Assuming that the risk determined by Can Do is on the X-axis and the benefit (score) is on the Y-axis. The diameter of the circles represents the effort.
When analyzing a Bubble Chart where project risk is on the X-axis, project benefit is on the Y-axis, and the diameter of bubbles represents project effort, follow these steps:
Step 1: Understanding the Axes and Bubble Size
- X-axis (Risk): Higher risk is depicted further right on the axis. Consider the types of risks involved (e.g., financial risk, execution risk, technical risk). Risk in Can Do is calculated by algorithms and can be supplemented by manual risks entered by the user.
- Y-axis (Benefit/Score): Higher benefit is depicted higher on the axis. Benefit may include financial returns, strategic advantages, efficiency improvements, or customer satisfaction, among others. In Can Do, benefit or score is expressed manually by the user as a numerical value.
- Bubble Diameter (Effort): Larger bubbles indicate greater effort in terms of resources.
Step 2: Evaluating Projects Based on Risk and Benefit
- Projects in the upper left quadrant (low risk, high benefit) are ideal, offering the greatest potential value with minimal risk and should typically be prioritized.
- Projects in the upper right quadrant (high risk, high benefit) may be attractive but require careful risk assessment and management to ensure the potential benefit justifies the risk.
- Projects in the lower right quadrant (high risk, low benefit) are generally less desirable as the risk doesn't justify the potential benefit.
- Projects in the lower left quadrant (low risk, low benefit) may be considered for quick wins or low priority unless they serve a specific strategic purpose or fill a particular niche.
Step 3: Considering Effort
- Large bubbles indicate high effort. Even if a project has low risk and high benefit, the required effort could limit its feasibility or attractiveness.
- Small bubbles signal lower effort. Projects offering reasonable benefit with less effort could represent attractive opportunities for quick gains or efficient resource utilization.
Step 4: Analyzing Trade-offs
- Consider how effort relates to potential benefit and whether a project's risk is justified.
- For projects with high benefit but also high effort and risk, consider whether measures for risk mitigation or efficiency enhancement are feasible.
Step 5: Prioritization and Decision Making
- Prioritize projects based on a combination of high benefit, manageable risk, and appropriate effort, such as starting projects very soon in Can Do in the portfolio.
- Develop strategies for projects with high benefit but high risk or high effort to optimize these factors.
- Consider avoiding, deferring, or restructuring projects to increase their attractiveness. These can also be "parked" in another portfolio in Can Do and pushed far into the future.
Step 6: Context and Strategic Alignment
- Relate the results of your analysis to the overarching strategic goals and priorities of your organization.
- Also, consider external factors such as market conditions, technological developments, and regulatory requirements.
This systematic analysis helps you develop a balanced project portfolio strategy that maximizes benefit while keeping risk and effort within reasonable bounds.