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Read “Suburban Homes Construction Project” at the end of Chapters 2 and 3 (in the textbook). Then select a “project selection model to maintain a balanced portfolio;” after which, submit your model as an initial post and explain in that post why you chose the model you did. In-text citation and the reference page is very important. Maintain the APA format.Please find the attached file of chapter 2 &3 from “Kloppenborg, T., Ananatatmula, V., Wells, K. (2019). Contemporary Project Management, 4th ed. ”
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CHAPTER
2
Project Selection and Prioritization
CHAPTER OBJECTIVES
After completing this
chapter, you should
be able to:
Explain in your own
words the strategic
planning and portfolio
management
processes.
Describe how to
select, prioritize, and
resource projects
as an outgrowth of
strategic planning.
From a contractor s
viewpoint, describe
how to secure
projects.
TECHNICAL OBJECTIVES:
Compare the
strengths and weaknesses of using
financial and scoring
models to select
projects.
Given organizational
priorities and several
projects, demonstrate
how to select and
prioritize projects
using a scoring
model.
BEHAVIORAL OBJECTIVES:
Explain the strengths
an organization might
possess that could
improve its ability to
perform projects.
Monkey Business Images/Shutterstock.com
CORE OBJECTIVES:
With the development of a new five-year strategic plan, significant financial growth,
and a major reorganization, Living Arrangements for the Developmentally Disabled
(LADD) found itself overwhelmed with tasks and at a point that required the thoughtful selection and prioritization of projects. Prior strategic plans were largely dictated
by the former executive director, created in a silo of sorts. It was through the introduction of a new executive director to LADD and complete new leadership at the
management level that an opportunity presented itself for new, cross-department
collaboration, innovative methods to carry out established practices, and the ability
to identify and draw on the strengths of the individual members of the team.
LADD is a medium-sized nonprofit corporation that is mission focused and
considered a leader in the field of supporting individuals with developmental disabilities. Its efforts reach beyond day-to-day functions and extend in large part to
awareness, advocacy, and action. With the sponsorship of a national film festival
focused on disabilities and its work in the civic and government sectors at local
and national levels, LADD has been able to influence positive change in legislation and the inclusion of people with disabilities at all levels of society.
32
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
PMBOK ® 6E COVERAGE
PMBOK ® 6E
OUTPUTS
1.2 Foundational Elements
Elevator Pitch
Selecting Projects
Project Selection and Prioritization Matrix
Project Resource Assignment Matrix
PMBOK® GUIDE
Topics:
1.2 Foundational
Elements
Selecting Projects
CHAPTER OUTPUTS
Elevator Pitch
Project Selection and
Prioritization Matrix
Project Resource
Assignment Matrix
Project selection and prioritization were exactly what LADD needed because
they were trying to maintain pace with a large program and revenue growth
curve, new leadership at the helm, and federal changes in the way services
were to be delivered to those with developmental disabilities. Projects from the
strategic plan were scored based on established value sets that included criteria
such as if the project met the mission, was financially feasible, or strengthened
personal or community relationships.
LADD s strategic plan contains 32 primary goals and many more objectives.
The project selection and prioritization process was a key tool to build a framework that would inspire agency success over the next five years. It is also
anticipated to be a method to reduce program competition and increase understanding within the management team as occasions for team development
and departmental collaboration occur. In the end, each step of the process
will lead the agency to achieve its vision of propelling the inclusion and success of people with disabilities forward with a positive impact throughout the
community.
Amy Harpenau, Vice President, Living Arrangements
for the Developmentally Disabled.
2-1 Strategic Planning Process
One of the tasks of a company s senior leadership is to set the firm s strategic direction.
Some of this direction setting occurs when an organization is young or is being
revamped, but some needs to occur repeatedly. Exhibit 2.1 depicts the steps in strategic
planning and how portfolio management should be an integral part.
2-1a Strategic Analysis
The first part of setting strategic direction is to analyze both the external and internal
environments and determine how they will enhance or limit the organization s ability
to perform. This strategic analysis is often called strengths, weaknesses, opportunities,
and threats (SWOT). The internal analysis (elements within the project team s control)
consists of asking what strengths and weaknesses the organization possesses. The external analysis (elements over which the project team has little or no control) consists of
asking what opportunities and threats are posed by competitors, suppliers, customers,
regulatory agencies, technologies, and so on. The leaders of an organization often need
to be humble and open to ideas that are unpleasant and contradictory to their beliefs
when conducting this analysis. Performed correctly, a strategic analysis can be very illuminating and can suggest direction for an organization. An example of SWOT analysis
33
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
34
Part 1 Organizing Projects
EXHIBIT 2.1
STRATEGIC PLANNING AND PORTFOLIO ALIGNMENT
for the Built Green Home at Suncadia is shown in Exhibit 2.2. The Built Green Home at
Suncadia, Washington, was developed using advanced sustainability concepts and a large
degree of stakeholder involvement.
2-1b Guiding Principles
Once the SWOT analysis is complete, the organization s leadership should establish
guiding principles such as the vision and mission. Some organizations break this step
into more parts by adding separate statements concerning purpose and/or values.
Often, these sections are included in the mission. For simplicity s sake, they will be treated as part of the mission in this book. It is more important to understand the intent of
each portion and achieve it rather than worry about the exact format or names of individual portions.
VISION
The vision is a one-sentence statement describing the clear and inspirational
long-term, desired change resulting from an organization or program s work.1 A clear
and compelling vision will help all members and all stakeholders of an organization
understand and desire to achieve it. Visions often require extra effort to achieve but are
considered to be worth the effort. Visions are often multiyear goals that, once achieved,
suggest the need for a new vision.
One of the visions most often cited, because it was so clear and compelling, was President John F. Kennedy s goal of placing a man on the moon before the end of the 1960s.
Kennedy set this goal after Russia launched Sputnik and the United States found itself
behind in the space race. His vision was very effective in mobilizing people to achieve
it; further, it rapidly transformed a huge suburban area near Houston into a developed
and sustainable economic and technology zone.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 2 Project Selection and Prioritization
35
EXHIBIT 2.2
SWOT ANALYSIS FOR THE BUILT GREEN HOME AT SUNCADIA
STRENGTHS
WEAKNESSES
Green building has a buzz
Green building has not reached mainstream
Seattle has a strong green building community
support
Limited project resources community Distance
away from Seattle Green building is perceived
to be costly
Strong community support
Growth in green building projects that demonstrate value
High cost of green projects
Need to provide numbers on green building value
Committed developer and builder
OPPORTUNITIES
THREATS
Uniqueness of product
Location
Existing thinking on green building and its
niche focus
Community surrounding house
Building schedule
Lack of data on green building (wealth) value
Community (location)
Rumors
Source: Brenda Nunes, developer, Built Green Home at Suncadia.
A more recent example was in 2009 when hundreds of community leaders in Cleveland, Ohio, decided to use a systems approach to guide many interrelated social and economic efforts in their region. The vision they stated is, Cleveland and other cities
throughout Northeast Ohio should be green cities on a blue lake. 2 They continue to
use this vision to guide regional leaders as they choose where to invest their time and
resources in bettering the region and life for its residents. They also are currently planning their 2019 Sustainable Cleveland Summit.3
Increasingly, companies are incorporating the triple bottom line into their vision
statements. This approach emphasizes the social, environmental, and economic health
of the company s stakeholders rather than a narrow emphasis only on the economic
return for shareholders. This stated desire to be a good corporate citizen with a longterm view of the world can motivate efforts that achieve both economic return for shareholders and other positive benefits for many other stakeholders.
MISSION STATEMENT The vision should lead into the mission statement, which is
a way to accomplish the vision. The mission statement includes the organization s core
purpose, core values, beliefs, culture, primary business, and primary customers. 3 Several
of these sections may flow together in the mission statement and, sometimes, an overall
statement is formed with expanded definitions of portions for illustration. The rationale
for including each section (either as one unified statement or as separate statements) is
as follows:
By including the organization s purpose, the mission statement communicates why
the organization exists.
By including the organization s core values, a mission statement communicates how
decisions will be made and the way people will be treated. True organizational
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
36
Part 1 Organizing Projects
EXHIBIT 2.3
CINCINNATI CHILDREN S HOSPITAL MEDICAL CENTER VISION AND MISSION
Cincinnati Children’s Hospital Medical Center will be the leader
in improving child health.
Cincinnati Children’s will improve child health and transform delivery of care
through fully integrated, globally recognized research, education, and
innovation. For patients from our community, the nation and the world,
the care we provide will achieve the best:
• Medical and quality of life
• Patient and family
and

today and in the future.
Source: Cincinnati Children s Hospital Medical Center, http://www.cincinnatichildrens.org/about/mission/, accessed
January 9, 2017.
values describe deeply held views concerning how everyone should act especially
when adhering to those values is difficult.
By including beliefs, a mission statement communicates the ideals for which its leaders and members are expected to stand. Beliefs are deeply held and slow to change,
so it is quite useful to recognize them, as they can either help or hinder an organization s attempt to achieve its vision.
By including the organization s culture, the mission statement instructs and expects
members to act in the desired manner.
By including the primary business areas, everyone will know in what business the
organization wishes to engage.
By identifying the primary customers, everyone will understand which groups of
people need to be satisfied and who is counting on the organization. The mission
needs to be specific enough in describing the business areas and customers to set
direction, but not so specific that the organization lacks imagination.
An example of a vision and mission statement from Cincinnati Children s Hospital
Medical Center is shown in Exhibit 2.3.
2-1c Strategic Objectives
With the strategic analysis, mission, and vision in place, leaders turn to setting strategic
objectives, which should be the means of achieving the mission and vision. For most
organizations, this strategic alignment of objective setting occurs annually, but some
organizations may review objectives and make minor revisions at three- or six-month
intervals. While the planning is normally performed annually, many of the strategic
objectives identified will take well over one year to achieve. The objectives describe both
short- and long-term results that are desired, along with measures to determine achievement. Organizations that embrace a triple bottom line in their guiding values will have
objectives promoting each bottom line, and projects that are selected will contribute
toward each. These objectives should provide focus on decisions regarding which
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 2 Project Selection and Prioritization
37
EXHIBIT 2.4
INTERNET SOCIETY STRATEGIC OBJECTIVES FOR 2012 2014 PLANNING CYCLE
1.
2.
3.
4.
Facilitate and promote policy environments that enable the continued evolution of an open and trusted Internet.
Increase the global relevance of collaborative, bottom-up, technical, consensus-based, open standards development.
Strengthen Internet Society leadership in Internet Development.
Build the visibility and influence of the Internet Society as the trusted source on global Internet issues.
Source: http://www.internetsociety.org/who-we-are/organization-reports-and-policies/internet-society-2015-action-plan, accessed February 7, 2017.
projects to select and how to prioritize them, since they are an expression of the organizational focus. Many writers have stated that for objectives to be effective, they should be
SMART that is, specific, measurable, achievable, results based, and time specific. 4 An
example of strategic objectives from The Internet Society is shown in Exhibit 2.4.
2-1d Flow-Down Objectives
Once an organization s strategic objectives are identified, they must be enforced. Some
objectives may be implemented by work in ongoing operations. However, projects tend
to be the primary method for implementing many objectives. If the organization is relatively small, leaders may proceed directly to selecting projects at this point. Larger organizations may elect a different route. If the organization is so large that it is impractical
for the overall leaders to make all project selection decisions, they might delegate those
decisions to various divisions or functions with the stipulation that the decisions should
be aligned with the organization s strategic planning that has taken place to this point.
Regardless of whether the organization is small and the top leaders make all project
selection decisions or whether the organization is large and some of the decisions are
cascaded one or more levels down, several methods of project selection may be used.
2-2 Portfolio Management
Companies that use a strategic project selection process to carefully align projects with
their organizational goals will find they tend to be more successful at completing their projects and deriving the expected benefits from them. Portfolio management is the centralized management of one or more portfolios to achieve strategic objectives.5 The goal of
portfolio management is to achieve the maximum benefit toward the strategic goals of
the company. To accomplish this, executives need to identify, select, prioritize, resource,
and govern an appropriate portfolio of projects and other work. 6 Governing will be covered in Chapter 14, and all other portfolio management topics will be covered here. Project
success at these companies is measured by how much the project contributes to the organization s objectives (business needs) as well as the traditional measures of staying within
budget and schedule and achieving the specific technical goals promised at the start of the
project to obtain a desired return on investment.
For ease of understanding how various work is related, many organizations utilize an
approach of classifying portfolios, programs, projects, and subprojects. Not all companies
use all four classifications, but understanding how they are related helps one see where
any particular portion of work fits in the organization.
PORTFOLIO EXAMPLE We are a major national health insurance company. Our
planning approach starts with creating an inventory of project initiatives, which has
been identified by the key business areas. We separate the projects into foundational pillars
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
38
Part 1 Organizing Projects
EXHIBIT 2.5
2017 PROJECT & ROADMAP PLANNING
Carry Over –
121 Projects
23
New Business
64
Care4U
9
Claims
6
Consumer Exp.
3
Finance, Billing and Enroll.
10
Provider
6
Reg/Complince
Dashboard
Initial Draft
Complete
Dashboard
Initial Draft
Complete
Backlog –
75 Projects
n/a
New Business
37
Care4U
9
Claims
3
Consumer Exp.
11
Finance, Billing and Enroll.
13
Provider
2
Reg/Complince
Dashboard
In Progress
Dashboard
In Progress
Dashboard
Not Started
Source: Mark Heitkamp, PMP, MBA and appear after the words business area
(operation functions) and develop roadmaps of activities going out six quarters (18
months) as can be seen in Exhibit 2.5. Priority and timing of business need determine
which quarter(s) the project initiatives are developed and implemented. The roadmaps
also include smaller activities called capabilities that are integrated with the project activities. Each of these foundational pillars aligns with the supporting agile sprint teams and
the backlog of activities gets translated into stories within the sprints. A key role is the
Product Owner who represents the business area and determines which activities (stories)
go into each sprint. There is one Product Owner for each pillar and they are at a Director
level within the organization. The product owne …
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