When it comes to making even simplest of decisions regarding project selection, the number of factors to be taken into account can exceed our cognitive capacities. If you add number of stakeholders to be involved, consulted & informed , with their own interest & motivations , project selection becomes a hot bed of interpersonal & organisation complexity. RVCE Prioritization Matrix is best used when an organization needs to prioritise important project and decide which ones it wants to focus on to achieve their strategic and operational goals. Leaders need to use RVCE matrix as a guideline for direction rather then definitive answer.

1. What is RVCE Prioritization Matrix?
• Every day leaders need to take critical decisions about which
businesses to invest in & divest , new product or service to
develop, strategic goals to select, Technology to procure,
processes to improve. In short selecting projects which improve
competitive advantage & financial growth.
• The Risk-Value-Cost-Effort (RVCE) prioritization matrix provides
efficient framework to prioritize important decisions that utilizes
decision criteria that are important to the organization’s future.
• It is best used as group process to weed out disingenuous
incentives and hidden agendas in project prioritization by
promoting transparency and consensus.

2. Prioritization Decision Criterion
The Risk-Value-Cost-Effort (RVCE) prioritization matrix considers four
decision criteria.
 Risk - Potential of gaining or losing something of value
(Financial/Customer/Market/Operational).
 Value – Mission, Goals , Reputation (Economic Profit/Shareholder Value/Societal
Value)
 Cost – Investment of time and money to realize the value.
 Effort - Quality and quantity of resources, management time , man-hours needed
to realize project benefits.

3. Avoid Investigate
Consider Prioritize
RISK
EFFORTS
COST
VALUE
Project Prioritization Matrix
HighLow
Low
High
High
High
Low
Low
1
2 3
4

4.  A group of stakeholders meet to prioritize a list of projects, duly facilitated by
PMO.
 Group of stakeholders evaluate each project in the list on four decision
criteria Risk, Value, Cost, and Effort.
 Before evaluation, group develops a consensus definition on what each of
the criteria means to the organization and the stakeholders for consistent
evaluation of each project.
 Draw the RVCE Matrix on a white board or flip chart .
 Group evaluates each project and ranks them from high to low on four
decision criterion and then place the project in its appropriate quadrant in the
matrix.
Process to use RVCE Matrix
Reference Credit:Amanda McCarty & John W Moran/processexcellencenetwork.com
Oliver Peterson/process.st

5.  When group have evaluated, ranked, and placed all projects in the matrix it is
time to decide which all projects should be taken up for implementation.
Quadrant 1– Projects should be avoided since they have high risk & cost
plus low on value.
Quadrant 2- These projects could be considered as opportunities for the
future. Consider these in second phase since they may be enablers for other
more important projects or activities to get done.
Quadrant 3– Projects should be prioritized for immediate implemented as
they have high value and effort but low cost and risk.
Quadrant 4– Projects are high in all four decision criteria & should
be investigated further as payback in time and effort maybe substantial to
the organization.
 Assign project sponsors with responsibility for getting the prioritized projects
in Quadrant 3 accomplished.
 Assign Quadrants 2 and 4 projects to business analysis or PMO to further
exploration.
 Fix Accountability for continued monitoring via dashboard and benefit
realization from the project prioritized through RVCE model .
Process to use RVCE Matrix Contin…