Lee Merkhofer Consulting Priority Systems


Your project priority and portfolio management system should be designed via a Collaborative Process — Creating the priority system as a team effort ensures that we capture your organization's specific means for creating value, address organizational issues, and generate understanding and necessary buy-in. Pilot tests validate the system design. Software options ensure cost-effective solutions.


We use efficient decision analysis processes and accurate valuation models based on simulation, multi-attribute utility analysis, and real options. multi-attribute utility is a defensible method for quantifying the “soft” benefits of projects (e.g., improved capability, increased knowledge, enhanced brand image). Real options analysis accounts for the impacts of funding choices on future opportunities (a project's current priority depends on whether delaying it is an option). multi-attribute utility and real options are mathematically sound and well-established theories, not management fads that go in, then out, of fashion.


Our approach:

  • Enables management to agree upon and articulate measurable business objectives.
  • Provides a framework and graphic tools for understanding and communicating about the value derived from project investments.
  • Quantifies the dollar value of projects, accounting for soft benefits, project interdependencies, and risk.
  • Provides analysis and "what if" capability to support a continuous process of project evaluation, project selection, and project portfolio management.