Justification of the Project

So, what’s your answer to my yesterday’s questions? I bet you have a lot to say.

This is the first core principle: Continued Business Justification

There are reasons for doing any project. If you absolutely have no reason for doing your projects, please get in touch with me; I’ll introduce a good therapist to you ;)

Sometimes we do projects to earn money. Sometimes for increasing our credit and improving our brand. Sometimes for entering into a new market and increasing opportunities. Sometimes for the society’s benefit. But most of the time, for a combination of different elements I’ve mentioned. It’s called the “justification” of your project.

The point is that you should know why you’re doing the project, and preferably document and quantify it. It’s documented in your “business case”. Then, you should use it to “direct” your project. Directing means making high-level decisions.

Let me give you an example: imagine two otherwise identical projects. One is being done to earn money, and the other for increasing our credit. Now we are behind schedule, and we must recover. There are only two options:

option A: to spend more money on the project, and
option B: to decrease the quality to a minimum acceptable level

How do you choose?
You will probably choose the second option when the project is being done for money, and the first option when the project is being done for increasing your credit. That’s how the justification of the project impacts your high-level decisions.

Alright, it was our first core principle: continuous business justification.

We’ll discuss the second principle tomorrow. Have you heard the story of the executive that caused his company to lose millions of Dollars? He resigned, but the CEO didn’t accept the resignation.

انجمن مهندسی و مدیریت ساخت ایران (ICEMA) Iran Construction Engineering Management Association