Lee Merkhofer Consulting Priority Systems

Risk Management

A client operating a large industrial facility was required to implement a risk management system. The delivered system identifies vulnerabilities, quantifies risks, and prioritizes projects proposed to reduce those risks. All types of risks are addressed, including “continuous” risks such as leaks and spills from deteriorating equipment and “discrete” risks such as terrorist attacks. Priorities account for the seriousness of the risk to be addressed and on the estimated effectiveness of the proposed project.

Hazardous Facility

Business Opportunities

A division of a major aerospace company needed a priority system to allocate its $16 million budget for developing new products and services from proprietary technologies. The delivered system includes a market analysis module that estimates revenue cash flows from the resulting products based on the attributes of those products relative to existing and future competitor products.

Space Technology


To improve cost-efficiency, Los Alamos National Laboratory is outsourcing non-core business functions. The delivered priority system compares the costs and benefits of outsourcing each candidate service functions. The system assesses impacts on all stakeholders, including customers (e.g., service quality and responsiveness), current providers (impacts on existing staff), and the lab itself (on-going ability to conduct its mission). The system has been applied to dozens of service functions and provided the basis for successful outsourcing changes.

Outsourced Functions