternatives Create the cost/benefit visualization
Prioritize using a defined scale Scale By far more important9 Significantly more important7 More important5 Moderately more important3 Equally important1
Evaluate only two criteria at a time compared to is? 7 3 Pairwise discussions enable Inclusion Focused discussions Voting differences targeted Optimal time allocation Prioritization transparency Kjkj lk sflj lkjfs lksd lkjsf lkj lkj lsdf lkjlk Lkj sfdlkj fdslksd lkfs slkfsf lkjs sfkl l
The outcome Identify priority inconsistencies Quantify your business priorities Benefit from everyone's knowledge Obtain group acceptance and buy-in Invest wisely and save resources
Nerd Alert: AHP theory The analytic hierarchy process is a for organizing and analyzing , based on and . It has particular application in , and is used around the world in fields such as government, business, industry, healthcare and education. AHP was developed by , University of Pittsburgh, in the 1970s and has been since then.
Strategy Prioritization Example
Formulate objective and criteria Objective Criteria Prioritize business strategy Increase agility Reduce cost Sign up with partners
Define sub-criteria and hierarchy Objective Criteria Sub-criteria Prioritize business strategy Increase agility Prototyping technology Leadership program Reduce cost Centralize procurement Improve controlling Vendor contracts Sign up with partners High-end co-branding University (DTU)
Evaluate criteria in pairs of two Business strategy Increase agility Prototyping technology Leadership program Reduce cost Centralize procurement Improve controlling Vendor contracts Sign up with partners High-end co-branding University (DTU) Agility vs. Cost: Agility vs. Partners: Cost vs. Partners: Consistency check: 3 1 3 5 3 5 5 7 5 7 7 5 3 1 3 5 Kjkj lk sflj lkjfs lksd lkjsf lkj lkj ??? Lkj fdslksd lkfs slkfsf lkjs !!!
Perform consistency check Check for “the human factor” and allow up to 10% inconsistency for each criteria/sub criteria group A > B and B > C A > C
Aggregate priority ratios (%) Prioritize business strategy Increase agility Prototyping technology Leadership program 30,33% 22,75% (75%) 7,58% (25%) Reduce cost Centralize procurement Improve controlling Vendor contracts 60,70% 38,44% (63,33%) 6,45% (10,62%) 15,81% (26,05%) Sign up with partners High-end co-branding University (DTU) 8,97% 4,485% (50%) 4,485% (50%)
Visualize the prioritization 0 20 40 60 80 100 120 1 2 3 4 5 6 7 Accumulated effect of priorities Procurement Prototyping Contracts Leadership Controlling Branding DTU %
Evaluate priority ratios against.. Alternatives (e.g. products) Time and resource allocation Corporate spending Projects in progress Project pipeline Procurement Prototyping Contracts LeadershipControlling Branding DTU Priorities vs. spending Priorities Spending
Cost/benefit visualization Benefit 40% 30% 20% 10% 10% 20% 30% 40% Cost
emergent • futurefactory Maja Wiberg Organisations- og ledelseskonsulent, MPO firstname.lastname@example.org +45 51 22 22 68 linkedin.com/in/majawiberg Jes Thorbjørn Holt Managementkonsulent, MBA email@example.com +45 60 66 99 33 linkedin.com/in/jesholt
Criteria The things you look for in a new office: location, transportation, expandability, front desk, meeting rooms, flexibility, etc. Alternatives
Your challenge: You’re looking at $150M worth of proposals for great projects that could revolutionize the services you are offering. That’s exciting!
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