HKSM

Multicriteria analysis is a structured technique for comparing alternatives using several weighted criteria to make balanced, transparent decisions. It helps teams align choices with stakeholder priorities and project objectives.

Key Points

• Uses multiple criteria with agreed weights to score and rank alternatives.
• Improves transparency, reduces bias, and supports defensible decisions.
• Common tools include weighted decision matrices and pairwise comparison methods.
• Weights should reflect stakeholder priorities and sum to 1 or 100%.
• Scales must be defined so that higher scores consistently mean better performance.
• Sensitivity analysis checks how results change if weights or scores vary.

Purpose of Analysis

Enable fair, evidence-based selection when multiple factors matter and trade-offs are required. It brings structure to complex choices, aligns decisions with value delivery, and documents the rationale for governance and stakeholder review.

Method Steps

• Clarify the decision problem, objectives, and constraints.
• Identify and define evaluation criteria; avoid overlap and ambiguity.
• Engage key stakeholders to prioritize criteria and agree on weights.
• Design a scoring scale and guidance; ensure higher scores indicate better outcomes.
• Gather data and evidence for each alternative against each criterion.
• Score alternatives consistently using the defined scale and guidance.
• Calculate weighted totals and rank the alternatives.
• Review results, perform sensitivity analysis on weights and key scores.
• Discuss findings with stakeholders, confirm the choice, and record the decision.

Inputs Needed

• Clear decision statement and objectives.
• Defined alternatives for consideration.
• Criteria list with precise definitions and measurement approach.
• Stakeholder-agreed weights for each criterion.
• Scoring scale and scoring guidance or rubrics.
• Data, assumptions, and evidence to inform scoring.
• Constraints, risk appetite, and minimum thresholds if any.

Outputs Produced

• Weighted scoring matrix with scores per alternative.
• Ranked list of alternatives and the recommended option.
• Documented rationale, assumptions, and criteria definitions.
• Sensitivity analysis results and implications.
• Decision record for governance and future reference.

Interpretation Tips

• Look beyond the top score to understand which criteria drive the ranking.
• If results are close, test weight and score variations to check robustness.
• Use the matrix to support, not replace, informed judgment and risk review.
• Confirm that cost-type criteria were treated correctly (e.g., inverted or normalized).
• Verify that weights reflect current priorities and sum correctly.
• Ensure transparency by sharing data sources and scoring justifications.

Example

The team compares three options using three criteria with weights: Value 0.40, Cost 0.40, Risk 0.20. Scores use a 1–5 scale where higher is better; cost and risk are scored so higher means lower cost and lower risk.

• Option A: Value 3, Cost 4, Risk 4 ⇒ 0.40×3 + 0.40×4 + 0.20×4 = 3.6.
• Option B: Value 4, Cost 3, Risk 3 ⇒ 0.40×4 + 0.40×3 + 0.20×3 = 3.4.
• Option C: Value 5, Cost 2, Risk 2 ⇒ 0.40×5 + 0.40×2 + 0.20×2 = 3.2.

Option A ranks highest. The team then varies weights by ±10% to confirm the choice remains stable.

Pitfalls

• Vague or overlapping criteria that double-count the same factor.
• Weights that do not reflect stakeholder priorities or do not sum correctly.
• Inconsistent scoring scales where higher is not always better.
• Overreliance on the final number without sensitivity checks.
• Bias in scoring due to missing data or strong opinions.
• Ignoring mandatory thresholds or constraints that override the ranking.

PMP Example Question

A project manager needs a transparent way to select among three solutions with competing trade-offs. What should the project manager do first to set up a multicriteria analysis?

1. Score each alternative using a 1–5 scale and average the scores.
2. Ask the sponsor to choose the option to avoid delays.
3. Define evaluation criteria with stakeholders and agree on weights.
4. Run a sensitivity analysis before any scoring is performed.

Correct Answer: C — Define evaluation criteria with stakeholders and agree on weights.

Explanation: Multicriteria analysis starts by agreeing on criteria and their relative importance; only then should alternatives be scored and analyzed.