Strategic Project Alignment
With Team Expert Choice
www.expertchoice.com
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.
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.
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.
Brainstorm for Decision Goals
Structuring, seen above, is where decision makers brainstorm and cluster
decision goals and objectives.
Phase 1: Goal ID
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
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
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
Hierarchical View of Weighted Goals
Phase 1: Weighted Hierarchy View
Phase II- Prioritize Project Benefit

Develop Custom Ratings Scales for Assessing
Projects.

Assess Projects Against Strategic Goals.

Synthesize Project Evaluations to Calculate Benefit.
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
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
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
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.
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
Rate Projects Against Risk Factors
Phase III: Rate Project Risks
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
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.
Optimization Using Expert Choice Priorities
Alternative
Likelihoods Benefits
Benefits of Success *Risks
Universal Life Insurance
0.816
Repricing Term Life Insurance
0.495
Bank Owned Life Insurance
0.659
Enhanced Second to Die
0.108
Universal Life Financial Re-Insurance
0.939
Enhance Client Database
0.321
Web Interface to Existing Banking Products 0.869
Web Enable Upscale Investors
0.505
0.992
0.694
0.296
0.196
0.871
0.167
0.942
0.28
Funded
Costs DVS Benefits
0.809472
5500
0.34353
4200
0.195064
7800
0.021168
3990
0.817869
5717
0.053607
550
0.818598
1200
0.1414
3120
Total Portfolio Value
1
1
0
0
1
0
1
0
Funded
Costs B/C
0.809472
0.34353
0
0
0.817869
0
0.818598
0
2.789469
Budget
5500
1.471767273
4200
0.817928571
0
0.250082051
0
0.053052632
5717
1.430591219
0
0.974672727
1200
6.82165
0
0.453205128
16617
17000 (Thousands)
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
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
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

Who Uses The Process

Ford Motor Company
 Fidelity Investments
 Boeing
 Raytheon
 Lockheed Martin Co.
 Xerox Corporation
 Department of Defense
 Principal Financial
 Thousands more…
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.
