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D20

Decision Making & Optioneering Prioritisation

Confidential Client

Published: 8th December 2014

DBD assisted a key client in prioritising the budget associated with execution of a Research and Development (R&D) project portfolio. The Client needed to understand the cost benefit provided by each project and how spending the budget should be prioritised to ensure best value for money.

DBD worked in close collaboration with the Client to set the criteria, which tied to Government and Regulator strategic goals. After scoring each project against each of the criteria in an initial screening, weightings were applied to reflect the different objectives and priorities of each stakeholder. The options were then down-selected to the options that would be carried through to study phase.

On presenting the study outputs to the Client, DBD was able to show the results from different perspectives, e.g. projects by site, by stakeholder owner or by total benefit against the criteria. These differing viewpoints allowed the decision-makers in the Client team to determine the high priority tasks that scored consistently high across all criteria. Through this assessment the original portfolio of projects was changed for projects that provided more benefits in risk reduction across a number of the Client’s sites.

In addition, DBD was able to easily apply risk scenarios to the output to test that the scorings were robust and to check the “must-do” list of projects was complete.  This process allowed a full audit trail of the decision making process to the Client, showing how each of the prioritised projects provided the Client with multiple benefits against their success criteria.  It also allowed changes in budget or workload to be easily re-assessed.

Client Benefits

The application of the D2O process realised the following benefits to the Client:

  • Reduced need for data collection: Effort is placed on the real differentiators without need for a huge quantity of “bottom up” data on everything
  • Reduced overall complexity: Total combination with just 30 tasks is in excess of 1bn. This was eventually reduced to 6 different portfolios
  • Helped stakeholders reach consensus: Analysis was based on inputs from 3 different stakeholders
  • Highly responsive to changes: If there were risks or emergencies the process would take them into account and provide updated outputs very quickly with the minimum of effort
  • Identified better project portfolio: Assessment of the benefits of the projects against the key success criteria identified a better project portfolio