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Decision making in project management

Project management touches on a number of different areas and, of course, a lot of attention is paid to decision-making where stakeholder management is also an integral part. How are decisions made on projects? What to look out for so that decisions are made as easily as possible and do not slow down the progress of the project? These and more questions are very important to take into account in order to ensure the success of the project.

How does decision making work in project management?

It all depends on the organization and how many projects are taking place in the organization, whether they are dependent on each other, etc. The simplest decision-making body for project management is the project steering group. It is very important that this project decision-making team has the correct composition, since its decisions will determine how well the project will fare throughout its course.

Who are the stakeholders that should be part of project steering group?

There should be stakeholders that have full decision power and impact to the project included in project steering group, so project would have best possible chances to succeed. Stakeholders that should be considered part of steering group could be divided into ę groups:

  1. those, who have decision power on whether project should be financed and for how much

  2. those, who have the power on making the decision to allocate or not the staff

  3. those, who will be heavily impacted by the project

What kind of decisions project steering group can make?

Very often, golden rule is forgotten that project steering group can make decisions only within the limits of a project, that is, only within the framework of a fixed budget, agreed duration and a defined scope. All decisions that are related to the extension and sometimes shortening of the project duration, if this means that the scope of the project is changing, or changes related to the project budget and an increase or decrease in volume, are not taken by the members of the project steering group. In such situations, the project steering groups plays only an advisory role and the final decision is made by the organization's higher decision forums, which have the visibility of how one or another change in the project will affect the organization and other projects taking place in the organization.


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