What is the optimal way of choosing projects within complex decision-making?

Abstract

This essay has investigated Analytical Hierarchy Process (AHP) and whether it has potential to be used as an algorithm within the project selection process. The aim of the study has been to highlight the most important aspects to take into consideration in project evaluation and if AHP could be a feasible method within project selection. Through an interview with a respondent who has many years of experience within portfolio management, information related to project selection has been collected. By investigating specific projects and factors, a case study has been performed where the data received from the interview have been quantified and applied within the AHP. The results showed that the same hierarchical ranking of factors and projects took place within the intuitive method according to the answers given by the respondent. The conclusion of the study is that AHP cannot be assumed to apply as a general algorithm. However, it was established that there is a potential for its usability as a screening method of future projects. It can also help to prioritize factors & projects so that organizations are able to work in line more easily with its objectives.