Strategic Project Alignment

1. Strategic Project Alignment With Team Expert Choice www.expertchoice.com

2. 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.

3. Strategic Project Alignment Steps • Phase I- Identify and Measure Business Goals. • Phase II- Determine Project’s Benefit. • Phase III- Determine Project’s Risk. • Phase IV- Allocate Resources to Projects.

4. 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.

5. Brainstorm for Decision Goals Structuring, seen above, is where decision makers brainstorm and cluster decision goals and objectives. Phase 1: Goal ID

6. 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

7. 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

8. 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

9. Hierarchical View of Weighted Goals Phase 1: Weighted Hierarchy View

10. Phase II- Prioritize Project Benefit • Develop Custom Ratings Scales for Assessing Projects. • Assess Projects Against Strategic Goals. • Synthesize Project Evaluations to Calculate Benefit.

11. 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

12. 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

13. Perform Sensitivity Analysis EC’s 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 objective’s 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 objective’s priority and see the impact on project scores. Phase II: Strategic Alignment

14. 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.

15. 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

16. Rate Projects Against Risk Factors Phase III: Rate Project Risks

17. 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

18. 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.

19. 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

20. Strategic Alignment Process Benefits • Make project prioritization and selection an explicit process. • Link project performance to strategic goals and financialindicators • 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

21. Decision-Making Spectrum EC has been used to justify decisions in: • Strategic Planning • Resource Allocation • Partner & Vendor Selection • Technology Selection • R&D Assessment • Facilities Management • Capital Planning • Human Resource Management • Marketing Planning

22. Who Uses The Process • Ford Motor Company • Fidelity Investments • Boeing • Raytheon • Lockheed Martin Co. • Xerox Corporation • Department of Defense • Principal Financial • Thousands more…

23. Solution for Maximizing Portfolio Value & Organizational Knowledge: • Team Expert Choice Software. • Team Hardware: Wireless Keypads, Web / Network Server. • EC’s Portfolio Optimization Component. • Model Development & Integration Services. • TeamEC & Facilitation Training.