The purpose of project evaluation is to measure the “success” of a project. Accordingly, projects are evaluated on the basis of the indicators of success or failure such as profitability, competency, efficiency and future prospect.
The success of a project has been defined by different researchers through some models. One of such models was proposed by Shenhar et al. in 1997.
The following are the four dimensions of the project evaluation.
- Project Efficiency
- Impact on customer
- Business success
- Preparing for the future
These four dimensions of project success explain the purpose of project evaluation.
Project efficiency
It helps the project manager to know the actual performance of a project. Evaluation of project efficiency helps in comparing the actual schedule and budget of a project with its planned schedule and budget.
In addition, it is conducted to know the performance and efficiency of the team members and their commitment towards the goals and objectives of the project.
Impact on customer
It is the extent to which the project is able to fulfill the needs and demands of the customers. Project evaluation helps in measuring the degree of customer satisfaction from a product.
If the customers are satisfied with the product, they prefer the same product again in the future. Hence, factors such as loyalty and repurchase are considered in this dimension.
Business success
It helps the project manager in determining the competitive advantage of a project in terms of commercial success and market share.
Preparing for the future
It helps the project manager to determine the future potential of a project. It is however, a difficult task to determine the future potential of a project as the future is unclear and full of uncertainties. The main factors that are considered in this dimension are related to the opening of a new market, developing new products and services, developing new technologies and skill sets.
Another model used to measure project success was given by Roger Atkinson in the year 1999. According to this model, success of a project is divided into two stages, ‘the delivery stage’ and ‘the post-delivery stage’. The post-delivery stage is further sub-divided into two sub-stages, ‘getting it right’ and ‘getting them right’.
The stages of Atkinson’s model of project success are explained as follows:
- The delivery stage (doing it right)
- The post-delivery stage (getting it right)
- The post-delivery stage (getting them right)
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