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Project Management Warning Flag 2 – Breaking-up a Project to Avoid Approval Thresholds

Most organizations increase expenditure authority with each successively higher organizational level. Such budgetary constraints necessitate higher levels of approval for increasingly resource intensive projects; adding to the work required of lower level managers who need to ‘sell’ senior executives on their larger initiatives. Subsequently, circumvention of these often difficult to get authorizations may be sought.

One such circumvention method is to break-up a large project into several smaller, less resource-intensive initiatives. These less expensive projects can then be authorized by lower level managers, thus avoiding the time consuming ‘sales pitch’ needed for larger projects.



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