The definition of priorities is one of the project manager’s main tasks and is an area where there is an always the uncertainty. The need is to set priorities comes from the fact that you don’t have enough resources to work on everything you work on everything you want.
Priority setting is a process that establishes which projects are the most important so that resources can focused on the time delivery.
The project priorities are as the follows:-
• Increased project success rate: Good prioritization ensures that project is up to date or align and with the fewer errors.
• Greater Run on Investment: Projects that are the better aligned or in the form with the business objectives it provides more value to the organization. Value does not only in the form of money can be expressed in various forms for every organization has its meaning.
• Improved Quality of projects Requests: – When strategic objectives are aligned with initiatives align accordingly. This allows project stakeholders to improve the performance and also increase the quality of demands.
• Obsolete projects removal: – structured prioritsation process will also ensure that well aligned projects will be approved and also will obsolete in advance.
• Resource allocation: – A good prioritization process will allow the portfolio scaled up and also resources can be more effectively.
Techniques for setting up the project priorities:-
1. MOSCOW Method :-
The Moscow is a priority setting technique is employed in multiple management fields to achieve the consensus what is most important to the stakeholders and to the customers.
This method requirements are classified into as:-
• Must have: – It is an essential requirements that must be included the product. If it is not considered then it will considered an error.
• Should have: – These requirements are important not crucial. They generally share the requirement importance but it is not so necessary.
• Could have: – These requirements are desirable but not necessary for insurance. They are the low cost product requirements.
• Won’t have:- These requirements are least critical or not aligned with the product strategy. The can be considered for the future versions.
2. Financial Analysis:- Imitative or the projects are carried out with the specific objective to increase the revenue or reduced the cost.
For these kind of situation a financial analysis is required to achieve the best results and the priority of project will be assigned.
Four types of financial analysis objectives can be addressed as:-
• New revenues should be generated.
• Incremental revenues i.e. additional revenues from existing customers or additional service.
• Revenue withheld: – Reduction of the customer’s withdrawal quota.
• Cost savings.
3. Net Present Value; – Present value of a certain amount and it depends on the interested rate.
4. Internal Rate of Return: – It is totally depends on the metric that expressed the performance of a project in large terms. It shows the speed of investment which creates the value. The longer it takes to return the more risk is involved. Depending on the financial analysis is the risk tolerance this could be a key factor.
5. Value vs Risk:-Prioritization of projects is to compare the value what needs the most and usually it measures the cost. Another method is considered as a risk is the primary factor.
Based on the risk are:-
• Planning Risk: – A project is finished within the deadline.
• Cost Risk: – The project will cost more than the allowable by company level.
• Functionality Risk: – Not able to execute the project.
The project prioritization is important because it ensures that you correctly allocate the resources according to the project or company it is required and also based on their unique needs. By prioritizing this company can minimize the time and it can on the is less urgent and it is not important as the aspects of the projects. The project priorities are handled in many ways that what the project requires the most and how it is important and also it will increase the business value and the efficiency.
There are the some most important tips or measure to manage the projects effectively in following many ways:-
• Start Prioritizing projects or requirements within based on the business value.
• Set projects by identifying the urgent and the most important aspects of the projects.
• Access your own bandwidth.
• Learn to say no to projects.
• Be flexible with the project prioritization process.