Alternative Analysis is a decision-making method used to evaluate multiple options and select the best approach for performing project work. It helps project teams weigh different solutions, strategies, or resource allocations based on various factors like cost, risk, feasibility, and impact.
Key Aspects of Alternative Analysis
- Comparative Evaluation – Assesses multiple options to determine the most effective choice.
- Criteria-Based Selection – Uses predefined factors such as cost, risk, benefits, and feasibility.
- Supports Risk Management – Helps identify and mitigate potential risks tied to different options.
- Used Throughout the Project Lifecycle – Applied during planning, execution, and issue resolution.
When to Use Alternative Analysis
- Project Planning – Selecting project methodologies, tools, or vendor partnerships.
- Resource Allocation – Choosing between in-house teams or outsourcing.
- Risk Response Planning – Deciding on mitigation, acceptance, or avoidance strategies.
- Problem-Solving – Addressing challenges such as budget overruns or scheduling conflicts.
Example Scenarios
Software Development
A project team evaluates whether to build a feature in-house or use a third-party API. They compare development time, cost, security, and maintenance needs before making a decision.
Construction Project
A construction manager must choose between two building materials: one is cheaper but has a longer installation time, while the other is more expensive but reduces labor costs. The team performs an alternative analysis to select the best material based on budget and timeline constraints.
Risk Management
A project faces a high-risk technical challenge. The team considers three options:
- Develop a new in-house solution (high cost, high control).
- Purchase an off-the-shelf solution (moderate cost, low customization).
- Partner with a vendor for a hybrid solution (medium cost, shared control). After evaluating each option’s impact, feasibility, and risks, the team selects the best course of action.
Why Alternative Analysis Matters
- Improves Decision-Making – Ensures that choices are backed by thorough evaluation.
- Enhances Project Efficiency – Helps select the most effective approach to completing tasks.
- Reduces Risk – Identifies potential drawbacks and allows proactive mitigation.
See also: Risk Management, Cost-Benefit Analysis, Feasibility Analysis, Decision Tree Analysis.