Reflective Journal on Project Selection Method

Course Name: EPM 1113_Project Management: Overview and Context

Date: 4th February 2024

 In project management, the process of choosing the correct project emerges as a crucial

element influencing an organization’s success. As a project manager, understanding one’s job,

the organizational environment, and key benefit measurement methods is crucial for effectively

engaging in the project selection process. This reflective journal explores the main ideas covered

in the provided content, examines the consequences of those ideas, and thinks about how one

may use and integrate this knowledge into their professional activity.

WHAT

The content highlights the importance of the project manager’s role in project selection,

even though executive leadership frequently makes the final decisions. A project manager can

provide insightful advice based on their experience, serving as a sounding board for ideas and

offering an unbiased assessment of potential projects. Understanding the organization and its

main motivator is highlighted as a prerequisite for effective project selection. The material

presents benefit measurement methods such as Benefit Cost Analysis, Payback Period,

Discounted Cash Flow Analysis, Net Present Value, Opportunity Cost, and Scoring Models.

For instance, Benefit-Cost Analysis summarizes the overall relationship between the

relative costs and benefits of a proposed project (Hayes, 2022). Payback Period measures the

amount of time needed to recover the initial investment whereas Discounted Cash Flow Analysis

calculates the present value of future returns. Net Present Value offers a thorough picture of net

profits or losses over time (Tuovila, 2021), and Opportunity Cost helps in deciding between

initiatives that are mutually incompatible projects. Scoring Models, on the other hand, provide an

organized method for assessing projects using weighted criteria (Weller, 2021).
SO WHAT

As we delve deeper into the key benefits measurement method, it becomes clear that a

sophisticated understanding of financial analysis is necessary for wise project selection. In

addition to the present value of future returns, Net Present Value considers net gains or losses

over each period. With time, this approach offers a more thorough understanding of a project’s

financial viability.

During my exploration, I found the concept of Opportunity Cost particularly intriguing.

Knowing the possible profit lost by not choosing a particular project provides a dimension of

strategic decision-making in circumstances where choosing one project over another is

unavoidable. When making wise decisions that support larger organizational objectives,

minimizing opportunity costs becomes crucial. Additionally, scoring models provide a structured

and objective way of assessing projects by predetermined standards. This method considers not

just the financial issues but also the risk, stakeholder support, technical difficulties, and resource

strain. This comprehensive assessment aligns with the modern concept of project success, which

considers organizational goals and financial metrics.

NOW WHAT

A project manager must change the way they view their job in project selection to put this

knowledge into reality. According to Alexander “To succeed in their role, project managers must

be adept at coordinating resources, managing budgets, measuring, and tracking project progress,

and communicating with team members and stakeholders” (Alexander, 2023). Applying the
insights gained from benefits measurement methods, project managers can stress the need for

long-term consequences and strive for comprehensive financial analysis in project proposals.

For example, in a scenario where an organization is choosing between two projects that

have comparable financial returns, a project manager equipped with an understanding of

opportunity cost can clearly state the possible advantages and disadvantages of each option. This

would allow the organization to make decisions that align not only with immediate financial gain

but also with strategic objectives and resource optimization.

Moreover, incorporating Scoring Models into the decision-making process also ensures a

fair evaluation that takes into multiple dimensions of project success (Romanelli, n.d.). This

method aligns with the expanding understanding that projects should take into consideration

elements such as stakeholder support, resource availability, and technical feasibility in addition

to financial criteria.

In conclusion, project managers must understand all aspects of project selection. Even

though they might not make the final decision, their opinion can significantly impact the

selection process. The knowledge of benefit measurement methods provides project managers

with a toolset to evaluate a project's feasibility. Applying this information involves supporting the

decision-making process, advocating for thorough financial analysis, and supporting a

comprehensive evaluation strategy. By doing this, the project manager turns into strategic

partners who help the business succeed overall in addition to executing projects. Project

managers who possess this understanding will be better able to handle the challenges of project

selection and accelerate organizational performance as the business environment changes.

References

Alexander, M. (2023, June 26). What is a project manager? The lead role of project success.

CIO. https://www.cio.com/article/230682/what-is-a-project-manager-the-lead-role-for-

project-success.html

Hayes, A. (2022, March 29). Benefit-Cost Ratio (BCR): Definition, Formula, and Example.

Investopedia. https://www.investopedia.com/terms/b/bcr.asp

Romanelli. M, (n.d.). The Weighted Scoring Model – Project Management Tools & Techniques.

Stakeholdermap. https://www.stakeholdermap.com/project-management/weighted-

scoring-model.html

Tuovila, A. (2021, April 18) Net Present Value (NPV) Rule: Definition, Use, and Example.

Investopedia. https://www.investopedia.com/terms/n/npv-rule.asp

Weller, J. (2021, August 31). Everything You Need to Know about Scoring Models in Project

Management. Smartsheet. https://www.smartsheet.com/content/project-scoring