Project selection techniques

There are many reasons why an organization would decide to undertake a project. As mentioned earlier, businesses are concerned with making money, but they are also known to run projects for the greater good.

The categories of why projects may occur include the following:

• Market demand
• Business need or opportunity
• Requests from customers
• Advances in technology
• Legal or regulatory compliance
• Environmental considerations
• Social need

Regardless of the reason why a project may occur, businesses need to validate their reasoning for taking on a project and determine whether it is feasible and fiscally healthy to do so. Usually in the first few stages of determining what project to undertake and how it can help align to the organization's strategic plan, there are numerous decisions to make about which project to select and how much to spend.