ENABLING SUCCESS AND CHANGE MANAGEMENT Flashcards
what is a project
A project is like a series of connected tasks that need to be done to achieve specific results. These tasks come with time, money limits and risks of performance outcome
why is it important for accountants to know project management?
Accounting professionals could participate in a variety of project roles, from being a project sponsor at a strategic level, to managing a project from start to finish, and providing specialist costing and financing advice on an ad hoc basis for a series of projects across the organisation. Therefore, it is important that accounting professionals understand how a project is initiated, how it should be managed and the responsibilities of various project personnel.
what things need to be considered to make a good business case?
1- Evaluate Current Situation: Assess the existing circumstances that necessitate the project, both internally and externally, identifying the problem that requires a project solution.
2- Consider and Justify Options: Detail the various options considered and provide justification for the chosen option.
3- Feasibility: Ensure the selected option is feasible by examining available resources, both human and physical.
4-Acceptability: Evaluate the impact on stakeholders, including shareholders, and conduct an investment appraisal to determine if the project will yield a positive return.
5- Project Constraints: Recognize the project’s constraints related to time, cost, and scope. Prioritize constraints and make decisions on adjustments as necessary.
6- Risk Assessment: Perform a high-level risk assessment, and consider mitigation strategies.
7- Approval: Present the business case to decision-makers, including the project sponsor, to obtain approval for the project to proceed.
8- Project Initiation: Once approved, prepare the Project Initiation Document and assemble a project team.
These steps help ensure that a project is well-prepared and has a strong foundation before it begins.
what is the PID
The Project Initiation Document (PID) serves as a contract between the project team and the sponsor. While it may be updated as the project progresses, it’s essential to have an initial version in place to clarify the project manager’s responsibilities.
-Once the PID is completed and signed off, and the project manager and project team are appointed, the project can begin.
what is included in the PID
-project objectives and summarised information from the business case
-additional details such as the deliverables from the project.
-details of the project chain of command and the responsibilities at each level, including those of the project team.
what are deliverables
The deliverables are all the outputs that the project is expected to deliver and are necessary for the project to achieve its objectives eg. equipment required, staff training, software upgrades etc.
-These deliverables may be used to determine appropriate gateways within the project.
what are project gateways
Gateways are points at which the project cannot progress without a formal review and sign-off from the project sponsor and project board.
what should be the minimum responsibility structure
project board, sponsor, manager, team
role of project board
-approve business case
-ensures the project aligns with corporate goals
-approves major project decisions
-signs off at key milestones
-top level decision maker
role of project sponsor
senior level supporter
Provides project funding, advocates for the project within the organization, negotiates resources, and monitors project progress.
-second level after board
role of project manager
Manages the project, plans, allocates resources, controls activities, maintains budgets, ensures quality, manages change, handles problems, and communicates with stakeholders.
role of project team
Team members contribute to project objectives and deliverables by completing assigned tasks to meet standards and timelines.
what is the balridge model
The Baldrige Model is a framework for organizations to achieve excellence and competitiveness by improving various aspects of their performance.
how can balridge be tested in exam
An SBL question could either focus on how the model could be used to monitor and measure performance but could also involve using the model to identify problems and improve the situation in which an organisation finds itself.
balridge model criteria
First Organisational profile
- Leadership: Emphasizes effective leadership at all levels of the organization.
- Strategy: Focuses on strategic planning and implementation to achieve goals.
- Customers: Centers on understanding and satisfying customer needs and expectations.
- Measurement, Analysis, and Knowledge Management: Encourages data-driven decision-making and continuous improvement.
- Workforce: Highlights employee engagement, development, and well-being.
6.. Operations: Focuses on efficient and effective processes to deliver value.
- Results: Evaluates organizational performance and outcomes.
a good project plan should comprise the following key elements
- Scope: Defines the project’s boundaries and parameters, reducing the risk of overruns and ensuring clarity.
- Schedule: Sets the project’s start and end dates,
-divide work into number of tasks using a technique called work breakdown structure. -manages work progression, and identifies the critical path. - Budgets: Plan and allocate resources expressed in monetary terms, making them a distinct component of the project plan.
Requirements: Quantify project requirements and incorporate them into resourcing.
- Quality Criteria: Ensure that quality standards are met, controlling the conformance to specifications.
- Project Resources: Plan, allocate, and manage workforce, materials, and equipment efficiently to avoid delays.
- Stakeholders: Identify key project stakeholders, analyze their interests, and assess their influence on project changes.
- Communications Plan: Detail what, when, and how stakeholders will receive project-related communications.
- Procurement Policies: Specify items to be purchased and define procurement policies and procedures, especially for large organizations.
- Risk Management: Identify, analyze, prioritize, and develop response plans for project-related risks.
These elements form a comprehensive project plan that enables effective management and successful project delivery.
how to minimize project related risks?
-Risk identification: all risk events which might impact the project’s success must be identified and defined.
-Risk analysis: the identified risks are analysed according to their two underlying components:
1)Probability of a risk event is likely to occur.
2)Severity of an event resulting in losses and/or harm to the organisation.
-Risk prioritisation: The ranking of the most important risk events should be developed within the project plan for tracking and management.
-Risk response plans: Suitable response plans should be developed to mitigate the potential harm arising from the most important risks so that rapid action can be taken when, and if, they occur.
what is a blockchain
often referred to as a distributed ledger, it is basically a decentralised, digital sequence of records shared on a public network that cannot be easily tampered.
the key qualities of blockchain that makes it ideal for retail networks is its transparency and immutability (unchangeable) which removes the need for a party on the supply chain to trust another party.
special thing about blockchain
The special thing about blockchain is that it’s decentralized, meaning it’s not stored in one central place but on many computers connected over the internet. This makes it secure and hard to tamper with because changing one block would require changing all the blocks on all the computers in the network, which is practically impossible.
uses of blockchain
People often use blockchain for things like cryptocurrencies (e.g., Bitcoin), smart contracts, and secure record-keeping because of its transparency and security features.
it’s used for medical records, processing of passport applications
how do blockchains improve business efficiency?
Blockchains enhance business efficiency because they:
- eliminate duplication of effort as transactions are visible to all parties
-reduce the need for costly intermediaries.
-security
-faster transactions
-simplifies audit and regulatory compliance as it provides transparency
Key features that differentiate blockchain from traditional systems
-Single Source: Blockchain offers a unified ledger for transaction completion and asset ownership.
-Consensus: All participants must agree on the validity of a blockchain transaction for it to be accepted.
-Origin Traceability: Participants can trace the origin of assets and their ownership history.
-Data Integrity: Transactions recorded on the blockchain are tamper-proof, and errors require corrective transactions visible to all.
how are blockchains so secure
Three key elements ensure blockchain security:
Unique Hashes: Each block has a unique cryptographic hash representing its contents. Altering the block content changes the hash, rendering it invalid.
Proof of Work: Confirming transactions and creating new blocks involves a time-consuming proof-of-work algorithm, making tampering difficult.
Distributed Peer-to-Peer Networks: Multiple synchronized nodes verify and add blocks independently. Consensus for any malicious actions would require unanimous agreement among all nodes, a nearly impossible feat.
future of blockchain
Blockchain isn’t just for digital money; it has a promising future in various fields like supply chain management, advertising, and the Internet of things.
Some countries, like Estonia, have fully embraced blockchain for things like legislation and healthcare data. But not all nations are on the same page, and some are slower to adopt it.
While countries are open to the technology, they have different opinions on how to regulate cryptocurrencies. Regulators are figuring out how to handle it and create suitable rules without hindering its growth.
How could blockchain technology be applied in Strategic Business Leader (SBL)?
a situation where a biz data leaked or hacked, or customers or complain that their records are not visible to them, and the company may experience reputational damage for not being transparent with stakeholders.
-Solution might be to recommend the implementation of blockchain with justifications.
why is fintech important for accountants
fintech can revolutionalise the work of accountants by improving and automating the ways in which financial services are used and delivered.
examples are:
-automation, saving time reducing errors
-enhanced data analysis, help analyse info more efficiently
-Improved client services, new tools can make collab and com easier
Streamlined payments: Fintech enables faster, more secure payment processing and simplifies reconciliation.
Cost savings: Automation and efficiency result in reduced operational costs for accounting firms.
what is cryptocurrency
Cryptocurrency is a digital asset.
It’s like traditional money but purely digital.
to be consdiered an asset, owner must have ROU, for that they have codes
what is a distributed ledger system
Distributed ledger = a vast, decentralized database.
Changes authorized by the network.
Hacking all copies is nearly impossible.
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Cryptocurrencies use a distributed ledger.
No central bank or authority.
Records are on every connected computer
benefits of crypto currency
-not regulated nor reliant on a central bank (which may collapse) or govt (which may become unstable)
benefits of this are:
-Reduced currency risk
-Avoidance of bank or regulator transaction fees
-Easier business transactions with wider range of domestic and international users
-Cryptocurrencies could also potentially offer a more stable currency to locations with unstable local currencies
countries regulations and crypto
mostly unregulated
-China: Cryptocurrency exchanges illegal.
-Japan: Progressive, considers them legal tender.
-US: Varies by state, lacks a unified approach.
UK: Cryptos not legal tender, but exchanges are legal.
risks of low regulation of crypto
-No accountability.
-Lack of consumer protection., no reimbursement if hacked.
-Funds lost if passwords are forgotten.
-Higher risk of tax evasion.
-Potential for illicit activities like drug transnactions and money laundering
Cryptocurrencies for transactions
-Like cash, but not widely accepted and volatile.
-Often not legal tender globally.
-Faster and cheaper transactions with fewer intermediaries.
-Reduced risk of outages.
-Declining as users prefer holding cryptocurrencies for investment.
Cryptocurrency investments
At present, the biggest use of cryptocurrencies is an investment,
-traded on exchanges, similar to stocks
-increases risk of money laundering
Initial Coin Offerings (ICOs):
a method to raise finance
-Like crowdfunding, where supporters buy tokens.
-No central authority oversees ICOs.
-Mostly unregulated, leading to potential scams.
-Tokens obtained in ICOs have no inherent value but can become valuable if the project succeeds.
what is performance
Performance in organizations refers to how successfully tasks or operations are carried out.
-The definition of good performance can vary between organizations based on their goals, such as making profits, delivering healthcare, or handling waste disposal.
-sbl focuses on improving performance
what are primary required tasks
Primary required tasks, outlined in an organization’s mission statement, are essential for achieving the organization’s purpose, including both financial and non-financial achievements. Some aspects of performance are critical success factors, while others are less important, depending on the organization’s objectives.
Objectives
Objectives are targets that an organisation sets out to achieve. -They are elements of the mission that have been quantified and are the basis for deciding appropriate performance measures and indicators
-Organisations will create a hierarchy of objectives which will include corporate objectives which affect the organisation as a whole and unit objectives which will affect individual business units within the organisation
primary- increase profit
secondary- get 10 new clients this month
what is the smart Rule when setting objectives?
Specific: Objectives should be clear, precise, and well-defined, leaving no room for ambiguity. They answer the questions of “who, what, where, when, and why.”
Measurable: Objectives should include concrete criteria that allow you to track and measure your progress. This might involve using specific numbers, percentages, or other quantifiable metrics.
this is imp because if u can’t measure, u cant control. some might be difficult to measure like customer satisfaction but efforts must be made.
Achievable/agreed/accepted: They should challenge you but still be within your reach. Setting unattainable goals can lead to frustration and disappointment. they shud also be accepted by people who r going to work on them.
Relevant: Objectives should be relevant to company’s mission and to the employee. They should make sense in the larger context of what you’re trying to achieve. if employee cant see relevance, they will feel management is tryin to exercise power.
Time-bound: Objectives should have a clear timeframe or deadline. This helps create a sense of urgency and gives you a target date for completion. otherwise procrastination will rule.
Critical success factors
An area where an organisation must perform well if it is to succeed.
according to JCO:
Those product features that are particularly valued by a group of customers, and, therefore, where the organisation must excel to outperform the competition
what are performance indicators
methods use to assess performance
in profit seeking orgs: PROFIT/EPS/ROCE
in NFPS: exam grades (school) / waiting time for patients (hoptial)/ road conditions (govt highway dept)
what are KPIs
The performance indicators that measure the most important aspects of performance are the key performance indicators (KPIs).
To a large extent, KPIs measure how well CSFs are achieved; other performance indicators measure how well other aspects of performance are achieved
problems when designing performance indicators
-Not setting enough performance measures: Incomplete measurement may lead to neglect of unmeasured areas.
-Too many performance indicators: Overwhelming numbers of measures can divert focus from more critical targets and lead to concentration on trivial tasks.
-Using the wrong performance measures: Inappropriate measures can hinder an organization’s strategic success, like using strict cost measures for a luxury product business.
-Performance measures too tight or too loose: Extremely challenging indicators can demotivate employees, while excessively loose ones can hinder performance. Benchmarking can help strike the right balance.
-Neglecting ongoing management: Setting performance indicators is not a “set and forget” process; ongoing management and review are necessary for effectiveness.
framework for setting performance measures
-A meaningful title of the measure
-What is its purpose and how does that purpose relate to strategic success?
-What other performance measures might be affected by this one, how are they affected and how are conflicts to be resolved?
-Who will be held responsible for it?
-What is the source data, who is responsible for its supply, how is it measured and how is the measure calculated?
-What investigations and explanations are required and who is responsible?
-What target is set and how has that target been determined?
-How often should the target be updated?
-How often is the measure reported on?
-Reporting and action?
mission statements
these define the important aspects of performance that sum up the purpose of the organisation.
Stakeholder analysis
recognises that different stakeholders have different views on what constitutes good performance. Sometimes what stakeholders want is different to what the mission statement suggests as the purpose of the organisation. This can be a particular problem when the stakeholders are key-players.
Generic strategies
the main generic strategies to achieve competitive advantage are cost leadership and differentiation. If a company’s success depends on being a cost leader (a CSF) then it must carefully monitor all its costs to achieve the leadership position. The company will therefore make use of performance indicators relating to cost and efficiency. If a company has chosen differentiation as its path to success, then it must ensure that it is offering enhanced products and services and must establish measures of these.
value chain
a value chain sets out an organisation’s activities and enquires as to how the organisation can make profits: where is value added? For example, value might be added by promising fantastic quality. If so, that would be a CSF and a key performance indicator would the rate occurrence of bad units
Boston consulting group grid
this model uses relative market share and market growth to suggest what should be done with products or subsidiaries. In SBL if a company identifies a product as a ‘problem child’ BCG says that the appropriate action for the company is either to divest itself of that product or to invest to grow the product towards a ‘star’ position on the grid. This requires money to be spent on promotion, product enhancement, especially attractive pricing and perhaps investment in new, efficient equipment.
PESTEL and Porter’s five forces
both the macro-environment and competitive environment change continuously. Organisations have to keep these under review and react to the changes so that performance is sustained or improved. For example, if laws were introduced which stated that suppliers should be paid within a maximum of 60 days, then a performance measure will be needed to encourage and monitor the attainment of this target.
Product life cycle
different performance measures are required at different stages of the life cycle. In the early days of a product’s life, it is important to reach a successful growth trajectory and to stay ahead of would-be copycats. At the maturity stage, where there is great competition and the market is no longer growing, performance will depend on low costs per unit and maintaining market share to enjoy economies of scale.
Company structure:
different structures inevitably affect both performance and its management. For example, as businesses become larger many choose a divisionalised structure to allow specialisation in different parts of the business: manufacturing/selling, European market/Asian market/North American market, product type A/product type B. Divisional performance measures, such as return on investment and residual income, then become relevant.
Information technology (IT)
new technologies will influence performance and could help to more effectively measure performance. However, remember that sophisticated new technology does not guarantee better performance as costs can easily outweigh benefits. If IT is vital to a business, then downtime and query response time become relevant as might a measure of system usability
Human resource management
what type of people should be recruited, and how are they to be motivated, appraised and rewarded to maximise the chance of good organisational performance? Performance measures are needed, for example, to monitor the effectiveness of training, job performance, job satisfaction, recruitment and retention. In addition, considerable effort has to be given to considering how employees’ remuneration should be linked to performance.
Fitzgerald and Moon model
-The Fitzgerald and Moon model links performance measures to individuals.
-It focuses on both financial and non-financial aspects.
-Key performance indicators (KPIs) cover results like financial and competitive performance, and determinants like quality and innovation.
-The model emphasizes KPI standards based on ownership, achievability, and fairness, involving employees in setting targets.
-Rewards for achieving KPIs should be clear, motivating, and within the manager’s control. -This approach connects performance, KPIs, and employee motivation and accountability.
Why blockchain is good
– Profitability
– Identifying counterfeits
– Profit margin
– Workers’ rights and ethical benefits
– Tracking stock
– Enhancing and managing customer information
– Product safety
– Enhancing customer loyalty programs
– Link with Fintech
