Establishing an expected value
The Expected Value step in the
project lifecycle utilizes a questionnaire to estimate the risk-adjusted value of a given Project relative to other Projects in your organization. This relative value is called the expected value of the Project. The values are used to create the Project Portfolio Value Analysis Chart in the Analysis component of
(see Results-of-the-analysis). The consistency of the questionnaire ensures that the calculations are applied uniformly to the Projects in the portfolio and can, therefore, serve as a consistent basis for relative evaluation.
Each question in the questionaire is given a weight. Also each answer within a question is given a weight. These weightings are determined at the time of configuration of the software for your organization. A weighted score is derived each for business value and probability of success. These values are used to plot this project in the Expected Value Chart. These scores are mutliplied together to determine an overall Expected Value score.
To calculate the Project's Business Value and Probability of Success Scores