No Go Terminate Pass No funds granted Go Inform Project Sponsor Continue with changed project Sponsor approved change request Can and should these projects continue? Undertaken as part of the Control Change process Obtain funding (if required) Resanction spend and earmark full project funds Commit project to completion or intermediate gate, as appropriate Confirm project on the register and in the business plan Adjust resource plans to suit Figure 15.7 Decision process for an issue requiring a major change The proposed change is reviewed by the project review group and, if it can be accommodated within the portfolio, approval is given to proceed. Authorisation for any extra funding should also be given, if required. Selecting the right projects Project selection and business planning Why do so many enterprises: G G G waste scarce funds and resources on worthless projects; have little understanding of what benefits will accrue from their pro- ject portfolios; struggle interminably with the annual budget setting and decision process? Research by the GenSight Group 2 suggests between 35 and 50 per cent of all investment is directed to unsuccessful projects and that about 30 per cent of project investment by FTSE 100 organisations in 2000 actu- ally destroyed shareholder value! 2 Munt, D. and Menard, M., Capital Project Prioritisation and Portfolio Optimisation (Gen Sight, 2002), available at www.gensight.com. 198 PA R T T H R E E · D E A L I N G W I T H M A N Y P R O J E C T S