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1、EthemanagerialprocessStudentVersionEOrganizationStrategyandProiectSelectionWhyProjectManagersNeedtoUnderstandtheStrategicManagementProcess*ChangesintheorganizationsmissionandstrategyProjectmanagersmustrespondtochangeswithappropriatedecisionsaboutfutureprojectsandadiustmentstocurrentprojects.Projecti
2、nanagerswhounderstandtheiorganizationsstrategycanbecomeeffectiveadvocatesofprojectsalignedwiththefirmsmission,ProjectsandStrategy*Mistakescausedbynotunderstandingtheroleofprojectsinaccomplishingstrategy:一Focusingonproblemsorsolutionswithlowstrategicpriority一Focusingontheimnmediatecustomerratherthant
3、hewholemarketplaceandvaluechain.一Overemphasizingtechnologythatresultsinprojectsthatpursueexotictechnologyhatdoesnot仲thestrategyorcustomerneed一Tryingtsoyecusiomerissuesithaproductorservicaratherthanfocusingonthe20%with80%ofthevalue(ParetosLaw)一Engaginginanever-endingsearchforperlectiononytheprojectte
4、amreallycaresaboutTheStrategicManagementProcess:AnOverview“StrategicManagement一Requireseveryprojecttobeclearlylinkedtostrategy.Providesthemeandfocusoffirmsfuturedirection.*Respondingtochangesintheexternalenvironment一enyironmentalscanning*Alloctingscarcafesourcesafthefrmtoimprovitscompetitveposition一
5、internalresponsestonewprograms一Requiresstronglinksamongmission,goals,objectives,strategy,andimplementation.ProjectPortfolioManagementProblems*TheImplementationGap-Thelackofunderstandingandconsensusonstrategyamongtopmanagementandmiddle-level(functionall)managerswhoindependentlyimplementthestrategy.*O
6、rganizationPoliticsProjectselectionisbasedonthepersuasivenessandpowerofpeopleadyccatingthepraject*ResourceConflictsandMuliitasking一Multiprojectenvironmentcreatesinterdependencyrelationshipsofsharedresourceswhichresultsinthestarting,stopping,andrestartingprojects.APortfolioManagementSystem*Designofap
7、rojectportfoliosystem:-Classificationofaproject一Selectioncriteriadependinguponclassification一Sourcesofproposals-Evaluatingproposals一Manacingtheporifalioofprojacis.APortfolioManagementSystem“SelectionCriteria-Financial:payback,netpresentvalue(NPV),internalrateofreturn(IRR)-Nont-financial:projectsofst
8、rategicimportancetothefrmt*MulttWeightedScoringModels一Usesevsialweightedselectioncritsriaioevalusteprojectproposals-FinancialModels*ThePaybackModel一Measuresthetimetheprojectwilltaketorecovertheprojectinvestment.Usesmoredesirableshorterpaybacks.Emphasizescashflows,akeyfactorinbusiness.“LimitationsofP
9、ayback:lgncrestneimevalueofmoney.Assumescashinflowsfortheinvestmentperiod(andnotbeyond).一Doesnotconsiderprofitability.NonfinancialStrategicCriteria*Tocapturelargermarketshare*Tomakeitdifficultforcompetitorstoenterthemarket*Todevelopanenablerproductwhichbyitsintroductionwillincreasesalesinmoreprofita
10、bleproducts*Todevelopcoretechnologythatwillbeusedinnext-generationproducts*Toreducedependency.onunreliablesupplisrs*TopreventgovernmentinterventionandregulationMulttCriteriaSelectioE*ChecklistModelUsesalistofquestionstoreviewpotentialprojectsandtodeterminetheiracceptanceorrejection.-Failstoanswertherelativeimportanceorvalueofapotentialprojectanddoesnttoallowforcomparisonwithotherpotentialprojects.*Mult+WeightedScaringModeUsesseveralweightedqualitativeand/orquantitativesSelectioncriteriatoevaluateprojectproposals.Allowsforcomparisonofprojectswithotherpotentialprojects
