Managing the Project Selection

Process

Source: adapted from:

http://www.ittoolkit.com/cgi-bin/itmember/itmember.cgi?file=assess_p
• Every project begins with a proposal, but
not every proposal can or should become
a project.
• Reasons:
– having to make choices with limited
resources (people, time, money and
equipment),
– Not every project has viability.
 the risks if resources are
misapplied:
• Resources are "used up" before projects
can be completed.
• Resources are wasted in projects of lesser
value and priority.
• Credibility and influence are lost as
perceived project failures pile up.
 project viability
• project viability is the degree to which a given project will
provide the expected return on investment.
Viability can be measured by three key variables:
• Value: The project must provide measurable benefit to
the organization, in terms of revenue, cost reduction,
productivity, or some other desired result.
• Alignment: The project must be consistent with, and
supportive of, overall business goals and objectives
(including technology goals).
• Probability of Success: The project must present a
realistic opportunity for success, relating to outcome and
process, and as can be measured by business, project
management, and technology standards.
Project selection is all about viability…hence, the
choice.

Viability exists at two levels:

• Level 1: Individual Viability. The degree to
which a proposed project is viable as an
independent initiative. (If a project can't stand
on its own, it should not stand with others...)
• Level 2: Comparative Viability: The degree to
which an individual project retains its viability
when compared to other projects. comparative
viability will determine project selection priority.
 project pool requirement
• First, the project pool requirement must be
addressed - allowing for the submission
and review of multiple project proposals
according to a pre-defined schedule. In
addition, the project selection process
must also allow for the unscheduled, as-
needed submission of individual project
proposals.
As the project selection process is developed,
the following questions must be considered....
• Project Pool Considerations:
• How will project proposals be submitted into the "pool" of
potential projects?
• How often will the project "pool" process be undertaken
(yearly, quarterly, monthly)?
• Who is responsible for managing the project "pool"
selection process?
• How will project proposals be reviewed and evaluated?
• How will selection decisions be made?
• How will selection decisions be approved?
• How will selection decisions be communicated?
• How will disputes be resolved?
 questions must be considered....

• As-Needed Submission Considerations:

• Who is responsible for the review of "as-needed" project
proposals? (e.g. project selection committee, company
management, line of business management, individual
business units.)
• How will as-needed project proposals be submitted?
• How will as-needed project proposals be reviewed and
evaluated?
• How will selection decisions be made?
• How will selection decisions be approved?
• How will selection decisions be communicated?
• How will disputes be resolved?
 structural elements of selection
process…needed
• In order ensure that these questions are
addressed,
• Organization
• Goals & Objectives
• Deliverables
• Roles & Responsibilities
• Steps
• Standards
 Process Component #1: Organization

• Any effective project selection process must rely upon a pre-defined

"organizational" hierarchy for proposal review and selection.
• This organization will likely take a "committee" structure, allowing
for a sufficiently diverse membership, designed to ensure that all
"perspectives" are considered as projects are reviewed (e.g.
business management, project management, finance, human
resources, technology, etc.).
• the project selection "organization" must also account for "as-
needed" project evaluation, where formal committee review may be
too cumbersome and ineffective. In these cases, project approval
can be farmed out to a committee sub-set (by expertise or business
area), or to individual line of business management.

Tip: Establish thresholds for project selection - e.g. small projects can
be "selected" outside the formal committee organization.
 Process Component #2: Goals & Objectives

• The project selection process must be designed

to meet certain key goals and objectives:
– To evaluate proposed projects according to a set of
pre-defined criteria.
– To weigh proposed projects and make appropriate
selections based on comparative viability.
– To engage in a collaborative process with all process
stakeholders to ensure that all relevant information
and perspectives are considered.
– To review, approve and/or reject project proposals in
a timely manner.
– To communicate status, issues, conclusions and
justifications in an open and timely manner.
 Process Component #3: Deliverables
• The project selection process must rely upon, use, and
produce specific project selection deliverables, which
should have a pre-defined format:
– Project Proposal: To provide basic project
information, and activate the selection process (pool
or individual).
– Business Case: To provide the business justification
needed to support proposal acceptance.
– Project Review Scorecard: To evaluate the proposal
according to pre-defined criteria, providing an
objective review of the proposal on the merits.
– Selection/Rejection Notification: To document and
communicate the results of the selection process.
 Process Component #4: Roles &
Responsibilities

• The project selection process must specify the

various "roles and responsibilities" to be
assigned to process participants and
stakeholders:
– Management - to lead the process as project
proposals are received, reviewed and evaluated.
– Participation - to complete assigned tasks for
proposal submission, review, analysis, input, and
disposition (selection or rejection).
– Support - to promote the process within the
organization.
 Process Component #5: Steps
• The project selection process should contain a series of
defined steps, combined in sequence, with appropriate
decision checkpoints.
• The project "Proposal" is prepared and submitted, along
with a "Business Case" if needed. The "Proposal" and
"Business Case" are evaluated for sufficiency (i.e. Do
these documents provide the information needed to
evaluate project viability?). If not, the items should be
rejected for further edification and revision.
• The "Proposal" and "Business Case" are reviewed and
evaluated according to the pre-defined criteria. Project
selection choices are made (e.g. project proposals are
approved, rejected or put on hold).
 Process Component #6: Standards
• The project selection process must specify the standards by which
project proposals will be evaluated and selected. These standards
should be designed to address these four requirements:
– Priority: The "discretionary" nature of the project
proposal. Some projects will be mandatory, and
others must compete for viability and resources.
Projects of a higher priority will set the "pace" for
project selection.
– Criteria: The specific characteristics for viability
measurement.
– Score: The "degree" to which the various criteria are
met (or not met).
– Weight: The comparative ranking of multiple project
proposals.
 Conclusions:
• The goal of the project selection process is to analyze project
viability, and to approve or reject project proposals based on
established criteria, following a set of structured steps and
checkpoints.
• This type of structured process offers several key benefits:
– Sets useful standards to guide decisions.
– Fosters "challenge" thinking (i.e. to review project proposals with
a critical eye).
– Saves time and minimizes redundancies.
– Minimizes knee-jerk responses to project requests.
– Promotes cooperation and collaboration.
– Provides a "big picture" perspective, providing context for
proposal review.
– Promotes priorities, ensuring that resources are applied to
projects as needed and based on the expected "return on
investment".
• The project selection process must be tailored to
suit the needs of the organization and the types
of projects faced.
• Obviously, large scale, enterprise projects must
be reviewed and selected via a formal process.
As project size and scope diminishes, process
formality can be scaled appropriately, but basic
process principles must always apply.
• Whether your projects are large or small, every
project must make business sense. A well
planned selection process will help you achieve
that goal.