Strategic Project Alignment

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Strategic Project Alignment

• With Team Expert Choice
• www.expertchoice.com

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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.

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Strategic Project Alignment Steps

• Phase I- Identify and Measure Business Goals.
• Phase II- Determine Projects Benefit.
• Phase III- Determine Projects Risk.
• Phase IV- Allocate Resources to Projects.

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Phase 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.

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Brainstorm for Decision Goals
Structuring, seen above, is where decision makers
brainstorm and cluster decision goals and
objectives.
Phase 1 Goal ID
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Structured Strategic Goal Hierarchy
The hierarchy is automatically built. It
displays decision objectives that will be used
for prioritization and evaluation of
initiatives/projects.
Phase 1 Structured Hierarchy
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Prioritize Goals Using Paired Comparisons
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.
Phase 1 Measuring Goals
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Graphical Analysis of Prioritized Goals
The Priorities Graph, shows the priorities
derived from the pairwise comparisons as relative
measures of the importance of each objective.
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
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Hierarchical View of Weighted Goals
Phase 1 Weighted Hierarchy View
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Phase II- Prioritize Project Benefit

• Develop Custom Ratings Scales for Assessing
  Projects.
• Assess Projects Against Strategic Goals.
• Synthesize Project Evaluations to Calculate
  Benefit.

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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
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Project Assessment
The Total column represents the strategic value
of each project
EC2000 synthesizes the priorities of the
objectives, data and ratings to determine the
overall priorities of the projects/initiatives.
Phase II Evaluating Projects
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Perform Sensitivity Analysis
ECs 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.
The component view of the Dynamic Sensitivity
graph is shown in both graphs.
By dragging the objectives 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
objectives priority and see the impact on
project scores.
Phase II Strategic Alignment
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Phase 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.

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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
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Rate Projects Against Risk Factors
Phase III Rate Project Risks
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Performance Sensitivity
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
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Phase 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.

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Optimization Using Expert Choice Priorities
Total Portfolio Value Score
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.
Phase IV Resource Allocation
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Strategic 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

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Decision-Making Spectrum
EC has been used to justify decisions in

• Strategic Planning
• Resource Allocation
• Partner Vendor Selection
• Technology Selection
• RD Assessment
• Facilities Management
• Capital Planning
• Human Resource Management
• Marketing Planning

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Who Uses The Process

• Ford Motor Company
• Fidelity Investments
• Boeing
• Raytheon
• Lockheed Martin Co.
• Xerox Corporation
• Department of Defense
• Principal Financial
• Thousands more

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Solution for Maximizing Portfolio Value
Organizational Knowledge

• Team Expert Choice Software.
• Team Hardware Wireless Keypads, Web / Network
  Server.
• ECs Portfolio Optimization Component.
• Model Development Integration Services.
• TeamEC Facilitation Training.