<<

. 32
( 67 .)



>>



se
tP
for




ed hoi




pt
ea
ro n



ke




t

es
os
io




O
C




cr
fC


ar
Customer Information System




ct




B




ix
C
us ion




In
M




s/
Su edu




tM
er

rd

ity
Implementation




t

m
lie




si




uc
da
R




ac
et




to
ui
pp




od
t




an
rg
os




cq




ap
Ta




Pr
St
C




A

C




C
John Anderson Controller 0 1 3 3 3 1 0 1
Peter Ecklund Operations 1 0 0 3 5 1 1 0
Liev Smith Marketing 0
1 1 3 5 5 1 0
1 1
Joan Munson Product Planning 0
1 3 3 5 3 1 1
0 3
Jim Carlson Finance 0 1 3 3 3 1 0 1
Bill Walton HR 1 0 0 3 5 1 1 0
Regina Carlson Engineering 0
1 1 3 5 5 1 0
1 1
Chuck Benson Disribution 1
0 3 3 5 3 1 1
0 3

0
6 10 18 32 32 8 0
6 10
Total
.75
0 1.2 2.4 4 4 1 .75
0 1.2
Average
200
Score 18
0 12 24 40 80 10 0
4 12




The prioritization practice can include financial aspects of initiatives such
as ROI, risk factors, and the more elaborate forms of option theory that work
to quantify the estimates risks and financial returns. All of these are applied in
the prioritization rank-ordering process.
Note that, in the above prioritization scorecard, the strategic intentions are:
Strategic Intention Weight
Cost Reduction 25
Supplier of Choice 10
Targeted Market Growth 10
Acquisition Capability 10
Customer Cost 20
Standard/Best Practices 10
Capacity Increase 5
Product Mix Optimization 10
Total Weight 100

Appendix C, “The Development of Strategic Intentions, with Examples,” pro-
vides additional discussion of strategic intentions, their format and content, and
how they are developed.

Cultural Issues
The changes most needed around this issue are cultural. The Prioritization prac-
tice, while describing a process to assess bottom-line impact and assign resources,
146 MAKE THE RIGHT DECISIONS


also helps to evolve the management culture to embrace these principles. While
the result of the practice is a ranking of projects, the long-term impact is a
change in culture that produces investment options that more effectively sup-
port the strategic intentions of the enterprise.
The definition of strategic intentions can include specific metrics for per-
formance measurement, specific targets within tactical and strategic time frames,
and weights that reflect the relative importance of each strategic intention.5

Using Factors Other than Strategic Intentions
The prioritization process described in the original Information Economics6
project assessment used a standard scorecard with 10 standard factors. These
factors fell into three categories, as shown in Exhibit 8.16, which illustrates how
two companies applied these basic categories in their prioritization process.


EXHIBIT 8.16 Examples of Company Decisions on Management Factors
Category Standard Company One Example Company Two Example
Information
Economics
Management
Factors
Measurable A Return on Investment Internal Rate of Profitability Index
Business Return
Performance
B Competitive Impact Effect on Market Customer Satisfaction
Share
Management C Management Connectivity and Product Shelf Life
Agenda Information Decision Support Improvement
(connection
D Strategic Alignment Quality Performance NA
to business
strategic
intentions) E Competitive Manufacturing Cycle Empowered Employee
Response Reduction
F IT Strategic Comprehensive Point of Sale Global
Alignment Management System
Risk and G Project and NA NA
Uncertainty Organization Risk
H Definitional NA NA
Uncertainty
I Technical Uncertainty NA Project Milestone
Achievements
J IS Infrastructure NA Enterprise Network
Installation
Total Weight 100 Total Weight 100




<<

. 32
( 67 .)



>>