Dubois 1.1 Project selection can be made a number of different ways. According to Gido and Clements (2015), each potential project needs to be assessed for advantages and disadvantages, plusses and minuses, and the benefits and consequences. Two methods an organization can use is benefit measurement methods and constrained optimization methods. Benefit measurement methods are based on the present value of estimated cash inflow and outflow (Monnappa, 2018). Once cash benefits are calculated, they are compared with other projects to make a decision. Components of this method include benefit/cost ratio, economic models, scoring model, payback period, net present value, discounted cash flow, internal rate of return, and opportunity costs (Monnappa, 2018). Constrained optimization methods include linear programming, non-linear programming, integer programming, dynamic programming, and multiple objective programming (Monnappa, 2018). Benefit measurement methods are best suited for small, non-complex projects whereas the constrained optimization methods are best for large, complex projects (Monnappa, 2018). There are many underlying factors when it comes to project selection. Some questions to ask include “is this project in line with our company goals and organizational strategy?” or “what are the risks of taking on this project?” Other factors include project sponsor buy-in and if there is a budget to undertake the project. The project manager also needs to be aware if there are enough human resources available for the potential project. The return on investment should be adequate to want to take on the project, and an expected timeline should be considered. Overall, the project that can impact the organization with great benefit should be considered. According to A Guide to the Project Management Body of Knowledge (PMBOK) (2013), the organizational strategy is in place to provide guidance and direction to project management. Strategic direction aids in developing the vision for the organization and provides the purpose, expectations, goals, and actions required to lead business pursuit and is aligned with the business objectives (PMBOK, 2013). Top level business objectives and project management activities should be aligned. Sometimes the project sponsor, portfolio manager, or program manager identify alignment or potential conflicts between organizational strategy and the project goals and then they communicate that information to the project manager (PMBOK, 2013). Additionally, measuring a potential project against organizational strategy ensures that resources are being allocated properly (Wakeman, 2018). If the project manager is new to an organization and isn’t familiar with the organizational strategy, I think there needs to be more involvement from upper management with selecting projects. This allows the project manager to be well versed in the type of expectations the organization has when pursuing projects. On the flip side of this, if there’s a senior project manager who has proven to the organization that they are well aware of what they are doing and they know the expectations for projects and organizational strategy, there should be minimal involvement from upper management. This demonstrates mutual trust between the project manager and the organization. Unless the project manager isn’t aware of something major, like a division being scrapped or a total 180 in organizational strategy, I think minimal involvement from upper management is required. Works Cited: A guide to the project management body of knowledge: PMBOK guide. (2013). Newtown Square, PA: Project management Institute. Gido, J., & Clements, J. P. (2015). Successful project management. Mason, OH: South-Western. Monnappa, A. (2018, October 04). Project Selection Methods for Project Management Professionals. Retrieved from https://www.simplilearn.com/project-selection-methods-article Wakeman, D. (2018, October 18). 3 Steps to Align Project and Strategy. Retrieved from https://www.projectmanager.com/blog/3-steps-to-align-project-and-strategy
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