Chapter 2

On an Agile or adaptive project, the goal is often to produce a: - Minimum Viable Product (MVP) - Cost-benefit Analysis - Subproject - Business Case

Minimum Viable Product (MVP)

Many writers have stated that for strategic objectives to be effective, they should be: - unachievable—to inspire maximum performance. - measurable—to track progress. - broad—to cover many dimensions of the business. - resource based—to focus on the inputs.

measurable—to track progress.

Projects may be undertaken as a result of any of the following strategic reasons except: - environmental considerations - market demand term-0 - need to keep workers busy during slow times - social need

need to keep workers busy during slow times

A collection of projects, programs, and operations managed as a group to achieve strategic objectives is called a: - portfolio - process - life cycle - subprogram

portfolio

Which of the following is a financial analysis tool that an organization may use to determine the cost-value of potential projects? - Net present value (NPV) - Payback period (PP) - Internal rate of return (IRR)) - All of the above

All of the above

All of the following statements concerning project portfolios are true EXCEPT: - the projects, programs, and sub-portfolios in a portfolio are managed as a group to achieve strategic business objectives. - each project in the portfolio should have a direct positive impact on the organization. - portfolios usually include a mix of some high-risk, high-reward projects and some low-risk projects. - portfolios cannot include operations.

portfolios cannot include operations.

A narrative description of products, services, or results to be delivered by the project is a/an: - elevator pitch - project statement of work - request for information - business case

project statement of work

A clear and inspirational vision statement will have all the following characteristics EXCEPT: - is often about multiyear goals. - provides a detailed roadmap for managing a project. - often requires extra effort to achieve. - is long-term desired change or direction.

provides a detailed roadmap for managing a project.

Once selected projects have been prioritized, it is time to assign resources to each. Resources could include all of the following EXCEPT: - quality metrics. - equipment. - funds. - subject matter experts.

quality metrics.

All of the following may be negotiated between a client company and a contractor EXCEPT: - personnel assignments. - the amount of money to be paid. - selection criteria for scoring models. - quality standards.

selection criteria for scoring models.

An organization's vision often includes reference to its social, environmental, and economic health, collectively referred to as the: - net present value (NPV) - triple bottom line - statement of work (SOW) - business case

triple bottom lin

All of the following statements are true except: - A program manager has the discretion to make trade-offs regarding which projects to pursue. - Projects have a finite timeline, while programs may exist as long as the parent organization does. - A portfolio may contain multiple programs and projects. - A project manager has the discretion to make trade-offs regarding which programs to pursue.

A project manager has the discretion to make trade-offs regarding which programs to pursue.

This document summarizes why the project is important by describing the benefits of a selected component, and is used as a basis for authorizing further project management activities: - SWOT analysis - Business case - Program management plan - Guiding principle

Business case

All projects should be aligned with their organization's strategic plan, which includes the organization's vision, goals, and objectives. Which of these describes an organization's vision? - Conveys a larger sense of organizational purpose and is both inspiring and guiding - Describes short- and long-term results along with measures to determine if they have been achieved - Includes the organization's core purpose, core values, beliefs, culture, primary business, and primary customers - Is SMART: specific, measurable, achievable, results-based, and time-specific

Conveys a larger sense of organizational purpose and is both inspiring and guiding

Which of the following statements concerning strategic analysis is TRUE? - External analysis focuses on the strengths and weaknesses of the organization. - External analysis focuses on the threats and opportunities facing the organization. - Internal analysis focuses on the threats and opportunities facing the organization. - Strategic analysis focuses exclusively upon external analysis.

External analysis focuses on the threats and opportunities facing the organization.

Based on the information provided in Figure 2-1, which criterion is most important to the leadership team? - Supplier relations - Success probability - New products - Customer relations

New products

Which of the following statements correctly describes a weakness associated with the financial project selection model? - Payback period models do not consider the profit to be realized after the costs are paid. - The Internal Rate of Return (IRR) method is difficult to use when a project has conventional cash flows. - The benefit-to-cost models favor projects which generate the smallest absolute return over a specified period. - The Net Present Value (NPV) method does not consider the time value of money.

Payback period models do not consider the profit to be realized after the costs are paid.

Which of the following is NOT a typical source selection criterion that an organization would use to evaluate potential contractors? - Technical approach - Personalities - References - Life cycle cost

Personalities

This Agile term used in project selection and prioritization represents a wish-list of things that may be created by the project team. - Product backlog - Product vision - Epic - Product roadmap

Product backlog

Based on the information provided in Figure 2-1, which project has the highest probability of success? - Project B - Project C - Project A - Project D

Project B

Which of the following statements BEST describes the contemporary use of financial models and scoring models for project selection? - These approaches are often used together to ensure both financial and nonfinancial factors are considered when selecting projects. - Financial methods are preferred because they ensure alignment with the organization's strategic goals. - One of these techniques is typically used to the exclusion of the other, due to time demands. - Scoring models are unreliable because they fail to consider financial factors.

These approaches are often used together to ensure both financial and nonfinancial factors are considered when selecting projects.

When selecting projects, it is important to understand the following types of environments and their potential effects on the project: - social - all of the above - market - political

all of the above

The ____________________ best describe(s) why a project is being undertaken. - business case - source selection criteria - statement of work - subprojects

business case

All of the following factors should be assessed to determine an organization's ability to perform projects EXCEPT: - do we have clearly defined project management processes? - do we have teams with the right attitude to work together, use free and open communication, be creative, and be empowered to make decisions? - do teams and individuals follow instructions well? - do we monitor and understand our external environment?

do teams and individuals follow instructions well?

All of the following factors influence the opportunities and threats an organization must consider when performing a strategic analysis EXCEPT: - suppliers. - competitors. - employees. - regulatory agencies

employees

All of these are characteristics of programs EXCEPT: - high-level program plan. - significant benefits. - larger scope than projects. - high-level component plans.

high-level component plans.

Consider the information provided in Figure 2-1. Based on the results in the project selection and prioritization matrix, which project would you select if you were limited to selecting only one project? - Project C - Project B - Project A - Project D

Project B

Based on the information provided in Figure 2-1, which project is LEAST attractive based on new products? - Project B - Project A - Project C - Project D

Project D

Which of the following responses most accurately depicts the correct sequence of activities in the strategic planning process? - Guiding principles - strategic objectives - flow-down objectives - strategic analysis - Guiding principles - strategic analysis - strategic objectives - flow-down objectives - Strategic analysis - guiding principles - strategic objectives - flow-down objectives - Strategic objectives - strategic analysis - guiding principles - flow-down objectives

Strategic analysis - guiding principles - strategic objectives - flow-down objectives

All of the following criteria serve as a valid basis for identifying potential projects in most organizations EXCEPT: - environmental consideration. - social need. - technological advance. - internal politics.

internal politics.