Lecture 3 - Vision Flashcards
How do you have a succesful project vision?
Compare organizational vision with project vision
To be successful a project vision should be:
Understood
Credible
Motivational
Demanding & challenging
What is the role of an inspiring strategy?
Involves corporate management
Identifies and exploits differential strengths, weaknesses, opportunities and threats (SWOT)
Be future, value and results oriented
Be integrated organisation wide
When should you create the vision?
The vision before the plans and programs
Without a sensible vision, any change initiative can easily dissolve into a list of confusing and incompatible projects
How do you manage project change?
Wide range of factors can impact on a project
* (i.e. internal and external factors);
Assumptions of future events are also necessary for every project;
As a result significant project changes can occur (especially in complex solution based projects);
How key stakeholders could deal with potential project changes:
-Organizational learning;
-Specifications management;
-Tension management.
How is stategic investment and portfolios justified?
Return on investment & profitability growth
Cost efficiency
Competitive advantage
Sponsor/client advantage
What is Sacred Cow (non-numeric)?
Project chosen/ protected by senior executive & the project becomes sacred
Priority status
(Potential) Lack of organizational support
What is Operating Necessity (non-numeric)?
To maintain operational functionality (e.g. during a crisis)
Driven by situational events
Fast-tracked decision making
Limited budget provision
Reduced planning time
What is Competitive Necessity (non-numeric)?
Maintaining a competitive advantage in the marketplace
Ability to match (or win) competitors
Danger of fierce competition
Insufficient industry analysis
Little competitor analysis
What is Comparitive Benefit (non-numeric)?
Applies to companies seeking multiple projects with differing benefits
No valid selection criteria used
Highly subjective choice
Support for high profile projects
What is Product Extension Line (non-numeric)?
The product/service is repositioned favourably with customers
Taking advantage of market conditions & opportunities
Increased market penetration
Possibility of gaining economy of scale, but
No guarantee of market success
What is Payback Period (numeric)
The time it takes to earn back the money invested in a project
Payback period formula = Cost of project/annual cash revenue
What is Return On Investment (ROI) (numeric)
The overall profit (or loss) on an investment calculated as a percentage (%) of the total amount invested
ROI formula = net profit/total investment x 100
What is Net Present Value (NPV) (numeric)
The projected profitability of an investment, based on future (anticipated) cash-flows & discounted (from year 2) at a stated interest rate
NPV formula: Cash flow x discount factor
Discount factor formula = 1/(1+i)n
How do you prioritise a project?
Sponsor, client, customer classifications
Return on investment (ROI) and cost savings
Organisational impact & portfolio management
Resource capability & availability and time to implement
Scale of complexity and risk exposure
External compliance regulations – e.g. Approvals by the Environmental Protection Authority (EPA)
Consistent with TBL and life cycle thinking
What is L^3 classification guide?
Lite, Lean and Large of specfic criteria
