PPM Demand Scoring
The numbers in the Demand Scoring section are driven by values entered during the evaluation phase.
This functionality is only available after you apply the mApp Solution.
The Demand Scoring numbers are valuable as decision-making tools when compared against other Demands. Demand Scoring is comprised of the following four scored areas:
- Business Value Score: Business Value items from the Benefit Plan.
- Financial Score: ROI from the Financial Assessment.
- Resource Score: The scores of the Resource Plan Items.
- Risk Score: The impact and probability of Demand risks.
The overall Demand score is calculated based on the four areas.
The objective of the scoring grid is to normalize all critical areas when making decisions about Demands and their inclusion in Portfolios. This normalization allows you to do a true comparison across multiple Demands.
Business Value Score
Benefit Items have a Benefit if Done (1-5) Field with a score of 1 to 5; this drives the Business Value Score. The Focus Area, Impact if Deferred (1-5), and Description Fields and are used to determine the Benefit. The Impact if Deferred (1-5) Field is not used in calculating score.
The Financial Score is calculated based off the ROI% from the Financial Assessment.
- ROI: Automatically populates using the following equation: (Return / Total Cost * 100).
- Total Return: Automatically calculates using Total Revenue minus Total Cost.
- Total Cost: The sum of all the Demand Budget Items (Year 1, Year 2, and Year 3 Costs).
- Total Revenue: The sum of the Benefit Plans (Year 1, Year 2, and Year 3 Benefits) with a type of Revenue, Cost Savings, and Cost Avoidance.
Each Resource Item receives a score from -2 to 2. Users manually enter a Score based on the following information:
- Available hours for that Role during that period.
- The overall percent of the Demand's work that this resource is responsible for.
Each PPM Risk is assigned an Impact from 0 to -5, and a Probability from 10% to 90%. The Impact and Probability Fields are manually entered on each Risk, and negatively affect the overall Demand score. A weighted score is applied to a Risk Score Weight Field; the calculation used is (Probability * Impact).
Scoring of Demand Score Quadrants and Overall Demand Score
Business Value Score Quadrant
The Business Value Score is an average of all the Benefit Items' Benefit if Done Fields.
Financial Score Quadrant
Financial Score is based on ROI% and is assigned a score from 0 to 5, calculated as follows:
- Equal or less than 19% = 0
- Between 20% and 39% = 1
- Between 40% and 69% = 2
- Between 70% and 89% = 3
- Between 90% and 124% = 4
- Equal or Above 125% = 5
Resource Score Quadrant
Resource Score is a total of all the Score Calculated Fields from all Resource Items. The range is -2 to 2.
Risk Score Quadrant
Risk Score is a total of the Risk Score Weight Fields.
Overall Demand Score
The overall Demand Score is shown in the center of the Demand Scoring. The score is calculated using the sum of all four quadrants.