PM Chapter 2 Learn Smart

The main goal of a "governance team" managing a project portfolio system is to ensure that ___. -non-financial criteria are prioritized in project selection -financial criteria are prioritized in project selection -projects are completed on time within scope -the priority process is free of power politics

the priority process is free of power politics

Doran (1981) created the SMART memory device to help write objectives. The T stands for ______________________ _____________________

time related

What are the two critical inputs that senior management must provide to an organization utilizing a project priority management system? -Amount of resources to commit to various categories of projects. -Guidance in what to include in the selection criteria. -Development of individual project plans.

Amount of resources to commit to various categories of projects & guidance in what to include in the selection criteria

What are two assumptions made in the integrations of projects with strategic plans? -A strategic plan needs to be created and documented -Existence of a strategic plan -A process for prioritizing projects by their contribution to the plan -An open and transparent selection process for all participants to review

Existence of a strategic plan & A process for prioritizing projects by their contribution to the plan

True or false: Strategic management positions the organization to meet the needs and requirements of its customers for the short term

False

True or false: Senior management uses weighted scoring models to build a project portfolio which maximizes short-term profitability.

False: The focus is on maximizing long-term return on investment

Which of the following best relate symptoms of an "implementation gap"? -People feel their work is always contributing -Frequent meetings to renegotiate resource allocations -Resources are generally available -Employees have a good understanding of what the priorities are

Frequent meetings to renegotiate resource allocation

What are the two critical needs of a company utilizing a strategic project portfolio system? -Getting input from senior management. -Establishing a common financial goal for all categories of projects (compliance, operation,and strategic.) -Involving a team of people rather than just an individual to make decisions. -Utilizing only financial selection criteria.

Getting input from senior management & Involving a team of people rather than just an individual to make decisions

The considerations for a proper mix of projects in a portfolio system should include all considerations except for: -Hurdle Rate -Type -Risk -Resource Demand

Hurdle Rate

When an organization restricts project proposals to specific levels or. groups within an organization, what can occur? -Value is added to the organization -Opportunities may be missed

Opportunities may be missed

The projects have high commercial potential and low technical feasibility. -Oysters -White Elephants -Pearls -Bread-and-Butter

Oysters

Which of the following is not used to calculate NPV? -Required rate of return -Payback Period -Net cash inflow for each period -Initial Investment

Payback Period

Traditional components of a mission statement includes all of the following EXCEPT for: -Major products/services -Target customers/markets -Geographical Domain -Profit goals and percentages

Profit goals and percentages

Implementation of projects without a strong priority system linked to strategy creates problems. Which of the following are some of those problems? -Resource conflicts and multitasking -Projects that take longer than expected -The implementation gap -Organization politics -Lower ROI on the individual projects

Resource conflicts and multitasking, The implementation gap, Organization politics

What are the two major dimensions of strategic management? -Responding to changes in the external market -Communicating objectives throughout an organization -Allocating scarce resources of the firm -Assessing the purpose of an an organization

Responding to changes in the external market & Allocating scarce resources of the firm

The assessment of the external and internal environments is known as the ______________ analysis

SWOT

Many organizations find they have three basic kinds of projects in their portfolio. Which of the following is not one of those three? -Compliance -Sacred Cows -Operational -Strategic

Sacred Cows

Which of the following is NOT a benefit of a project portfolio management system? -Improves communication and supports agreement on project goals. -Prioritizes project proposals across a common set of criteria, rather than on politics or emotion. -Links project selection to strategic metrics. -Justifies killing projects that do not support organization strategy -Allocates resources to projects that align with strategic direction. -Builds discipline into project selection process. -Balances risk across all projects. -Sacred cow projects are protected.

Sacred cow projects are protected

Select two significant benefits of using a multi-weighted scoring model to select projects -Selection criteria may be mapped to critical success factors in the strategic plan. -The model is a good predictor regardless of the criteria selected. -The weighting provides an objective measurement to allow ranking from best to worst

Selection criteria may be mapped to critical success factors in the strategic plan. & The weighting provides an objective measurement to allow ranking from best to worst

____________________ management should be responsible for prioritizing projects

Senior

Why might organizations include multiple non-financial criteria in a screening model for projects? -To ensure the selection model incorporates only tangible criteria. -To avoid focusing only on profitable projects, which can lead to overextension. -To avoid focusing only on profitable projects, which can lead to overextension.

To avoid focusing only on profitable projects, which can lead to overextension.

What are two types of risks associated with a strategic project portfolio? -Classification risk -White elephant risk -Total risk of all the projects -Specific project risks

Total risk of all the projects & Specific project risks

True or False: Multitasking adds to delays and costs

True

True or false: How a project manager responds to project delays should be based on the impact on strategic concerns.

True

________________ scoring models generally include qualitative and/or quantitative criteria.

Weighted

Typically, a project sponsor is someone in the organization who may be ____ -actively engaged in managing the project. -a high-ranking manager who lends political support for project completion -a project team member providing support during project completion.

a high-ranking manager who lends political support for project completion

The _____________ approach basically uses a list of questions to review potential projects and to determine their acceptance or rejection.

checklist

The _______________ approach basically uses a list of questions to review potential projects and to determine their acceptance or rejection.

checklist

Selection criteria for projects are typically classified as ________________ and ___________

financial and non-financial

The most important criterion for project selection is ____. -fit with the organizations strategy -financial return of the project -fit with corporate culture

fit with the organizations strategy

All managers realize that without _______________, success is impossible

implementation

If the preliminary proposal is approved, then a project manager and staff are assigned to develop a more comprehensive ____________________ plan

implementation

_________ answers the question of how strategies will be realized, given available resources.

implementation

Financial return, while important, does not always reflect _________ importance

strategic

Which of the following is NOT important in establishing a proper objective? -be as specific as possible while targeting the objective -ensure that the results are measurable -make the objective assignable to one person for completion -establish realistic goals given the resources available -establish a time frame for the completion of the objective -make sure there is a project payback

make sure there is a project payback

Organizational ______________ drive projects

objectives

In strategic management, allocation of resources depends on ____. -return on investment -management preference -organizational culture

organizational culture

Managing the ________ takes the selection system one step higher in that the merits of a particular project are assessed within the context of existing projects.

portfolio

Managing the ________________ takes the selection system one step higher in that the merits of a particular projects are assessed within the context of existing projects

portfolio

A ______ driven project portfolio system can reduce or eliminate the impact of problems in project implementation. -priority -financially -consensus

priority

Enforcing the project __________ system is critical

priority

The main purpose of ____________ _____________ is to assess performance and determine what, if any, adjustments should be made

progress review

All of the following are true of the process for rank ordering strategic project proposals EXCEPT... -financial and non-financial criteria may both be part of the same weighting model. -projects categorized as "wants" get first priority. -weighted totals become the key index value for rank ordering. -projects may be initially segregated by "wants" versus "needs."

projects categorized as "wants" get first priority.

If the person believes his idea is worthwhile, then a project ________________ is submitted conforming to the selection guidelines of the firm

proposal

Task completion requires ___________

resources

Why is alignment between the strategic plan and projects critical for an organization? -to comply with the dictates from top and middle management -to ensure a transparent process for project selection -to avoid poor utilization for the organizations resources

to avoid poor utilization for the organizations resources

Payback period is typically measured in _______________

years