Demand and Project scoring

[rad2]

Why do we calculate the inverse of risk and size in Demands. But not for Projects

For Demands

Score = ((10 - risk) + (10 - size) + value)/3

For Projects

Score = (risk + size + value) / 3

Looking at the scoring since We have a scenario where we want to use the same scoring in Demands and Projects. 

[Gaurav Shirsat]

Hello @rad2 

According to ServiceNow documentation, the score is calculated this way: ((10 - Risk) + Size + Value) / 3.

refer below Thread for details explanation and also Go Through Attached PDF

Thanks and Regards

Gaurav Shirsat

[Rajesh_Singh · Accepted solution]

@rad2 

In ServiceNow PPM, the scoring formulas for Demands and Projects are used to prioritize and evaluate the potential value of each item. The difference in the formulas arises from the different objectives and evaluation criteria for Demands and Projects.

For Demands, the formula used is Score = ((10 - risk) + (10 - size) + value) / 3. The reason for calculating the inverse of risk and size in Demands is to prioritize items with lower risk and smaller size. Lower risk and smaller size are generally preferred for Demands, as they represent a lower level of uncertainty and resource requirements. By subtracting risk and size from 10, you are effectively increasing the score for Demands with lower risk and smaller size.

For Projects, the formula used is Score = (risk + size + value) / 3. In this case, the risk, size, and value are used directly without calculating the inverse. This is because Projects are typically evaluated based on a more comprehensive assessment, taking into account the strategic alignment, potential benefits, and overall impact on the organization. Therefore, the formula for Projects does not necessarily prioritize lower risk and smaller size, as it considers other factors in the evaluation.

If you want to use the same scoring formula for both Demands and Projects, you can modify the formulas to align with your organization's preferences and objectives. One option is to use the same inverse calculation for both Demands and Projects, like so:

Score = ((10 - risk) + (10 - size) + value) / 3

Alternatively, you can use the direct calculation of risk, size, and value for both:

Score = (risk + size + value) / 3

Keep in mind that the choice of scoring formula should reflect your organization's priorities, risk tolerance, and resource constraints. It's essential to involve relevant stakeholders in the decision-making process to ensure the selected formula aligns with your organization's objectives.

[rad2]

@Rajesh_Singh 

Thank you for the explanation!