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Lecture Project management: A managerial approach – Chapter 2: Strategic management and project selection

Chapter 2 describes how to evaluate and select projects that contribute to the organization’s strategy and discusses the information needed as well as the management of risk during this process. The chapter concludes with a description of an eight-step procedure called the “project portfolio process” that aligns project selection with the strategy. | Part I Project Initiation 2- Project Management Chapter 2 Strategic Management and Project Selection 2- Problems With Multiple Projects Delays in one project delays others Inefficient use of resources Bottlenecks in resource availability 2- Project Results 30% canceled midstream Over half of completed projects came in up to 190% over budget 220% late 2- Challenges Making sure projects are closely tied to goals and strategy. How to handle the growing number of projects? How to make these projects successful? 2- Project Management Maturity Project management maturity refers to the mastery of skills required to manage projects competently Number of ways to measure Most organizations do not do well Maturity can be rated in levels Initial Repeatable Defined Managed Optimizing 2- Project Selection and Criteria of Choice Project selection Evaluating Choosing Implementing Same process as other business decisions 2- . | Part I Project Initiation 2- Project Management Chapter 2 Strategic Management and Project Selection 2- Problems With Multiple Projects Delays in one project delays others Inefficient use of resources Bottlenecks in resource availability 2- Project Results 30% canceled midstream Over half of completed projects came in up to 190% over budget 220% late 2- Challenges Making sure projects are closely tied to goals and strategy. How to handle the growing number of projects? How to make these projects successful? 2- Project Management Maturity Project management maturity refers to the mastery of skills required to manage projects competently Number of ways to measure Most organizations do not do well Maturity can be rated in levels Initial Repeatable Defined Managed Optimizing 2- Project Selection and Criteria of Choice Project selection Evaluating Choosing Implementing Same process as other business decisions 2- Types of Companies Companies considering projects fall into two broad categories: Companies whose core business is completing projects Companies whose core business is something else They can also be broken down as: Companies looking at projects to do for others Companies looking at projects to do for themselves 2- Model Criteria Realism Capability Flexibility Ease of use Cost Easy computerization 2- The Nature of Project Selection Models Models turn inputs into outputs Managers decide on the values for the inputs and evaluate the outputs The inputs never fully describe the situation The outputs never fully describe the expected results Models are tools Managers are the decision makers 2- Types of Project Selection Models Nonnumeric models Numeric models 2- Nonnumeric Models Models that do not return a numeric value for a project to be compared with other projects These are really not “models” but rather justifications for projects Just because they are not true models .