CONTEXT: Both the development of a business-level strategy and an enterprise value stream analysis require projects that need to be prioritized with a formal methodology.
Business-Level Strategy Development
Enterprise Value Stream Map Development
CURRENT SITUATION: Many clients do not utilize a formal method to prioritize their strategic and / or tactical projects. We present them with two team-based prioritization methods to consider:
- Impact / Probability of Success
- Criteria Decision-Making
IMPACT / PROBABILITY OF SUCCESS METHOD:
This method assesses the IMPACT (low, medium, or high) for each potential project on their stated business goals and objectives (financial and non-financial). It also assesses the PROBABILITY OF SUCCESS (low, medium, or high) for each potential project should they choose to implement it.
INPUTS REQUIRED:
- S.M.A.R.T. business goals and objectives
- Financial impact assessment ranges (low = from $AAA to $BBB, Medium = from $CCC to $DDD, High = above $DDD)
- 3 – 5 project suggestions from each session participant
METHOD STEPS:
- Confirm S.M.A.R.T. business goals and objectives
- Each team member reviews their project suggestions ...
Name of the project
Description and scope of the project
Driver – why this project is important
Enablers – what we have in place today that will help us
Range of potential financial impact for each project
Most significant risks
NOTE: the most effective way of completing this step is to require each team member to bring 3 – 5 project suggestions to the session
- Review each project with the other team members
- Team discusses each project – the goal is to understand, not to refute
- Team agrees on the IMPACT rating (low, medium, or high) and the PROBABILITY OF SUCCESS (low, medium, or high) for each project
- Place post-it-note for each project on the IMPACT / PROBABILITY OF SUCCESS chart
- Identify 3 – 5 HIGH-IMPACT / HIGH PROBABILITY OF SUCCESS projects
- Complete a “sanity-check”
- Complete an After-Action Review:
What was supposed to happen? What actually happened?
What went well? Why?
What did not go as well as it could have? Why?
What would we do differently next time to improve our effectiveness? Why?
- Identify next steps with accountability – including a communication plan
OUTPUTS CREATED:
- All potential projects prioritized
- Top 3 – 5 projects identified
- After-Action Review completed
- Next steps identified – including accountability for communication throughout the organization
We’ve helped and transferred the knowledge for how to use the IMPACT / PROBABILITY OF SUCCESS METHOD to numerous clients located throughout North America and Europe - with great success. Our clients learned how to use the method and they enjoy applying it. In another post we will review the CRITERIA DECISION METHOD – another outstanding project prioritization tool to consider.
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