Fluent Essays

Reflect on the assigned readings for Week 2 and then type a two page paper regarding what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding. Define and describe what you thought was worthy of your understanding in half a page, and then explain why you felt it was important, how you will use it, and/or how important it is in project management. After submitting your two page paper as an initial post in the Reflection and Discussion Forum, chapter_4._leadership_and_the_project_manager.pptx chapter_3._project_selection_and_portfolio_management.pptx Unformatted Attachment Preview Project Management: Achieving Competitive Advantage Fifth Edition Chapter 4 Leadership and the Project Manager Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Learning Objectives (1 of 2) 4.1 Understand how project management is a “leaderintensive” profession. 4.2 Distinguish between the role of a manager and the characteristics of a leader. 4.3 Understand the key behaviors in which project leaders engage to support their projects. 4.4 Recognize traits that are strongly linked to effective project leadership. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Learning Objectives (2 of 2) 4.5 Identify the key roles project champions play in project success. 4.6 Recognize the principles that typify the new project leadership. 4.7 Understand the development of project management professionalism in the discipline. 4.8 Recognize the important role ethics plays for successful project leadership. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved PMBoK Core Concepts Project Management Body of Knowledge (PMBoK) covered in this chapter includes: 1. Responsibilities and Competencies of the Project Manager (PMBoK 1.7.1) 2. Interpersonal Skills of the Project Manager (PMBoK 1.7.2) 3. Manage Project Team (PMBoK 9.4) 4. Project Communications Management (PMBoK 10) 5. Manage Stakeholder Engagement (PMBoK 13.3) Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Leadership “The ability to inspire confidence and support among the people who are needed to achieve organizational goals.” Project management is leader intensive! Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Leaders Versus Managers 1. Exchange of purpose 2. A right to say no 3. Joint accountability 4. Absolute honesty Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Figure 4.2 Differences Between Managers and Leaders Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved How the Project Manager Leads Project managers function as mini-CEOs and manage both “hard” technical details and “soft” people issues. Project managers: • acquire project resources • motivate and build teams • have a vision and fight fires • communicate Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Acquiring Resources Project are underfunded for a variety of reasons: • Vague goals • Lack of top management support • Requirements understated • Insufficient funds • Distrust between managers Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Purpose of Meetings 1. Define project and team players. 2. Provide an opportunity to revise, update, and add to knowledge base. 3. Assist team members in understanding role in project as part of whole and how to contribute to project success. 4. Help stakeholders increase commitment to project. 5. Provide a collective opportunity to discuss project. 6. Provide visibility for project manager’s role. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Communication (1 of 2) It is critical for a project manager to maintain strong contact with all stakeholders. Project meetings feature task-oriented and group maintenance behaviors. Table 4.1 Task and Group Maintenance Behaviors for Project Meetings Task-Oriented Behavior Specific Outcome 1. Structuring process Guide and sequence discussion 2. Stimulating communication Increase information exchange 3. Clarifying communication Increase comprehension 4. Summarizing Check on understanding and assess progress 5. Testing consensus Check on agreement Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Communication (2 of 2) Table 4.1 [continued] Group Maintenance Behavior Specific Outcome 1. Gatekeeping Increase and equalize participation 2. Harmonizing Reduce tension and hostility 3. Supporting Prevent withdrawal, encourage exchange 4. Setting standards Regulate behavior 5. Analyzing process Discover and resolve process problems Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Characteristics of an Effective Project Manager 1. Leads by example 2. Visionary 3. Technically competent 4. Decisive 5. A good communicator 6. A good motivator 7. Stands up to top management when necessary 8. Supports team members 9. Encourages new ideas Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Characteristics of Project Managers Who Are Not Leaders Personal Flaw Organizational Factors • Sets bad example • Lack of top management support • Not self-assured • Lacks technical expertise • Poor communicator • Poor motivator • Resistance to change • Inconsistent reward system • A reactive organization rather than a proactive, planning one • Lack of resources Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Leadership and Emotional Intelligence Emotional intelligence refers to leaders’ ability to understand that effective leadership is part of the emotional and relational transaction between subordinates and themselves. Five elements characterize emotional intelligence: • Self-awareness • Self-regulation • Motivation • Empathy • Social skills Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Traits of Effective Project Leaders One study on effective project leadership revealed these common characteristics: • Credibility • Creative problem-solver • Tolerance for ambiguity • Flexible management style • Effective communication skills Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Essential Project Management Abilities 1. Organizing under conflict 2. Experience 3. Decision making 4. Productive creativity 5. Organizing with cooperation 6. Cooperative leadership 7. Integrative thinking Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved What Are Project Champions? Champions are “fanatics” in the single-minded pursuit of their pet ideas. Champions can be: • creative originator • entrepreneur • “godfather” or sponsor • project manager Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Champion Roles Traditional Duties Nontraditional Duties • Technical understanding • Cheerleader • Visionary • Leadership • Politician • Coordination and control • Obtaining resources • Risk-taker • Ambassador • Administrative Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Creating Project Champions • Identify and encourage their emergence. • Encourage and reward risk takers. • Remember the emotional connection. • Free champions from traditional project management duties. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved New Project Leadership Four competencies determine a project leader’s success: 1. Understand and practice the power of appreciation. 2. Remind people what’s important. 3. Generate and sustain trust. 4. Align with the leader. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Right Management Choices in International Setting 1. Develop a detailed understanding of the environment. 2. Do not stereotype. 3. Be genuinely interested in cultural differences. 4. Do not assume there is one way (yours) to communicate. 5. Listen actively and empathetically. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Project Management Professionalism • Project work is becoming the standard for many organizations. • There is a critical need to upgrade the skills of current project workers. • Project managers and support personnel need dedicated career paths. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Creating Project Managers • Match personalities with project work. • Formalize commitment to project work with training programs. • Develop a unique reward system. • Identify a distinct career path. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved PMI Code of Ethics The Project Management Institute’s code of ethics for project managers consists of: 1. Responsibility 2. Respect 3. Fairness 4. Honesty Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Normative Versus Behavioral Ethics e • Normative ethics: What will a person or organization do in a given situation? • Behavioral ethics: Why do people behave the way they do in the workplace? Table 4.5 Normative Ethics and Project Manager Behaviors Orientation Category Project Manager’s Responsibility Process Deontological ethics explains the rules, maxims, norms, and principles to govern conduct. Moral obligations concerning justice and fairness. Social contract theories. Make sure processes are just, fair, and reasonable and do not violate human rights. Outcome Consequentialism defines right conduct in terms of the alternative likely to produce the best overall outcome for the stakeholders. Maximize the overall value for the stakeholders. Character Virtue ethics focuses on the moral virtues of honesty, integrity, fairness, courage, care, and how they are developed and nurtured. Exhibit exemplary personal conduct that serves as a model for others of how to act. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Unethical Behaviors Corruption is the abuse of entrusted power for private gain. • Petty corruption: everyday abuse of power by low-level officials with ordinary citizens. • Grand corruption: committed by relevant institutions such as governments, corporations, or legal bodies. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Types of Corruption Common types of corruption include: 1. Bribery 2. Extortion 3. Fraud 4. Abuse of Power 5. Embezzlement 6. Conflict of Interest 7. Nepotism Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Summary (1 of 2) 1. Understand how project management is a “leaderintensive” profession. 2. Distinguish between the role of a manager and the characteristics of a leader. 3. Understand the key behaviors in which project leaders engage to support their projects. 4. Recognize traits that are strongly linked to effective project leadership. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Summary (2 of 2) 5. Identify the key roles project champions play in project success. 6. Recognize the principles that typify the new project leadership. 7. Understand the development of project management professionalism in the discipline. 8. Recognize the important role ethics plays for successful project leadership. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Copyright Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Project Management: Achieving Competitive Advantage Fifth Edition Chapter 3 Project Selection and Portfolio Management Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Learning Objectives 3.1 Explain six criteria for a useful project selection/screening model. 3.2 Understand how to employ a variety of screening and selection models to select projects. 3.3 Learn how to use financial concepts, such as the efficient frontier and risk/return models. 3.4 Identify the elements in the project portfolio selection process and discuss how they work in a logical sequence to maximize a portfolio. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved PMBOK Core Concepts Project Management Body of Knowledge (PMBoK) covered in this chapter includes: • Portfolio Management (PMBoK 1.4.2) Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Project Selection Screening models help managers pick winners from a pool of projects. Screening models are numeric or nonnumeric and should have: • Realism • Capability • Flexibility • Ease of use • Cost effectiveness • Comparability Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Screening and Selection Issues (1 of 2) 1. Risk—unpredictability to the firm a. Technical b. Financial c. Safety d. Quality e. Legal exposure 2. Commercial—market potential a. Expected return on investment b. Payback period c. Potential market share d. Long-term market dominance e. Initial cash outlay f. Ability to generate future business/new markets Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Screening and Selection Issues (2 of 2) 3. Internal operating—changes in firm operations a. Need to develop/train employees b. Change in workforce size or composition c. Change in physical environment d. Change in manufacturing or service operations 4. Additional a. Patent protection b. Impact on company’s image c. Strategic fit All models only partially reflect reality and have both objective and subjective factors imbedded. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Approaches to Project Screening • Checklist model • Simplified scoring models • Analytic hierarchy process • Profile models Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Checklist Model A checklist is a list of criteria applied to possible projects. • Requires agreement on criteria • Assumes all criteria are equally important Checklists are valuable for recording opinions and stimulating discussion. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Simplified Scoring Models Each project receives a score that is the weighted sum of its grade on a list of criteria. Scoring models require: • agreement on criteria • agreement on weights for criteria • a score assigned for each criteria Score =  (Weight  Score) Relative scores can be misleading! Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Analytic Hierarchy Process The AHP is a four step process: 1. Construct a hierarchy of criteria and subcriteria. 2. Allocate weights to criteria. 3. Assign numerical values to evaluation dimensions. 4. Determine scores by summing the products of numeric evaluations and weights. Unlike the simple scoring model, these scores can be compared! Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Figure 3.1 Sample AHP with Rankings for Salient Selection Criteria Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Figure 3.4 Profile Model Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Financial Models • Payback period • Net present value • Discounted payback period • Internal rate of return Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Payback Period Determines how long it takes for a project to reach a breakeven point. Investment Payback Period = Annual Cash Savings Cash flows should be discounted. Lower numbers are better (faster payback). Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Payback Period Example (1 of 3) Table 3.5 Initial Outlay and Projected Revenues for Two Project Options Blank Project A Revenues Project A Outlays Project B Revenues Project B Outlays Year 0 Blank $500,000 Blank $500,000 Year 1 $50,000 Blank $75,000 Blank Year 2 150,000 Blank 100,000 Blank Year 3 350,000 Blank 150,000 Blank Year 4 600,000 Blank 150,000 Blank Year 5 500,000 Blank 900,000 Blank Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Payback Period Example (2 of 3) Table 3.6 Comparison of Payback for Projects A and B Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Payback Period Example (3 of 3) Table 3.6 [continued] Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Net Present Value Projects the change in the firm’s value if a project is undertaken. Ft NPV = Io +  (1+ r + pt )t Where Ft = net cash flow for period t r = required rate of return I = initial cash investment pt = inflation rate during period t Higher NPV values are better! Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Net Present Value Example Table 3.8 Discounted Cash Flows and NPV (I) Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Table 3.9 Discounted Payback Method Year Project Cash Flow* Discounted Undiscounted 1 $8,900 $10,000 2 7,900 10,000 3 7,000 10,000 4 6,200 10,000 5 5,500 10,000 Payback Period 4 Years 3 Years *Cash flows rounded to the nearest $100. Discount sum of cash flows by the company’s required rate of return to get a more accurate payback period. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Internal Rate of Return A project must meet a minimum rate of return before it is worthy of consideration. t ACFt IO =  t ( 1 + IRR ) n =1 Higher IRR values are better! where ACFt = annual after tax cash flow for time period t IO = initial cash outlay n = project’s expected life IRR = the project’s internal rate of return Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Internal Rate of Return Example This table has been calculated using a discount rate of 15\%. Year Discount Factor Inflows Discount Factor at 15\% Discount Factor NPV 1 $2,500 .870 $2,175 2 2,000 .756 1,512 3 2,000 .658 1,316 Present value of inflows Blank Blank 5,003 Cash investment Blank Blank 5,000 Difference Blank Blank $3 The project does meet our 15\% requirement and should be considered further. Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Project Portfolio Management The systematic process of selecting, supporting, and managing the firm’s collection of projects. Portfolio management objectives and initiatives require: • decision making • prioritization • review • realignment • reprioritization of a firm’s projects Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved The Portfolio Selection Process The portfolio selection process is an integrated framework of interrelated steps and activities. • Preprocess Phase – Methodology of selection and strategy • Process Phase – Prescreening, individual project analysis, screening, portfolio selection, and portfolio adjustment • Postprocess Phase – Project development, project evaluation, and portfolio completion Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Figure 3.8 Project Portfolio Selection Process Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Developing a Proactive Portfolio The project portfolio matrix classifies projects into four types according to commercial potential and technical feasibility: • Bread and butter • Pearls • Oysters • White elephant Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Figure 3.9 Project Portfolio Matrix Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Keys to Successful Project Portfolio Management • Flexible structure and freedom of communication • Low-cost environmental scanning • Time-paced transition Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Problems in Implementing Portfolio Management • Conservative technical communities • Out-of-sync projects and portfolios • Unpromising projects • Scarce resources Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved Summary 1. Explain six criteria for a useful project selection/screening model. 2. Understand how to employ a variety of screening and ... Purchase answer to see full attachment