FRAMEWORK, ROAR MODEL

Customized Project Prioritization Framework using ROAR Model

January 03, 2022
ROAR Model

This quote has managed to get under my skin ever since I read Alice in Wonderland as a kid. Now, as a professional in AI/ML world, I find this equally, if not more, riveting.    

We want machines to mimic humans. Chatbots, self-driving cars, voice user interfaces, etc. – anthropomorphism, right? 

ROAR Model

Alice is unsure. Maybe we are in a similar situation, as well. Our rabbit hole (metaphorically speaking) has brought us to a data-driven discovery and decision-making world. How to get along? AI is the avant-garde. 

As the guru has said, “Just as electricity transformed almost everything 100 years ago, today I actually have a hard time thinking of an industry that I don’t think AI will transform in the next several years.”    

A good idea to get started could be with a marquee? Okay, we can use ML. My Goodness, the opportunity set gets no smaller!  

Let’s see Alice’s response  

ROAR Model

Similar thoughts? Yes, we can embark on a journey and get to “SOMEWHERE” but it will take a “walk long enough”. Can we extricate ourselves from this situation? The analytics translator says “draw on the domain knowledge to help business leaders identify and prioritize their business problems, based on which will create the highest value when solved”. This not only creates value but creates the right value.

Let’s take the banking industry. It has so many functions, products, and workstreams that we can add value to. Retail business, SME segments, Capital Markets, Secured/Unsecured products, Liability portfolio, Channels, and several more. 

We need to understand the goals. Oh yes! We did this at the start of the year and will again come back to these at the end of the year 😊 

Jokes apart, this is an important component of every activity we do. Individual projects are no exception. Let us look to establish our North Star** …. 

**There is a lot of buzz around this topic from idiomatic use to business metric developmentWe have used it in an idiomatic way, but here is a snippet from McKinsey blog around the business metric**

 

North Star metrics typically take one of three forms.

Gartner’s Risk Opportunity Appetite Return (ROAR) model came as the answer 

Adaptation of all the above to develop an in-house prioritization framework  

Steps involved  
  • Come up with a ‘specific’ metric for each of the ROAR components 
  • Define value(s) for each of the metrics 
  • Assign weights to each of the metric-value combinations 
  • Discuss with business stakeholders to ensure alignment  
  • Combine the weights to come up with a score 

Note: We suggest using the below table as reference only. Get your creative juices flowing and do not forget to let us know 😊 

Now you can rank-order each project idea that you aspire to do  

  • Allow the ‘most relevant’ metric-value combination to get the weight as score and 0 otherwise. Do this subsequently for each of the ROAR components 
  • Total is the sum of scores from each metric-value combination 

Prioritization framework is ready  🙂

Signing off with what the Red Queen said to Alice:

ROAR Model