Project selection refers to assessing each project idea and choosing one that has the highest priority. At this stage, the projects are still ideas, so the selection is based on the attached brief descriptions. Before conducting the selection process, writing the description of the various projects to be considered is key, since some of the ideas will remain just that. The single most important factor to consider when carrying out project selection is benefits. These refer to the measurement of positive outcomes that the project will bring. They are mostly referred to as the reasons for undertaking a project. The project benefits definitions can be found in the business case or in project documents that are prepared in the early stages like the project charter document.
Project objectives can also be used to trace the project benefits and are tracked throughout the project’s course. There are some cases where project delivery is timely and within budget but project benefits do not materialize. Due to such scenarios, identifying, quantifying and validating the benefits of the project is considered as basic due diligence especially when the projects in question are large. Examples of project benefits include revenue. This is the income that results from a project activity such as product improvement or the creation of a new product. Cost reduction is also a benefit of a project especially after resources intensive activities are automated.
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Another benefit is improved efficiency whereby tasks are accomplished with least effort and where performance is competent. Through enhancing the infrastructure systems and processes, more output for every unit of input is given rise to. Infrastructure refers to basic facilities, technologies, equipment that form the base for economic activities. With regard to businesses projects, common infrastructure includes facility management, information, and data infrastructure. Improving processes and tools so that they generate more output for one hour of work is called productivity and is a benefit that makes projects get selected. Risk reduction or avoidance is another benefit that aids the project selection process. For instance, a new feature may be created on a product not for improving revenue but for reducing competitive risk. The potential revenue decline is therefore mitigated which is beneficial in the long run.
Reputation and compliance are other positive outcomes that too determine project selection. Rules and regulations compliance improves the reputation or even reduces reputational risks and hence a benefit to consider when selecting a project. Customer experience as a benefit can aid project selection as well. Improved customer experience is usually given by measuring the satisfaction of the customers. Increased market share is also a benefit which is founded on competitive advantages that keeps off competitors. Organizations embark on projects that give them a competitive edge because lack of it limits firms’ survival in the long run. Among the fundamentals of Business is building and defending the competitive advantage, and when a business model is being executed, any value addition capability amounts to it.
Brand awareness is also an advantage that aims at increasing customer awareness as well as attributes of the brand. For instance, embarking on a project that will give back to the society will create awareness of the brand due to the significant publicity that comes with it. Lastly, a project that improves quality of life of the immediate community is usually given priority since they are deemed beneficial. For example, a project with air quality benefits is chosen over that without any life quality benefits.
