Three Prioritization Methods to Simplify Decision Making

Managing competing priorities is a challenge tour operator’s encounter everyday. From deciding what guest feedback to address from the post-tour survey, to selecting the right technology investments, every decision—big or small—can feel like a tough trade-off. Prioritizing effectively is key to staying focused and making decisions that drive the business forward. In this article, we’ll explore three widely used prioritization frameworks to help you make smarter, faster decisions. This is by no means an exhaustive list, but it’s a great starting point to explore common prioritization frameworks. Along the way, you’ll gain practical insights into when to use each approach and when to consider alternatives. By the end, you’ll have two (or maybe three) new strategies to add to your prioritization toolkit!

Here are the three methods we’ll cover:

• Stack Ranking – A straightforward and effective method for prioritizing options by importance.
• 2x2 Matrix – A visual approach for categorising options across four quadrants
• ICE Scoring – A data-driven framework for evaluating ideas based on Impact, Confidence, and Effort.

Stack Ranking: A Simple Approach to Prioritization

Stack Ranking is the simplest and most straightforward method for prioritizing. The concept is straightforward: list all the items you need to evaluate and rank them in order of importance.

How to Use Stack Ranking

Stack Ranking is ideal for quick, fast prioritisation. Here’s how to apply it:

1. List Your Items: Start by listing all the tasks, projects, or ideas you need to prioritize. Use tools like Trello, Miro, or even a whiteboard.
2. Define a Criterion: Decide on a single factor for evaluation. For example, if you’re deciding on the accommodation supplier in a particular area, maybe the main factor is room quality.
3. Reorder Your List: Compare each item relative to the others based on your chosen criterion. Work your way down the list, arranging items from most to least important until the order feels right.

When to Use Stack Ranking

Stack ranking is an effective method when evaluating a short list with a single criteria. Here’s when it works best:

• Small Number of Items: With a manageable list, Stack Ranking offers a quick and effective way to determine priorities.
• Single Evaluation Criteria: If your decision hinges on one clear factor—like room quality, cost, or location—Stack Ranking keeps things simple.
• Fast Decision Making: Whether in a team meeting or during a time-sensitive situation, Stack Ranking helps cut through complexity to drive quick decision making.

In the Tour Operating Model Canvas, we recommend using Stack Ranking to prioritize operational improvements. Its simplicity makes it a great fit for high-level strategic planning.

When to Avoid Stack Ranking

Stack Ranking is simple and easy to use, but it’s not always the best fit. Here are situations when it falls short:

• Too Many Items to Rank: If you’re dealing with a long list of tasks or options, Stack Ranking can quickly become overwhelming and impractical.
• Decisions Involving Multiple Factors: When you need to consider several criteria, like effort, impact, and risk, a scoring method like ICE (covered later) offers a more detailed and balanced approach.
• Similar Items with Little Differentiation: If items are very similar, Stack Ranking can lead to arbitrary decisions. A framework like the 2x2 Matrix, which compares options across four quadrants, might provide more clarity.

The 2x2 Matrix: Visualising Priorities Across Quadrants

The 2x2 Matrix is a trusted prioritization framework that simplifies decision-making by dividing options into four distinct quadrants. Each quadrant represents different characteristics, offering a clear visual guide on what to prioritize and what to deprioritize. A well-known example is the Eisenhower Matrix, a time management framework that categorises tasks based on importance and urgency to support effective decision-making.

How to Use the 2x2 Matrix

The 2x2 Matrix is simple to use. Here’s how:

1. Create a 2x2 matrix: Draw a grid with two axes—for example, “Business Impact” on the horizontal axis (ranging from Low to High) and “Urgency” on the vertical axis (ranging from Low to High).
2. Define Quandrants: Divide the matrix into four quadrants and label each one based on your chosen dimensions. For example, in an impact-and-urgency matrix:
   • Quadrant 1 (High Impact, High Urgency): Items that require immediate attention.
   • Quadrant 2 (High Impact, Low Urgency): Items critical for long-term success but not immediately pressing.
   • Quadrant 3 (Low Impact, High Urgency): Items demanding attention but offering limited value.
   • Quadrant 4 (Low Impact, Low Urgency): Low-value tasks or distractions.
3. Evaluate and Map Items: Arrange your list of options on the matrix by placing each in the appropriate quadrant based on its relative impact and urgency. Double-check that each placement makes sense compared to other items in the matrix.
4. Prioritize by Quadrant:
   • Quadrant 1: Focus on Quadrant 1 tasks immediately—they’re both important and urgent.
   • Quadrant 2: Schedule time to address Quadrant 2 tasks, as they are essential for long-term success.
   • Quadrant 3: Minimize time spent on Quadrant 3 tasks by delegating or streamlining them.
   • Quadrant 4: Avoid Quadrant 4 tasks altogether.

When to Use the 2x2 Matrix

By arranging a long list of items across four quadrants, it makes it easier to understand which items to prioritise. Here’s when the 2x2 Matrix approach works best:

• When There Are Too Many Options: The 2x2 Matrix divides a lengthy list into clear, actionable categories, making it easier to identify priorities.
• Evaluating Two Key Factors: The 2x2 Matrix is ideal for decisions based on two key criteria. For example, in our webinar with Wetravel, “Tech Solutions for Travel Businesses: Choosing Software to Maximize Profitability” we illustrate how to use the 2x2 matrix to prioritize technology gaps by assessing their “Impact” and “Urgency.”
• Aligning Teams: The visual layout of the matrix serves as an excellent tool for collaboration. It ensures everyone is on the same page regarding priorities and criteria, facilitating unified action.

When to Avoid the 2x2 Matrix

While powerful, the 2x2 Matrix isn’t always the best fit. Avoid it in these scenarios:

• Complex Decisions with Multiple Criteria: When decisions involve several factors, a scoring framework like the ICE Method (covered next) provides a more comprehensive comparison.
• Overlapping Dimensions: If the two dimensions are closely related (e.g., effort and cost), the matrix may not add meaningful insight.
• Choosing the Wrong Dimensions: If the wrong dimension are picked for the matrix, it can lead to bad decisions because items will be prioritised based on the wrong criteria.

ICE Scoring: A Data-Driven Approach to Prioritisation

The ICE Scoring method offers a more comprehensive approach to evaluating options by assessing options across three key criteria: Impact, Confidence, and Effort (ICE). Widely used in product management and marketing, it’s particularly effective for comparing competing initiatives and identifying those with the highest potential return. The ICE scoring method is part of a wider range of scoring-based prioritization frameworks that can include more than three factors.

How to Use ICE Scoring

Follow these steps to apply the ICE Scoring method effectively:

1. Rate Each Item: Assign a score (e.g., 1 to 10) to each item based on the following three criteria. This can be done collaboratively by team voting (averaging the results) or individually by the item owner.
   1. Impact: How much benefit will this bring if successful?
   2. Confidence: How confident are you in its success?
   3. Effort: How much time, money, or resources will it require? (Lower effort scores higher.)
2. Calculate the ICE Score: Calculate the ICE score by multiplying each of the values together e.g. Impact x Confidence x Effort = ICE Score. For added flexibility, you can weight the scores to reflect your priorities—for instance, if confidence is more important, you can multiply the confidence score by a factor (e.g., x1.5) before calculating the final score.
3. Sort by Score: Rank your list based on the ICE score, from highest to lowest.

In our Target Tour Operating Model Canvas, the ICE Scoring Method can be used to prioritize the operational roadmap. It helps evaluate each initiative’s potential value, the confidence and the effort (as a proxy for cost) and guides decisions when defining the target operating model.

When to Use ICE Scoring

The ICE method shines in situations where decisions require evaluating multiple criteria and balancing trade-offs. Its structured scoring system offers clarity and objectivity, making it ideal for complex prioritization scenarios. Here’s when it works best:

• Evaluating Operational Initiatives: Use ICE scoring to compare projects or initiatives with measurable outcomes, such as improving operational efficiency, launching new services, or expanding into new markets.
• Navigating Uncertainty: When data is incomplete or risks are involved, the Confidence criterion helps balance bold opportunities with realistic expectations, ensuring you make informed decisions.
• Collaborative Prioritization: ICE scoring fosters team alignment by inviting open discussions about each criteria, ensuring shared understanding and consensus.

When to Avoid ICE Scoring

While the ICE Method is comprehensive, it’s not suitable for every situation. Avoid it in these scenarios:

• When Confident Scoring Criteria Are Lacking: Avoid using ICE if you are unsure about the scoring criteria. Unclear or uncertain factors can lead to less reliable decision-making, and the robust methodology might give a false sense of confidence in the results.
• When Simplicity Is Enough: For straightforward decisions, methods like stack ranking may offer a faster solution without adding complexity.
• When Scores Are Too Subjective: Without sufficient data to assign reliable scores, ICE can feel arbitrary and create a false sense of confidence in the results.

Prioritization is at the heart of every strategic decision for tour operators, from selecting the right technology to refining itineraries and operational initiatives. Each framework we’ve explored—Stack Ranking, the 2x2 Matrix, and ICE Scoring—offers unique benefits depending on the complexity of the decision and the criteria involved. However, remember that these frameworks are just tools—they provide structure but don’t replace the need for careful thought and collaboration. The right decisions come from combining these methods with a clear understanding of your goals, effective discussions with the team, and a willingness to adapt as needed. By adopting the right framework for the right context, you’ll be better equipped to make better and faster decisions.