PM: Module 2 Quiz

projects of strategic importance to the firm

1 nonfinancial criteria

payback NPV

2 financial criteria models

external internal

2 major dimensions of strategic management: - responds to changes in the _____ environment and allocates the firm's scarce resources to improve its competitive position - _____ responses to new action programs aimed at enhancing the competitive position of the firm

checklist models multi-weighted scoring models

2 multi-criteria selection models

decisions / adjustments project advocates

2 reasons project managers need to understand their organization's mission and strategy: - so they can make appropriate _____ and _____ - so they can be effective _____ _____

1. function organization 2. dedicated project teams 3. matrix structure a. weak b. balanced c. strong

3 different project management structures

implementation gap organizational politics resource conflicts and multitasking

3 problems with not having a strong priority system linked to organizational strategy

financial criteria nonfinancial criteria two multi-criteria selection models

3 project selection criterias:

compliance projects operational projects strategic projects

3 types of project classifications

bread-and-butter pearls oysters white elephants

4 types of projects

c) higher positive NPVs

NPV desires... a) higher negative NPVs b) lower negative NPVs c) lower positive NPVs c) higher positive NPVs

specific measurable assignable realistic time-related

SMART stands for...

(external) Opportunities and Threats (internal) Strengths and Weaknesses

SWOT stands for...

formulating strategy

_____ _____ answers the question of "what needs to be done to teach objectives"

functional organization functional

_____ _____ is commonly used when one _____ area plays a dominant role in completing the project or has a dominant interest in the success of the project

objectives

_____ answer in detail "where a firm is headed" and "when it is going to get there"

implementation

_____ answers the question of "how strategies will be realized" given available resources

project management office

_____ helps matrix systems mature into more effective project delivery platforms

mission

_____ identifies "what we want to become"

matrix

_____ is a hybrid organizational form in which horizontal project management structure is overlaid on the normal functional organization hierarchy

river boat

a "riverboat trip" is a metaphor describing the relationship between organizational culture and project management. culture is the _____ and the project is the _____

multi-project / environment project interdependency

a _____ _____ creates the problems of _____ _____ and the need to share resources

dual

a matrix structure provides _____ focus between functional/technical expertise and project requirements

net present value (npv)

a minimum rate of return (discount rate) computed from the present value of all net cash inflows

projectitis

a negative dimension to dedicated project teams - a we-they attitude can emerge between project team members and the rest of the organization

dedicated project team

all needed resources are assigned full time

financial multiple criteria

applying a selection model: - decide whether project fits with organizational strategy - _____ models used most in past - last two decades shifted to _____ models

project management office (pmo)

centralized unit that oversees projects

strategic management

continuous, iterative process aimed at developing an integrated and coordinated long-term plan of action - requires strong links among mission, goals, objectives, strategy, and implementation

larger difficult decrease

examples of strategic objectives: - capture (smaller/larger) market share - make it (easy/difficult) for competitors to enter market - develop enabler product (increase sales in more profitable products) - develop core technology - (increase/decrease) dependency on unreliable suppliers - prevent governmental intervention and regulation

dedicated project team

full time manager is designated to pull together a core group of specialists who work full time on the project

weak matrix

functional managers have primary control of projects and project manager coordinates project work

normal

functional organization... coordination is maintained through _____ management channels

open / free progress external

governance team responsibilities when managing portfolio system: - publish priority of every project - ensure election process is _____ and _____ of power politics - evaluate _____ of current projects - scan the _____ environment to see if organization focus and/or criteria need to be changed

project portfolio

group of projects selected for implementation, balanced by type, risk, and ranking by selected criteria

c) command and control center

has direct authority over the project a) resource pool b) weather station c) command and control center d) control tower

priority system

implementing projects, without having a strong _____ _____ linked to organizational strategy, creates problems

d) control tower

improves project execution a) resource pool b) weather station c) command and control center d) control tower

weak

in _____ matrix system, functional managers are responsible for managing their segment of the project

projectized

in a _____ organization, where projects are the dominant form of business, the entire organization is designed to support project teams

matrix

in a _____ structure, individuals work on multiple projects as well as being capable of performing normal functional duties

matrix

in a _____, there are usually 2 chains of command - one along functional lines and another along project lines

functional managers

in a balanced matrix, the _____ are concerned with how it will be accomplished

personnel

in a balanced matrix, the functional managers are responsible for assigning _____ and executing their segment of the project according to the standards and schedules set by the project manager

integrates schedules progress

in a balanced matrix, the project manager establishes the overall plan for completing the project, _____ the contribution of the different disciplines, sets _____, and monitors _____

project manager

in a balanced matrix, who is responsible for defining what needs to be accomplished?

top management appropriate company areas

in a functional organization... who decides to implement the project? where are different segments of the project distributed to?

d) both

in a matrix arrangement, who do project participants report to? a) functional managers b) project managers c) neither d) both

functional managers

in a strong matrix, _____ serve as subcontractors for the project

functional managers

in a strong matrix, the _____ have title over their people and are consulted on a need basis

staff assistant

in a weak matrix, the project manager acts as a _____ _____ who draws the schedules and checklists, collects information on the status of the work, and facilitates project completion

a) oysters

involve technological breakthroughs with tremendous commercial potential a) oysters b) pearls c) bread-and-butter d) white elephants

implementation gap

lack of understanding and consensus of organizational strategy by top and middle-level managers

integration authority

matrix structure attempts to achieve greater _____ by creating and legitimizing the _____ of a project manager

payback

measures the time it takes to recover the project investment

projectized organization

multi project organization where project managers have full authority to assign priorities and direct the work of the project

dedicated project team

operate as units separate from the rest of the parent company

strategic management

organization process that decides "who we are," "what we intend to be," and "how we are going to get there"

identity legitimize standards of behavior social order

organizational culture performs several important functions in organizations: - provides a sense of _____ for its members - helps _____ the management system - clarifies and reinforces _____ _____ _____ - helps create _____ _____

shorter

pay back desires (shorter/longer) paybacks

payback period (yrs) = estimated project cost / annual savings

payback formula

time value of money investment profitability

payback limitations: - ignores the _____ _____ _____ _____ - assumes cash inflows for only then _____ period - doesn't consider _____

priority system

picking projects by linking them to organization strategy

matrix

priorities for work shared between project and functional managers

senior management stakeholders project team

project advocates must be able to: - show _____ _____ how their project contributes to the firm's mission to have their support - explain to _____ why project objectives and priorities are critical to secure buy-in on trade off decisions - explain why the project is important to motivate and empower the _____ _____

balanced matrix

project and functional managers share equal authority

- size of project - strategic importance - novelty and need for innovation - need for integration (# of departments involved) - environmental complexity (# external interfaces) - budget and time constraints - stability of resource requirements

project considerations (7)

sacred cow

project favored by a powerful, high-ranking manager, who champions it

organizational politics

project management emphasis requires time and strong leadership

autonomy structure

project management level of _____ and _____ depends on: - size of project - strategic importance - novelty and need for innovation - need for integration (# of departments involved) - environmental complexity (# external interfaces) - budget and time constraints - stability of resource requirements

strong matrix

project manager has primary control of projects and functional managers support projects

culture / subculture clients organizations

project managers interact with... - the _____ of their parent organization as well as the _____ of various departments - the projects _____ or customer organizations - other _____ connected to the project such as suppliers and vendors, subcontractors, consulting firms, government and regulatory agencies, and community groups

facts sound reasoning persuasiveness power

project selection may be based not so much on _____ and _____ _____ as on the _____ and _____ of people advocating for projects

c) bread-and-butter

projects involve evolutionary improvements to current products and services a) oysters b) pearls c) bread-and-butter d) white elephants

a) resource pool

provides the organization with a cadre of trained project managers and professionals a) resource pool b) weather station c) command and control center d) control tower

structured feasibility / portfolio criteria / portfolio senior management

ranking proposal and selection of projects: - requires a (unstructured/structured) process - evaluates each proposal in terms of _____, potential contribution to strategic objectives, and fit within a _____ of current projects - reject or accept projects based on _____ and _____ - prioritizing projects by _____ _____

b) pearls

represent revolutionary commercial advances using proven technology a) oysters b) pearls c) bread-and-butter d) white elephants

phase gate model

review and evaluation process (go, kill, recycle) project phases must pass through to determine whether to continue

criteria resources

senior management input in managing portfolio system: - provides guidance in establishing _____ that strongly align with current organizational strategies - annually decides how to balance the available organizational _____ (people and capital) among different types of projects

review / define analyze / formulate objectives implement

sequence of activities (4) of the strategic management process: 1. _____ and _____ the organizational mission 2. _____ and _____ (longer term) strategies 3. set _____ to achieve strategies 4. _____ strategies through projects

d) white elephants

showed promise at one time but are no longer viable a) oysters b) pearls c) bread-and-butter d) white elephants

organizational culture

system of shared norms, beliefs, values, and assumptions

projectitis

team members strongly attached to project, disconnect from larger organization

priority team

team that evaluates projects by their relative contribution/value according to selected criteria

matrix

the _____ structure is designed to utilize resources optimally

organization politics

the process and behavior in human interactions to acquire and use power and authority to obtain outcomes where there is disagreement over choices

dedicated project team

the project manager recruits necessary personnel from both within and outside the parent company

matrix

these are advantages of which project management structure? - efficient - strong project focus - easier post-project transition - flexible

functional organization

these are advantages of which project management structure? - no change - flexibility - in-depth expertise - easy post-project transition

dedicated project team

these are advantages of which project management structure? - simple - fast - cohesive - cross-functional integration

matrix

these are disadvantages of which project management structure? - dysfunctional conflict - infighting - stressful - slow

functional organization

these are disadvantages of which project management structure? - lack of project focus - poor integration - slow - lack of project ownership

dedicated project team

these are disadvantages of which project management structure? -expensive - internal strife - limited technological expertise - difficult post-project transition

physical read interact stories

to identify cultural characteristics of an organization: - study the _____ characteristics - _____ about it - observe how people _____ within it - interpret _____ surrounding it

a) operational projects

to support current operations a) operational projects b) compliance projects c) strategic projects

c) strategic projects

to support organization's long-term mission a) operational projects b) compliance projects c) strategic projects

b) weather station

tracks and monitors project performance a) resource pool b) weather station c) command and control center d) control tower

project sponsor

typically a high-ranking manager who champions and supports a project

b) compliance projects

typically to meet regulatory requirements a) operational projects b) compliance projects c) strategic projects

checklist model

use a list of questions to review potential projects and to determine their acceptance or rejection - allows greater flexibility - easy across divisions and locations - fails to answer relative importance or value of potential project to organization - doesn't allow for comparison

multi-weighted scoring model

use several weighted selection criteria to evaluate project proposals - include qualitative and/or quantitative criteria - allow for comparison

decrease selected / contributes / compares

weighted scoring criteria is the best because... - (increase/decrease) number of wasteful projects using resources - identify project goals that can be communicated using selection criteria as corroboration - help managers understand how their project was _____, how their project _____ to goals, and how it _____ with other projects

weather station control tower resource pool command and control center

what are the 4 kinds of PMOs

projectized

what project management structure should be used if over 75% of core work involves projects?

matrix or dedicated team and outsource

what project management structure should be used if resources need to be shared?

functional and create project management teams as needed

what project management structure should be used if there are only a few projects?

matrix

what project management structure should be used if theres an even mix of products and projects?

organizational culture

what reflects the "personality" of the organization

weighted scoring criteria

which criteria is the best alternative

weak

which matrix is similar to a functional approach with the exception that there is a formally designated project manager responsible for coordinating project activities

project manager

who controls most aspects of the project in a strong matrix, including scope trade-offs and assignment of functional personnel?

project manager

who has the final say on major project decisions in a strong matrix?