AL- AMEEN INSTITUTE OF MANAGEMENT STUDIES

II YEAR 3RD SEM MBA (2023-2024) BATCH

ASSIGNMENT NO.1
Subject: Strategic Management &Business Ethics
Subject In-Charge: Mr. Chinmaya
Student Name: HEBA SANIA

Topic: IFV MATRIX

Introduction:

The IFV (Importance-Feasibility-Viability) matrix is a strategic management tool used to evaluate

and prioritize various initiatives or projects within an organization. It assesses the importance or
significance of each project, its feasibility in terms of resources and capabilities required, and its
viability in terms of alignment with organizational goals and objectives. By considering these three
dimensions, the IFV matrix helps decision-makers allocate resources effectively, focusing on
projects that offer the highest potential impact while being realistic and achievable. This systematic
approach aids in strategic planning, resource allocation, and overall organizational success.
 PURPOSE OF IFV MATRIX:

The purpose of the IFV (Importance-Feasibility-Viability) matrix is to provide a structured

framework for evaluating and prioritizing various projects or initiatives within an organization. By
considering the importance, feasibility, and viability of each project, the IFV matrix helps decision-
makers identify and focus on initiatives that offer the greatest potential for success and align with
the organization's strategic objectives. This systematic approach enables effective resource
allocation, risk management, and strategic planning, ultimately enhancing the organization's ability
to achieve its goals and objectives.

WHY IS IT NECESSARY TO HAVE IFV MATRIX:

1. Strategic Alignment: It ensures that projects and initiatives align with the organization's
strategic goals and objectives. By evaluating each project's viability in relation to the
organization's mission and vision, the IFV matrix helps prioritize efforts that contribute
most effectively to the overall strategy.

2. Resource Allocation: The IFV matrix aids in effective resource allocation by identifying
projects that are both feasible and aligned with organizational goals. It helps organizations
allocate limited resources, such as finances, personnel, and time, to initiatives that offer
the greatest potential for success.

3. Risk Management: By assessing feasibility and viability, the IFV matrix helps mitigate
risks associated with undertaking projects. Projects deemed unfeasible or lacking in
viability can be either modified or discarded, reducing the likelihood of resource wastage
or failure.

4. Decision Making: The IFV matrix provides a systematic approach to decision-making,

facilitating informed choices about which projects to pursue and which to prioritize. It
enables organizations to make evidence-based decisions by considering multiple factors,
 such as project importance, resource requirements, and strategic fit.

5. Performance Evaluation: After implementation, the IFV matrix allows organizations to

evaluate project performance against initial expectations. This evaluation helps identify
areas for improvement and informs future decision-making processes.

Overall, the IFV matrix serves as a valuable tool for strategic management, enabling organizations
to prioritize initiatives, allocate resources effectively, manage risks, and achieve their strategic
objectives.

CONTENTS OF IFV MATRIX:

1. Importance: This refers to the significance or strategic value of each project or initiative.
Importance can be assessed based on factors such as alignment with organizational goals,
potential impact on stakeholders, and contribution to long-term objectives.

2. Feasibility: Feasibility evaluates the practicality and achievability of each project. It

involves assessing whether the necessary resources, including financial, human, and
technical resources, are available or can be obtained within a reasonable timeframe to
execute the project successfully.

3. Viability: Viability considers the sustainability and suitability of each project in the context
of the organization's overall strategy and environment. It involves evaluating factors such
as market demand, competitive landscape, regulatory considerations, and organizational
capabilities to determine if the project is viable in the long term.

4. Scoring System: The IFV matrix often employs a scoring system or criteria to quantify the
importance, feasibility, and viability of each project. This can be a numerical scale or a set
of qualitative descriptors to assess and rank projects based on their scores in each
dimension.
 5. Prioritization Criteria: Based on the assessment of importance, feasibility, and viability, the
IFV matrix establishes criteria for prioritizing projects. This may involve assigning
weights to each dimension or establishing threshold scores to identify high-priority
projects deserving of immediate attention.

6. Final Assessment: The IFV matrix generates a final assessment or ranking of projects based
on their scores in each dimension. This assessment guides decision-makers in determining
which projects to pursue, allocate resources to, or further evaluate.

By considering these components, the IFV matrix provides a systematic framework for evaluating
and prioritizing projects, enabling organizations to make informed decisions and maximize the
likelihood of project success.

CONCLUSION:

In conclusion, the IFV (Importance-Feasibility-Viability) matrix offers a structured approach

to project evaluation and prioritization, enabling organizations to make informed decisions
and allocate resources effectively. By assessing the importance, feasibility, and viability of
each project, the IFV matrix helps identify initiatives that align with organizational goals,
are practical to implement, and have the potential for long-term success.

Through the use of scoring systems, prioritization criteria, and final assessments, the IFV
matrix facilitates strategic decision-making, risk management, and resource allocation. It
provides decision-makers with a comprehensive understanding of project dynamics,
allowing them to focus on initiatives that offer the greatest strategic value and likelihood
of achievement.

Moreover, the IFV matrix supports ongoing performance evaluation and improvement by
providing a framework for tracking project progress and identifying areas for adjustment
or refinement. By integrating considerations of importance, feasibility, and viability,
organizations can enhance their ability to achieve strategic objectives, adapt to changing
environments, and sustain long-term success.