Project approval decisions: Exploring success factors

Little research has explored the critical point where a project is created: the sanctioning of the money to invest. This research is an exploratory investigation into this key point in the evolution of a project. Specifically, it focuses on the context within which the investment decision is made. This research investigated the interaction between the decision makers, the executives, and the project management (PM) groups from just before the decision is made to just after the project team gets its mandate. The qualitative investigation considered expert opinion that was solicited from two groups: executives and project managers. Modified Delphi surveys and semistructured interviews were used. The findings of this thesis show that there is a disconnection between the decisions made at the executive level, and their interpretation by those who deliver the project. The context in which both groups communicate and share information is split into two distinct worlds when justifying fund approvals and delivering projects. One that is politically correct and visible, and a pragmatic one that is needed to get the job done –generally kept invisible. Key discoveries included identifying seven key factors that influence the success of a project investment decision, identification of a critical disconnect between the decision makers and the project implementers resulting from a number of factors that culminate in key observation and recommendation. The observation is that missing critical information is not transferred from one group to the other because it appears to be 'so obvious' to that group that it does not occur to the group to share it and because it is sufficiently opaque – or of little interest – to the other group that they do not require this important information. Both groups should work on bridging this disconnect. Value creation should be a reflective focus under a common understanding of the business and project intent and setting minimum expectation for the quality of the information shared and communicated. One possible part of a solution is creating a new and more diverse career path that exposes executives to their realities of project management and project managers to the world of executive decision-making.