Ok,
you have some ideas. Now what?
Ideally,
it would be fantastic if the proposer were already able to tell you something like: this project will need €1mln of
initial investment and will take 3 years to pay you back with a 30% Internal Rate of Return.
Having
such awareness would require a business case to be developed.
Numbers
sound so comfortable when you navigate in a sea of uncertainty.
But,
let’s suppose we can have very little clues about financials.
This
means you cannot base your preliminary evaluation on quantitative criteria and you’ll have to base your
estimate on qualitative ones.
Does
it make you feel uncomfortable?
Even if a qualitative evaluation will necessarily be less precise … having
common sense, shareable, well expressed a priori criteria will be surprisingly
concrete.
When
we have to evaluate many ideas, having a way to map them will help you to understand which of them will deserve your main attention. I mean prioritize.
Let’s
talk about 2 main drivers.
The
most important proposals will be those declaring the most plausible benefts and requiring the most affordable feasibility.
The potential impact (benefits) is related to:
•The concreteness of the pretended market
demand. Is the target well clear? Do you
believe, based upon your experiece, that the demand really exist? That means there is someone
ready to give credit and pay some money to have the value you promise them.
•More, what is the innovation content of that idea? Is it disruptive or
incremental? The more disruptive, the higheer the
potential value; but only if the idea makes sense and you truly believe there
might be a demand.
The stage of development is about the level of maturity
of the idea in terms of its feasibility. How easy is it to be concretely
realized by the team working on it? Is that team well balanced in terms of
needed competence? Does it take to catch up on some competence and/or resource
they lack?
Having
to qualify those drivers (benefits and feasibility), according to a 1 to 9
range, will help you to classify ideas into three subsets: low, medium, high
potential impact. The
same will be for the maturity.
As
raw this model might seem, you will appreciate its value when you’ll have to
merge several
contemporary evaluations, which
might come from your cooperators, and when you’ll have to compare the
qualitative value of several proposals.
What
you get, in the end, is a map which can be read according to hyperbolic curves.
Any
idea might have some good potential and probably it can be difficult to
definitely say an idea is a good or a bad one. But now you can more easily say
which ideas are more appealing, based on your evaluation criteria. And which
ones are less valuable.
You can also tell which ideas are the ones you’ll focus more now. And which ones you’ll focus on tomorrow.
You can also tell which ideas are the ones you’ll focus more now. And which ones you’ll focus on tomorrow.
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