Lefley set out to evaluate the selection of an information technology project for the UK-based Association of International Accountants (AIA). His intent was to investigate empirically whether the bias of the project champion influenced project selection. The project champion in this case was the person who proposed the project and his department would have benefited directly from a successful implementation.
The AIA uses a three-component model to attempt to convert opinions and views into actual judgmental values or numbers: financial, risk and strategic fit. The project champion along provides the financial data. However, all members of the project selection team provide input into the risk and strategic fit components. Therefore, Lefley decided to compare the results in these two areas to see if he could identify any biases.
In the risk area, each team must determine a score for risk probability and risk impact. The team develops a collective group of risks and then individually scores each risk. Lefley then calculated the mean probability score for the project champion, the highest team member and the mean value for the remaining team members. In all mean risk measurements, the project champion had the lowest mean.
Click to enlarge
In the strategic fit area, each team member must evaluate the project against a list of weighted strategic benefits provided by the organization’s management team. The evaluation creates a strategic fit index for each team member. The team provides its judgmental values after each round of three discussions. Lefley calculated the mean index score for the project champion, the lowest team member and the mean value for the remaining team members. In all mean strategic fit index measurements, the project champion had the highest mean.
Click to enlarge
The results showed that the project champion felt the risks for this project were lower than the rest of the members of the selection team. In addition, the project champion felt that the strategic fit was higher than the rest of the members of the selection team. Lower risk and higher strategic fit will make the project appear more attractive than other projects. If the project champion scores were influenced by his biases toward the project, selection of this project might not be in the best interest of the organization.
Lefley realizes that further study must occur to understand fully the relationship between project champion biases and project selection. However, he believes that the biases of selection team members may influence project selection. In addition, through the development of an evaluation model like defined in this study, organizations can identify the biases early in the process and improve its project selection process.
References
Lefley, F. (2006). Can a Project Champion Bias Project Selection? Management Research News, 29 (4), 10.
No comments:
Post a Comment