Midterm Makeup — Chapter 3 (Slides & Textbook)

Question 1

What Is a Problem?

Answer 1

A problem is a gap between where you are and where you want to be, with obstacles existing that prevent easy movement to close the gap

Question 2

What Is a Vision?

Answer 2

A vision is an organization’s purpose

Question 3

What Is a Mission?

Answer 3

A mission clarifies what an organization does.

For whom? How? Why do they do it?

Question 4

What Is Strategy?

Answer 4

What the organization does to support the vision and mission. The project should support the organization’s strategy.

Question 5

Project Objectives…

Answer 5

... support the MOV and include:
Scope (the project work to be completed)
Schedule (time)
Budget (money)
Quality (conformance  or fitness for use)

Question 6

What does MOV stand for?

Answer 6

Measurable Organizational Value

Question 7

The MOV must:

Answer 7

be some characteristics that can be objectively measured, to prove the project provided real value to the organization

Question 8

MOV proves _______ of the project.

Answer 8

success or failure

MOV proves success or failure of the project.

Question 9

All key stakeholders must _____ on MOV.

Answer 9

agree

All key stakeholders must agree on MOV.

Question 10

MOV must also support the org’s _____.

Answer 10

strategy

MOV must also support the org’s strategy.

Question 11

There are six steps to defining MOV:

Answer 11

1. Identify desired area of impact
2. Identify desired value of the project
3. Develop an appropriate metric
4. Set a time frame for achieving MOV
   5 .Get agreement from stakeholders
   6.Summarize MOV in a statement

Question 12

How-to: Identify desired area of impact

Answer 12

Ask yourself: Where will this project affect the organization?

Strategic: New markets, products & services
•Customer: Better products & services, better
loyalty, higher satisfaction
•Financial: Increased profits, profit margins
•Operational: lower costs, higher efficiency
•Social: Education, health, safety, environment

Question 13

How-to: Identify desired value of the

project

Answer 13

Ask yourself: Ok, now within each area of impact, what
will the project do to provide value?
Will it help you do something:

•Better? (e.g. quality, effectiveness)
•Faster? (speed, efficiency, cycle
time)
•Cheaper? (reduce cost!)
•Or do more in some way? (new
markets, products)

Question 14

How-to: Develop an appropriate metric

Answer 14

Ask yourself: So how will you measure that value?

•$$ - generate $x in new sales
•Percentage - reaching at least a certain number
(customer satisfaction > 95%)
•Numbers – have at least y new customers

Don’t get fancy – simple, clear measures are often
the best and Make it clear how the measure will be
collected

•Might need surveys, competitor data, etc.

Question 15

How-to: Set a time frame for achieving MOV

Answer 15

Determine how long it’ll take to achieve the MOV

• Could have multiple time objectives – reach x
by 6 months, y by 12 months, etc.

Question 16

How-to: Get agreement from stakeholders

Answer 16

Yup, easy to say, much harder to achieve
Everyone (project manager, sponsor, etc.) needs to
agree the MOV is realistic

Question 17

How-to: Summarize the MOV in a clear, concise statement

or table.

Answer 17

This project will be successful if _________________.

MOV: There is an increase in awareness for healthy
living by having 250 new subscribers sign up for a
weekly newsletter within 6 months.

MOV: The web site will provide a 20% return on
investment and 500 new customers within the first
year of its operation

Question 18

MOV is

Answer 18

the project goal.

Question 19

What is a Business Case?

Answer 19

An analysis of the organizational
value, feasibility, costs, benefits,
and risks of several proposed
alternatives or options.

Question 20

A Good Business Case…

Answer 20

Thorough in detailing all possible
impacts, costs, and benefits
Clear and logical in comparing the
cost/benefit impact of each alternative
Objective through including all relevant
information
Systematic in terms of summarizing
findings

Question 21

The Business Case

Step 1:

Answer 21

Define the MOV

Question 22

Define the MOV involves:

Answer 22

• The project’s goal, the measure ofsuccess
• Must be measurable
• Must provide value to the organization,align
with the organization’sstrategy and goals
• Must be verifiable at the end of the project
• Must be agreed upon
• Guides the project throughout its life cycle

Question 23

The Business Case

Step 2:

Answer 23

Form Cross-Functional CoreTeam

Question 24

Form Cross-Functional CoreTeam involves:

Answer 24

• Credibility (quality of being trusted)
• Alignment with organizational goals
• Access to the real costs
• Ownership
• Agreement
• Bridge building

Question 25

The Business Case | Step 3:

Answer 25

Identify Alternatives

Question 26

Identify Alternatives involves:

Answer 26

Most problems can be solved more than one way, so your job is to brainstorm and find several* plausible ways to address the problem •One can be the ‘change-nothing’ answer •Change processes but keep the existing systems •Reengineer an existing system •Buy something off the shelf to replace an existing system •Start over, and make a new system

Question 27

The Business Case | Step 4:

Answer 27

Define Feasibility and Assess Risk

Question 28

Define Feasibility involves:

Answer 28

* Feasibility (“doable and worth doing?”) * Economic feasibility * Technical feasibility * Organizational feasibility * Other feasibilities

Question 29

Assess Risk involves:

Answer 29

• Risk Identification –What can go wrong? What must go right? • Assessment –What is the impact of each risk? • Response – How can the organization avoid or minimize the risk?

Question 30

The Business Case | Step 5:

Answer 30

Define Total Cost of Ownership

Question 31

Determine the Total Cost of Ownership (TCO) of each alternative, which is the sum of...

Answer 31

direct or up-front costs, ongoing costs, and indirect costs

Question 32

what are direct or up-front costs?

Answer 32

the cost of implementing the project

Question 33

what are ongoing costs?

Answer 33

the cost of maintaining the | system

Question 34

what are indirect costs?

Answer 34

the cost of lost productivity during development, unexpected system down time, etc.

Question 35

The Business Case | Step 6:

Answer 35

Define Total Benefits of Ownership

Question 36

Determine the Total Benefits of Ownership (TBO); what are the benefits of each alternative?

Answer 36

* Increasing high-value work * Improving accuracy and efficiency * Improving decision-making * Improving customer service

Question 37

The Business Case | Step 7:

Answer 37

Analyze the proposed alternatives

Question 38

Analyze the proposed alternatives involves:

Answer 38

Analyze alternatives to see which has the | most value for the organization

Question 39

There are five cash flow metrics most often used to answer that ‘most value’ question:

Answer 39

payback, breakeven, ROI, NPV, | and scoring models

Question 40

Payback:

Answer 40

• Payback method determines how long it will | take to recover the initial investment

Question 41

Break Even:

Answer 41

Similar to Payback, it determines the point at which | a project would begin to recoup its original investment.

Question 42

Return on Investment (ROI):

Answer 42

It describes the percent Project ROI = (total expected benefits – total expected costs) DIVIDED BY total expected costs

Question 43

The Business Case | Step 8:

Answer 43

Propose and Support the Recommendation

Question 44

Propose & Support Recommendation involves:

Answer 44

Once the alternatives are identified and analyzed, the last step is to recommend one of the options.

Question 45

The Business Case is

Answer 45

an investment proposal.