which is the potential life of the software in its proposed form, projected revenues are $12 million. Taking only the financial information into account, the benefits outweigh the costs of this project. This project should receive a go recommendation.
Projects of significant cost or complexity usually involve more than one benefit measurement method when go or no-go decisions are being made or one project is being chosen over another. Keep in mind that selection methods can take subjective considerations into account as well—the project is a go because it's the new CEO's pet project; nothing else needs to be said.
Another project selection technique in the benefit measurement category is a scoring model, or weighted scoring model. My organization uses weighted scoring models not only to choose between projects but also as a method to choose between competing bids on outsourced projects.
Weighted scoring models are quite simple. The project selection committee decides on the criteria that will be used on the scoring model—for example, profit potential, marketability of the product or service, ability of the company to quickly and easily produce the product or service, and so on. Each of these criteria is assigned a weight depending on its importance to the project committee. More important criteria should carry a higher weight than less important criteria.
Then each project is rated on a scale from 1 to 5 (or some such assignment), with the higher number being the more desirable outcome to the company and the lower number having the opposite effect. This rating is then multiplied by the weight of the criteria factor and added to other weighted criteria scores for a total weighted score. Table 2.10 shows an example that brings this together.
TABLE 2.10 Weighted Scoring Model
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.