Class 2 Wrap UpSummary of this ClassImportant Tools and ConceptsStrategic Planning ProcessProject Screening ProcessProject Selection ToolsCapital Budgeting CriteriaPreference (Project Screening) MatrixSensitivity AnalysisPortfolio of Projects by TypeProject Portfolio MatrixDesigning the Organization for Project SuccessNetwork Structures may prove more effective than the Matrix for YOUR organizationWhatever structures, processes, or rules you establish, they will likely not work well unless your culture supports project managementYou should work to maintain a favorable Organizational CultureOM 651 SMAC IdeasThings to Think AboutPlanning-time managementClass 2 Wrap UpOM 651Strategy & Organizational Design01/14/19St. Joseph's College OM 651 Dr. Coty Keller2Summary of this ClassImportant Concepts and ToolsSMAC ideasThings to think about01/14/19St. Joseph's College OM 651 Dr. Coty Keller3Important Tools and ConceptsStrategic planning Project selection processProject selection toolsOrganizational design–Matrix structure–Network Structure–Culture01/14/19St. Joseph's College OM 651 Dr. Coty Keller4Strategic Planning Process01/14/19St. Joseph's College OM 651 Dr. Coty Keller5Project Screening ProcessFIGURE 2.501/14/19St. Joseph's College OM 651 Dr. Coty Keller6Project Selection ToolsCapital BudgetingPreference (Project Screening) MatrixPortfolios of Projects by Type Project Portfolio Matrix01/14/19St. Joseph's College OM 651 Dr. Coty Keller7Capital Budgeting CriteriaPayback –popular because of simplicity, but limitedIRR – easy concept to understand (return on investment)Net Present Value – good model of shareholder wealth01/14/19St. Joseph's College OM 651 Dr. Coty Keller8Preference (Project Screening) MatrixFIGURE 2.301/14/19St. Joseph's College OM 651 Dr. Coty Keller9Sensitivity AnalysisEstimates and assumptions in capital budgeting models are all uncertainCriteria weights and score for alternatives in preference matrix represent subjective judgmentsRisk assessment tool: Use sensitivity analysis to challenge your assumptions and see if decision is sensitive to reasonable change in estimates.01/14/19St. Joseph's College OM 651 Dr. Coty Keller10Portfolio of Projects by TypeFIGURE 2.201/14/19St. Joseph's College OM 651 Dr. Coty Keller11Project Portfolio MatrixFIGURE 2.701/14/19St. Joseph's College OM 651 Dr. Coty Keller12Designing the Organization for Project SuccessStructure options–Matrix–NetworkProcess is what matters most–Project selection as part of strategic planning–Project executionCulture01/14/19St. Joseph's College OM 651 Dr. Coty Keller13Network Structures may prove more effective than the Matrix for YOUR organization FIGURE 3.501/14/19St. Joseph's College OM 651 Dr. Coty Keller14Whatever structures, processes, or rules you establish, they will likely not work well unless your culture supports project managementFIGURE 3.901/14/19St. Joseph's College OM 651 Dr. Coty Keller15You should work to maintain a favorable Organizational CultureFIGURE A3.101/14/19St. Joseph's College OM 651 Dr. Coty Keller16OM 651 SMAC IdeasDevelop a decision-making protocol for selecting projects at your jobDevelop a project management organization and culture for your firm, or recommend changes to the existing organization/cultureOthers: see the SMAC section of the course outline01/14/19St. Joseph's College OM 651 Dr. Coty Keller17Things to Think AboutPossible exam questions•Describe the strategic planning process at your job – the process, not the strategy itself. If your workplace doesn’t have a long-range planning process, then you should create one yourself. Take care to explain how projects fit into the strategic planning process. Use specific examples. •Show how discounted cash flow analysis was used to decide about a real-life project on our job. Critique the analysis using what you learned in this course. If no one EVER used DCFA at your workplace, create a DCFA example that you could use to show your peers the value of the tool. –What sorts of structures and processes are in place in your organization to facilitate successful completion of projects? Critique them and make suggestions for improvements. Take care to use specific examples.01/14/19St. Joseph's College OM 651 Dr. Coty Keller18Planning-time managementYou can start researching and writing your exam responses now while the concepts and tools are fresh in your mindGo to the exam section of the course material area for detailsBegin linking your organization’s processes to the concepts and tools of the
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