Evaluating and Selecting Technology-Based Projects

Managers can choose among a large number of quantitative and qualitative methods for project evaluation and selection. The effectiveness of each method depends on the specific project type, organizational culture and managerial skills, discussed in this paper together with the strength and limitations of various evaluation methods. To be effective, especially in complex project situations, the decision-making process often has to go beyond the application of just quantitative methods. Field research shows that incorporating both quantitative and qualitative measures into a combined rational–judgmental evaluation process often yields the most reliable predictor of future project value and success. As equally important, the process requires managerial leadership and skills in planning, organizing, and communicating. Above all, the leader of the project evaluation team must be a social architect, who can unify the multifunctional process and its people. The leader must be able to foster an environment that is professionally stimulating and conducive to risk sharing. Moreover, the evaluation process must be effectively linked to the functional support groups responsible for project implementation, and aligned with organizational strategy. Senior management has an important role in unifying the evaluation team behind the mission objectives and in facilitating the linkages to the diverse stakeholder community. Keywords: decision-making; engineering; judgmental; product development; project evaluation and selection; project management; rational; team leadership; technology