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:
- Number the components from 1 to n in no particular order
- Compare the components in pairs using the chart shown in Figure 5
- The winner of each pair is flagged in the score line
- The ranking follows from the number of flags in the score line
Figure 5: Comparison Matrix Chart
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.
Figure 6: Ranking projects using multiple criteria
|
Ranking
the Portfolio Components
