Project Management – Continuous Investment Appraisal

Discussion title:

Project Management – Continuous Investment Appraisal

 

Discussion details:

Some of the large projects are sinking in quicksand (search for "sunk cost fallacy”) for reasons that are being related to the human behaviour (search for agency problem”). However, I’ll leave the human factors away from this discussion. In many situations the project’s investors/governors have enough motivation and power to cut their losses as soon as a project shows credible signs of failures.

As a common practice, a project appraisal (ROI, NPV, IRR, Payback Period) is being done discontinuously at its initiation and periodically, at project gates, escalations, etc.

 

 

With you contribution, I would like to find more about:

1. Besides time schedules, what other triggers are being used in your environment to reassess the project’s outstanding-viability? Are these triggers monitored as KPIs?
2. Would you find valuable to have the project continuously monitored against the initial appraisal criteria?
   

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