Chap 2: Organization Strategy and Project Selection

Question 1

What does RACI mean?

Answer 1

Responsibility, accountability. Consult, and inform

Question 2

Can you delegate responsibility to a certain task?

Answer 2

Yes

Question 3

Can accountability be transferred?

Answer 3

No

Question 4

How will the firm compete?

Answer 4

(1) What products to offer?
(2) which services to sell?
(3) In what geographic regions will the company market its product and services?
(4) Who is the customer that is served?

Question 5

Why is strategy important to PMs?

Answer 5

Respond to change but should align with the mission of the company

Question 6

What is the purpose of the RACI Chart?

Answer 6

Create a list of the major variables and who is responsible for those tasks

Question 7

Responding to change requires a skill called?

Answer 7

Environmental scanning

Question 8

It means understanding what’s going on in the marketplace around the company and what’s going on in the geographical region around it, and what are the external factors that can influence the success of a project?

Answer 8

Environmental scanning

Question 9

We want to align with the mission we can?

Answer 9

Allocate the scarce resources

Question 10

Every company has a limited number of people working for it and we only can do so many projects with so many dollars?

Answer 10

Allocate scarce resources

Question 11

Purpose of the organization?

Answer 11

Mission

Question 12

Targets within the mission?

Answer 12

Goals

Question 13

Formulate strategy?

Answer 13

Objectives

Question 14

What are the three missions aligned with projects?

Answer 14

Mission, goals, and objectives

Question 15

What are the four activities in Managements?

Answer 15

(1) Define the organizational structure
(2) Analyze and formulate the strategy
(3) Set objectives to achieve strategy
(4) implement strategy through projects

Question 16

In setting up a strategy, we must do it in a SMART way, what is a smart goal?

Answer 16

Specific, Measurable, Achievable, Realistic, and Time bound

Question 17

Why use project prioritization?

Answer 17

Implementation gap, organizational politics, & multitasking (inefficient use of resources)

Question 18

This is the lack of consensus between functional managers and senior executives?

Answer 18

The implementation Gap

Question 19

It is not a rational selection methodology?

Answer 19

Organizational politics

Question 20

It is the power and persuasiveness over what’s best for the business?

Answer 20

Organizational politics

Question 21

One person -> one task, is it considered as a myth?

Answer 21

Multitasking (inefficient use of resources)

Question 22

What are the Benefits of Portfolio Management?

Answer 22

• Builds discipline in the selection process
• Links projects to strategic merits
• Evaluate proposals using common criteria
• Allocate resources to strategically aligned projects
• Balance risk among all projects
• Justifies killing projects that do not support strategy
• Improves communication
• Supports agreement on project goals

Question 23

What are the five steps in portfolio management?

Answer 23

(1) Classify the projects
(2) Determine selection criteria
(3) Identify sources for proposals
(4) Evaluate Project Proposals
(5) Manage the project portfolio

Question 24

What are the three Types of Projects?

Answer 24

Compliance, Strategic, and Operational

Question 25

This type of project under compliance is of a?

Answer 25

“Must do”, Regulatory (legislation), Emergency (disaster recovery)

Question 26

This type of project under Strategic is a?

Answer 26

Increase revenue and market share, Research and Development (R&D), New products/new services

Question 27

This type of project under Operational is a?

Answer 27

Support, cost reduction, TQM (Total Quality Management)

Question 28

What do we use with a high level of confidence in expected sales volume and revenue?

Answer 28

Financial selection tools

Question 29

What are the two most commonly used for project selection methods?

Answer 29

(a) payback period | (b) net present value

Question 30

What are the three on financial selection tools that may neglect to consider important variables?

Answer 30

(1) brand/reputation (2) Sustainability (3) New Markets

Question 31

What is the payback period?

Answer 31

(a) how long until we recover this investment? (b) Shorter period time is better (c) Disadvantage: Does not consider time value of money

Question 32

What is the net present value?

Answer 32

(1) Compare projects with different life cycles (2) Uses time value of money (discount factor) (3) Disadvantage: easy to manipulate

Question 33

What are the two Non-Financial Scoring Methods?

Answer 33

Checklist and Weighted Scoring Model

Question 34

It uses a set of questions to determine strategic alignment of a given project?

Answer 34

Checklist

Question 35

It does not take into consideration how one project measures up against another project?

Answer 35

Checklist

Question 36

What is a Checklist?

Answer 36

- uses a set of questions to determine strategic alignment - not take into consideration how one project measures up against another project - Quick and easy to use across all organizational levels

Question 37

It is quick and easy to use across all organizational levels?

Answer 37

checklist

Question 38

It ensures strategic alignment of projects with selection criteria?

Answer 38

Weighted scoring model

Question 39

It allows comparison of projects against one another?

Answer 39

Weighted scoring model

Question 40

It needs to exhibit openness and clarity in project selection or rejection?

Answer 40

Weighted scoring model

Question 41

What is the Weighted scoring model?

Answer 41

- ensures strategic alignment of projects with selection criteria - allows comparison of projects against one another - needs to exhibit openness and clarity in project

Question 42

What does BCG stand for?

Answer 42

Boston Consulting Group

Question 43

What does the BCG Matrix do?

Answer 43

It assesses how attractive if you look at the y-axis the growth rate of a particular industry, and the on the x-axis it shows the strength of a particular business in practicing in the market.

Question 44

What is a high risk bet or wildcats?

Answer 44

one that there’s a high growth rate but very little business familiarity/strength

Question 45

What is Conservative Bets or Cash Cow?

Answer 45

A product line or a project thaw would ensure significant revenue over a long period of time but the market is not growing at a very rapid rate so eventually the size of the market will shrink

Question 46

Alternate names of each market portfolio assessment?

Answer 46

Oyster (wildcat), Pearl(star), Bread & Butter (Cash Cow) & White Elephant(Dog)