#It project priority matrix drivers

Prioritize the Evaluated Initiatives on the 2Г—2 Prioritization Matrix Priority Categories For example, failing to implement a business change required to meet legislative compliance requirements can be a significant risk to the organizationвЂ™s licence to operate. At the initial planning stage, this will probably be your best guestimate, as you are unlikely to have a good understanding of the complexity, effort or cost early on.Д«usiness risk takes into account the risk of not implementing an initiative in addition to the risks of implementing it (delivery risk). The delivery risk of an initiative assesses the potential impact of implementing it based on complexity, effort and cost. There are two common considerations when evaluating an initiativeвЂ™s risk: How do you determine an initiativeвЂ™s risk? profit, revenue, margin, cashflow, funds, etc. The more the initiative increases the value proposition to your customers, the higher the value.ДЄn initiative has more value when it positively impacts the organizationвЂ™s preferred financial measures, e.g. There are too many measures of value to list, but here are three definitions of value which are commonly applied to prioritization of initiatives:ДЄssuming your strategic goals are right, then the initiatives most aligned with these will deliver higher value. saving lives) are very different from those of a publicly listed bank (e.g.

#It project priority matrix drivers

Each organizationвЂ™s value drivers can vary vastly for example, the value drivers of a non-profit (e.g. The measures of an initiativeвЂ™s value are usually tied to your organizationвЂ™s value drivers. How do you determine an initiativeвЂ™s value? Just ensure that you are consistent and apply the same definition of value and risk when evaluating each initiative. The complexity of how you evaluate the value and risk of an initiative is up to you, relative to the level of sophistication and accuracy required and effort afforded. Using value and risk as the evaluation criteria is key to substantiating where initiatives should sit in the list of priorities. The resulting visualization is a far more compelling tool for building consensus and identifying the initiatives that just arenвЂ™t quite right.

With the matrix, you plot initiatives into one of the four quadrants by evaluating their value and risk. ThereвЂ™s nothing wrong with this - but you can easily transform it into something far more visual and quick to interpret.ДЄ more effective (yet still simple) method for prioritizing initiatives is the two-by-two (2Г—2) prioritization matrix. The go-to evaluation method for many organizations is a simple spreadsheet. Evaluate your Initiatives Classic Spreadsheets This will always put the success of the strategic vision at risk.Д®valuating and prioritizing is vital. Instead, they dive straight into implementation. However, they then spend insufficient attention on building a prioritization matrix for these initiatives. WeвЂ™ve seen that most organizations are capable of creating a list of projects or initiatives based on a strategic vision or set of goals. Less surprisingly, prioritization done well can be the difference between success and failure - which makes it all the more mystifying when so many donвЂ™t have a firm handle on prioritization. A surprising number of organizations are woefully inadequate at using a prioritization matrix for their projects or initiatives.