Project Selection Issues: Two Paradoxes Impacting Organizational Practices

QUESTION

A- Project Selection Issues

In 2002, the Norwegian University of Science and Technology instituted a research program to study the impact of a front-end decision-making regime established two years before improving major Norwegian public projects. This decision-making regime added two external reviews to the project review and approval process. The first review focused on the quality of the conceptual solution; the second review focused on the quality of the cost estimate and governance processes. The research identified ten situations (“paradoxes”) where counter-intuitive decisions adversely influenced the project selection and approval process (Samset & Volden, 2016).

• Select two paradoxes that apply to project selection practices in an organization.
•  Explain the selection(s) and describe the impacts on an organization’s project selection practices.

B- Public-Private Partnerships

Martin (2016, p.199) presents a taxonomy of six types of public-private partnerships based on the number of components (design, build, finance, operate, and maintain) the private partners undertake.

– Select one and provide a specific example.

– Describe the public and significant private participants, the risks borne by each, and the attendant rewards.

ANSWER

Project Selection Issues: Two Paradoxes Impacting Organizational Practices

Introduction

Effective project selection is crucial for organizations to allocate resources efficiently and achieve successful outcomes. However, the project selection process is not always straightforward, and certain paradoxes can arise, leading to adverse impacts on an organization’s project selection practices. This essay explores two paradoxes identified by Samset and Volden (2016) that can affect project selection in an organization and examines their potential impacts.

Paradox 1: The Accuracy vs. Legitimacy Paradox

The Accuracy vs. Legitimacy paradox highlights the tension between the need for accurate information and the desire for legitimacy in the project selection process. Accurate information refers to objective and precise data that helps in making informed decisions. Legitimacy, on the other hand, focuses on obtaining approval and support from various stakeholders.

Impacts on Project Selection Practices

When organizations prioritize accuracy, there is a risk of neglecting the legitimacy aspect of project selection. In such cases, decisions may be made solely based on objective data, disregarding the subjective opinions and concerns of stakeholders. This approach can lead to resistance, lack of buy-in, and reduced support for the selected projects. Conversely, if organizations prioritize legitimacy over accuracy, decisions may be influenced by political or personal agendas, compromising the quality of project selection. This can result in projects being approved based on popularity rather than their viability, leading to poor outcomes and wasted resources.

To mitigate the impacts of this paradox, organizations should strive for a balance between accuracy and legitimacy. It is essential to gather accurate data and conduct thorough analyses to ensure informed decision-making. Simultaneously, organizations should actively engage stakeholders, seek their input, and consider their concerns during the project selection process. By incorporating both accuracy and legitimacy, organizations can enhance the overall quality of project selection and improve stakeholder satisfaction and support.

Paradox 2: The Short-Term vs. Long-Term Paradox

The Short-Term vs. Long-Term paradox arises from the conflict between immediate gains and long-term sustainability in project selection. Organizations often face the challenge of choosing projects that yield quick returns versus those that align with long-term strategic objectives and sustainability.

Impacts on Project Selection Practices

If organizations solely focus on short-term gains, they may prioritize projects that generate immediate revenue or solve pressing issues. However, this approach may neglect projects with long-term strategic significance, such as infrastructure development or research and development initiatives. Consequently, the organization may miss out on opportunities for future growth and innovation. On the other hand, if organizations prioritize long-term sustainability without considering short-term gains, they may struggle to secure necessary funding or fail to address immediate operational needs.

To address this paradox, organizations should adopt a balanced approach that considers both short-term gains and long-term sustainability. Strategic planning should involve evaluating projects based on their alignment with the organization’s long-term goals while also considering their potential for short-term benefits. This approach enables organizations to capitalize on immediate opportunities while ensuring a sustainable project portfolio that aligns with their overall strategic direction.

Conclusion

Project selection is a critical process that can significantly impact an organization’s success. However, certain paradoxes can complicate this process, leading to adverse outcomes. The Accuracy vs. Legitimacy paradox emphasizes the need for balancing objective information with stakeholder support and engagement. Meanwhile, the Short-Term vs. Long-Term paradox highlights the importance of considering both immediate gains and long-term sustainability. By understanding these paradoxes and their impacts, organizations can refine their project selection practices, leading to better-informed decisions, enhanced stakeholder satisfaction, and improved project outcomes.