Research in applying the financial appraisal profile model to an information communication technology project within a professional association

Purpose – The purpose of this paper is to report on research in applying the financial appraisal profile (FAP) model to an information communication technology project within a professional association and to evaluate the model's effectiveness and acceptability. Design/methodology/approach – The FAP model incorporates both rationalistic and hermeneutic paradigms. An action research/single case study approach has been use to “evaluate” the model in a real life situation. Findings – It is shown that the model addresses many of the issues it set out to address and is perceived by both senior and corporate management as an effective tool in the evaluation of capital assets such as information technology (IT) projects. Important issues regarding, what has been termed, “groupthink” and the influence of a “project champion” on the evaluation of capital projects are also highlighted. The inclusion of what has been termed “the IT score” further enhances the models applicability to IT projects. Research limitations/implications – Although the practical application of the model provides credible evidence for its pragmatic support, this is limited by the fact that it is based on a single case study. Practical implications – It is hoped that practitioners will find the FAP model more pragmatic than their existing capital investment appraisal methods/procedures and that it will result in improved decision making. Originality/value – The FAP model is a new concept and this is the first study in applying this model to an actual real life capital project. It also shows how a Delphi approach can be used in a practical setting.