Forced Ranking Model Case Study

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4.6 How an ‘A’ player prioritizes – Prioritization models

Businesses always have a tough time making business choices and trying to get their decisions correct. There are all types of organization both public and private sectors. Recent business trends along with the global economy changes have put pressure on organizations to cut costs. At the same time, they have to be more effective in coming up with cost effective solutions that increase productivity. Organizations are impacted in a big way if they make the wrong choices in choosing and prioritizing their projects. With the advent of the internet, competitive forces have become more dynamic and customers, more demanding on the value provided along with improvement in service quality. The
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Forced ranking: In this model, the project managers get together and force the projects in to a priority order. The projects are then added to the business portfolio in a ranked order till the resources available for the time frame are exhausted. All the projects that do not make it in the ranked priority list are then abandoned or postponed. There could be a few flaws in this process like bias, human errors and also politics in the selection of projects that make the priority list. High and low priority projects can be segregated with more ease by people who have some depth of project knowledge with respect to the benefits. The forced ranking model is good if the projects are simple ones. But in the following cases, it will be…show more content…
Paired comparisons: In this model comparison is made in pairs. It becomes easier to compare just two alternatives and make a priority choice for the project. In this method, the project names, expected benefits and costs are displayed in a pairs. The decision making team are asked to decide which of the two projects have a higher priority. This method focuses on evaluating project costs versus project benefits. In simple words- which project provides more value for the investment? Out of two projects one will be ranked higher than the other. Then a third project is compared with the two projects already ranked to determine where it should be placed. IN this way the projects are ranked until the preparation of a ranked priority list.
C. Point Scoring: This method is quick to capture preferences from the decision makers. Participants are asked to assign points to each project based on their judgment of its priority. This judgment is based on the value that they see in the project. Scoring scales in the range of one to ten are used with ‘10’ meaning high priority ranking. The group ranking is arrived at by adding the project scores by the participants. The average score also can be used to arrive at the priority

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