Definition Accuracy vs Early Approval
Stage capital authorization gates to project maturity milestones, disclosing uncertainty ranges as required under IFRS recognition and measurement principles.
CyberTRIZ analysis · GreenFieldIndustrialProjects contradiction GFP035 · one of 8,235 worked contradictions published by CyberTRIZ.AI
Regulations
Business Context
Investment decisions benefit from mature engineering, reliable quantities, supplier information, site data, and well-developed schedules. Waiting for high definition accuracy, however, can delay authorization until strategic opportunities, supplier capacity, incentives, or market windows have changed.
Green Field Industrial Projects TRIZ Resolution
Match approval depth to the reversibility of the commitment. Authorize progressive development and selected early commitments using explicit uncertainty ranges while reserving full capital authorization for the point at which critical project definition reaches appropriate maturity.
Applicable TRIZ Principles
Principle 1 – Segmentation divides authorization into stages corresponding to project maturity.
Principle 10 – Prior Action advances critical information and commitments before full approval.
Principle 16 – Partial or Excessive Actions authorizes limited investment when complete commitment is not yet justified.
Expected Outcome
Earlier strategic action
Higher approval quality
Better visibility of uncertainty
Reduced premature capital commitment
Decision Indicators
Projects wait for near-detailed-engineering accuracy before strategic approval.
Full investment authorization occurs despite major unresolved assumptions.
Early estimates are presented with unrealistic precision.
Critical opportunities disappear while definition improves.
Management lacks intermediate authorization mechanisms.
Monitoring these indicators helps align investment authority with the actual maturity and reversibility of project decisions.