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Decision-makers
populate a judgment
matrix with ratios
derived from each
graphic comparison.
Once comparisons
are made EC2000
calculates priorities
for your objectives.
In a group session, decision-makers can enter judgments using radio frequency
keypads or remotely via the internet. In this example, Betty and Sean are saying
that ROI is more important. Mike , Jon and Jimmy are saying that Improving
Customer Satisfaction is more important. The geometric average is used as the
groups overall judgment.
In the Priorities Graph, you can see the priorities derived from previous
pairwise comparisons relative to the importance to each objective. These
priorities are a corporate perception of what is important. The inconsistency
ratio measures how consistent the group was in judgments concerning the
relative importance of the objectives. The goal is not perfect consistency, but if
inconsistency is greater than .10, the judgments should be reviewed for
accuracy.
The weights of
the objectives
are shown in a
spreadsheet
format in the
Data Grid.
The Data Grid is used to evaluate alternatives using data where available
and verbal ratings intensities where data does not exist. EC2000 synthesizes
the priorities of the objectives, data and ratings to determine the overall
priorities of the alternatives.
The utility curve
function is used to
convert raw data to
prioritized
information. The
curve can be linear,
convex or concave.
Increasing Curve
Decreasing Curve
When you do not have data for an objective, EC2000 guides you to build a
customized ratings scale that is numerically accurate for verbal ratings.
Using the Individual Ratings Assessment window, stakeholders enter
ratings for each alternative with respect to each weighted objective. The
display can be anonymous or can provide names so that decision-makers
can discuss how each person arrived at their rating for the alternatives.
After making judgments about the
relative importance of objectives, sub-
objectives and alternatives, EC’s
powerful sensitivity graphs enable you
to test the sensitivity of the decision to
changes in priorities by changing the
weights of your objectives to instantly
see the impact on your alternatives.
EC2000 benefit priorities from the Data Grid export directly into its Excel optimization
add-on tool to help organizations with investment portfolio management. Above is a
simple fund or not fund model where the projects with the highest overall benefit for their
costs will be fully funded. More complex budget constraints are also easy to include.
Total
Overall Benefit of the Portfolio- This number is an aggregate benefit Portfolio
Benefit
4
Score
3
2
1
0
0 500 1000 1500 2000
Overall Cost of the Portfolio (in thousands)
The highest overall portfolio benefit is for the budget of $1.5 Million. The
additional budget spent would yield decreasing marginal returns on investment.