How should organizations prioritize projects to be successful?

In any organization once the information has been organized, you should be able to rank each project quantitatively, as a team, with in-depth discussion, and determine its level of priority. The more complete the project scope statements, the more accurate the decisions will be on the project prioritization because project scope helps to identify the missing elements in the foundations for all projects. After ranking each projects priority level, you should work on the project with the highest priority. This may help your organization to be successful.

Projects are assumed to be Investment projects. One should do a Capitla Budgeting analysis of the project and select the one that meet the criteria.

Criteria

1) Net Present Value of the project must be Positive

2)Payback perios must be lower than the life of the project

3)Internal Rate of Return(IRR) must be higher than the Opportunity cost.

4)Incremental rate of return must be equal to higher than the Return on Investment.

Even for soft projects or for strategies one can do a capital budgeting analysis, only stipulation is one should know the incremental cash flow from the process.

Everyone argues that their project is important and should receive priority, however, the only projects that should be prioritised are the ones that demonstrate a clear business value and can be measured by how far they take the business forward. Projects should be prioritised by the management board and not the individual department heads.

Dear friends, I agree with all your ideas and from my point of view I think we can prioritize the project depending on its impact on the organization. Once you have recorded the overall goal, strategic alignment and key deliverables for each project, you are now ready to establish some criteria for determining the expected impact that each project will have on the organization. I think a management committee, composed of a sampling of managers from different departments, is probably the best task force for this process. They will provide perspectives from different vantage points to ensure that most options are considered. The committee's first task is to agree on and establish the "impact" criteria to be used in determining the relative importance of each project.

1.Requirment to be supplied intime if no the delay will affect next job

2.Very established concern should  have own Transport vechiles like Trilor,Lorries,cranes , statewise wthin in 100 KMs of project.

3.Flyash bricks can be produced own

4.Must purachse a cement factory in Andrapradesh like that

 5.Quality dept sholud be perfect

6.Safety is very importanat in national projects

7.Head office purchase dept should have direct contacts in purchasing bluemetals ,sand. 

8.In night  shift's  there won't be any shortage of workers as well as managing staffs.

9.In night most of the sites donot bother about concerete mixture.

10.Solar lamps ,street lamps may be implemented in projects they will collect current in day and used in night this will control diesel and petrol consumption in nights.Solar Stree lamps are not in various model working properly.per site diesel expence are very high.These  lamps can be reused for other sites also.

I think, one way to  establish a systematic approach to prioritizing projects is to develop an inventory of all projects, regardless of size or scope, that are currently being implemented by all departments and within the whole organization. Such an inventory list will make it clear as to which projects have the endorsement of senior management. This is because, in our experience, many organizations underestimate the true number of projects that are being implemented. By developing an inventory the organization's resources are clearly allocated and also helps to reduce stress levels and increase productivity.

The priorty should be dependent on the Long term vision where we should be able to visualize next opportunity/business it may not be direct we also have to count for any indirect business/refrences that we may be making/creating

After Prioritizing, the tasks. Now what a project needs is Discipline(In-terms of the amount of time, R&D etc). Also there should be immense amount of Seriousness & Commitment for achieving the deliverable within the defied Parameters, without loosing onto the Industry Standards.

In this context, I believe we basically refer to new business ventures. In that case, Return on Investment, in terms of magnitude and lenght of period are  the key factors to be considered.  If the project is part of existing business, it depends on Incremental Cost/ Benefit Analysis (Projects based on signed contracts with clients will have to be executed as per contractual commitment).  In general, return on investment  is the main criteria which decides the priority of the project. Ofcourse, each line of business has industry standards of gestaion period, similarly many other considerations like capital investment, manpower deployment etc. dependant on line of business.  However,  from the investers' point of view, the main consideration is the ROI (or profit maximisation, market share improvement etc. being considered side-by-side).

Every Organisation need not consider the same dimensions to prioritize Projects. For one company it could be the shortest gestation period that is considered, whereas another might regard ROI (Return on Investment) to be the criteria. Hence, it largely depends on the particular Objective each Company has in selecting Projects.