How do you select a good project as a project manager?

Being a good project manager necessitates a wide range of abilities. It necessitates strong leadership, excellent communication skills, thorough preparation, and a variety of other vital qualities.

However, in the realm of project management, there is one ability that is undervalued: smart and effective project selection. In fact, a recent Six Sigma survey of 43 different firms discovered that 75% of them didn’t even follow the project selection methods.

“Ultimately, if you don’t have a Project Selection process in place – one that is rigorously followed,” writes Six Sigma Qualtec, “you will falter.” You may seek good PMP bootcamp online from a recognised institute.

A well-informed and experienced approach to project selection allows your firm to more efficiently manage prospective projects, identify significant initiatives with higher ROIs, and harness the capabilities currently in place to select projects that are well-suited to your organization’s specific competencies.

WHY IS PROJECT SELECTION IMPORTANT?

Before diving into the two primary approaches of Project Selection, as well as their different methodologies, it’s critical to first comprehend why Project Selection is so critical to your company’s success.

Selecting the correct projects, in addition to adopting the right project management approach for your firm, might mean the difference between one year in the black and several years in the red. Unreasonable project scope, ill-defined deliverables, and unattainable goals can all wreak havoc on your budget while also jeopardising productivity.

But choosing the proper tasks isn’t as simple as going with your gut. Choosing the correct project for your company’s abilities and resources, on the other hand, necessitates a little of critical thinking on your part. The Benefit Measurement Methods or the Constrained Optimization Methods can be used to perform these computations.

Some tips for selecting a good project:

1. Benefit measurement method

As a project manager, the Benefit Measurement Methods are likely to be the only ones you use directly. While less sophisticated than Constrained Optimization Methods, they don’t always necessitate a master’s degree in finance to comprehend.

Benefit Measurement Methods, as the name implies, assign a score to possible projects based on a model and compare the results among project applicants. The most typical Benefit Measurement Methods you’ll use as a PM are listed below.

1. Cost benefit ratio
2. Economic model
3. Payback period
4. Discounted cash flow
5. Net present value
6. Scoring models
7. Internal rate of return
8. Opportunity cost

• Constrained optimization methods

Constrained Optimization Methods may be employed in addition to Benefit Measurement Methods, which are the most extensively utilised Project Selection methods for project managers. These methods are ideal for larger, more sophisticated tasks that require a significant number of complex mathematical calculations.

The Mathematical Model of Project Selection is another name for the Constrained Optimization Methods.

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