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Hi Alexandra, I think there are many factors on which you can categories available projects. Few examples : NPV, IRR, Payback Period, Overall project risk exposure or chances of success, power/interest matrix, urgency etc..
hope this helps
I think the deciding factor would be based on deal T&M or Fixed price. For in-house projects, duration would align more with business strategy.
Project can be categorized in Simple , Medium and Large, which is decided on financial value, number of business areas and technology or other complexity factors.
Thanks for sharing
I think the criteria for project prioritization should be set by top management
There may be several, as stated by Sanjeev
Criticality, Impact, Values or revenue expected out of this product are some of the criteria that I can think of. Hope this helps.
Most of the clients I've worked with will use estimated cost/labour effort as a threshold for differentiating projects from small "non-projects".
Then, to figure out what approach and how "heavy" the PM approach needs to be, you need to look at the context of the project taking into account factors such as complexity, expected impact to the organization and so on.
And to help governance committees make decisions about selection and prioritization, qualitative and quantitative measures such as strategic alignment, financial measures, cost of delay and so on could be utilized.
Alexandra, I have seen criteria as
- size (team members, budget),
- profit/benefits (ROI, NPV etc)
- complexity (# of business areas involved/affected, new or existing technology, greenfield/brownfield, dependencies),
- external/internal project
- less duration
- considering if that project is part of a larger initiative
It depends on what the organization prioritizes as critical to them, and this changes over time.
A first step is often to select the top projects, 40-50, but better 10-15, and leave the rest minimally observed.
One hidden criteria (I tried to make it visible but failed) is if it is a pet project of a powerful executive.
Initiatives are not project until they are not converted to projects. The decision to invest on the initiative and the decision to create a program/project from the initiative is an strategic decision because it does mean the strategy will become tactic by creating a solution that will address a business need. The decision process varies from organization to organization and just to put this in terms of roles or documentation you can search for all the previous work before a project exists is in charge of business analyst or a new role called BRM. So, you can search for information about business analsyst inside the PMI itself.
For us, anything less than CAN$10M is run a "minor capital project", and avoids the lengthy and involved "formal" project approval process. IMHO, the amount of "oversight" or governance must be proportional to the organization's risk appetite. Back when I worked in industry, most of the projects I were involved in were in a very informal environment, and they were mostly successful.
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