You score each project against those criteria and calculate a weighted score for each project. You define and evaluate a set of business goals which translate into weighted criteria. The result, which has been validated by researchers around the world, is better decisions with a strong commitment to action from your stakeholders. It structures the decision in a way that helps reduce decision bias, that ensures every voice is heard and that actively builds consensus between your stakeholders. Biases will influence the decision without the decision-maker even being aware of it.ĪHP helps address this. Humans are poor at making rational decisions that involve multiple “dimensions.” As soon as you come up against a decision with more than 2 or 3 “dimensions”, the subconscious kicks in and that’s when the problems really start. To make matters worse, each individual is, let’s be frank, human. They may not even agree on what the goals really are! The challenge is that your stakeholders don’t all agree on which goals are most important. You portfolio exists to deliver your strategic goals. The result is that only two methods of prioritizing projects were found to be suitable, and the one that was deemed to be most usable is the Analytic Hierarchy Process. In 2017, the University of New South Wales published a review of all of this work. Research carried out in business schools and departments of engineering, in psychology labs and in operations research groups right around the world has invented, refined and evaluated over 100 methods of prioritizing and selecting projects. Your projects are the mechanism to achieve your strategic goals and picking the wrong projects, therefore, means your organizational performance suffers. There are never enough resources to satisfy everyone’s needs. You also have a finite set of resources to deliver those projects. You have a diverse set of stakeholders who want to “get projects done”. Project prioritization is a difficult problem. AHP - The best way to prioritize projects?įor decades, researchers have been inventing and evaluating different methods of prioritizing projects and, so far, the Analytic Hierarchy Process is the winner. This score represents how well your projects are aligned to your strategic goals and projects that are aligned with strategic goals are 57% more likely to achieve their business goals (read more: 8 Benefits of Strategic Alignment of Projects). The result is a ranked list of projects - each project having a score between 0 and 100 - that you can use to drive your project selection and resource allocation decisions. It’s the “how” that matters - AHP structures the collaboration between your different stakeholders (executives, business unit heads, subject matter experts, etc.) and uses decision science to improve both the quality of and the buy-in to your decision. It is commonly used for project prioritization and selection.ĪHP lets your capture your strategic goals as a set of weighted criteria that you then use to score projects. The Analytic Hierarchy Process, normally called AHP, is a powerful yet simple method for making decisions. 6 reasons to use AHP for collaborative decisions.AHP - The best way to prioritize projects?.AHP and Strategic Alignment of Projects.
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