Role Of The Executive In Project Selection

A prime responsibility of senior management (and possibly project sponsors) is the selection of projects. Most organizations have an established selection criteria, which can be subjective, objective, quantitative, qualitative, or simply a seat-of-the-pants guess. In any event, there should be a valid reason for selecting the project.

From a financial perspective, project selection is basically a two-part process. First, the organization will conduct a feasibility study to determine whether the project can be done. The second part is to perform a benefit-to-cost analysis to see whether the company should do it.

The purpose of the feasibility study is to validate that the project meets feasibility of cost, technological, safety, marketability, and ease of execution requirements. The company may use outside consultants or subject matter experts (SMEs) to assist in both feasibility studies and benefit-to-cost analyses. A project manager may not be assigned until after the feasibility study is completed.

As part of the feasibility process during project selection, senior management often solicits input from SMEs and lower-level managers through rating models. The rating models normally identify the business and/or technical criteria against which the ratings will be made. Figure 11-5 shows a scaling model for a single project. Figure 11-6 shows

Project Management Made Easy

Project Management Made Easy

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.

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