As part of a
series of articles I wrote on Portfolio Analysis within Microsoft Project
Server 2013, there is another topic I was interested to understand. How
Microsoft Project Server calculate business drivers prioritization.
- Expand
revenue of the Bobby Brown product line
- Increase
product awareness among people between 13 and 18
- Increase the
number of members of the VIP club
- Introduction
of new premium products
- Reduce
employee turn over
- Reduction of
support call waiting time
There are
within Project Server 2013, two ways to prioritize business drivers:
- A
“Calculated” method where an automatic pair comparison of each driver generates
relative priority scores (the one we will see here),
- And a
“Manual” method where users specify priority values for each driver directly.
To weight
the drivers and define priority, the Analytic Hierarchy Process (or AHP) can be
used. Its principle is to first decompose decisional problems into a hierarchy
of more easily comprehended sub-problems, each of which can be analysed
independently.
There are 7
levels of comparison:
- Is extremely
more important than
- Is much more
important than
- is more
important than
- Is as
important as
- Is less
important than
- Is much less
important than
- Is extremely
less important than
Using this method, drivers are compared two by two
At the end of the exercise, here is what we have:
To complete the matrix, let’s go back to the 7 levels of
comparison:
- Is
extremely more important than
- Is
much more important than
- is
more important than
- Is as
important as
- Is
less important than
- Is
much less important than
- Is
extremely less important than
They are symmetric, 3 above “Is as important as” and 3
below. This means that if a driver A “is extremely more important than” a
Driver B, then the Driver B “is extremely less important than” the Driver A. Of
course, the driver A “is as important as” the Driver A J.
Here is the complete matrix:
Now is the key question, how to replace sentences such as
“is as important as” by numbers, we can use to calculate the priority of each
drivers.
It was quite simple via Bing (even if never find it on any
Microsoft websites) to find the values of each, here they are:
Next steps is to simply replace text by values.
Now this is
where it become funny, yes it is. Project Server use a statistical calculation
method called eigenvectors. If, like
me, this is not something you studied at school, or is not your bedside book,
you might check http://en.wikipedia.org/wiki/Eigenvalues_and_eigenvectors.
Was it clearer? No? Me neither
J
The system
then normalize the eigenvectors. It calculates the sum of eigenvectors, each of
them will be divided by this sum to normalize them and get the business driver
priority. (E.g. Driver 1 => 0.89687/2.32503 = 38.57%).
Let’s check these results in Project Server…
Well, not so bad J
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