![]() ![]() So the why? You need clarity on what is important to consider when choosing strategies. Others that have been common with our clients include marketability, impact on the local community, shareholder hire or development, alignment to vision, etc. Common examples are level of risk, time to break even, and return on investment. The key question a priority matrix answers is: What do you want your investments to do for you? The criteria, standards and weights are entirely based on the variables of what is important to the board or leadership. ![]() We taught them how to create and use a priority matrix, and the tool was so well received and valued, that we rolled it into our Vision Navigation® process as a whole. I am chasing after what I don’t know, and my time would be much better spent doing more with the investments that we already have.” The board needed to establish clear policy on what was important to them so that the CEO had guidance on what types of opportunities to identify and what due diligence to do for each to answer the board’s questions. There is no pattern to the reasons for rejection, so I am left not really knowing what you want. However the Board rejected each of them.ĭuring next year’s Vision Navigation strategic planning, the CEO basically said to the board “I will no longer research opportunities because you have rejected all those that I have brought you, each one for very different reasons. He had done due diligence on each, presenting the risks, the potential, etc. Over an 18 month period, the CEO brought them 3-4 opportunities. The board of one of our clients was pushing the CEO to bring them new opportunities for growing the corporation. To add more depth to the quick “why”, however, here is the story behind how the priority matrix was originally developed at PGS. The priority matrix can actually become the policy used to make investment decisions. The quick answer to “why” is the priority matrix takes into account the different tolerances for risk among those on the leadership team and blends them into a simple, clear tool that everyone can be comfortable with. In this post, we focus on why, how, and when to use it. The first post briefly described a priority matrix and how to create one. ![]() So much so, we decided to write a couple posts focused solely on that tool. There was interest from our readers on learning more of the details about the priority matrix. We then briefly introduced a tool we use to do just that within PGS, the Priority Matrix. We wrote in a recent blog ( Weighing Risks) “we recommend that leadership develop and adopt a policy on the criteria and standards it will use in considering new investment decisions”. ![]()
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