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?
