Primary Author: Ms Diana Nada
Co-author(s): Dr. Francis T. Hartman P.Eng.
Audience Focus: Intermedidate
Application Type: Research
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA
Abstract: This paper is an exploratory cross disciplinary qualitative investigation of the factors considered in initial capital investment decisions. Two teams of participants (Expert opinion) on current best practices in front-end planning - the executive when approving budgets (corporate board) and the project execution and delivery (project management) are investigated. 27 Experts participated in three rounds of online Delphi surveys. Data collected is analyzed using SPSS software and data coding of interviews 10 factors are identified, ranked and compared by both teams. Experts assessed the communication and quality of the information shared. Influential financial (tangible) and non tangible considerations during early decision making is identified. There exists disconnect between the decisions made at the (top) corporate level versus those communicated (down) at the project management level. There are two worlds for both teams when justifying funds and costs one that is politically correct and visible and another that is needed to get the job done but invisible. Are we in dichotomy? Is the current practice of investment decision making the best?
Co-author(s): Dr. Francis T. Hartman P.Eng.
Audience Focus: Intermedidate
Application Type: Research
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA
Abstract: This paper is an exploratory cross disciplinary qualitative investigation of the factors considered in initial capital investment decisions. Two teams of participants (Expert opinion) on current best practices in front-end planning - the executive when approving budgets (corporate board) and the project execution and delivery (project management) are investigated. 27 Experts participated in three rounds of online Delphi surveys. Data collected is analyzed using SPSS software and data coding of interviews 10 factors are identified, ranked and compared by both teams. Experts assessed the communication and quality of the information shared. Influential financial (tangible) and non tangible considerations during early decision making is identified. There exists disconnect between the decisions made at the (top) corporate level versus those communicated (down) at the project management level. There are two worlds for both teams when justifying funds and costs one that is politically correct and visible and another that is needed to get the job done but invisible. Are we in dichotomy? Is the current practice of investment decision making the best?