A Conceptual Framework for Ranking R&D Projects

A framework for R&D project ranking that can help a firm improve its competitive advantage is presented. The framework integrates elements of previously published R&D project ranking systems and was refined through practitioner evaluation and utilization. Through use of the framework, an organization can increase the objectivity, accountability, and transparency of its strategic decision-making process. Real world tradeoffs are accounted for by evaluating projects in terms of the following perspectives: reasonableness, attractiveness, responsiveness, competitiveness, and innovativeness. Each perspective is represented by multiple criteria measured via descriptive values distributed over a standardized scale. The framework is operationalized by a toolset consisting of a project evaluation form, pairwise comparison matrices, a weighted scoring model, a scorecard, and radar diagrams. A firm customizes the framework by using pairwise comparison matrices to establish relative weights that reflect the firm´s unique objectives and competitive environment. Reviewers score each project´s criteria on evaluation forms. Weights and criteria scores are entered onto the scorecard through which the scoring model produces a rank-ordered project list. Radar diagrams display how well a firm´s portfolio matches its R&D goals. These framework artifacts produce a decision reasoning audit trail that an organization can use to improve its ranking process.