Project, program and portfolio Selection Flashcards
Selecting project in most organization
Most organizations cannot undertake most of the potential projects identified because of resource limitations and other constraints: there are usually more projects than time and resources available to implement them
Overal business strategy
guide the project selection process and management of those projects (“purpose”)
What went wrong with the project ?
-The project was completed over budget and behind schedule –> caused “collateral damage”
Strategic planning
-long term objectives
-analyzing the strengths and weaknesses of an organization
-opportunities and threats in the business environment
-provides important information to help organizations identify and then select potential projects
-includes the organization’s mission, vision, and goals for the next 3-5 years
Pyramid of a Traditional Project planning process ( 4 steps)
- Strategic Planning: Senior executives develop the strategic plan and tie it to the mission and vision of the organization and identify key business areas.
- Business area analysis: Directors and department managers analyze needs in their areas and document key business processes that are required.
- project planning: Various managers and stakeholders propose potential projects and define their scope, benefits, and constraints
- Resource allocation: Authorized managers allocate resources to selected projects.
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Agile project planning
-more flexible
-allows the team to provide feedback to strategy –> can influence a change of direction
-defines the strategic direction, funds team –> define the best approach and deliver the greatest business value
-less hierarchical, more organized as “tribes”
traditional project planning
-top down planning
-selecting and funding a specific project
-annual strategy meeting
Strategy implementation circle (slide 17)
Interactive approach focusing on value, feedback, and benefits
benefit –> strategy –> objectives –> projects –> products –> value –> feed back (in cercle)
Product roadmap
-for agile planning
- is a tool used to show a high-level visual summary of the vision
and direction of a product or products over time.
-can show one product, or it can show many products
Gantt chart
-is a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format.
Why company use the road map
helps to define the why behind the project (or program)
Why company use Gantt chart
helps to define the how and when the project should be establish
Product management
is the practice of strategically driving the development, market launch, and continual support and improvement of a company’s products.
Product manager
are responsible not for a specific project or team, but rather for one or more of a company’s products
Methods for selecting Projects
1.Focus on competitive strategy and broad organizational needs
2. Perform net present value analysis or other financial projections
3. Use a weighted scoring model
4. Implement a balanced scorecard
5. Address problems, opportunities and directives
6. Consider project time frame
7. Consider project priority
Focusing on a competitive Strategy
-cost leadership: Attract customer –> product and service are inexpensive
-Develop products and services for a particular market niche
Broad Organizational needs
People agree there is a need for a project, they will make funds available, and there is a strong will to make the project succeed
Financial projection methods
-Net present value analysis
-Return on investement
-Payback analysis
why financial projections are important?
important aspects of the project selection
Net present value (NPV)
is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time
–> the return from a project exceeds the opportunity cost of capital- the return available by investing the capital elsewhere
Project with a positive NPV
should be considered if financial value is a key criterion
–> Projects with higher NPVs are preferred to projects with lower NPVs if all other factors are equal
NPV consideration
Determine estimate cost and benefits for the life of the project and the produce it produces
Return on investement (ROI)
is calculated by subtracting the project costs from the benefits and then dividing by the costs
ROI calculation
ROI = (total discounted benefits - total discounted costs) / discounted costs
