When Everything is a Priority

Based on our experience collaborating with clients across many industry sectors, there is a tendency to want to create a very complicated MVP system. However, the problem with having too many factors that are part of an MVP is that when everything is a priority, nothing is a priority. We generally recommend that between the number of categories be integrated into an MVP be limited to four to six at most. This allows for robust prioritization without having too many factors to water down the system.

Flexibility is in the Numbers

With a rank ordered list of prioritized projects, enhanced by input and insight from internal staff, a client not only has a defensible and consistent capital plan that can form the basis for multi-year capital plans, but also has tremendous flexibility in the event of a change in available funding. If funding is reduced or an unexpected capital expense arises, it is easy to identify the lowest priority projects that made it into the plan for consideration for deferral. In the event of an unplanned increase in funding, an organization can quickly identify the next tranche of prioritized projects that are due for funding, as opposed to having to go back to the drawing board to deal with the windfall.

Eliminating the Human Element?

We are strong believers that no algorithm will ever be able to completely replace the insight and experience of professional asset and facility managers. As such, our process requires in-depth collaboration with stakeholders from across an organization and also includes several stages where human input can and does override the MVP system. For example, you cannot program an algorithm to address organizational-cultural factors or politics that impact renewal decisions.

Call to Action!

If you and your organization struggle with prioritizing the projects that are included in your multiyear capital plans and would like to see how MVP and the tools developed by Roth IAMS can help you make smarter more effective renewal investment decisions, do not hesitate to contact us today.