Your project is approved, and you are happy as a clam. A year later your project is behind schedule, way over budget, and you wonder why. Did you not have sufficient project controls procedures in place?
A frequently overlooked root-cause of project failure is a flawed project selection methodology. Many companies rely on immature and incomplete selection methods and rely on simple checklists, limited Net Present Value (NPV) calculations, and often fail to take into account broader aspects like:
- Strategic fit with overall company vision
- Fit with your current portfolio
- Resource situation (types of skill set needed, number of people, equipment)
- Level of risk and the amount of new technology/change needed
- Level of competitive advantage the project would bring
- Sensitivity to delays
To implement a successful project management office, careful thought need to be given to the project selection methodology used. Frequent audits and checks are also needed to ensure that projects are evaluated using the same criteria and that project requirements aren’t deliberately understated to get the project approved.
Starting numerous dissimilar and poorly aligned projects can lead to poor performance, even if you have great project controls processes in place.
Vik Bulletin 