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collaborative prioritization. smarter decisions.
US MIL Procurement
» Involve stakeholders and specialists
» Conflicting interests and priorities
» Activate knowledge and experience
» Mutual understanding and acceptance
» Deliver tangible result
Which led to Analytic Hierarchy Process
The analytic hierarchy process
(AHP) is a structured technique
for organizing and analyzing
complex decisions, based on
mathematics and psychology. It
was developed by Thomas L.
Saaty in the 1970s and has
been extensively studied
and refined since then.
It has particular application in
group decision making, and
is used around the world in a
wide variety of decision
situations, in fields such as
government, business, industry,
healthcare, shipbuilding and
education.
Wikipedia
What’s in it for You?
Adopt a globally
proven process
based on math
and psychology
Optimize
participant
contribution in
your decisions
Identify least
important
parameters and
save resources
Start your
change activities
while prioritizing
your criteria
Reduce time
spent on
decision
iterations
The Process
Stay Focused. Separate Your Discussions
Criteria
Alternatives
Cost
1. Prioritize
2. Evaluate
3. Decide
Build Your Criteria Hierarchy
Objective
Find new London office
Criteria
Transportation
Customer care
Office space
Sub criteria
(optional)
Public
transportation
Front desk/
lounge area
Flexible office
layout
Parking space
Meeting rooms
Option on
additional space
Prioritize Your Criteria
Perform pairwise comparisons using a well defined scale
…?
Equally
important
Customer care
Office space
…!
Significantly
more important
Moderately
more important
More
important
By far more
important
Criteria and Sub Criteria Weights
Find new London office
Eq 100 points
Share of
criteria points
Transportation
Customer care
Office space
25
64
11
Public
transportation 8
Front desk/
lounge area 51
Flexible office
layout
8
Meeting rooms
Option on
additional space3
Parking space
17
13
Enter Alternatives
110 Chancery Lane
86 Old Bailey
234 Fleet Street
Evaluate Alternatives Against Each Criteria
“Flexible Office Layout”
…!
Fleet Street
Chancery Lane
Equally good
…?
Significantly better
Moderately better
Better
By far better
Alternatives Score
Transportation
Customer care
Office space
Old Bailey
51
9
31
11
Fleet Street
29
5
17
7
Chancery Lane
20
4
10
6
Consider Value/Cost Ratio and make Decision
Find new London office
Old Bailey
51
60
Old Bailey
50
40
Fleet Street
29
30
Fleet Street
20
Chancery Lane 20
Chancery Lane
10
0
0
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Applications
Business
strategy
Product
selection
Portfolio
management
Features and
functionality
Risk
identification
Search and
recruitment
Performance
evaluation
Office
location
Budgets and
investments
Public
infrastructure
Tender
material
Vendor
evaluation
…
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20
Unlimited*
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1
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