{"id":10765,"date":"2022-04-08T09:01:50","date_gmt":"2022-04-08T14:01:50","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=10765"},"modified":"2022-04-08T09:01:50","modified_gmt":"2022-04-08T14:01:50","slug":"project-investment-selection","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/project-investment-selection\/","title":{"rendered":"Project Investment Selection"},"content":{"rendered":"

\"\"Picking ground-breaking new projects for more investment and expansion<\/a> is perilous and difficult since fresh ideas are characterized by major technological and market ambiguity.\u00a0 There will forever be some winners and some failures in the process of evaluating Capital Investment projects for funding, but no one desires to be the decision-maker who failed to recognize a fantastic investment.<\/p>\n

As per research, project selections can go awry due to the following 5 issues in the expert panel created to select the project:<\/p>\n

    \n
  1. Predisposition against fresh concepts.<\/li>\n
  2. Absence of diversity in expert panels.<\/li>\n
  3. More focus on technical facets.<\/li>\n
  4. Bias of the panel member introducing the project.<\/li>\n
  5. Timing plays a major role.<\/li>\n<\/ol>\n

    An organization\u2019s product lines, processes, and services can be revitalized, it\u2019s functioning and competitiveness enhanced by the choice of a good R&D project<\/a>.\u00a0 Leaders have to comprehend the points where R&D selection panels may make mistakes for them to better their performance of selecting appropriate projects.\u00a0 Research demonstrates that by comprehending the conceivable pitfalls and improving the process, organizations can make wiser judgments and produce enhanced outcomes.<\/p>\n

    There are several means that can be used before, during, and after selecting strategic initiatives to bring down biases and enhance selections for additional investment.\u00a0 By following the undermentioned best practices before, during, and after selection, decision-makers can make smarter choices when deciding on which projects to invest in:<\/p>\n

    Pre-selection<\/strong><\/p>\n

      \n
    1. Conceal Names & Demographics<\/li>\n
    2. Homogenize Submissions (Heilmeier Catechism)<\/li>\n<\/ol>\n

      During Selection<\/strong><\/p>\n

        \n
      1. Pursue Diversity<\/li>\n
      2. Apply Crowdsourcing<\/li>\n
      3. Adopt Workshop Approach<\/li>\n
      4. Entrust to Probability<\/li>\n
      5. Organize One-on-one Contests<\/li>\n<\/ol>\n

        Post-selection<\/strong><\/p>\n

          \n
        1. Give Feedback<\/li>\n
        2. Gain from Failures<\/li>\n<\/ol>\n

          \"\"<\/a><\/p>\n

          Granted these procedures may entail deployment of certain resources and effort, but they are anticipated to cost less than the conventional way of selection, which extensively relies on time and effort of senior managers and technical subject matter experts.<\/p>\n

          Let us look at some of the best practices in a little more detail.<\/p>\n

          Conceal Names & Demographics<\/strong><\/h2>\n

          One way of removing bias is to conceal the names and demographic information of the persons who are pitching strategic initiatives for selection.\u00a0 Limited research has suggested that concealing names and demographic characteristics in science submissions escalates the chances receiving grants for women.<\/p>\n

          Although masking submissions is a significant first step but organizations may have to take supplementary steps to detect biases.<\/p>\n

          Homogenize Submissions (Heilmeier Catechism)<\/strong><\/h2>\n

          Comparability is necessary for similar themed project ideas.\u00a0 A standardized way of developing proposals<\/a> makes it easier to evaluate the initiatives.\u00a0 A comprehensive, uniform template for proposals<\/a> can make comparability possible.\u00a0 This was demonstrated in a concept known as Heilmeier Catechism, coined by George Heilmeier, director of a U.S. research organization, in the mid-1970s.<\/p>\n

          Heilmeier Catechism is also employed as a screening technique to aid project proposers appraise whether their ideas have a possibility of being approved.<\/p>\n

          Pursue Diversity<\/strong><\/h2>\n

          An increasingly varied selection panel aids in reducing biases and furthermore it results in products that are more attractive to people with varied requirements and interests.<\/p>\n

          Research has shown the significance of diversity<\/a> across several aspects\u2014not only demographic features but also professional capability and backgrounds as well.<\/p>\n

          Interested in learning more about Project Investment Selection Best Practices?\u00a0 You\u00a0can download\u00a0an editable PowerPoint on Project Investment Selection<\/strong> here<\/a>\u00a0<\/u>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n

          Do You Find Value in This Framework?<\/h2>\n

          You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>.\u00a0\u00a0FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives.\u00a0 Here\u2019s what some have to say:<\/p>\n

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          \u2013 Bill Branson, Founder at Strategic Business Architects<\/p><\/blockquote>\n

          \u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power.\u00a0 For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>\n

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          \u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients.\u00a0 In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over!\u00a0 The quality of the decks available allows me to punch way above my weight \u2013 it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>\n

          \u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

          Picking ground-breaking new projects for more investment and expansion is perilous and difficult since fresh ideas are characterized by major technological and market ambiguity.\u00a0 There will forever be some winners and some failures in the process of evaluating Capital Investment projects for funding, but no one desires to be the decision-maker who failed to recognize… Project Investment Selection<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":10771,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[408,81],"tags":[2890,1217,2,2889,2888,2891,2893,2886,2887,2892],"class_list":["post-10765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-leadership","category-strategy","tag-capital-investment-projects","tag-diversity","tag-innovation","tag-innovation-project-selection","tag-innovation-projects","tag-issues-in-project-selection","tag-project-selection-best-practices","tag-projects","tag-projects-selection","tag-rd-projects"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/10765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=10765"}],"version-history":[{"count":9,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/10765\/revisions"}],"predecessor-version":[{"id":10776,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/10765\/revisions\/10776"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/10771"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=10765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=10765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=10765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}