Alexandra CossardProject Manager, PMP, Black Belt & ADKAR Practitioner| GSKRixensart, Belgium
Dear Community,
Based on the PMBoK definition, all initiatives that are temporary and that deliver a unique product, service or result are considered as projects.
Nevertheless, if we don't want to manage all of them with the same level of requirements, which criteria and threshold would you suggest to use to categorize these projects?
I was thinking about the duration and / or the workload, but I would appreciate your advice.
Thanks for your contribution Saving Changes...
Sanjeev SharmaDeputy General Manager - Projects | Greaves Cotton Limited, IndiaNew Delhi, Delhi, India
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..
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. Saving Changes...
Anilesh Kumar SinghTTIM - Senior Program Manager, Senior Leader-Transition and Transformation, PMP| IBMIndia
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. Saving Changes...
Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
Dear Alexandra
Interesting question
Thanks for sharing
I think the criteria for project prioritization should be set by top management
There may be several, as stated by Sanjeev Saving Changes...
Senthil SPM III| GGS Information Services IncChennai, Tamil Nadu, India
Criticality, Impact, Values or revenue expected out of this product are some of the criteria that I can think of. Hope this helps. Saving Changes...
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.
Kiron
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1 reply by Alexandra Cossard
Nov 05, 2019 7:07 AM
Alexandra Cossard
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Thank you so much Kiron for your useful answer. I wish you a nice day.
Alexandra
Saving Changes...
Alexandra CossardProject Manager, PMP, Black Belt & ADKAR Practitioner| GSKRixensart, Belgium
Nov 05, 2019 6:53 AM
Replying to Kiron Bondale
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Alexandra -
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.
Kiron
Thank you so much Kiron for your useful answer. I wish you a nice day.
Alexandra Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
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. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
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. Saving Changes...
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. Saving Changes...
