Five Project Selection Strategies to Boost Your Project Investments

Have a documented process for selecting projects.

Even if you have a really small company with an owner who calls all the shots, it’s helpful to have a documented process that guides project selection. There are many different approaches, including many viable benefit realization methods. To keep things simple, here are eight questions that you might consider for each project proposal.

  • Is this project required by law?
  • How much will the project increase revenues?
  • How much will the project reduce costs?
  • Will this project result in environmental improvements?
  • What is the payback period? Or, ROI or NPV?
  • How will the project improve customer satisfaction?
  • And, how will the project improve the organizational or team culture?

If the size of your organization warrants, use a project selection committee.

Using a well-respected project selection committee gives the process some sense of independence and validity. Your organization may or may not need a formal committee but having a process that is independent of one person can boost your performance.

Align projects with your corporate (or entity) strategy.

This can be accomplished in how you weigh the scoring of whatever process you use. But it also needs to be a core part of your philosophy. It is an essential starting point for any project selection strategy.

Have a selection strategy which increases project focus.

Project focus is rarely improved by throwing projects at teams every time a new idea is proposed. You can use a Kanban like approach where you limit the number of projects that any team is working on to a reasonable number.

Focus on your people.

It’s great when an organization puts a strong emphasis on selecting the right projects, but that’s not all. You need to consider people in your project selection process. And that focus doesn’t stop when the projects are selected. Here are some questions to ask:

  • How will this project impact your employees and what are they saying?
  • Do you have a strong project team that is excited about this project?
  • And, how committed is senior leadership to this project?

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