Multi-criteria models are valuable tools for project managers when selecting projects because they allow for a more comprehensive and systematic evaluation of various factors. Here’s how they can be used:
- Criteria Identification: Begin by identifying and defining the criteria that are essential for project selection. These criteria can include financial metrics (ROI, NPV), strategic alignment, risk assessment, resource availability, technological feasibility, customer impact, compliance, and more.
- Weighting Criteria: Assign weights to each criterion based on their relative importance. Not all criteria carry the same weight in project selection. For example, strategic alignment might be more critical than short-term financial gains.
- Scoring and Rating: Establish a scoring system for each criterion. This could be numerical or qualitative, depending on the nature of the criterion. Evaluate and rate each project against these criteria.
- Normalization: Normalize the scores if the criteria are measured on different scales to ensure comparability. This step helps in eliminating biases due to different measurement units.
- Aggregation and Ranking: Aggregate the scores based on the assigned weights to calculate an overall score for each project. This aggregated score helps in ranking the projects relative to each other.
- Sensitivity Analysis: Conduct sensitivity analysis to assess how changes in criteria weights or scores impact the project rankings. This allows project managers to understand the robustness of their decision-making process.
- Decision Making: Based on the aggregated scores and rankings, make informed decisions about project selection. Projects that rank higher based on the multi-criteria evaluation are generally considered more suitable for selection.
- Iterative Process: Project selection using multi-criteria models might involve iterations, especially when there are conflicting priorities or uncertainties. It allows for refining criteria weights or revisiting scores to arrive at more reliable decisions.
- Documentation and Transparency: Document the criteria used, weights assigned, scores obtained, and the rationale behind the decisions made. This documentation ensures transparency and helps in justifying project selections to stakeholders.
- Continuous Improvement: Evaluate the effectiveness of the multi-criteria model periodically and refine it based on feedback and lessons learned from previous project selections. Continuous improvement ensures the model remains relevant and effective.
By employing multi-criteria models, IT project managers can make more objective and informed decisions when selecting projects. These models enable a structured evaluation process that considers various dimensions, leading to the selection of projects that align closely with organizational objectives and have the highest potential for success.
