Scorecards determine the value of projects in the organization's portfolio. Prioritizing projects based on a predefined formula can help to remove the subjectivity of the prioritization process. Check out the following scorecard setup, we have designed a ranking system with some business rules to the scoring to help us easily prioritize projects with the following weighted values:
- Operations Efficiency goals count 15% toward the overall business objectives
- Regulatory goals count 50% toward the overall business objectives
- Revenue goals are based on profit estimation and count 35% toward the overall business objectives
Note that we are not using key performance indicators (KPI) or critical success factors (CSF) because we are prioritizing based on scoring goals.
Your team prioritizes a project by scoring the three goals you see above. We have used the "Business Rules" to define the scoring rules for each goal. You can see in the following example that the Regulatory goals, which carry a 50% weighting get a score of 10 and the other two values are 0. This gives the project a priority score of 5 out of a total possible 10, 10 being the highest priority only achieved with a score of 10 in all three goals.