What Is It?
A Prioritization Matrix is a structured method of establishing the relative priority and sequencing of alternatives regarding an issue, objective or goal.
When to Use It
A Prioritization Matrix is useful to:
- Determine the effect of a variety of choices regarding an issue/objective/variable.
- Identify a number of variables and their relationship to each other.
- Define and apply weights to different factors affecting the establishment of priorities.
- Establish priorities among a number of complex variables with multiple factors affecting their relative priorities compared to each other.
- Group variables in clusters of relative importance or priority.
How to Use the Prioritization Matrix: A Step-by-Step Example
Overview
We will explain the value of a Prioritization Matrix using an office supply company business issue as an example.
- Issue:
- The office supply company needed to increase productivity and profitability.
- Objectives:
- Identify the organization's Critical Success Factors (CSFs) and the Key Activities that contribute to their ability to deliver on those CSFs.
- Prioritize the key activities to ensure the biggest return on productivity and profitability.
- Plan:
- Create a Prioritization Matrix to determine the effect of key activities on CSFs and clearly define the organization's priorities.
7 Steps to Create a Prioritization Matrix
Step 1: Create a Matrix
1a. Vertical Axis:
- Along the vertical axis, list your set of objectives, tasks, activities and code them.
- Example: In this case we will list Key Activities and code them "A1," "A2," "A3,"etc., with the letter "A" signifying "Activity" and the number indicating the relative order.
1b. Horizontal Axis
- Record the criteria that the factors identified in Step 1a. will impact.
- Example: We will list the organization's Critical Success Factors across the horizontal axis.
Step 2. Analyze the Impact of the Achievement
- Starting with the first item on the vertical axis, analyze the impact the factor would have on each element listed on the horizontal axis. If the impact is positive then the box on the matrix would be filled in.
- Example: We determined that Customer Feedback (Key Activity) positively impacted Customer Care (CSFs) and filled in the appropriate box on the matrix.
Step 3. Count the Positive Impacts
- After completing Step 2 for all of the items on the vertical axis, count the number of positive impacts -filled in boxes on the matrix- and put the total in the vertical "Count" column to the right of the matrix.
- Example: Customer Feedback (Key Activity) is the only item that positively impacts Customer Care (CSFs). Therefore we recorded a "1"in the count column.
Step 4. Rate the Current Performance Level
- Using the Performance Index Scale (see below), rate the current performance level of the objective, process or procedure.
- Example: The company is just starting to gather Customer Feedback so that factor receives a Performance Index "B"= Started. Therefore we recorded a "B"in the corresponding Performance Index Column.
Step 5. Plot Data on Priority Analysis Matrix
- Once you have recorded the Impact Count and Performance Index for each of the identified factors, plot both data points on a Priority Analysis Matrix.
- The Impact Counts will be listed on the vertical, starting with zero in the lower left hand corner and the performance rating on the horizontal starting with the letter A at the extreme left.
- Example: See Priority Analysis Matrix below.
Step 6. Complete Sector Analysis of each objective
- If an objective has a high impact count (vertical) and a low performance rating (the letters A through F are on the horizontal, with A as the lowest rating), then the objective has the highest priority and demands the most attention, resources, etc.
- Example: Training (Impact Count = 4, Performance Index = B) is the highest priority for this company because it positively impacts all 4 CSFs and the company is just starting to pay attention to this activity. Therefore increasing Training should pay dividends across the board.
Alternatively, Capacity Planning (Impact Count = 2 and Performance Index = F) has the lowest priority because it only impacts 2 of the CSFs and the company already does an excellent job in this area.
Step 7. Impact - Performance Snapshot Matrix
Once the analysis is complete, you will have a clear picture of:
- Which objectives will have the greatest positive impact on factors that are critical to your organization's success
- Which objectives/activities you are currently doing a good job on and which could use improvement
- Where you should focus your improvement efforts to ensure the highest impact on your success.
It may be useful to use the Impact - Performance Snapshot Matrix to plot the results of the analysis so that you have a snapshot view of where you need to focus your efforts. You can use this matrix as the basis for setting overall priorities and action plans.
Summary/Key Points
- The most important consideration in the design of the matrix is to identify the best match of the axes to the requirements of the situation.
- The items to be considered are placed in the vertical axis.
- The factors to be considered in creating the prioritization are placed in the horizontal axis.
- If the situation is relatively simply and straightforward, then a fairly simple set of criteria with equal weighting may well suffice.
- If there are a number of complex variables, then each needs to be given an appropriate weight. Furthermore, if current performance levels vary across these factors, then a performance factor needs to be applied to each variable, rather than as a simple overall measure.
More Help
If you have questions about using the Nominal Group Technique or other Brainstorming methods, please contact Beth Chartier at 781-343-4008 or at bchartier@wsa-intl.com. She will set up time for you talk to one our consultants, free of charge, who will help you with your specific questions and concerns.
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