Options Appraisal Matrix
When there is more than one option for the proposed solution, it might be useful to use a weighted options appraisal matrix or prioritisation matrix to understand which option best meets the most critical initiative requirements.
This matrix allows the solution options (proposed changes) to be ranked against the requirements to identify the best fit.
Each requirement or criteria is assigned a weighting at the outset through a pairwise comparison analysis: is X more or less important or a priority than Y? Certain standard criteria include motivated workforce, operating budget or sustainability. The different options can then be scored against how much contribution they make towards the criteria or objective. This will result in a value index score for each option allowing for comparison and to support decision-making.
An example is shown below and in the template you can add your own requirements and weightings.
Hints & Tips
- Use a table like the image above, adapting to the number of options you have.
- Under Requirements, list the items that are identified as being important.
- It is recommended to limit the Customer Importance Weighting to a scale of 1-5.
- Apply weightings to the requirements in order of importance, ideally derived from a pairwise analysis exercise.
- Then allocate points based on how well the proposed option will meet each requirement.
- Multiply the Importance Weighting by the points allocated, to give a score for each requirement.
- Then add up the score for each proposed solution / option.
- The Options Appraisal can be included in both the Prima Facie and Full Business Cases as part of the Investment Appraisal process.