SMNGT CH2 Flashcards
(113 cards)
1
Q
answers the question of how strategies will be realized, given available resources.
A
Implementation
2
Q
describes how an organization intends to compete with the resources available in the existing and perceived future environment.
A
Strategy
3
Q
is the simplest and most widely used model for evaluating projects. (Enter only one word per blank.)
A
Payback
4
Q
management is the process of assessing “what we are” and deciding and implementing “what we intend to be and how we are going to get there.”
A
Strategic
5
Q
management should be responsible for prioritizing projects. (Fill in the blank with one word.)
A
Senior
6
Q
paybacks are more desirable.
A
Shorter
7
Q
projects are those that are needed to support current operations.
A
Operational
8
Q
projects are those that directly support the organization’s long-run mission.
A
Strategic
9
Q
projects, also called _____ _____ projects, are typically those needed to meet regulatory conditions required to operate in a region.
A
Compliance, must, do
10
Q
scoring models generally include qualitative and/or quantitative criteria.
A
Weighted
11
Q
translate the organization strategy into specific, concrete, measurable terms.
A
Objectives
12
Q
A _____ driven project portfolio system can reduce or eliminate the impact of problems in project implementation.
A
priority
13
Q
A good project priority system will promote a culture where all stakeholders contribute to the goals of the organization but ultimately someone has to choose what direction to go. What are upper management’s risks in prioritizing projects?
A
Picking the wrong one(s)
14
Q
A lack of communication in project planning can contribute to implementation _____, which is a lack of understanding and consensus of organization strategy among upper and middle management.
A
gap
15
Q
A multiproject organizational environment faces major problems without a _____ system that is clearly linked to the strategic plan.
A
priority
16
Q
A preliminary decision of balance between compliance, strategic, and operational projects must be made by _____ management.
A
top
17
Q
All managers realize that without _____, success is impossible.
A
implementation
18
Q
Among all the criteria for project selection, the most important one is the project’s fit to the organization _____.
A
strategy
19
Q
Criteria for project selection are where the _____ of a portfolio starts to manifest itself.
A
power
20
Q
Doran (1981) created the SMART memory device to help write objectives. The _____ stands for _____ _____.
A
time, related
21
Q
Doran (1981) created the SMART memory device to help write objectives. The _____ stands for _____.
A
assignable
22
Q
Enforcing the project _____ system is critical.
A
priority
23
Q
Financial return, while important, does not always reflect _____ importance.
A
strategic
24
Q
For a hypothetical company, projects that cost $1,000,000 to implement must have a payback not longer than 4 years. Which of the following annual project cost savings would be acceptable?
A
$300,000
25
Formulating strategy answers the question of _____ to reach the organization's objectives.
what needs to be done
26
Generally, multitasking adds to delays and costs.
True
27
How a project manager responds to project delays should be based on the impact on strategic concerns.
True
28
How are a portfolio of projects and a priority system related?
A priority system can eliminate problems in a portfolio of projects.
29
Identify significant benefits of using a multi-weighted scoring model to select projects.
The weighting provides an objective measurement to allow ranking from best to worst., Selection criteria may be mapped to critical success factors in the strategic plan.
30
Identify the assumptions made in the integration of projects with strategic plans.
Existence of a strategic plan, A process for prioritizing projects by their contribution to the plan
31
Identify the reasons that best explain why organizations are applying weighted scoring criteria in building strategic project portfolios.
To determine a project's "fit" into the strategic plan, To gain credibility in selection of projects
32
Identify the second step in strategy formulation.
Assess the internal and external environments.
33
Identify the steps necessary to implement strategies through projects.
Establish a corporate organization that complements the strategy, Establish a planning and control system, Determine and allocate available resources
34
Identify traditional components included in a mission statement.
Major products/services, Target customers/markets, Geographical domain
35
If the person believes their idea is worthwhile, then a project _____ is submitted conforming to the selection guidelines of the firm.
proposal
36
If the preliminary proposal is approved, then a project manager and staff are assigned to develop a more comprehensive _____ plan.
implementation
37
Implementation of projects without a strong priority system linked to strategy creates problems. Which of the following are some of those problems?
Resource conflicts and multitasking, Organization politics, The implementation gap
38
In a multi-weighted scoring model, scores are assigned to each criterion based on its _____.
importance
39
In strategic management, allocation of resources depends on _____.
organizational culture
40
In the context of ranking strategic project proposals, if a project does not meet designated "_____" objectives, it is not considered and is removed from consideration.
must
41
first
42
In the phase gate model, a gate can lead to three possible outcomes. Which of the following is not one of those outcomes?
Accelerate
43
It is critical to establish the _____ as the first step in strategic management process because the mission statement for the company
identifies "what they want to become."
44
Managing the _____ takes the selection system one step higher in that the merits of a particular project are assessed within the context of existing projects.
portfolio
45
Many organizations find they have three basic kinds of projects in their portfolio. Which of the following is not one of those three?
Sacred cows
46
Mission statements should be written and communicated to organizational managers and other employees in order to:
Provide a focal point for decision making.
47
Most projects operate in a _____ environment.
multiproject
48
Multitasking in an organization with many projects creates:
inefficiencies.
49
Negative NPVs are desirable.
False
50
One of the four activities of the strategic management process is to analyze and formulate _____. (Use a single word to fill the blank.)
strategies
51
One of the four activities of the strategic management process is to implement strategies through _____. (Use a single word to fill the blank.)
projects
52
Organizational _____ drive projects
objectives
53
Payback period is typically measured in _____.
years
54
Place the following activities of the strategic management process in the correct order of occurrence. (Place the first activity at the top.)
55
Place the following phases in the strategic management process in the correct sequence.
56
Place the following steps in the strategic management process in the correct sequence. (Place the first step at the top).
57
Place the six phases of the phase gate model in the correct sequence. (Place the first phase at the top.)
58
Project _____ are typically high-ranking managers who endorse and lend political support for the completion of a specific project.
sponsors
59
Project proposals should be classified by _____ so the appropriate criteria can be used to evaluate them.
type
60
Project selection criteria are typically identified as _____ and _____.
financial, nonfinancial
61
Resource sharing also leads to _____.
multitasking
62
Senior management uses weighted scoring models to build a project portfolio which maximizes short-term profitability.
False
63
Strategic management positions the organization to meet the needs and requirements of its customers for the short term
False
64
The "implementation gap" refers to the lack of understanding of strategy among top and middle managers. What problems may ensue from this?
Potential conflict of interests between managers., Lack of support for strategic projects.
65
The _____ approach basically uses a list of questions to review potential projects and to determine their acceptance or rejection.
checklist
66
The assessment of the external and internal environments is known as the _____ analysis.
SWOT
67
The governance team, or project office, is responsible for publishing the _____ of every project.
priority
68
The intended outcomes of a strategic plan include which of the following?
Clear organization focus, Improved communication, Best use of resources
69
The main goal of a "governance team" managing a project portfolio system is to ensure that:
the process of publishing the priority of every project is free of power politics.
70
The main purpose of _____ _____ is to assess performance and determine what, if any, adjustments should be made. (Enter only one word per blank.)
progress, review
71
The most frequently used method in selecting projects has been the _____.
checklist
72
The most important criterion for project selection is:
the project's fit to the organization's strategy.
73
The organizational risks inherent in project portfolio include _____ risk, ability to execute, time-to-market, and technology advances.
market
74
The projects have high commercial potential and low technical feasibility.
Oysters
75
The projects have low commercial potential and low technical feasibility.
White elephants
76
The question "what are we now?" is part of which of the following phases of the strategic management process?
Review mission
77
The selection process is the first part of the management system that spans the lifetime of the project. This system has been described as a series of _____ that a project must pass through in order to be completed.
gates
78
The term _____ _____ is often used to denote a project that a powerful, high-ranking official is advocating. (Enter only one word per blank.)
sacred, cow
79
The theme and focus of the future direction of an organization is provided by _____ management.
strategic
80
These are projects that at one time showed promise but are no longer viable.
White elephants
81
These projects are high-risk, high-value projects.
Oysters
82
These projects are relatively easy to accomplish and produce modest commercial value.
Bread-and-butter
83
These projects represent revolutionary commercial advances using proven technology.
Pearls
84
Top management has responsibility to prioritize strategic projects because they need to rank and weight the _____ and _____ they believe are most critical to the organization.
objectives, strategies
85
Typically an organization will issue a _____ for _____to contractors/vendors with adequate experience to implement a project. (Use a single word to fill each blank.)
request, proposal
86
Typically, a project sponsor is someone in the organization who may be _____.
a high-ranking manager who lends political support for project completion.
87
What are some key benefits of soliciting project proposals from stakeholders throughout, and possibly outside, the company?
Good ideas are not limited to just upper management., A Request for Proposal (RFP) can be used to take a concept and ask an outside company to develop the project.
88
What are the critical inputs that senior management must provide to an organization utilizing a project priority management system?
Guidance in what to include in the selection criteria., Amount of resources to commit to various categories of projects.
89
What are the critical needs of a company utilizing a strategic project portfolio system?
Getting input from senior management., Involving a team of people rather than just an individual to make decisions.
90
What are the main reasons project managers need to understand an organization's mission and strategy?
To allow appropriate decision making, To be an effective project advocate
91
What are the major dimensions of strategic management?
Allocating scarce resources of the firm , Responding to changes in the external market
92
What are the primary drawbacks of using a checklist model in selecting projects?
It leaves the door open for power plays., It is difficult to compare multiple projects.
93
What are two types of risks associated with a strategic project portfolio?
Total risk of all the projects., Specific project risks.
94
What happens when an organization restricts project proposals from specific levels or groups within the organization?
Opportunities may be missed.
95
What is required to implement a "strategy"?
Actions and tasks
96
What positive role can corporate politics play in managing strategic projects?
Project sponsors may use politics to support a project behind the scenes.
97
When managing a project portfolio system, the merits of a project are assessed within the context of _____.
existing projects
98
When using Net Present Value (NPV) to evaluate a project, which of the following statements concerning the discount (hurdle) rate would be considered correct?
If two projects are compared and both have a positive NPV, the one with the higher NPV is selected., It can change depending on the type of project.
99
Which of the following are reasons why a firm may choose to use non-financial criteria, rather than financial, to accept a strategic project?
To develop a product that will increase sales in other more profitable areas., Capture greater market share.
100
Which of the following are the considerations for a proper mix of projects?
Resource demand, Risk, Type
101
Which of the following are typically identified as the selection criteria?
Nonfinancial, Financial
102
Which of the following best explains the role of the sponsor in ranking and selecting strategic projects?
The sponsor decides whether to pursue a project based on its value to the organization.
103
Which of the following best relate symptoms of an "implementation gap"?
Frequent meetings to renegotiate resource allocations.
104
Which of the following is NOT important in establishing a proper objective?
Make sure there is a project payback.
105
Which of the following is _____used to calculate NPV?
Payback period
106
Which of the following is a project that is relatively easy to accomplish and produce modest commercial value?
Bread and butter
107
Which of the following is not a benefit of a project portfolio management system?
Sacred cow projects are protected.
108
Which of the following is not true of the process of ranking project proposals?
Projects categorized as "wants" get first priority.
109
Which of the following statements is true of selection criteria for projects?
They are typically identified as financial and nonfinancial.
110
Why is alignment between the strategic plan and projects critical for an organization?
To avoid poor utilization of the organization's resources.
111
Why is it important to systematically prioritize projects?
To prevent excessive corporate politics from overcoming objective reasoning., To properly allocate scarce resources., To prevent conflicts between functional managers for resources.
112
Why might organizations include multiple non-financial criteria in a screening model for projects?
To avoid focusing only on profitable projects, which can lead to overextension.
113
Why must a project manager understand company strategy in order to respond to a delay in the project?
So that they know how to respond appropriately
