A simple framework for prioritising improvement projects
I’ve just spent a great weekend kicking around the house and garden with my family. While it was really nice to spend quality time together, I felt like I spent the weekend adding task after task to my mental to-do list of projects around the house - fix the side fence, repaint the kitchen ceiling, clear out the pantry, winterise the garden… and so on! By the end of the weekend my list was a mile long and I had no idea where to start or how I was going to find the time to do any of it. Come Monday morning I’m behind the desk and it occurs to me that running a business is exactly the same - it’s very easy for the to-do list of improvement projects - streamlining processes, enhancing customer experience, increasing efficiency, to build up, and at times it can be difficult to know where to put your focus and energy.
However, with limited time, resources, and budget, it's crucial to prioritize improvement projects that can provide the most value with the least effort. In this blog post, I'll introduce a simple framework that you can use to evaluate and prioritize improvement projects based on their potential impact and level of effort involved. The best part - it’s perfect for home or office!
Impact vs effort
The framework is based on two dimensions: potential impact and level of effort. Potential impact refers to the expected value or benefit that the improvement project can bring to your business, such as increased revenue, decreased cost, improved quality, or enhanced customer satisfaction. Level of effort, on the other hand, refers to the amount of time, resources, and budget required to implement the improvement project, including planning, execution, and monitoring.
To use the framework, you can create a two-dimensional graph with potential impact on the y-axis and level of effort on the x-axis. Then, you can plot each improvement project on the graph based on its estimated potential impact and level of effort. The projects that are high on potential impact and low on level of effort should be prioritized first, while the projects that are low on potential impact and high on level of effort should be deprioritized or deferred.
How to use the prioritisation matrix:
Here are some steps to follow when using the framework:
Identify potential improvement projects: Make a list of potential improvement projects that you think can benefit your business. This can include anything from reducing waste in your production process to improving your website's user experience. Check out our operational efficiency quiz if you’re needing some inspiration here!
Evaluate potential impact: For each improvement project, evaluate its potential impact on your business. Ask yourself questions such as: How much revenue can this project generate? How much cost can it save? How much value can it add to our customers?
Estimate level of effort: For each improvement project, estimate the level of effort required to implement it. This can include the time, resources, and budget required, as well as any risks or challenges that may arise.
Plot the projects on the graph: Using the two-dimensional graph, plot each improvement project based on its estimated potential impact and level of effort. You can use different colors or shapes to represent different types of projects, such as revenue-focused, cost-focused, or customer-focused.
Prioritize the projects: Once you have plotted all the improvement projects on the graph, you can identify the ones that are high on potential impact and low on level of effort. These projects should be prioritized first, as they can provide the most value with the least effort. You can also identify the projects that are high on potential impact but require high level of effort, and consider whether they are worth pursuing given your constraints.
Monitor and adjust: After prioritizing the improvement projects, you can start implementing them and monitor their progress. You may also need to adjust your priorities as new information or challenges arise, or as your business evolves over time.
Whether you’re tackling a to-do list at work or home, a simple framework based on potential impact and level of effort can help you make informed decisions and focus your resources on the projects that can provide the most value. By following the steps outlined above, you can create a roadmap for continuous improvement and enhance your business performance in a sustainable way… and perhaps start to get on top of the garden at the same time!
What’s on your to-do list?
Know there is work to be done to improve your organisation’s operational efficiency but not sure how to get started? Take our free online Operational Efficiency Quiz to stimulate your thinking, help you reflect on your key business processes, and identify potential areas for improvement.