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Paired Comparison Analysis: working out the relative
importance of different options
Paired Comparison Analysis helps you to work out the
importance of a number of options relative to each other.
It is particularly useful where you do not have objective
data to base this on.
This makes it easy to choose the most important problem to
solve, or select the solution that will give you the
greatest advantage. Paired Comparison Analysis helps you
to set priorities where there are conflicting demands on
your resources.
How to use tool:
To use the technique, first of all list your options. Then
draw up a grid with each option as both a row and a column
header.
Use this grid to compare each option with each other
option, one-by-one. For each comparison, decide which of
the two options is most important, and then assign a score
to show how much more important it is.
You can then consolidate these comparisons so that each
option is given a percentage importance.
Follow these steps to use the technique:
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List the options you will compare. Assign a letter to each
option.
-
Set up a table with these options as row and column
headings.
-
Block out cells on the table where you will be comparing
an option with itself - there will never be a difference
in these cells! These will normally be on the diagonal
running from the top left to the bottom right.
-
Also block out cells on the table where you will be
duplicating a comparison. Normally these will be the cells
below the diagonal.
-
Within the remaining cells compare the option in the row
with the one in the column. For each cell, decide which of
the two options is more important. Write down the letter
of the more important option in the cell, and score the
difference in importance from 0 (no difference) to 3
(major difference).
-
Finally, consolidate the results by adding up the total of
all the values for each of the options. You may want to
convert these values into a percentage of the total score.
Example:
As a simple example, an entrepreneur is looking at ways in
which she can expand her business. She has limited
resources, but also has the options she lists below:
Firstly she draws up the Paired Comparison Analysis table
in Figure 1:
Figure 1: Example Paired Comparison Analysis Table (not
filled in):
|
Overseas Market (A) |
Home
Market (B) |
Customer
Service (C) |
Quality
(D) |
Overseas Market
(A) |
Blocked Out
(Step 3) |
|
|
|
Home Market
(B) |
Blocked Out
(Step 4) |
Blocked Out
(Step 3) |
|
|
Customer Service
(C) |
Blocked Out
(Step 4) |
Blocked Out
(Step 4) |
Blocked Out
(Step 3) |
|
Quality
(D) |
Blocked Out
(Step 4) |
Blocked Out
(Step 4) |
Blocked Out
(Step 4) |
Blocked Out
(Step 3) |
Then she compares options, writes down the letter of the
most important option, and scores their difference in
importance. An example of how she might do this is shown
in figure 2:
Figure 2: Example Paired Comparison Analysis Table (filled
in):
|
Overseas Market (A) |
Home
Market (B) |
Customer
Service (C) |
Quality
(D) |
Overseas Market
(A) |
Blocked Out
(Step 3) |
|
|
|
Home Market
(B) |
Blocked Out
(Step 4) |
Blocked Out
(Step 3) |
|
|
Customer Service
(C) |
Blocked Out
(Step 4) |
Blocked Out
(Step 4) |
Blocked Out
(Step 3) |
|
Quality
(D) |
Blocked Out
(Step 4) |
Blocked Out
(Step 4) |
Blocked Out
(Step 4) |
Blocked Out
(Step 3) |
Finally she adds up the A, B, C and D values, and converts
each into a percentage of the total. This gives these
totals:
-
A = 3 (37.5%)
-
B = 1 (12.5%)
-
C = 4 (50%)
-
D = 0
Here it is most important to improve customer service (C)
and then to tackle export markets (A). Quality is not a
high priority - perhaps it is good already.
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