Project Selection

Question

What are the key criterion that comes in our mind when taking a project for organization?

Answer 1

Key criterion: does the project fit with organizational strategy and direction?

A) Many selection models and techniques

• financial methods such as payback period; NPV; IRR; ROI, etc.
• wider sets of criteria (e.g. balanced scorecard method, BSC)

 

B) Choice of selection technique differs according to organization size, level of risk aversion, management style, technology, market and competition, and so on.

C) Screening and ranking of project proposals:

• use of screening matrices and priority analysis

D) Managing the project portfolio