Analytic Hierarchy Process - Revision history

Tkokotas at 17:47, 16 November 2018

2018-11-16T17:47:02Z

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			''Developed by Hafsteinn Thor Gudjonsson''


	Decision making and doing it right is one of the largest challenges that organizations have to face. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.		Decision making and doing it right is one of the largest challenges that organizations have to face. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.
	The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decisions, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.		The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decisions, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.

Hafsteinnthor at 14:16, 1 March 2018

2018-03-01T14:16:21Z

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	Decision making and doing it right is one of the largest challenges that organizations have to face. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.		Decision making and doing it right is one of the largest challenges that organizations have to face. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.
	The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex ~~decision~~, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.		The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decisions, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.

	This article explains the background for the Analytic Hierarchy Process and the application of the tool in a Project, Portfolio and Program Management context. The main focus is on explaining the application of the tool, in a step-by-step manner including a fictional case example		This article explains the background for the Analytic Hierarchy Process and the application of the tool in a Project, Portfolio and Program Management context. The main focus is on explaining the application of the tool, in a step-by-step manner including a fictional case example
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	=Overview=		=Overview=
	===History===		===History===
	The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex ~~decision~~, by rating and comparing multiple criteria and scenarios against each other <ref name="Ishizaka">''(“Ishizaka Alessio, Labib Ashraf, Analytic Hierarchy Process and Expert Choice: Benefits and Limitations, ORInsight, 22(4), p. 201–220, 2009)''</ref> .		The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decisions, by rating and comparing multiple criteria and scenarios against each other <ref name="Ishizaka">''(“Ishizaka Alessio, Labib Ashraf, Analytic Hierarchy Process and Expert Choice: Benefits and Limitations, ORInsight, 22(4), p. 201–220, 2009)''</ref> .

	It was Thomas Saaty, regarded as one of the pioneers of Operations research which developed the Analytic Hierarchy Process throughout the 1970s. In the late 1960's, Saaty was recruited by the Arms Control and Disarmament Agency at the U.S. Department of state to direct their research projects. During his period there, he observed considerable communication difficulties between the scientists and lawyers at the department, both groups being the main contributors and decision makers in the project, which led to poor project results. Based on his experience from this period, Saaty was driven to develop a simple way to help ordinary people communicate better and make complex decisions, eventually resulting in the Analytic Hierarchy Process. From that day on, the Analytic Hierarchy Process has perhaps become the most widely used decision making method in the world with actual relevant applications counting in the thousands <ref name="Exposition"></ref>.		It was Thomas Saaty, regarded as one of the pioneers of Operations research which developed the Analytic Hierarchy Process throughout the 1970s. In the late 1960's, Saaty was recruited by the Arms Control and Disarmament Agency at the U.S. Department of state to direct their research projects. During his period there, he observed considerable communication difficulties between the scientists and lawyers at the department, both groups being the main contributors and decision makers in the project, which led to poor project results. Based on his experience from this period, Saaty was driven to develop a simple way to help ordinary people communicate better and make complex decisions, eventually resulting in the Analytic Hierarchy Process. From that day on, the Analytic Hierarchy Process has perhaps become the most widely used decision making method in the world with actual relevant applications counting in the thousands <ref name="Exposition"></ref>.

Hafsteinnthor at 21:48, 28 February 2018

2018-02-28T21:48:29Z

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	The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.		The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.

	This article explains the background for the Analytic Hierarchy Process and the application of the tool in a Project, Portfolio and Program Management ~~perspective~~. The main focus is on explaining the application of the tool, in a step-by-step manner including a fictional case example		This article explains the background for the Analytic Hierarchy Process and the application of the tool in a Project, Portfolio and Program Management context. The main focus is on explaining the application of the tool, in a step-by-step manner including a fictional case example
	for easier application understanding.		for easier application understanding.

Hafsteinnthor: /* Application in a Project, Portfolio and Program Management Context */

2018-02-28T21:44:42Z

Application in a Project, Portfolio and Program Management Context

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	===Application in a Project, Portfolio and Program Management Context===		===Application in a Project, Portfolio and Program Management Context===
	Considering how effective the Analytic Hierarchy Process is for complex decision making, it is often utilized by the PPM (Project Portfolio Management) for the prioritization and selection of projects in a portfolio. Portfolio Management includes the processes to identify, categorize, evaluate, select, prioritize, balance and authorize projects within a portfolio <ref name="PortfolioMan">''(PMI, The Standard for Portfolio Management, page 21, 2008''</ref>. The selection of projects is thereby driven by multiple drivers, includes many complex decision and is affected by multiple stakeholders. The tool allows multiple inputs from stakeholders to be considered, allowing for pairwise comparison of criteria and alternatives, which can be done in a meeting or workshop environment, while maintaining a relatively high rating consistency . Allowing stakeholders to have a say in the decision making and being heard can help increase support, minimize resistance towards an individual project and thereby increase the chance for a project success <ref name="ProjectMan">''(PMBOK® Guide, A Guide to the Project Management Body of Knowledge, Fifth Edition, chapter 13.3, 2013''</ref>.		Considering how effective the Analytic Hierarchy Process is for complex decision making, it is often utilized by the PPM (Project Portfolio Management) for the prioritization and selection of projects in a portfolio. Portfolio Management includes the processes to identify, categorize, evaluate, select, prioritize, balance and authorize projects within a portfolio <ref name="PortfolioMan">''(PMI, The Standard for Portfolio Management, page 21, 2008)''</ref>. The selection of projects is thereby driven by multiple drivers, includes many complex decision and is affected by multiple stakeholders. The tool allows multiple inputs from stakeholders to be considered, allowing for pairwise comparison of criteria and alternatives, which can be done in a meeting or workshop environment, while maintaining a relatively high rating consistency . Allowing stakeholders to have a say in the decision making and being heard can help increase support, minimize resistance towards an individual project and thereby increase the chance for a project success <ref name="ProjectMan">''(PMBOK® Guide, A Guide to the Project Management Body of Knowledge, Fifth Edition, chapter 13.3, 2013)''</ref>.

	The Analytic Hierarchy Process, its application and the overall understanding can therefor be considered very relevant for Project Portfolio Managers and Project Managers alike <ref name="Portfolio">''(Vargas R. V., Using the analytic hierarchy process (ahp) to select and prioritize projects in a portfolio, 2010''</ref>.		The Analytic Hierarchy Process, its application and the overall understanding can therefor be considered very relevant for Project Portfolio Managers and Project Managers alike <ref name="Portfolio">''(Vargas R. V., Using the analytic hierarchy process (ahp) to select and prioritize projects in a portfolio, 2010)''</ref>.

	=Methodology - A Step-By-Step approach=		=Methodology - A Step-By-Step approach=

Hafsteinnthor at 21:40, 28 February 2018

2018-02-28T21:40:51Z

← Older revision		Revision as of 21:40, 28 February 2018
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	Decision making and doing it right is one of the largest challenges that organizations have to face in. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.		Decision making and doing it right is one of the largest challenges that organizations have to face. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.
	The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.		The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.

Hafsteinnthor at 21:40, 28 February 2018

2018-02-28T21:40:43Z

← Older revision		Revision as of 21:40, 28 February 2018
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	Decision making and doing ~~them~~ right is one of the largest challenges that organizations have to face in. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.		Decision making and doing it right is one of the largest challenges that organizations have to face in. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.
	The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.		The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.

Hafsteinnthor at 21:40, 28 February 2018

2018-02-28T21:40:10Z

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 ===Considerations===
 The highlighted limitations showcase the importance of calculating the Consistency factor and to consider the Sensitivity Analysis carefully. Utilizing these steps, should help counteract the qualitative biases and scale rating biases when applying the tool.
 =Annotated Bibliography=
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 Thomas L. Saaty , ''Mathematical Principles of Decision Making (Principia Mathematica Decernendi)'', 2010:
 *''An in-depth summary and full theory explanation of the Analytic Hierarchy Process written by the creator of the Analytic Hierarchy Process and the Analytic Network Process''
 =Bibliography=
 '''References''' <references />

Hafsteinnthor: /* Glossary */

2018-02-28T21:38:03Z

Glossary

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	=Glossary=		=Glossary=
	'''Criteria''': A standard or input that has an effect on the solution choice		'''Criteria''': A standard or input that has an effect on the solution choice

	'''Matrix''': A mathematical term used for a rectangular array of numbers, most often referred to as a table		'''Matrix''': A mathematical term used for a rectangular array of numbers, most often referred to as a table

	'''Reciprocal''': A mathematical term used when a number ''x'' is divided by ''1'', that is ''x'' becomes ''1/x''		'''Reciprocal''': A mathematical term used when a number ''x'' is divided by ''1'', that is ''x'' becomes ''1/x''

	'''Quantitative''': When an input is measured in numerical values		'''Quantitative''': When an input is measured in numerical values

	'''Qualitative''': When an input is measured in words, size, appearance etc., but not based entirely on numerical measurable values		'''Qualitative''': When an input is measured in words, size, appearance etc., but not based entirely on numerical measurable values

	'''ERP-System''': ''Enterprise Resource Planning'', a IT platform used to streamline information and processes across an organization		'''ERP-System''': ''Enterprise Resource Planning'', a IT platform used to streamline information and processes across an organization

Hafsteinnthor: /* Annotated Bibliography */

2018-02-28T21:37:43Z

Annotated Bibliography

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	Thomas L. Saaty , ''Mathematical Principles of Decision Making (Principia Mathematica Decernendi)'', 2010:		Thomas L. Saaty , ''Mathematical Principles of Decision Making (Principia Mathematica Decernendi)'', 2010:
	*''An in-depth summary and full theory explanation of the Analytic Hierarchy Process written by the creator of the Analytic Hierarchy Process and the Analytic Network Process''		*''An in-depth summary and full theory explanation of the Analytic Hierarchy Process written by the creator of the Analytic Hierarchy Process and the Analytic Network Process''

			=Glossary=
			'''Criteria''': A standard or input that has an effect on the solution choice
			'''Matrix''': A mathematical term used for a rectangular array of numbers, most often referred to as a table
			'''Reciprocal''': A mathematical term used when a number ''x'' is divided by ''1'', that is ''x'' becomes ''1/x''
			'''Quantitative''': When an input is measured in numerical values
			'''Qualitative''': When an input is measured in words, size, appearance etc., but not based entirely on numerical measurable values
			'''ERP-System''': ''Enterprise Resource Planning'', a IT platform used to streamline information and processes across an organization

	=Bibliography=		=Bibliography=

	'''References''' <references />		'''References''' <references />

Hafsteinnthor at 21:27, 28 February 2018

2018-02-28T21:27:00Z

← Older revision		Revision as of 21:27, 28 February 2018
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	Decision making and doing them right is one of the largest challenges that organizations have to face in. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.		Decision making and doing them right is one of the largest challenges that organizations have to face in. Especially when the constant sea of new emerging technologies and markets is considered. Managers have to consider different criteria, gather input from multiple stakeholders and conclude on the best alternative of solutions. This is where the Analytic Hierarchy Process comes in play.
	The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other ~~[1]~~. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.		The Analytic hierarchy process is a multi-criteria decision making (MCDM) method utilized to analyse, solve and prioritize complex decision, by rating and comparing multiple criteria and scenarios against each other. Based on mathematics and psychology, it enables the incorporation of both qualitative and quantitative input while also considering subjective biases when rating solution alternatives.

	This article explains the background for the Analytic Hierarchy Process and the application of the tool in a Project, Portfolio and Program Management perspective. The main focus is on explaining the application of the tool, in a step-by-step manner including a fictional case example		This article explains the background for the Analytic Hierarchy Process and the application of the tool in a Project, Portfolio and Program Management perspective. The main focus is on explaining the application of the tool, in a step-by-step manner including a fictional case example