Project Identification and Prioritizing
One of the big challenges any organization faces is aligning its strategic planning and business goals with the projects it takes on. In small organizations, project prioritization isn’t always critical. On the other hand, in larger organizations, there can be a huge divide between strategic goals and the project portfolio. In any sized organization, there are some simple methods that allow you to effectively prioritize your projects so that you can apply the strategic vision of your organization, achieve business goals and level your resources.
We determine which existing and new projects are the most urgent for an organization. This can be done through several project prioritization methods that allow portfolio managers to assess the feasibility, impact and potential value of a project.
Why Is Project Prioritization Important?
Project prioritization is especially important for larger organizations that have multiple projects and programs in their portfolio. These organizations, like any other, must execute multiple projects simultaneously but have limited resources, which makes it necessary to prioritize potential project ideas.
Project Prioritization Methods
There are many project prioritization methods you can use to manage your project portfolios. These are the three most commonly used project prioritization methods.
1. Scoring Model:-The scoring model is a project prioritization method that relies on subject matter expert opinions. The scoring method simply consists in evaluating different aspects of a project and then assigning a numeric value scale to each criterion. For example, you can assign numeric values to a project’s level of risk, potential benefits, feasibility and other variables.
2. Project Prioritization Matrix:-
A project prioritization matrix is a project management tool that allows program and portfolio managers to prioritize projects by comparing several project prioritization variables on a single comparison matrix.
3. Payback Period:-Payback period project prioritization method focuses solely on the payback period, which is the time it takes for an organization to recover the investment made on a project. So based on this method, you’ll prioritize projects depending on how quickly they can return the investment made.
Project Prioritization Process: How to Prioritize Projects in 4 Steps
1. Assess Your Existing Projects:-
As a team leader, it is essential that you spend a little time reflecting on where you and your organization are before you start taking on any new project. As your company evolves, you are going to always be strapped with limited
in the form of not enough time, not enough money or not enough people. This is true in almost every organization, big or small.
Steps we follow:
- We Spend a few minutes mapping out all of your projects and initiatives.
- We Do all of these projects fit under your strategic vision?
- The new project or projects fit into this strategic framework?
- Necessary time, people, or other resources we need to make this successful?
2. Define Your Project Prioritization Criteria:-
It won’t be enough to identify your projects, their fit in the organization’s strategy, and to ensure that they are all working in the right direction. It is essential that you and your team focus on setting clear project prioritization criteria for future projects.
Project prioritization needs vary from one organization to another and so do the variables that you can choose to build your prioritization criteria or scoring model. For example, one of the primary goals of project prioritization is to help with portfolio management.
From that standpoint, you should prioritize similar projects that use the same resources which allows you to make the most out of your resource leveling and resource allocation efforts. This reduces costs and improves your organization’s operational efficiency. Here are some examples of things that you could include in your project prioritization criteria.
- Project feasibility
- Potential risks
- Cost-benefit analysis
- Relative need to the organization
- Business value
- Project length
- Resources needed
- Strategic alignment
3. Prioritize New and Existing Projects :-
Once we’ve determined the project prioritization criteria that best fit the needs of your organization, we can prioritize both existing and potential projects. We choose which project prioritization method works best for your organization and establish a project prioritization system.
4. Manage your projects aggressively :-
The final key to aligning business strategy and project management to achieve the highest priorities is to manage your projects aggressively. This allows you to constantly focus and refocus on your key areas of impact, the long-range strategy of the organization and your resource alignment. In many organizations, the project management muscles need to be built and the focus on a consistent project management culture is a consistent point of emphasis.
