Priority and Resource Management
Your Potential Problems: You have many problems to solve and many initiatives to solve them. All of them take time, money and energy. They are all important but attacking them all at the same time results in little actually getting done. People are frustrated because they’re working very hard but they don’t seem to be making much progress. We’ve heard it called “wounding alligators.”
Your Solution: The Initiative Efficiency Frontier (IEF)
The challenge is to give resources and focus to the highest “priority” initiatives first. But how do you assign priorities? The classic answer is to use net present value, payback, or IRR calculations. But these all assume that the dollar costs and benefits are clearly quantifiable. In the real world success drivers such as customer satisfaction, product quality, and operational risk are often the targets of improvement priorities and these may not be easily translated into dollar terms. A more sophisticated measure of initiative value is needed.
The IEF method creates a composite “currency” based on the key success factors of your business. The components of this currency are uniquely yours. Initiatives are “present-valued” using this currency. Initiative costs are determined using a consistent method with standard parameters so that the cost bases of every initiative are comparable. The costing method includes capital, operating, and internal resource costs.
Kwinter Consulting Tools and Processes:
- Scorecard creation and maintenance
- Initiative valuator
- Initiative cost assessment
- Efficiency frontier creation
- Priority list creation and maintenance
- Resource allocation and scheduling