Analytic Hierarchy Process for Strategic Priorities
The Analytic Hierarchy Process (AHP) applied to strategic priorities is a multi-criteria decision method that structures a complex strategy choice into a hierarchy of goal, criteria, and alternatives, then derives priority weights from expert pairwise comparisons. Thomas Saaty developed AHP in the 1970s and set out its full theory in his 1980 book, with a widely cited 1990 article distilling how to make a decision with the method. Its appeal for strategy is that it converts the qualitative judgments managers actually make — that growth matters more than cost control, say — into ratio-scale weights, while quantifying and policing the consistency of those judgments. The result is a transparent, defensible ranking of strategic options that integrates multiple, often conflicting, criteria.
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- Saaty, T. L. (1980). The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation. New York: McGraw-Hill. · ISBN 9780070543713
- Saaty, T. L. (1990). How to make a decision: The analytic hierarchy process. European Journal of Operational Research, 48(1), 9-26. · DOI 10.1016/0377-2217(90)90057-I
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