Project selection through
strategic alignment
Business environment
outcomes
• Reflect upon the importance of organizational strategy in the project
environment
• Discuss how the strategic direction of the organization can influence
the selection of projects
• •Discuss some of the project selection methods that are available
• Describe the relationship between strategy and project selection
• Explain how prioritizing projects has an impact on project selection
• Explain the benefits of strategically aligning a project.
Introduction
• Organizational strategy refers to what goals the organization wishes to
achieve and how they can achieve these goals. (venter 2018)
• Every business strategic goals/priorities must be aligned to the business
environment,
• Strategic priorities are values which are related to the external
environment of the organization.
• Which may come from the macro or industry environment of the business.
• To gain a competitive edge, one must determine its resources and
capabilities in relation to the environment in which they choose to
participate.
• The project and organizational strategy alignment allows organizations to
focus on the right projects, given the objectives of the business strategy.
Why is strategy management important?
• It is important because, if we wake up and start a business without
proper evaluation of our environment it will definitely fail***
• The strategic process generate guideline and aligned resources
toward goals that are sustainable and guarantee some level of
competitive advantages.
• It enable us to align our goals to our mission which is derived from
the business vision
• Vision-mission-goals –strategies
• Strategic plan results to project plan with evaluation system that
enable continued development till completion.
Why is strategy management important?
• Most organisation have goals like: lowest cost, best quality, best service, fastest
delivery of good, and you name it.
• These goals are normally from the mission, which comes from the vision of the
organisation.
• VISION – MISSION – GOALS – STRATEGY.
• Tesla: To accelerate the world's transition to sustainable energy
• SAA Vision: Africa’s Leading World-Class Airline
• Mission: To deliver commercially sustainable world-class air passenger and
aviation services in South Africa, the African continent and to our tourism and
trading partners.
• Value: customer focus, accountability, integrity, safety, value our people, etc
• Objectives, Achieve and maintain commercial sustainability. Provide excellent
customer service. Achieve consistent, efficient and effective operations. Foster
performance excellence.
• Without a good strategic direction these SAA goals will not be achieved that is
why strategy is important
Enterprise Environment factors (EEF)
• Project is performed in a certain environment; e.g., it runs in an
organization with its own structure and culture, in a certain
location(SOUTH AFRICA) with its own culture and laws.
• Called the Enterprise Environment Factors (EEF).
• They could be internal or external to the organisation
• The factors could relate to strengths or weaknesses in the internal
environment
• They could results to opportunities or threats in the external
environment
• We need to known these factors to devise a strategic to get the
project done on time, budget and quality.
• Depends in the business
Developing a strategy for a project
• to know the vision, mission, objectives and strategic direction of our
organization.
• Scan your internal, external and industry environments
• Using a number of management theories like
• SWOT: Your strengths, weaknesses, opportunities and threats
• Pestel: political, economical, social, technology, physical and international
• Task/industry environment: suppliers, customers, competitors, rivalry, entry and
exist requirements. Sasol for example
• To determine
• Where are we now?
• Where do we want to go?
• How will we get there?
• How are we doing?
Developing a strategy for a project
• How strategy is formulated at the different organisational levels based
on customer’s needs, stakeholder’s expectations, integration with the
environment, and ethical perspectives
• EEF of your organization include: The influence of leadership, values,
organisational culture, and organisational architecture on strategy
implementation.
• Current competitive positioning
• Current resources and dynamic capabilities
• Appeal of product and services to customers
• extent to which products meet the needs and expectations of
customers
• Current financial performance
Organizational Process Assets (OPAs)
• These are process-related assets specific to the project-performing
organization that can help the project succeed.
• The OPAs includes
• organization's lessons learned
• completed schedules, risk data, and earned value data.
• Serves as inputs to various project management processes.
• Project Stakeholders.
Organizational Process Assets
Typically grouped into two categories:
1. Processes, procedures and Policies for conducting work, and
2. A corporate knowledge database for storing and retrieving Info.
I.1Standardized Processes and Procedures; Project closure guidelines,
project acceptance criteria, proposal evaluation criteria, performance
measurement criteria, and so on
• 1.2 Standard Guidelines and Criteria:
• 1.3 Templates. Examples a list of standard risks to look for, project schedule
network diagrams, and the work breakdown structure.
• 1.4 Requirements. Examples: Communication, hiring, Guidelines for
project closure, safety and security requirements
•
•
•
•
Knowledge Database Repository
• This category includes databases that allow you to do two things:
1) retrieve information to use for your project and
2) store information from your project which includes
• Project Files. Documents produced in the project, such as the project
charter and scope statement.
• Measurement Database. Like database for performance
measurements.
• Historical Information and Lessons Learned. Archives of files from
previous projects, including lessons learned from the projects.
• Issue and Defect Management. A database for managing issues and
defects, such as logging, controlling, and resolving an issue or defect.
• Financial Database. The financial information related to the project, such
as budget, work hours, and cost overruns.
• Configuration Management Database. Contains the change history:
different versions and baselines for the company standards, policies, and
archived project
• Organizational Culture and Its Influence on Projects
Note Enterprise environmental factors and organizational process assets are
common inputs to many project management processes. Sometimes they
can also appear as an output from a process, such as archived documents
and lessons learned
Benefits of strategic alignment.
• Prevent the risk of deviating from the overall aims and goals of the
organisation,
• Help you to avoid projects that can hinder an organisation’s overall
performance
• Ensure efficient utilisation of available resources
• Help in the overall financial performance
vIf not what happen to Daewoo in 1999 could happen to your company
• Class activity
• Determine the vision, mission, goals and strategic direction of any
organisation?
• Evaluation of projects
Selection of projects
• All organization have unlimited resources and therefore have to select
projects to execute and forgo the others.
• To meet the business strategic goals it very critical to spend time in
selection process.
• Use the application of several practical filters to its selection process
to choice the best fit.
• Selection is the first steps to the methodology discussed previously.
• Except for emergency or legislative compliance project.
Project selection process
Reviewing the strategic alignment filter
• Is the project fit to our mission and objectives
• increase profit
• Improve customer retention
• Utilize and allocate resources well.
• If Nike see that there is money to be made in the tender of
electrifying a high rise government building and they take it, will this
be strategic fit? And why?
Financial criteria for the justification of a
project
• The investment in the project must provide a satisfactory return on
investment i.e. profits.
• keep in mind the costs associated to the project i.e. wages and
salaries, materials, and etc.
• There are numerous ways to assess the financial viability of a project,
• The models that will be discussed next require confidence estimates
of future cash flow.
Payback period
• When the cash flow are even or the same
• Payback period = Initial investment/net annual cash inflows
• assume an initial total investment of R500 000 with an annual cash inflow
of R150 000. The payback period would simply be R500 000/R150 000 =
3,33 years.
• The second way to calculate your payback period is where cash flow is
unequal. The equation used is as follows:
• Payback period = A + B/C
•
•
•
•
Where:
A =Last period with a negative cash flow
B =The cumulative cash flow in period A
C =Cash flow in the period that immediately follows period A.
Payback period: =
Normal
Cumulative
Initial Investment
(15 000)
(15 000)
Net Annual Cash Flow year 1
5 000
(10 000)
Net Annual Cash Flow year 2
5 000
( 5 000)
Net Annual Cash Flow year 3
4 000
(1000)
Net Annual Cash Flow year 4
5 000
5 000
3+ 1000/4000 = 3.25years
It does not take into account the time value of money
It does not account for cash flow after the payback period
Net present value (NPV)
• Net present value (NPV) is the most widely used of all the different
financial models in project selection
• The purpose of NPV is to determine the present value of all future
cash flows by discounting them
• Decision criterion: accept projects with positive NPV
• Reject project with negative NPV
• Project with 0 NPV may contribute to the firm
formula
%!
• NPV= I0 +∑$!"# (#'()!
• T0 Initial cash investment
• Ft The cash flow in time period t (negative for outflows)
• k The discount rate
• t The number of years or life
• The discounted rate k is the weighted average cost of capital (WACC). This is
ultimately the proportionately weighted average of the proportion of debt and
equity a company has in its capital structure, multiplied by the relative cost of
said debt and equity.
.WACC
• The weighted average cost of capital
• wd =Percentage of capital derived from debt measured as a proportion of
the market value of debt, D, to the company’s total market value, V (equity
+ debt) (or D/V)
• kd =The cost of debt (usually expressed as the rate at which money is
loaned, or i)
• we =Percentage of capital derived from equity measured as a proportion of
the market value of equity, E, to the company’s total market value, V
(equity+ debt) (or E/V)
• ke=The cost of equity measured which is measured using a simple or
capital asset pricing model (CAPM) approach.
CAPM
• Here, the formula is rf + β(rm – rf)
• Rf= Is taken to represent the risk-free rate (or the rate of interest an
investor might expect for placing money in a risk-free investment over a
period)
• β =Beta or a measure of risk or relative volatility of a company’s share price
– the movement of share prices are compared to the movement of the
market as a whole with a beta exceeding one, indicating a price that
exceeds overall performance of the market
• rm =Expected market return with rm – rf reflecting the equity market risk
premium (or EMRP), which is the return expected by investors for investing
in the stock market
NPV
•We estimate the following information being appropriate for a truck hire Business:
•Time horizon will be five years (life expectancy of truck). Purchase price
of truck (initial investment): R150 000. Annual Cash Flows will be as
follow:
• Revenue/turnover
• Operational cost
• Depreciation
• Profit before tax
• Less 30% tax
• Profit for the year
• Plus depreciation
• Cash flow
200 000.00
(80 000.00)
(30 000.00)
90 000.00
27 000.00
63 000.00
30 000.00
93 000.00
• It is expected that the vehicle will have a scrap value of R24
000 on completion of the project. As the vehicle will be written
of in books of the business, the sale is taxable at 30% leaving a
terminal value of R16 800.
• 24000 X (1-0,30)= 16800
Calculation of NPV
Period
Cashflow
R
Discount
factor 20%
Present value
R
Year 0
(150 000.00)
1
(150 000 ,00)
Year 1
93 000.00
0,833
77 469.00
Year 2
93 000.00
0.694
64 542.00
Year 3
93 000.00
0.579
53 847.00
Year 4
93 000.00
0.482
44 826.00
Year 5
93 000.00 + 16
800.00 = 109
800.00
0.402
44 140.00
NPV
284824,00150000.00
134824
Internal Rate of Return (IRR).
• The Internal Rate of Return (IRR) is the discount rate that
makes the NPV of a project zero. If the rate is higher than the
weighted average cost of capital (WACC) or the hurdle rate,
then the project is accepted
Calculation of IRR
Cash flow R
Factor 10
15%
t0
(1 000)
1
1
(1000)
t1
500
0,909
0,870
434
t2
400
0.826
0,756
302
t3
300
0.751
0, 658
197
t4
100
0,683
0.572
57
NPV R 79
Distance between 10% and IRR = {79/(79+8) } *5 = 4,54
So,, IRR = 10% + 4,54% = 14,54%
Accept project which IRR > cost of capital
(8)
Other methods (Delphi technique)
• in most instances, an organisation may have several projects that pass
the selection process lacks the resources to pursue all the projects.
• It is therefore important to rank the projects in order to determine
which projects are deemed more important for the organisation to
pursue first using a panel of experts.
decide on which metrics are considered important to the organisation.
the ranking criterion is highly subjective as depend of who is doing it
.Send questions to participants unanimously
get their response and compile and iterate/repeat the process until
consensus is reached
• When concluding this process, an organisation would want to have a
compiled documented list and ranked
• If this is done correctly and consistently, it will assist in allocating time, energy
and resources on the projects that are ranked as high priority.
•
•
•
•
Balanced/weighted scorecard
Opportunity Cost Activity
• You have been offered a Project B that will earn you a profit of
R50,000 in three months. You already have an offer of a Project A that
will earn you a profit of R35,000 in three months.
• You can only do one project during these three months, and the
project requesters are unable to move the project durations.
• Q1. What is the opportunity cost of Project A?
• Q2. What is the opportunity cost of Project B?
• Q3. Just based on the opportunity cost, which project will you select?
• Q4. Describe what can change your decision based just on the
opportunity cost.
Organizational structure
• The organizational structure and governance framework show
responsibility, accountability, and chain of command in every
company and project are done within these organization limitation
• An understanding of this power, influence, interests, competence,
and political capabilities of the people in the organizational system
will help us to succeed.
• Concept check
• Q1. From the organization’s perspective, what is the core difference
between enterprise environmental factors and organizational process
assets?
Organizational Structures Influence on Projects
• A project, organizational structures can be divided into three groups:
project friendly, project unfriendly, and a spectrum of types in between.
• Friendly one employ fulltime project managers with almost full authority
• Project unfriendly one only hire part-time project managers with little to
no authority.
• Organization breakdown structure (OBS) shows the power/relationships.
• Projects may be internally or externally managed
• For example, the information technology (IT) department manages ITfocused projects
• As a project manager, you need to understand the organization structure
your company has.
Traditional ways of OBS
• The functional-organizational structure
• The process-organizational structure
• The project-organizational structure
• The matrix-organizational structure
• The virtual-organizational structure.
• The organizational context, its goals and objectives, leadership style
and its culture play a significant role in the success of a particular
structure
Functional organisation
• The project manager’s role and the project team are part-time
• There is little or no authority over anything: resource assignments,
team members, and the like.
• The project manager reports directly to a functional manager..
• There is little or no administrative staff to help the project manager
with the project which are done by team members.
• Little or no project resources are available.
Fu Functional-organizational structure nct
structure
Advantages of function
• Stability: Employees are located within their departments.
• Flexibility: Temporary assignments due specific skills can be easily
facilitated & managed.
• Focused expertise: on critical project tasks & shared across multiple
projects.
• Easy transition to production within workers functional areas.
• Ability to change on a short notice to deliver tasks that may are
urgent.
• Employee advancement facilitated through performance monitoring
and development.
• Less costly as you recruit internally
Disadvantages
• Easily distracted: Project responsibilities are often seen as secondary to
functional responsibilities.
• Difficulty integrating: Employees struggle to adapt to a project environment.
• Time consuming: as they focus on project reducing its capacity and capability.
• Lack of ownership lead to less accountability
• Reduced capacity: Functional areas do their day-to-day activities as well as
project delivery.
• Quality decreases by Offloading of less experienced employees to project
delivery.
• Poor communication as bureaucracy, silo and ‘ivory tower’ mentalities, and open
and honest communication.
Process-organizational structure
• Groups organizational functions into departments, for example, HR,
and each department contributes to the delivery of the specific HR
processes needed for project delivery.
• In a risk management project, the HR team would focus on the risks
that influence the people in the organization, for example, health and
safety risks.
The process-organizational structure
Advantages process-organizational structure
• Business process integration: Value is created across the value chain
and not only in a function.
• Delivery focused: enhance delivery of value across to the internal
stakeholder and external customer.
• Interdependencies easily identified: team is made up of different
functions.
• Reporting lines is clear made it easy to know who owner drivers are
Disadvantages
Processes require duplication of functions as each process requice
most function presents
Stakeholder confusion: Stakeholders may not be clear as to which
process they are associated with
Project-oriented Organizations
• The project manager is fulltime.
• The project manager has full authority over the project
team.
• There is fulltime administrative staff to help with the project.
Project-oriented Organizations
Advantages of project organizational structure
• Simple, fast and flexible: project teams are autonomous and operate
without distractions.
• Cohesive: the project team work together for common goals and are
driven to achieve this goal.
• Cross-functional integration: Specialists can work together efficiently while
supporting each other.
• Communication benefits: Communication is faster and more efficient with
a focused audience.
• Accountability and authority :The project manager has responsibility and
accountability for the project
Disadvantages of project organizational structure
• Expensive as it can lead to stockpiling of resources by PM
• Internal divisions and conflict: Competition with other projects and project
managers means business continuity is compromised.
• Limited functional and technological experience in the employees may limit
functionality
• Complicated and difficult post-project handover and transition with
overloading of staff as project team might be disbanded
• Effort and resources are duplicated as each project duplicates significant
effort and resources
• Identifying projects goals override organization goals instead of supporting
the overall business objectives.
The chaordic organization for the future
• A chaordic organisation adapts easily to changing conditions.
• unstructured and complex systems
• employees to drive the organisational goals and objectives
• The focus has shifted to task completion and not on how to
• This means that the values of integrity, respect and trust are
becoming increasingly important.
• Employees use their comprehensive skill and experience to deliver
value to the organisation without being continuously monitored,
• even though mistakes occur, the values-driven methodology allows
employees to correct mistakes
Project culture and creativity
• A ‘project culture’ is a set of beliefs, attitudes and behaviours that
exist independently of the individuals.
• It facilitates the induction process for new project team members.
• team members I behavior is aligned with the culture and doesn’t
change as team membership changes.
• Organizational culture has the ability to influence the project culture.
Project Management office (PMO)
• A project management office (PMO) is another organizational structure, in
which project managers are fulltime
• with high authority and high availability of project resources
• On the scale of project friendliness, next to project-oriented organizations
is PMOs then matrix organizations
• Their influence could be:
• Supportive: Here they exhibit low level of control
• Directives: Here they exhibit moderate level of control
• Controlling: Here they exhibit High level of control especially for high stake
projects
Matrix Organizations
• A matrix organization is organized into functional departments, but a
project is run by a team that may have members coming from
different functional departments
• Matrix organizations are categorized into a
• strong matrix, which is closer to a project-oriented structure;
• a weak matrix, which is closer to a functional structure;
• and a balanced matrix, which is in between strong and weak.
Matrix Organizations
Characteristic
Weak
Balance
Strong
Work groups
arranged by
Job function
Job function
Job function
PM authority
low
Low to moderate
Moderate to high
PM Role
Part time
Part time
Fulltime
Project team
Part time
Part time
Fulltime
Budget control
Functional Mgr.
Both functional /project
Project PM
Resource availability
low
Low to moderate
Moderate to high
Influences of the Organizational Structures on Projects
Project
Characteristic
Functional
Project Oriented
PMO
Hybrid
Group arranged by
Job function
project
Mixed
mixed
Project manager’s
authority
None to little
High to almost full
High to almost full
Mixed
Project manager’s
role
Part-time
High to almost full
Fulltime
Mixed
Project
management
administrative staff
Part-time
High to almost full
Fulltime
Mixed
Project budget
controlled by
Functional Manager
Project manager
Project manager
Mixed
High to almost full
High to almost full
Mixed
Resource availability None to little
Matrix organizational structure
Advantages of Matrix
• Project manager is accountability although employees still report to their
functional managers.
• Resource availability in the organization and could hire outside to supplement a
project
• Post-project employment as all employees are affiliated to a functional
department with full employment
• Efficient ,simple. fast and flexible project delivery, as well as communication
• Project focused as no functional distractions cause confusion amongst team
members.
• Transition to production easier as employees have excellent understanding of the
functional processes.
• Flexible. The structure is very flexible and draws on positives from other
structures.
Disadvantages
• Conflict due to the reporting system when resources are scare
• Stressful when the functional goals is in conflict with the project
goals.
• Slow process as employees have double roles one to the project and
function
• Accountability of employees is dual between their day jobs and the
project.
• Project control is dual between projects and functional managers
Multi-Divisional, Organic, and Virtual Organizations
•Hybrid Organization : A hybrid organization is a type of
organization that contains elements of multiple other organizational
structures, such as functional, matrix, and projectized
• Multi-Divisional. Structure divisions are organized by product, production
processes, portfolio, program, geographic region, or customer type.
• Organic. In this flexible organization structure, also called simple or flat,
• Virtual. In this structure, where individuals and groups are connected
• Project Management Office (PMO) :Those responsible for providing
centralized support, control, or directives for projects in the organization
Virtual organizational structure
Advantages of virtual organizational structure
• Focused on project delivery: Organizational distractions do not affect the focus on
what is needed to succeed in the delivery of the project.
• Independent of location and time, People are able to work at any time or in any
place as Technology advancements have supported this trend, and savings in time
and money.
• Resource access Resources as Virtual team members are able to locate
themselves close to a resource, allowing easy access and delivery.
• Resource allocations are temporary to costs are reduced.
• Task and milestone focused as Wasteful time in meetings and travelling is vastly
reduced.
• Disadvantages
• Knowledge sharing by members may be reduce for lack of controls and this may
reduce buy-in.
• Virtual team members have little loyalty to an organization they do not work fo
• Communication, even with advancement in technology does not match the faceto-face meeting scenario.
Future organizational structure
• The chaordic organization
• A chaordic organization adapts easily to changing conditions.
• They are unstructured and complex systems which allow employees to
drive the organizational objectives in their individual ways.
• The focus has shifted to task completion disregarding how and when and
valuing integrity, respect and trust.
• Employees use their comprehensive skill and experience to deliver value to
the organization without monitoring.
• Changes or surprises are more easily managed as the fix routine.
• When mistakes occur, employees correct mistakes without criticism from
management and learn from it.
• This organizational structure allows for fast and flexible delivery of projects
Managing the unknowable
• Project managers should focus on ever-changing agendas of strategic
issues, challenges and aspirations,
• Cohesive teams are needed for day-to-day issues and open discussions,
public conflict and dialogue are vital to ensuring project success.
• A dynamic and versatile management style supports creativity which is
open, exploratory, and experimental.
• Benchmarking against milestones and taking corrective action need rules,
systems and rational argument..
• New strategic directions emerge from the chaos of challenge and
contradiction. Top management create new models and maps by allowing
people to learn.
• Strength grows from contact with the environment, not from existing
strengths.
Activities
• What are the major tasks of the project management office?
• Discuss the importance of recognizing and managing the project
culture within an organization.
Project Stakeholders
• Project stakeholders are individuals and organizations whose interests
are affected (positively or negatively) by the project execution and
completion.
• You must identify all stakeholders and communicate with them
effectively throughout the project. Both those who are in support or
opposed to the project you are about to start
• E. G., City mayor might be a positive stakeholder in a project to
construct a rapid bus services in your neighborhood, whereas some
local bus operators might look at it as a threat to business
• Ignoring positive or negative project stakeholders will have a
damaging impact on the project
Project Stakeholders
• Project stakeholders are individuals and organizations whose interests
are affected (positively or negatively) by the project execution and
completion.
• You must identify all stakeholders and communicate with them
effectively throughout the project. Both those who are in support or
opposed to the project you are about to start
• E. G., City mayor might be a positive stakeholder in a project to
construct a rapid bus services in your neighborhood, whereas some
local bus operators might look at it as a threat to business
• Ignoring positive or negative project stakeholders will have a
damaging impact on the project
Who are your stakeholders
•
•
•
•
•
•
•
•
•
•
Project Management Office (PMO)
Project Team : project Management and workers
Program Manager.
Portfolio Managers and Portfolio Review Board.
Functional Managers
Operational Management.
Sellers and Business Partners: suppliers and contractor
Customer/User.
Steering committee/Project board
Project Sponsor: The man who is responsible for the finance
Roles of project team
• Project sponsor or director: The manager, who is responsible for securing the
budget and resources for the project.
• Executive committee: A representative of the overall authority of the organization
like board rep.
• Steering committee/Project board: They approve project deliverables, help
resolve issues and make policy decisions, approve scope changes, and provide
general direction, support, and guidance to the project team..
• Project manager: develops the project plan with the team and manages the team’s
performance of project tasks, and secures acceptance and approval of deliverables
from the project sponsor and stakeholders.
• Project management office: They provides supporting, shared services to the
project manager and to the project team. this office maintains standards for
projects and is the source for project templates and other documentation,
guidance and sets metrics.
• Team leader: Team members who fulfil coordination roles in the project. They
provide task and technical leadership and often manage .
• Project team members: Individuals responsible for executing tasks and producing
deliverables as outlined in the plan.
Function of project manager
• The role of a project manager is to lead the project team to meet the
project objectives aligned with the company’s strategic objectives.
• May be involve in initiation stage in project-defining and -justification
activities
• Showing the vision to the project team, coordinating various project
activities through communication, and leading/influencing the team,
offices and managers within the performing organization, supplies,
end users and customers, and other stakeholders
• Here, networking, formal and informal relation building, and
communication skills are critical
PM Talent Triangle
Technical project
management
strategic and
business
management
Leadership
Technical Project Management Skills
• the ability to effectively apply project management knowledge to
deliver the planned project objectives.
• Manage Project Elements; scope, cost, time, resources and quality
• Plan and Prioritize . All the tasks and resources
• Tailoring: Tool’s, techniques and method
• Focus on Critical Elements. critical success factors for each projects,
schedule, some selected most relevant financial reports, and issue log
Strategic and Business Management Skills
• Having a high-level view of the company, with an understanding of its
strategic and business objectives and support strategic alignment &
innovation.
• Organization Level. Mkt condition/value, mkt share, competitors, the
business involved by the company to help the project achieve the org goals
• 1. Looking at market condition of the company, market Value, and
growing/falling e.g., fixed line MKT.
• Know your customers, the right time to market the project’s product?
• 2. Know all aspects the company’s operation, technology ETC
• 3. Know all you competitor companies and position in the market.
• Project Level. knowing and explaining the project being managed.
• how to collaborate with the project sponsor, experts, & the project
team, to develop the delivery strategy considering the organization’s
strategy
• Alignment Level. the ability to align the project objectives and deliverables
with the organization’s strategy.
• implement the project strategy to add maximum business value to
the organization
Leadership quality
Visionary
Team Builder. Be fun to be with
Positive and Optimistic
Social Personality Traits. respectful; kind, courteous, and friendly;
honest and trustworthy; and ethical when dealing with people
Collaborative and Conflict Resolver
Effective Communicator, as this could take 90% Listening and showing
interest
• life-long learner
• Pro-integrity.
• Hands-on Skills.
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•
•
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Three Skills: Negotiation, Influencing, and
Problem Solving
Negotiation. Sponsor, team, manager, change mgt, vendors
Influencing. To do what you want them to do
Problem solving. identify , causes, alternative solutions,
select the best, execute and verify
summary
Project Management Business Documents and
Project Selection
1. meet legal, regulatory, or social requirements;
2. satisfy stakeholder requests or needs;
3. implement or change business or technological strategies;or
4. create, improve, or fix products, processes, or services.
• to create (1 project business case; and 2) project benefit
management plan
Option: What to Do?
• Provide alternative solution:do nothing, do minimum; do more than
the minimum. Or do A, b, c alternatives
• Recommendation: What Path to Take
• it includes constraints, dependencies, assumptions and risks, along
with the factors to be used to measure the project success
• the milestones, roles and responsibilities
• Evaluation: How to Measure the Benefits
• Describes the plan of how the benefits delivered by the project will
be measured throughout the project lifecycle.
Project Benefit Management Plan
• describes what, when, and how project benefits would be delivered and
how they would be measured:
1. What are the project’s target benefits and how well do they align with the
organization’s business strategy?
2. What is the benefit delivery timeframe; e.g., sort terms, ongoing, phase
by phase, or long term?
3. Who is the benefit owner to record, report, and monitor the benefits as
they materialize?
4. What are the metrics to tag or mark the realization and measurement of
each benefit?
5. What are the key assumptions and risks regarding the benefit
realizations?
Cash Flow (CF) and Discounted Cash Flow (DCF).
• cash flow refers to both the money coming in and the money going out of an
organization.
• Positive cash flow means more money is coming in than is going out. Cash inflow is
benefit (income), and cash outflow is cost (expenses).
• The discounted cash flow refers to the amount that someone is willing to pay today in
anticipation of receiving the cash flow in the future of R93 000.00 annually
• Opportunity Cost
• Opportunity cost refers to selecting one project over another due to the
• scarcity of resources. In other words, by spending this money on this project,
• you are passing on the opportunity to spend this money on another project.
• How big an opportunity are you missing? The smaller the opportunity cost,
• the better it is.
Common inputs, outputs, tools and
techniques
Inputs
Enterprise org factors
Org process assets
Project documents and
project management
plan
process
Tools and techniques
Expert judgement
Data gathering
Data analysis
Decision making
Data representation
Interpersonal and team skill
Meeting
P M information system
OUTPUT
Change request
Work performance data
Work performance
information
Work performance report
updates
• Choose a colleague to work with and a task that you both need to
complete, for example, how to get to class on Monday at 6.45 am.
Individually write down a short, five-point plan, outlining the
requirements for the chosen task and how you will complete it.
Compare your plans and discuss ways in which you can improve your
own plan based on the creativity of your colleague.