This document provides guidance on how to prioritize projects using a multi-criteria decision analysis process. It outlines four steps: 1) defining goals and criteria for evaluation, 2) establishing weights for each criterion based on pairwise comparisons, 3) scoring each project according to the criteria, and 4) viewing the results which show the priority percentage allocated to each project. An example is provided where strategic alignment, risk, value to customer, and profitability are used as criteria to prioritize eight projects, with the highest priority going to project six at 22%. Users are invited to experiment with an online demo tool to apply this prioritization approach.

1. How to Prioritize Projects?
(or anything else…)
http://makeitrational.com

2. How to prioritize projects?
Project Priority Project Priority
Project 1 ? Project 1 6%
Project 2 ? Project 2 12%
Project 3 ? Project 3 17%
Project 4 ? Project 4 16%
Project 5 ? Project 5 9%
Project 6 ? Project 6 22%
Project 7 ? Project 7 10%
Project 8 ? Project 8 8%

3. Prioritization process
1. Define goal and criteria.
2. Establish weights of criteria.
3. Score alternatives.
4. See results.

4. Define goal and criteria
Goal: Prioritize
projects
Strategic Value to
Profitability Risk
alignment Customer

5. Prioritization process
1. Define goal and criteria.
2. Establish weights of criteria.
3. Score alternatives.
4. See results.

6. Establish weights of criteria (1/3)
• Compare criteria in pairs, each time:
• choose the more important one,
• choose the level of dominance on a 9-point scale.
• Software transforms your comparisons into weights.
• Deriving weights from comparisons is based on Analytic
Hierarchy Process.

7. Establish weights of criteria (2/3)
This is your
input

8. Establish weights of criteria (3/3)
Criterion Weight
Output from
Strategic alignment 58%
software
Risk 18%
Value to Customer 13%
Profitability 11%
Total 100%

9. Prioritization process
1. Define goal and criteria.
2. Establish weights of criteria.
3. Score alternatives.
4. See results.

10. Score alternatives
Define rating scales that model your preferences (examples below)
and use them to score alternatives in context of criteria.
Value Risk Value Strategic alignment
6 Very low 0 Low
4 Low
1 Medium
2 Moderate
0 High 2 High
Note: more preferred = higher value

11. Prioritization process
1. Define goal and criteria.
2. Establish weights of criteria.
3. Score alternatives.
4. See results.

12. See results
Project Priority
Project 1 6%
Project 2 12%
Project 3 17%
Project 4 16%
Project 5 9%
Project 6 22%
Project 7 10%
Project 8 8%

13. Note: This method can be used to prioritize
anything else e.g. vendors, locations,
employees, markets…

14. Try it now
1. Try online demo (no registration required):
http://makeitrational.com/demo
2. Open project “Prioritize projects”
3. Play with it e.g.:
• add/remove projects and criteria
• change comparisons and rates
• analyze results
4. If you have any questions: info@makeitrational.com