Thursday 21 April 2022

What criteria should be taken into account when determining the project


The definition of the project should always be relevant and take into account the real factors of complexity. What are these factors?

Budget. As a rule, the higher the cost of the object, the more difficult its implementation. This can be an investment project or a change (for example, the introduction of an information system) with a certain budget.

Complexity. It can be a complexity associated with logistics, infrastructure, cooperation of functions or departments, technological complexity. In the example of the electric grid company, the definition of the project subsequently received another clarification on this criterion: the project began to be called a reconstruction with a budget of more than 300 million rubles or affecting three or more technological systems. For example, substation equipment, lines and telemetry. In other words, if a project spans three systems, then, regardless of the budget, it requires special attention. If we talk about organizational changes, we can specify that these are changes that cover, say, three or more divisions or three or more processes.

New technology. If in the course of the work the technology that has not yet been used is mastered, then this is an atypical situation, which means that such an activity can be considered a project one. And although it is not always possible to clearly define technological innovation, in reality this criterion occurs.

Strategic importance. Any order from a strategically important customer falls under this criterion. If the company fulfills the government's order (for example, to establish electricity supply in the village affected by the disaster), then this is a project. Even if it costs three rubles and is sold in 2 weeks without much effort.

In your project definition, you must consider the type of activity and these four factors of complexity.

The definition of a project – in a real enterprise, not from a textbook – should take into account all these four criteria, that is, indicate constraints on budget, complexity, innovativeness and strategic significance. Depending on the level of maturity, you can abandon some criteria that have lost relevance, revise them. Nevertheless, the No. 1 task in the implementation of project management is precisely to reliably agree with each other and the reality is what to call a project.

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