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Strategic Investment Decision Evaluation Models: Assessment of the adoption of complex composite decision models for the evaluation of high uncertainty business change projects.
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Invitation to participate You are invited to participate in a research project that aims to provide empirical evidence of the value of different strategic investment assessment techniques to support evaluators in building composite evaluation models to support investment decisions. Before you decide on whether to take part, it is important for you to understand why the research is being done and what it will involve. Please take time to read the following information carefully, discuss it with others if you wish, and decide whether or not you wish to take part.
I am a student of the Masters of Business Administration (MBA) program at the University of Leicester. I am undertaking this research for my dissertation to fulfill the requirements of the MBA degree. The project has been approved through the University of Leicester's Research Ethics approval process.
Research purpose The aim of this research is to provide empirical evidence of the value of different assessment techniques to support evaluators in building composite evaluation models to support investment decisions for strategic projects. Strategic projects are substantial investments that involve high level of risk, produce hard-to-quantify (or intangible) outcomes, and have a significant long term impact on corporate performance. Increased sophistication in strategic investment decision making is required, however limited research exists on the composition of decision models in the market and which of the techniques provides real market value.
Projects with a high level of uncertainty are defined as projects where it is difficult to determine real cost, benefit and/or risk of the project quantitatively.
I call on those involved in strategic investment evaluation and/or decision making to participate in this survey. Participant rights Participation in this research is entirely voluntary. If you decide to take part, you have the right to stop being a part of the research study at any time without explanation. You have the right to ask that any data you have supplied to that point be withdrawn/destroyed.
You have the right to omit or refuse to answer or respond to any question that is asked of you.
You have the right to have your questions about the procedures answered (unless answering these questions would interfere with the study’s outcome). If you have any questions as a result of reading this information sheet, you should ask the researcher before the study begins.
What type of information will be sought and why relevant The research survey is structured in order to understand the following information from the organization 1. Market Risk Orientation 2. Importance of strategic decision making 3. USe of decision support tools 4. Company and respondent demographic profile
Basic respondent demographic information is requested to understand the level of respondent involvement in the decision making process. Age is required to provide some level of understanding of the respondents experience and if correlation exist with age to exposure of modern evaluation techniques
The respondent will be required to complete a short survey (this should take no more than 20 minutes). The survey consists mainly of statements that require an assessment of importance on a Likert scale.
Should the respondent provide consent to further participate in a direct interview to explore correlations identified during the survey, the respondent may be contacted for a further 30 min web based interview at a suitable time to the respondent. Contact information provided for this purpose will not be used to identify or link the respondent with specific data provided in the study. Respondents may choose to stay anonymous.
There are no known disadvantages or risks to taking part. The information collected during the course of the research will be kept strictly confidential, no requirement exist to make any company or personal information available.
Research results The survey results will be analyzed using standard statistical methods to support the conclusion of my dissertation study. The resultant analysis will be made available to respondents on request. Please provide your contact details when requested.
Contact information Should you require any further information please do not hesitate to contact me Nerine Joubert [email protected]
Or my research mentor Dr Jane Keenan Dissertation Supervisor University of Leicester
Thank you for taking the time to read this information sheet. Please select the box below as proof that you have been provided with this information sheet and your consent to participate in this research project.
Should you chooose not to participate, please use the "Exit survey" button at the top of the page.
Regards,
Nerine Joubert 25 October 2013
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Do you agree or disagree with the following statements?
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Do you agree or disagree with the following statements?
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What level of importance has the following indicators have as indication of success in your organization over the last 5 years?
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Importance of strategic investment decisions and support tools |
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Do you agree or disagree with the following statements?
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Please indicated how you consider the following as benefits of strategic investments
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Please indicate which of the following have taken place in your organization in the last 5 years
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| Please indicate any other major strategic changes | | |
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Use of decision support tools |
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In the following section the questions differentiate between projects with high and low level of certaintay of outcome. High certainty - produce quantifyable outcomes e.g. investment in plant or equipment. Low level of certainty - produce hard-to-quantify (or intangible) outcomes e.g. Mergers, complex IS systems, client intelligence initiatives |
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Thinking about projects with a high level of certainty of the outcome - How frequently does your organization use the following techniques when evaluating strategic investment projects?
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Thinking about projects with a high level of uncertainty of the outcome - How frequently does your organization use the following techniques when evaluating strategic investment projects?
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Thinking about projects with high level of certainty of outcome- If your organization uses discount methods (NPV, IRR etc) to evaluate investment projects, please indicate the minimum discount rate after tax being used. |
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Thinking about projects with high level of uncertainty of the outcome- If your organization uses discount methods (NPV, IRR etc) to evaluate investment projects, please indicate the minimum discount rate after tax being used. |
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Thinking about projects with high level of certainty - If your organization uses payback period method to evaluate strategic investments, please indicate which period best reflects the required payback period. (Use the lower limit as the key i.e. 1 year will fit into the 1-2 year bracket) |
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Thinking about projects with high level of uncertainty - If your organization uses payback period method to evaluate strategic investments, please indicate which period best reflects the required payback period. (Use the lower limit as the key i.e. 1 year will fit into the 1-2 year bracket) |
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The following questions relate to all levels of certainty of strategic investment projects |
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How frequently does your organization use the following models to assess the economic life and replacement time
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Does your organization use models to assess the economic life and replacement time? |
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How frequently does your organization use the following models to assess the economic life and replacement time?
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Please indicate which period best reflects the time horizon used for evaluation of economic life. |
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How frequently does your organization use multi-criteria models
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Does your organization use multi-criteria models? |
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How frequently does your firm use multi-criteria models?
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Does your organization use any simultaneous decision making tools? |
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How frequently does your organization use any simultaneous decision making tools?
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Does your organization incorporate uncertainty (risk) in the assessment of investments? |
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How frequently does your organization use the following techniques to incorporate uncertainty (risk) into the assessment of investments?
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Does your organization assess a project as part of a portfolio of investment projects or as individual project? |
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How frequently does your organization use the following portfolio assessment techniques?
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Please indicate which of the following is considered by your organizations when assessing investments and indicate the level of importance.
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How frequently does your organization use the following techniques to guide the strategic investment decisions?
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Please drag and rank (1st to 6th) the following in order of importance, where 1st is most important: |
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| Please indicate your organization's industry. | | |
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Please indicate your main product types. |
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What is your organizations overall turnover (or budget for NPO)? |
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What would best describe your background? |
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What is your level within the organization? |
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How best would you describe your decision making level? |
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Please indicate your choice below
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Please provide your contact information if you have indicated that you are willing to participate in the interviews or to obtain feedback of the survey
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Thank you for your participation in this survey. The information provided will only be used for academic research and not be distributed. Should you require any further information please do not hesitate to contact me on [email protected]. Nerine Joubert |
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