Decision Making During Project Development

Henry Ashton, Associate Director of Project Management in our Melbourne office, discusses the challenges associated with decision making during project development.

As Project Managers, to guarantee project progression, one of the key things we can do for surety of project success is to ensure the right decisions are being made at the right time. There's nothing more significant to derailing a project than deferring difficult decisions to future stages, which will ultimately make our job as Project Manager substantially more problematic down the track.

Making decisions during project delivery is a crucial aspect of effective project management. Without proper planning and consideration of major decisions, a Project Manager may find themselves being blindly led along by the broader team, resulting in a lack of meaningful leadership. To achieve successful project outcomes, it is essential to identify and make informed decisions that align with project goals and objectives.

In the process of decision-making, it is crucial to ensure that sufficient consideration is given to convince decision-makers that the team has identified and recommended the best course of action for the project's success. When the project's goals and objectives are clearly defined, the chosen outcome should not come as a surprise to project stakeholders. However, when there is a possibility that the outcome may deviate from the original expectations, it is essential to involve key stakeholders in the decision-making process. Failing to consult stakeholders in the lead up to providing a recommendation can lead to additional time and effort being required to justify the outcome, potentially causing delays in the decision-making process. This emphasizes the utmost importance of effective communication and collaboration within the project team.

To guarantee effective decision-making during project development without adding excessive administrative processes, Project Managers can implement the following steps early in the project life cycle:

1. Categorisation of the Project

The first step is to categorise the project as simple, complicated or complex. This categorisation helps in understanding the nature of the project and the level of decision-making that should be anticipated. Simple projects typically involve a limited number of straightforward decisions, these decisions can usually be taken at the end of a phase. Complicated projects will have a larger number of decisions, usually involving more than one stakeholder, but individually each of these decisions should be reasonably straight forward (i.e. take them one at a time and work through them). With complicated projects it can benefit the development of the project to schedule opportunities to take decisions at key intervals during a phase. Complex projects are very different in that decisions taken on one element of the scope can influence the outcomes in another area and the decisions are interconnected. Therefore, it is important on a complex project to identify which decisions need to be made first so that these can be locked in place and not create uncertainty for future requirements. Complex projects typically have key stakeholders with different objectives and open-ended requirements within the scope.

2. Establish Stakeholder Groups

Identifying and establishing stakeholder groups is essential for effective decision-making. By involving key stakeholders early on, Project Managers can gather valuable input and insights, ensuring decisions are well-informed and aligned with stakeholder expectations. However, it’s worth noting that not all stakeholders need to be included in every decision; various stakeholders may want to be engaged at different phases, some working through items one by one, whereas others may just want the big picture at the end of the activity with all issues and decisions wrapped up together for communication. Knowing which stakeholders you need to involve for which decisions, and their preferred communication approach, will enable you to plan how and when to engage them in decision-making.

3. Identification of Major Decisions

It is crucial to identify the major decisions that will significantly impact a project's success. By identifying these key decision points, Project Managers can allocate the necessary time, resources and attention to ensure informed and timely decision-making. A Project Manager should be able to infer these key decisions from the project requirements, and work with design consultants to identify what the main decisions are likely to be. These decisions will be specific to the project. Identifying these decisions will improve the project team’s understanding of the projects requirements and allows the team to prioritise the anticipated key decisions.

4. Agreement on Decision Timelines

Once major decisions are identified, Project Managers must establish clear timelines for when these decisions need to be made. This timeline should consider dependencies, project milestones, and the overall project schedule. By setting deadlines for decision-making, Project Managers can maintain momentum and avoid unnecessary delays or bottlenecks. When working on simple (and occasionally complicated) projects, decisions may be deferred until a convenient time for stakeholders, or the end of the design phase in order to progress to the next phase. However, with complex projects where one decision can influence other requirements, it is best to make decisions as soon as justification to support decision-making is available. This allows successive decisions to be made with confidence.

5. Consideration of Assessment Criteria

To support decision-making, Project Managers need to establish assessment criteria. These criteria act as a framework for evaluating options and selecting the most suitable course of action. Assessment criteria should align with the project objectives and typically include factors such as safety, sustainability, cost-effectiveness (value for money), feasibility (constructability), alignment with stakeholder expectations (quality, operational & maintenance requirements), as well as potential impacts to the program. By systematically evaluating decisions against predefined criteria, Project Managers can make more objective and well-grounded choices. Where stakeholders may have conflicting objectives, a systematic approach will help ensure that all stakeholders can be convinced that the right outcome is being achieved for the project.

6. Decision Governance

Decision governance refers to the processes and structures in place to ensure effective decision-making throughout the project. This includes defining decision-making roles and responsibilities, establishing decision-making protocols, and fostering a culture of accountability. By implementing clear decision governance mechanisms, Project Managers can streamline the decision-making process, reduce ambiguity and promote transparency and collaboration. This also involves the acknowledgment of who is the real decision maker. Stakeholders all have an element of control, but rarely do they make the decision. This may mean that the project team can only provide a recommendation and sign off by a “Project Board” may be required to confirm those recommendations and the impacts of the decisions made (be they cost, time, or compromise between other project objectives).

Conclusion

In conclusion, effective decision-making is vital for successful project delivery. By following a structured approach to decision-making, Project Managers can enhance their leadership capabilities and ensure that decisions are well-informed, timely and aligned with project goals. Through proper planning, stakeholder engagement, and the use of assessment criteria, Project Managers can navigate the challenges of decision-making without burdening the project with excessive administrative processes.

Henry Ashton is an Associate Director in Project Management, specialising in aviation. Get in touch with Henry →