Project Management Chapter 1-7 Discussion Questions

Answer: I agree that politics and project management should not mix. On page 32-33 it talks about how businesses formulate strategies to know what needs to be done to reach objectives and that objectives translate the organization strategy into specific, concrete, measurable terms. These strategies to reach objectives are implemented through projects. All of this information leads me to the conclusion that the projects implemented should be what is best for the business not what a specific individual wants even if it is the CEO's "pet idea" like it mentions on page 35.

"Politics and project management should not mix." Agree or disagree and support your position.

The three basic kinds of projects in a project portfolio: Compliance, operational, and strategic projects. Compliance projects are typically those needed to meet regulatory conditions required to operate in a region. Also known as the emergency projects and things that must get done. An example would be an auto parts factory that got destroyed by a tsunami would be considered a must do project. Operational projects are those that are needed to support current operations. They're designed to improve efficiency of delivery systems, reduce product costs, and improve performance. An example would be total quality management projects. Strategic projects are those that directly support the organizations long-run mission. They're frequently directed toward increasing revenue or market share. A few examples would be new products, researched, and development

- Identify and briefly discuss the three classes of projects usually found in an organization's project portfolio.

A project is defined as, "... a temporary endeavor undertaken to create a unique produce, service, or result..." in the book. (pg. 6). The five characteristics which help differentiate projects from other functions carried out in the daily operations of the organization are: An established objective A defined life span with a beginning and an end The involvement of several departments and professionals Doing something that had never been done before Specific time, cost, and performance requirements These characteristics were stated on page 7 of the textbook.

Define a project. What are five characteristics which help differentiate projects from other functions carried out in the daily operations of the organization?

White elephant- A burdensome possession which is not easily disposed of and whose cost (particulary upkeep) is out of proportion with its usefulness. An example could be someone winning an expensive car or house. You wont have a car/house payment but your insurance payments will be high and so will the utilities so keeping up with it could be difficult.

Define a white elephant in project management. Give a real life example.

According to the book, scope creep "is the tendency for the project scope to expand over time". (p.106) This can reduced/prevented by writing down the scope statement. If there are changes in requirements, specifications, or priorities, a scope creep can be caused. Scope creep is good whenever a the outcome of the scope creep is customer satisfaction. Customer satisfaction means recommendations, and more job opportunities with said customer. Scope creep is bad whenever it causes cost overruns and delays

Define scope creep. When is it good? When is it bad

Project managers must also work with people who have different views and concepts about a project. Their ideas of what is important may be different from everyone else's because of their experience and training . The project manager has to differentiate about what is the right thing to do for the project to succeed.

Describe what it means that a project manager must work with a diverse group of characters?

Not only is project management critical to most careers, the skill set is transferable across most business and professions." In my opinion, project management teaches someone how to lead and manage all project work no matter what the career. On page four the book says that "Most of the people who excel at managing projects never have the title of project manager." A person with project management skills knows how to effectively define, plan, execute and close any new creative idea. For example a teacher must teach students how to learn, but must create ways for all students to learn and not just a majority of them. Being able to take on new tasks and manage them effectively is what most employers look for in an employee. This gives an employer the reassurance that their employee can take on anything that is asked of them and efficiently complete the task.

Even if you never aspire to be a "project manager," why is it important to know how to manage projects effectively? Explain your answer and use an example to support your answer.

Budget reserves are reserve setups to cover identified risks tht may occur and influence baseline tasks or costs. These reserves are typically controlled by the project manager and the project team. The Management Reserve is a percentage of the total project budget reserved for contingencies. The fund exists to cover unforeseen, new problems- not unnecessary overruns. The reserve is designed to reduce the risk of project delays. Management reserves are typically controlled by the project owner or project manager.

Explain the difference between Budget reserves and Management reserves.

projects implement the strategies in the strategic management process. This means that projects are responsible for carrying out the plan that is agreed upon. Resource allocation is the first and foremost step towards implementation. The second step involves organizing and aligning the resources with the project itself. The third step is establishing a planning/control system, and the last step is adding motivation to the project.

Explain the role projects play in the strategic management process

Project networks are developed from the WBS (work breakdown structure). The project network is a visual flow diagram of the sequence, interrelationships, and dependencies of all the activities that must be accomplished to complete the project. An activity is an element in the project that consumes time. Work packages from the WBS are used to build the activities found in the project network. The activities are placed in a sequence that provides for orderly completion of the project.

How are WBS and project networks linked?

Projects are linked to the strategic plan because projects represent how a strategy will be implemented. The best way to maximize scarce resources is through a priority scheme which allocates resources to projects which balance risk and contribute the most to the strategic plan.

How are projects linked to the strategic plan?

Estimates can be refined for several reasons including interaction costs are hidden in estimates, normal condition do not apply, things going wrong on the project, change in project scope and plans, overly optimistic, or strategic misrepresentation. Projects that are refined due to strategic misrepresentation were most likely misrepresented in order to win approval. The project can be underestimated in cost and overestimated in project benefits. When the estimate is overly optimistic, it is overestimated how quickly the project can be completed or underestimated how long it will take to complete the project.

How can estimates be refined?

Weather Station: This type of PO tracks and monitors project performance. They provide independent forecasts and keep track of what projects are on track and which ones aren't. Control Tower: This type of PO helps to improve project execution. They help to identify best practices and standards for excellent project management. Resource Pool: This type of PO provides the organization with a small group of trained project managers and professionals. They work to continually improve the skills of a firm's project managers and they also serve to elevate the status of project management within an organization.

How can project management offices (POs) support effective project management?

he purpose of a project communication plan is to express what, who, how, and when information will be transmitted to project stakeholders so schedules, issues, and action items can be tracked. " (Page 119) Communication can make or break a project A communication plan is a key concept in mitigating project problems and can ensure that customers, team members, and other stakeholders have the information to do their jobs.

How does a communication plan benefit management of projects?

The project network is the tool used for planning, scheduling, and monitoring project progress. This network is developed from the information collected for the WBS and is a graphic flow chart of the project plan. The network depicts the project activities that must be completed, the logical sequences, the interdependencies of the activities to be completed and in most cases the times for the activities to start and finish along with the longest paths through the network.

How does the WBS differ from the project network?

The culture of an organization can influence project estimates depending on the importance the organization places on estimating. Influencing estimates can be explained by use of top-down verses bottom-up. Also, how organization politics is tolerated can influence estimates heavily.

How does the culture of an organization influence the quality of estimates?

The five characteristics of objectives are the specific, measurable, assignable, realistic, and time related. S.M.A.R.T On page 33, the textbook gives a brief description of each objective. Specific- you should always be specific in targeting your objective, Measurable- you should establish a measurable indicator(s) of progress. Assignable- Make the objective assignable to one person for completion. Realistic- State what can realistically be done with available resources. Time related- State when the objective can be achieved, that is, duration. Objectives lay the foundation and provide a structural basis to achieve a set goal. Objectives also pinpoint where they believe the organization should be going,

Identify and briefly describe the five characteristics of effective objectives.

1. Defining the Project Scope The project scope is the goal of the project. This step creates a game plan for the entire project. 2. Establishing Project Priorities This step aligns the parts of a project in order of importance. 3. Creating the Work Breakdown Structure A WBS is formed for the purpose of dividing large deliverables into smaller, more specific categories. A WBS is essentially a playbook for the project. 4. Integrating the WBS with the Organization This step links specific units within the organization to their specific task in the project. Because of this, everybody knows what they are supposed to do. 5. Coding the WBS for the Information System

Identify and briefly describe the five steps in defining a project.

1. Defining- Specifications of the project are defined. project objectives are established. major responsibilities are assigned. 2. Planning- level of effort increases. plans are developed to determine what the project entails. 3. Execution- Major portion of the work takes place here- both physical and mental. 4. Closure- Delivering the project product to the customer, redeploying project resources, and post-project review

Identify and briefly describe the four stages of the project life cycle

Compression of the Product Life Cycle. This is one of the most significant drivers of PM. Getting products and services out as quickly as possible is a competitive advantage that can greatly affect revenue. "A six month project delay can result in a 33% loss in product revenue share". Knowledge Explosion. New knowledge has increased the complexity of current products and services as compared to 30 plus years ago. Product complexity has increased the need for organizations to integrate divergent technologies. Triple Bottom Line (Planet, People, Profit). The global warming threat has brought sustainable business practices up front and center. A business can no longer focus solely on maximizing products. Now they have to consider the importance of the environment and society. (Reduce, Reuse, Recycle) Increased Customer Focus. The want of more customized products and services requires a closer relationship between the receiver and provider. PM is critical to the development of customized products and services and to sustaining lucrative relationships with customers. Small Projects Represent Big Problems. Small projects typically carry the same or more risk as large projects do. Small prjects add up, and result in an organization facing the most difficult PM problems. A process is needed to prioritize and develop a portfolio of small projects that supports the organization's mission. Corporate downsizing

Identify and briefly describe the six current drivers of project management.

1. Project objective - Answers the questions of what, when, how much, and at times, where. 3. Milestones - The milestone schedule is built using the deliverables as a platform to identify major segments of work and an end date. They should be easy for all project members to recognize. 4. Technical requirements - Clarifies either the deliverables or define the performance specifications. 5. Limits and exclusions - The boundary of the project is define by exclusions by stating what is not included. Reviews with customer- completion of the scope checklist ends with a review with your customer- internal/external

Identify and briefly describe the six elements on the recommended project scope checklist.

1) Planning Horizon- The quality of estimate 2) Project Complexity- implementation of new technology. 3) People- quality of people effect the quality of the project. 4) Project Structure and organization- Structure and orga.nization help guide the project. 5) Padding Estimates- Padding or over estimating the overcome. 6) Organization Culture- Help shape every dimension of project management.

Identify and briefly describe the six factors that should be considered to improve the quality of estimates for project times and costs?

Firs, senior management must provide guidance in establishing selection criteria that strongly align with the current organization strategies. Second, senior management must decide annually how they wish to balance organization resources (people and capital) among the different types of projects.

Management of a portfolio system requires two major inputs from senior management. What are they?

no amount of planning can overcome risk. Because risk is an uncertain event or condition, that if it occurs, can have a positive or negative impact on objectives in a project. However, some risks can be identified before a a project starts such as equipment malfunction or change in technical requirements. Risks can also be anticipated consequences such as schedule slippages or cost overruns. By using the risk management process, these risks can be managed and have positive consequences.

Project risks can/cannot be eliminated if the project is carefully planned.

Step 1: Risk Identification: Early on identifying all the potential risks that could possibly effect the project. This helps the project manager and team come up with a list of events that could occur, both technical and management risks. Step 2: Risk Assessment: This step helps identify which risks on the list are worth giving more attention too. Some risks can be ignored, others cannot. This is where the likelihood of the risk happening is determined, and what the impact of the risk will do to the project if it happens. Step 3: Risk Response Development: When a risk is identified and assessed, this step helps make a decision on which response should be made regarding the risk. Mitigating Risk would be reducing the chances of the risk happening. Avoiding risk would be changing the project accordingly to avoid the risk before the project is launched. Transferring risk would be paying someone else to take on the risk or transferring the risk to another party. Accept risk would be accepting the big risk that could happen, and developing a contingency plan when it does happen. Step 4: Risk Response Control: This step involves executing the risk response strategy, monitoring triggering events, initiating contingency plans, and watching for new risks.

The four steps in the risk management process are:

Project Management heavily consists of two main parts, each contributing immensely to the desired results but one or the other tends to be overlooked. The Sociocultural aspects relates to the Leadership,Problem solving, Teamwork, Negotiation, Politics and Customer Expectations. Contrary, the "other side of the coin" would be the Technical aspects such as Scope,WBS, Schedules,Resource allocation, Baseline budgets, Status reports.

The technical and sociocultural dimensions of project management are two sides to the same coin. Explain?

The key environment forces are management, projects, and the life cycle of a product. The effect that it has for the management of projects are the compression the product life-cycle and knowledge explosion.

What are some of the key environmental forces that have changed the way projects are managed? What has been the effect of these forces on the management of projects?

Top down estimates are usually performed by someone in management. They use estimates from comparing things to other things or opinions of different groups. Top down estimate are not as accurate because they don't know all the specifics of the project but they will give you an idea of what you can expect. Bottom Up estimates are mostly done by the ones doing the work. They breakdown the work structures and they will also estimate and establish lower costs and more efficient methods.

What are the differences between bottom-up and top-down estimating approaches? Under what conditions would you prefer one over the other?

Being able to keep everyone in the project up to date with all changes that occur is crucial. If one member of the project is left out of the loop and changes are made, it could put the entire project in jeopardy. If changes in costs are not recorded and posted regularly, the possibility of the project going over-budget becomes a threat. I totally agree with you when you said that keeping the change control process current is extremely important. Everyone, no matter how they are involved in a project, must be informed about project changes continuously, and a proper change control process will allow for that.

What are the likely outcomes if a change control process is not used? Why?

The major components of the strategic management process are review and define the organizational mission, analyze and formulate strategies, set objectives to achieve strategy, and implement strategies through projects. The review and define the organizational mission component identifies :what we want to become." It determines the product or service that is intended to be offered. The analyze and formulate strategies component formulates answers to the question of what needs to be done in order to achieve the objectives. The set objectives to achieve strategies component translates the organization strategy into specific, concrete, measurable terms. The implement strategies through projects component answers the question of how strategies will be realized, given available resources.

What are the major components of the strategic management process?

Direct costs (labor, materials, equipment, etc.) - Direct project overhead costs - General and administrative (G&A) overhead costs Direct costs can be influenced by the project manager, project team, and individuals implementing the work package.

What are the major types of cost? Which costs are controllable by the project manager?

COLLAPSE Overall Rating: 12345 12345 The dedicated approach towards projects is relatively straight forward. The workers are dedicated; they are full time specialist selected by the project manager to complete this task. Often the team is separate from the organization. The four advantages for the dedicated team approach are: Simple- the only resources pulled from the organization are the specialists. Fast- Because they are dedicated to a particular project, it is completed faster. Cohesive- The project focuses the team members on a common goal and responsibility. This in turn keeps them motivated and cohesive. Cross Functional Integration- Because specialists are pulled from several areas, they make sure that the project is beneficial to their department as well. There are also four disadvantages. Expensive- Not only is the organization funding specialists to work on a project, they have had to make a new management position. Internal Strife- Teams can become their own entity and have conflict with the organization. (i.e. Mac) Limited Technological Expertise- Team members are experts in their fields. The only tech knowledge comes from what they have. Being outside of the organization it is discouraged for them to consult with the technology experts still within the organization. Difficult Post-Project Transition- The organization often asks, "what do we do with the workers now that the project is finished?' The transition back into the organization can be difficult because of their prolonged absence.

What are the relative advantages and disadvantages of the dedicated team approaches to managing projects?

Advantages are no change, flexibility, and in-depth expertise, easy post-project transition. Disadvantages are lack of focus, poor integration, slow, and lack of ownership

What are the relative advantages and disadvantages of the functional team approaches to managing projects?

Advantages a. Efficient - Resources are shared on multiple projects as well as within functional divisions. Individuals can divide their energy across multiple projects on an as needed basis. This reduces duplication required in a projectized structure. b. Strong Project Focus - A stronger project focus is provided by having a formally designated project manager who is responsible for coordinating and integrating contributions to different units. This helps sustain a holistic approach to problem solving that is often missing in the function organization. c. Easier Post-Project Transition - Because the project organization is overlaid on the functional divisions, specialists maintain ties with their functional group, so they have a home port to return to once the project is completed. d. Flexible - Matrix arrangements provide for flexible utilization of resources and expertise within the firm. In some cases functional units may provide individuals who are managed by the project manager. In other cases the contributions are monitored by the functional manager. Disadvantages a. Dysfunctional Conflict - The matrix approach is predicated on tension between functional managers and project managers who bring critical expertise and perspectives to the project. Such tension is viewed as a necessary mechanism for achieving an appropriate balance between complex technical issues and unique project requirements.Worthy discussions can degenerate into heated arguments that engender animosity among the managers involved. b. In fighting - Any situation in which equipment, resources, and people are being shared across projects and functional activities lends itself to conflict and competition for scarce resources. Infighting can occur among project managers, who are primarily interested in what is best for their project. c. Stressful - Matrix management violates the management principle of unity of command. Project participants have at least two bosses - their functional head and one or more project managers. It is stressful listening to more than one boss telling you to do different things. d. Slow - Decision making can get bogged down as agreements have to be forged across multiple functional groups.

What are the relative advantages and disadvantages of the matrix team approaches to managing projects?

n weak matrix is very similar to a functional approach but it has a designated project manager who is responsible for coordinating the activities of the project. There are functional managers that are responsible for managing their segment in the project. The project manager has indirect authority to expedite and monitor the project but the functional managers call most of the shots. In a Strong Matrix, it is attempted to create the "fee" of a project team within th matrix enviroment. Project managers are over most aspects of the projects. The functional managers are similar to "Subcontractors", due to their control over specialized work.

What distinguishes a weak matrix from a strong matrix?

A "Trigger" is something that would happen and cause the implementation of the contingency plan. Examples of this would be if the system was freezing. The trigger would be something like it was still frozen after an hour. Once its been frozen for an hour the contingency plan would be implemented. This is important when planning because the company will know when to implement the plan

What is a "trigger" and why is it important when planning contingencies?

A Gantt chart is a form of a bar chart. It is described as a two dimensional representation of the project schedule which has activities and times across horizontally. The give clear overviews of project scheduling and is posted very clearly for offices to see. The advantages it has over project networks are being able to clearly see where you should be on track and help keep things moving smoothly and organized.

What is a Gantt chart and what advantages does it have over project networks?

in terms of project management, deliverable is the quantifiable goods or services that will be provided upon the completion of a project. An example could be that a deliverable in the early stage might be specification. A deliverable in the second stage might be three prototypes for production. A deliverable for the third stage might be a sufficient quantity to introduce to the market. A deliverable in the final stage could be marketing promotion and training

What is a deliverable in project management?

A responsibility matrix, sometimes called a linear responsibility chart, summarizes the tasks to be accomplished and who is responsible for what on a project. It lists all the project activities and the the participants that are responsible for each activity. Using this in project management would help keep everything organized and keep the project running smoothly.

What is a responsibility matrix and how would it be used in project management?

An organization breakdown structure is defined as a structure used to assign responsibility for work packages. It depicts how the firm has organized to discharge work properly. The purposes of the OBS are to summarize organization unit work performance, identify organization units responsible for work packages, and tie the organizational unit to cost control accounts. To plan a project, I would use it to break down responsibilities. For example, in a team you would need to have someone or a few people doing different tasks in order to get everything done in a timely manner, as well as having it stick to a budget and achieve high technical performance.

What is an organizational breakdown structure and what is its purpose?

work breakdown structure (WBS) is essentially a way of taking the scope of the project and breaking that down into defined work that can assigned and delegated efficiently (p. 108). The WBS is built in a hierarchical format that begins with the project and breaks down to major deliverables, supporting deliverables, and then down into the lowest manageable sub deliverables. At the lowest level, these sub deliverables can be accomplished by defining work projects (p. 111) that can then be quickly completed (generally within 10 days). Breaking down the entire project into a workable structure takes the daunting task of the scope of the project and allows it to be slowly chipped away in a manageable format. By doing this, project managers can pinpoint changes in scope, deliverable issues, cost issues, and many more potential project needs.

What is meant by a work breakdown structure and how does it help manage projects?

Project managers must define and understand the priorities of the project, complete communication between the project customer and upper management to establish importance. A technique that has proved to be useful is the Priority Matrix which identifies which criteria is constrained, enhanced and which can be accepted. Constrain- the project manager must meet the completion date, specifications and scope of the project or budget. Enhance- taking advantage of opportunities to either reduce costs or shorted the schedule. Accept- is it permissible for the schedule to slip? or to reduce the scope and performance of the project, or to go over budget? where is there some slack.

What is meant by managing the Trade-offs?

The difference between avoiding a risk and accepting a risk is that when avoiding a risk the project manager may change the project plan in order to eliminate the risk or condition. Even though it is almost impossible to eliminate all risk, it is possible to avoid certain risks before the project is even launched. On the other hand, when accepting risk the project owner assumes the risk because the chance of it occurring is very slim.

What is the difference between avoiding a risk and accepting a risk?

Mitigating a risk involves doing whatever is possible to make sure that the risk doesn't happen. This means reducing the likelihood that the even will occur and/or reducing the impact that the adverse event would have on the project (p. 216). Contingency planning involves creating a plan that would go into effect if the risk actually does happen (p. 219). This is a "backup" plan which is intended to reduct the negative impact that would occur with that risk

What is the difference between mitigating a risk and contingency planning?

Governance not only allows an organization to have an overview of all project management activities but it also gives them a big picture of how organizational resources are being used; an assessment of the risk their portfolio of projects represents; a rough metric for measuring the improvement of managing projects relative to others in the industry; and linkages of senior management with actual project execution management

What is the impact of governance to managing an individual project? Why is this approach important in today's government?

The implementation gap refers to the lack of understanding and consensus of organization strategy among top and middle-level managers. Organizations with an implementation gap can experience conflicts frequently occur among functional managers and cause lack of trust, frequent meetings are called to establish or renegotiate priorities, people shift from one project to another, people are working on multiple projects and feel inefficient, and resources are not adequate.

What is the implementation gap and how does it impact project management? How can it be prevented?

Work packages are short- duration tasks that have a definite start and stop point, consume resources, and represent cost. Each work package is a control point. The work package is a basic unit used for planning, scheduling, and controlling the project.

What kinds of information are included in a work package?

The project objective answers the questions of what, when, how much, and where. It gives a brief summary of the entire project. A good example would be to design and construct a new elementary school in 24 months at a cost not to exceed $ 25 million

What questions does a project objective answer? What would be an example of a good project objective?

An opportunity is an event that can have a positive impact on project objectives. The project management profession has identified four different types of response to an opportunity. (page223) Exploit - This tactic seeks to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens. Share - This strategy involves allocating some or all of the ownership of an opportunity to another party who is best able to capture that opportunity for the benefit of the project. Enhance - is the opposite of mitigation in that action is taken to increase the probability and the positive impact of an opportunity. Accept - Accepting an opportunity is being willing to take advantage of it if it occurs, but not taking action to pursue it.

When considering risk management, what is an opportunity? List and briefly describe 4 different responses to an opportunity.

To support good decisions -To schedule work to be done -To determine how long the project will take and the cost involved -To determine whether the project is worth doing -To develop cash flow needs -To determine how well the project is progressing

Why are accurate estimates critical to effective project management?

Lags are the minimum amount of work time a dependent activity must be delayed to begin or end. They can occur with long duration activities, and constrain the start and finish of an activity. In long duration activities the network designer normally breaks the activity into smaller pieces to try to avoid the delay of the successor activity. The most commonly used relationship extensions using lags are start-to-start and finish-to-finish. Lags are used so the company can avoid delays and reduce network details when activities of long duration delay the start to finish of success activities.

Why are lags used in developing project networks?

This chapter describes the priority system to be open and published because if it isn't open it can lead to 3 issues such as 1) Implementation Gap, 2) Organization Politics and 3) Resource conflicts and multitasking. Having an open priority system makes sure the projects are selected based on their contribution to the organization. Not having a strong priority system can lead to problems within the organization. The process does encourage bottom-up initiation of projects making it to allow organization members to evaluate projects fairly.

Why does the priority system described in this chapter require that it be open and published? Does the process encourage bottom-up initiation of projects?

The culture of an organization reflects the personality of the organization and can allow us to predict attitudes and behaviors of members within an organization. Culture also is one of the attributes that define aspects of an organization that distinguishes it from other organizations. There are 10 primary characteristics which capture the essence of an organizations culture: 1. Member identity 2. Team emphasis 3. Management focus 4. Unit integration 5. Control 6. Risk tolerance 7. Reward criteria 8. Conflict tolerance 9. Means versus end orientation 10. Open-system focus. Assessing an organization based on these 10 dimensions provides an overall picture of the organization's culture. This overall picture becomes the groundwork for shared understanding that the members have about the organization, how things are done, and appropriate behaviors for members of the organization. Culture provides a send of identity for its members, helps legitimize the management system, and clarifies and reinforces standards of behavior.

Why is it important to assess the culture of an organization before deciding what project management structure should be used to complete a project?

Slack is important to the project manager because it allows time an activity can be delayed and not affect the project. There is total slack and free slack. Total slack allows time an activity can be delayed and not delay the project. Free slack is the amount of time an activity can be delayed without delaying any immediately following , or successor, activity.

Why is slack important to the project manager? What is the difference between free slack and total slack?

Projects are important so that the organization's resources are conserved and used effectively. The selection criteria must ensure each project is prioritized and contributes to a company's strategic goals. Anything below that would be a waste of people, capital, and equipment. Making sure alignment is enforced requires systematic selection process that is open, consistent, and balanced. All of the projects that are selected become part of a project portfolio that balances the total risk for the company. Project managers and management of the project portfolio make certain that only the most valuable projects are approved and managed across the entire company

Why is the implementation of projects important to strategic planning and the project manager?

Think of this as a flow chart. The first box is a WBS, Branching off from it are several Activity boxes. Then those activities are broken into work packages. All of these boxes make up the project network. To better form the network nodes and arrows are use to orderly line up activities into a time line. The nodes depict activity and the arrows show dependency and project flow

Why not only create a project network, forgetting WBS?

By just using ROI, you can't really tell if the project would be a good fit for your company. It may tell you if the investment would work, but not tell you the specifics of what your company could do with the project. ROI also doesn't tell you the future effects of the project. ROI is an important consideration, but it is not the only one.

Why should an organization not rely only on ROI to select projects?