In projects, decision-making is extremely important - lack of efficient decision-making usually causes the project to stall. Today we will examine these processes.
Decision-Making Connects 3 Aspects of the Concept
- Division into phases (e.g., setting “milestones,” approving plans, decisions to proceed to the next phase, acceptance of product/sub-product)
- Control process (e.g., preparation stage – how will we approach the work? Will we first perform activity A or B?)
- Project control aspects (e.g., quality decisions – based on test results, should we order corrective actions? What will we do if delivered materials don’t meet requirements?)
Decision Hierarchy
- Decisions are made at different levels
- It must be established who has the right to make decisions at a specific level – who has the right to make decisions at the project, phase, or activity level
- Higher-level decisions set boundaries but must also leave some room for flexibility
- Higher-level decisions are made rarely, and the lower the level, the more frequent the decisions but of lesser importance
- An important aspect in decision-making is delegating responsibility and authority
Basis of Decision-Making Processes (Input Data):
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Information
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Formal (letters, documents, notes, plans, etc.)
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Informal (conversations, discussions, etc.)
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Experience
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Own
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Team members’
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Advisors, specialists, etc.
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Intuition – often underestimated, but important.
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The unwritten rule applies: “If there isn’t at least one person on the team who trusts your intuition, don’t take on project management.”
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Additionally, you need to establish:
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Are there already any decision-making procedures in place?
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Who provides the information preceding the decision?
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When should the decision be issued?
Decisions Made by Others
- Imposed (top-down) decisions – even if you disagree with them, support them before the team and implement their content. The exception is situations involving violation of the law or your value system – then decide, and if the matter is really important to you, inform your supervisor and expect the possibility of leaving the project.
- Group decisions – group decision-making is often time-consuming and costly, but has a strong motivational value and often a quality one as well.
- Decisions of other members of your team – if they are within their competencies and are not clearly wrong, support them.
Author: EITT Expert
Read Also
- AgilePM Foundation: Discovering Agile Project Management in Practice
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- AgilePM® - A Guide to Agile Project Management
Develop Your Skills
This article is related to the training Project Portfolio Management. Check the program and sign up to develop your skills with EITT experts.
Read also
- The Role of Business Simulations in Improving Decision-Making Skills - A Practical Guide for Companies
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- PRINCE2: When and How to Apply This Project Management Methodology?
Frequently Asked Questions
Why is decision-making speed so critical in project management?
Delays in decision-making typically cause the entire project to stall, creating a cascade of blocked tasks and missed deadlines. Efficient decision processes keep the project moving forward, maintain team momentum, and prevent small issues from escalating into major problems that threaten the project timeline.
How should a project manager handle decisions they disagree with from upper management?
The recommended approach is to support and implement the decision in front of the team, even if you personally disagree. The only exceptions are situations that involve legal violations or conflict with your core value system, in which case you should escalate your concerns to your supervisor and be prepared for the possibility of leaving the project.
When is group decision-making worth the extra time and cost?
Group decision-making is most valuable when the decision requires buy-in from multiple stakeholders or when diverse perspectives can significantly improve the quality of the outcome. While it is more time-consuming and costly, it carries strong motivational value and often produces higher-quality decisions than those made by a single individual.
What role does intuition play in project management decisions?
Intuition is an often-underestimated but important input for decision-making, especially in situations where data is incomplete or time is limited. Experienced project managers develop reliable instincts through accumulated knowledge, and teams that trust their manager’s intuition tend to respond more effectively to unforeseen challenges.