During the strategy formulation process, an institution considers a variety of possible alternatives and scientific, objective criteria need to be applied to compare them. The activities associated with each strategy alternative will consume resources while generating value. The challenge is therefore to select the one that provides the most benefits in comparison with costs, i$.$e$.,$ one that optimises return on investment. Because in the government sector, gains are mostly measured in terms of social benefits, one cannot simply compare costs with revenue or monetary returns. The level of risk and value for money, which incorporates both costs versus social benefits and constraints must also be considered... One reality that executing institutions must deal with is scarcity of resources. Because of this, no government organisation will ever be able to deliver everything that all of its clients want instantaneously. In light of the above, decisions will need to be made about what should be done and what not.

In light of the above, with the use of an example, discuss how the prioritisation assessment is applied in a South African municipality.