Organizations have opportunities to take on multiple projects, but how do they decide
which ones are the most beneficial with the least amount of risk. In this assignment, you
will explore a list of projects and decide which project selection method is best used to
prioritize the list of projects.
Instructions:
Based on the list of projects, complete the following:
- Describe the project selection method which you will use.
- Use the project selection method to determine the priority of the projects in your
project list.
- Review the course announcement for this week to find out what your portfolio
budget is. You will need this information to determine which projects you are able
to include in your portfolio.
Requirements:
- This assignment will be a paper that is 2-3 double-spaced, APA formatted pages
(using MS Word).
- Use 2 resources beyond this course required reading to complete this
assignment.
- Provide a table within your MS Word document which details the projects for your
portfolio and their priority.
Be sure to read the criteria below by which your work will be evaluated before
you write and again after you write.
PMG654 – Portfolio Management
P
Full Answer Section
- Flexibility: It allows customization of criteria and weights to reflect your organization's priorities.
- Quantitative & Qualitative: It incorporates both numerical scoring and qualitative considerations for each project.
- Transparency: The weighting system makes the decision-making process clear and objective.
Project Selection Process:
- Identify Criteria: Define critical factors for project selection, such as:
- Strategic Alignment: Does the project support your organization's strategic goals?
- Financial Viability: Is the project cost-effective and within budget?
- Risk Management: Can potential risks be mitigated, and is the risk profile acceptable?
- Technical Feasibility: Do we have the resources and expertise to complete the project successfully?
- Resource Availability: Are the necessary resources (personnel, technology) available?
- Assign Weights: Assign a weight to each criterion based on its relative importance to your organization. (e.g., Strategic Alignment = 30%, Financial Viability = 25%, etc.) The sum of all weights should equal 100%.
- Develop Scoring System: Establish a scoring system for each criterion (e.g., 1-5 points, with 5 being the highest).
- Evaluate Projects: Score each project against each criterion based on your established scoring system.
- Calculate Weighted Score: Multiply each criterion score by its corresponding weight and sum the products for each project.
- Prioritize Projects: Rank projects based on their total weighted scores, with the highest score indicating the most beneficial project with the least risk.
Example (Using Hypothetical Data):
| Criteria |
Weight |
Project A Score |
Project B Score |
Weighted Score (A) |
Weighted Score (B) |
| Strategic Alignment |
30% |
4 |
3 |
1.2 |
0.9 |
| Financial Viability |
25% |
5 |
4 |
1.25 |
1 |
| Risk Management |
20% |
3 |
4 |
0.6 |
0.8 |
| Technical Feasibility |
15% |
5 |
4 |
0.75 |
0.6 |
| Resource Availability |
10% |
4 |
5 |
0.4 |
0.5 |
| Total |
100% |
|
|
4.2 |
3.8 |
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In this example, Project A has a higher weighted score, indicating it aligns better with strategic goals, has a lower risk profile, and is technically feasible.
Course Announcement and Budget Consideration:
[Refer to your course announcement to find your specific portfolio budget.]
Once you have prioritized your projects using the weighted scoring model, review the budget and select projects that fit within the allocated resources.
Conclusion:
The weighted scoring model provides a structured approach to project selection, considering factors like strategic fit, financial viability, and resource constraints. By prioritizing projects based on their alignment with organizational goals and risk profile, you can build a strong portfolio that maximizes benefits and minimizes risk for your organization.
Next Steps:
- Develop Your Criteria: Define the specific criteria and weights relevant to your organization and project list.
- Score Your Projects: Apply the weighted scoring model to your specific projects.
- Build Your Portfolio: Considering the budget constraints, select projects for your portfolio that align with your organization's goals and offer the most value with the least risk.
Remember to include a table within your assignment detailing the projects selected for your portfolio and their priority based on the weighted scoring model.
Sample Answer
Project Selection for Portfolio Management: Prioritization Using Weighted Scoring Model
Project Selection Method:
For this assignment, we will utilize the Weighted Scoring Model to prioritize the project list. This method assigns weights to pre-defined criteria based on their importance to the organization's goals and considers each project's performance against those criteria. Here's why it's suitable: