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Collaborative
prioritization
INCLUSION › TRANSPARENCY › COMMITMENT
Collaborate prioritization is part of
every business. Every day.
Why collaborative prioritization?
Benefit from collective
competencies
Uncover opinions
and perspectives
Increase mutual
understanding
Negotiate most
desirable outcome
Obtain acceptance
and commitment
Legitimize decisions
There are numerous applications
Performance
evaluation
Product selection
Project portfolio
management
Risk identification
Recruitment Business strategy Office location Investments
Even to legitimize controversial
decisions
København
Århus
Herning
Aalborg
Malmø
Ballerup
Ørestaden
Why did you chose Copenhagen?
What makes Copenhagen better?
4 Examples of Pitfalls in Prioritization
Prioritization hijacking happens…
The first person to
speak
The (annoying)
loud person
“The experienced
elderly”
The “pro” debater
The Boss
“The perception of the
expected outcome”
The business case/
cost wizard
Emotions or “speak
with data”
Criteria and weights
are not negotiated
58%
10%
23%
9%
Linda’s criteria
Acceleration Design Options Color
25%
11%
64%
Bob's criteria
Seats Color Safety
When you agree,
do you agree?
AS MARKETING
PRIORITIZE IT
AS FINANCE
PRIORITIZE IT
5
3
3
3
1
3
PROJECTS BY
IMPORTANCE
Project A Project B Project C
 Agree to start 3 out of 7 projects
 What about relative importance?
 Consequence of perceptions?
The business case trap
Are you driven by objectives or by business cases?
2
1
3
And the winner is…
Stay focused – separate
Criteria Alternatives Cost
Collaborative prioritization process
Identify
criteria and
hierarchy
Evaluate
criteria in
pairs of two
Perform
consistency
check
Aggregate
priority ratios
in hierarchy
Accumulate
effect of
priorities
Map
priorities
against
alternatives
Create the
cost/benefit
visualization
Prioritize using a defined scale
Scale
By far more important9
Significantly more
important7
More important5
Moderately more
important3
Equally important1
Evaluate only two criteria at a time
compared to is?
7 3
Pairwise discussions enable
 Inclusion
 Focused discussions
 Voting differences targeted
 Optimal time allocation
 Prioritization transparency
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lksd lkjsf lkj lkj
lsdf lkjlk
Lkj sfdlkj
fdslksd lkfs
slkfsf lkjs sfkl l
The outcome
Identify priority inconsistencies
Quantify your business priorities
Benefit from everyone's knowledge
Obtain group acceptance and buy-in
Invest wisely and save resources
Nerd Alert: AHP theory
 The analytic hierarchy process is a
for organizing
and analyzing ,
based on and
.
 It has particular application in
, and is used around the
world in fields such as government,
business, industry, healthcare and
education.
AHP was developed by ,
University of Pittsburgh, in the 1970s and has been
since then.
Strategy Prioritization Example
Formulate objective and criteria
Objective
Criteria
Prioritize business strategy
Increase
agility
Reduce cost
Sign up with
partners
Define sub-criteria and hierarchy
Objective
Criteria
Sub-criteria
Prioritize business strategy
Increase
agility
Prototyping
technology
Leadership
program
Reduce cost
Centralize
procurement
Improve
controlling
Vendor
contracts
Sign up with
partners
High-end
co-branding
University (DTU)
Evaluate criteria in pairs of two
Business strategy
Increase
agility
Prototyping
technology
Leadership
program
Reduce
cost
Centralize
procurement
Improve
controlling
Vendor
contracts
Sign up with
partners
High-end
co-branding
University
(DTU)
Agility vs. Cost:
Agility vs. Partners:
Cost vs. Partners:
Consistency check:
3 1 3 5
3 5 5 7
5 7 7 5
3 1 3 5
Kjkj lk sflj lkjfs
lksd lkjsf lkj lkj
???
Lkj fdslksd lkfs
slkfsf lkjs
!!!
Perform consistency check
 Check for “the human factor” and
allow up to 10% inconsistency for
each criteria/sub criteria group
 A > B and B > C  A > C
Aggregate priority ratios (%)
Prioritize business strategy
Increase
agility
Prototyping
technology
Leadership
program
30,33%
22,75%
(75%)
7,58%
(25%)
Reduce
cost
Centralize
procurement
Improve
controlling
Vendor
contracts
60,70%
38,44%
(63,33%)
6,45%
(10,62%)
15,81%
(26,05%)
Sign up with
partners
High-end
co-branding
University
(DTU)
8,97%
4,485%
(50%)
4,485%
(50%)
Visualize the prioritization
0
20
40
60
80
100
120
1 2 3 4 5 6 7
Accumulated effect of priorities
Procurement Prototyping Contracts Leadership Controlling Branding DTU
%
Evaluate priority ratios against..
 Alternatives (e.g. products)
 Time and resource allocation
 Corporate spending
 Projects in progress
 Project pipeline
Procurement
Prototyping
Contracts
LeadershipControlling
Branding
DTU
Priorities vs. spending
Priorities Spending
Cost/benefit visualization
Benefit
40%
30%
20%
10%
10% 20% 30% 40% Cost
emergent • futurefactory
Maja Wiberg
Organisations- og ledelseskonsulent, MPO
wiberg@emergent.dk
+45 51 22 22 68
linkedin.com/in/majawiberg
Jes Thorbjørn Holt
Managementkonsulent, MBA
jesholt@futurefactory.dk
+45 60 66 99 33
linkedin.com/in/jesholt
http://www.slidehare.net/futurefactory

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Collaborative Prioritization

  • 2. Collaborate prioritization is part of every business. Every day.
  • 3. Why collaborative prioritization? Benefit from collective competencies Uncover opinions and perspectives Increase mutual understanding Negotiate most desirable outcome Obtain acceptance and commitment Legitimize decisions
  • 4. There are numerous applications Performance evaluation Product selection Project portfolio management Risk identification Recruitment Business strategy Office location Investments
  • 5. Even to legitimize controversial decisions København Århus Herning Aalborg Malmø Ballerup Ørestaden Why did you chose Copenhagen? What makes Copenhagen better?
  • 6. 4 Examples of Pitfalls in Prioritization
  • 7. Prioritization hijacking happens… The first person to speak The (annoying) loud person “The experienced elderly” The “pro” debater The Boss “The perception of the expected outcome” The business case/ cost wizard Emotions or “speak with data”
  • 8. Criteria and weights are not negotiated 58% 10% 23% 9% Linda’s criteria Acceleration Design Options Color 25% 11% 64% Bob's criteria Seats Color Safety
  • 9. When you agree, do you agree? AS MARKETING PRIORITIZE IT AS FINANCE PRIORITIZE IT 5 3 3 3 1 3 PROJECTS BY IMPORTANCE Project A Project B Project C  Agree to start 3 out of 7 projects  What about relative importance?  Consequence of perceptions?
  • 10. The business case trap Are you driven by objectives or by business cases? 2 1 3
  • 11. And the winner is…
  • 12. Stay focused – separate Criteria Alternatives Cost
  • 13. Collaborative prioritization process Identify criteria and hierarchy Evaluate criteria in pairs of two Perform consistency check Aggregate priority ratios in hierarchy Accumulate effect of priorities Map priorities against alternatives Create the cost/benefit visualization
  • 14. Prioritize using a defined scale Scale By far more important9 Significantly more important7 More important5 Moderately more important3 Equally important1
  • 15. Evaluate only two criteria at a time compared to is? 7 3 Pairwise discussions enable  Inclusion  Focused discussions  Voting differences targeted  Optimal time allocation  Prioritization transparency Kjkj lk sflj lkjfs lksd lkjsf lkj lkj lsdf lkjlk Lkj sfdlkj fdslksd lkfs slkfsf lkjs sfkl l
  • 16. The outcome Identify priority inconsistencies Quantify your business priorities Benefit from everyone's knowledge Obtain group acceptance and buy-in Invest wisely and save resources
  • 17. Nerd Alert: AHP theory  The analytic hierarchy process is a for organizing and analyzing , based on and .  It has particular application in , and is used around the world in fields such as government, business, industry, healthcare and education. AHP was developed by , University of Pittsburgh, in the 1970s and has been since then.
  • 19. Formulate objective and criteria Objective Criteria Prioritize business strategy Increase agility Reduce cost Sign up with partners
  • 20. Define sub-criteria and hierarchy Objective Criteria Sub-criteria Prioritize business strategy Increase agility Prototyping technology Leadership program Reduce cost Centralize procurement Improve controlling Vendor contracts Sign up with partners High-end co-branding University (DTU)
  • 21. Evaluate criteria in pairs of two Business strategy Increase agility Prototyping technology Leadership program Reduce cost Centralize procurement Improve controlling Vendor contracts Sign up with partners High-end co-branding University (DTU) Agility vs. Cost: Agility vs. Partners: Cost vs. Partners: Consistency check: 3 1 3 5 3 5 5 7 5 7 7 5 3 1 3 5 Kjkj lk sflj lkjfs lksd lkjsf lkj lkj ??? Lkj fdslksd lkfs slkfsf lkjs !!!
  • 22. Perform consistency check  Check for “the human factor” and allow up to 10% inconsistency for each criteria/sub criteria group  A > B and B > C  A > C
  • 23. Aggregate priority ratios (%) Prioritize business strategy Increase agility Prototyping technology Leadership program 30,33% 22,75% (75%) 7,58% (25%) Reduce cost Centralize procurement Improve controlling Vendor contracts 60,70% 38,44% (63,33%) 6,45% (10,62%) 15,81% (26,05%) Sign up with partners High-end co-branding University (DTU) 8,97% 4,485% (50%) 4,485% (50%)
  • 24. Visualize the prioritization 0 20 40 60 80 100 120 1 2 3 4 5 6 7 Accumulated effect of priorities Procurement Prototyping Contracts Leadership Controlling Branding DTU %
  • 25. Evaluate priority ratios against..  Alternatives (e.g. products)  Time and resource allocation  Corporate spending  Projects in progress  Project pipeline Procurement Prototyping Contracts LeadershipControlling Branding DTU Priorities vs. spending Priorities Spending
  • 27. emergent • futurefactory Maja Wiberg Organisations- og ledelseskonsulent, MPO wiberg@emergent.dk +45 51 22 22 68 linkedin.com/in/majawiberg Jes Thorbjørn Holt Managementkonsulent, MBA jesholt@futurefactory.dk +45 60 66 99 33 linkedin.com/in/jesholt