CH02_Project Management W2025

Mission

The reason the organization exists.

Strategy

How the organization plans to achieve its mission.

Project Priority System

A process needed for prioritizing projects by their contribution to the strategic plan.

Implementation Gap

The disconnect between top and middle-level managers which leads to projects being implemented that are not in line with strategic objectives.

Sacred Cow

A project that is advocated by a powerful, high-ranking official.

SMARK Objectives

Specific, Measurable, Assignable, Realistic, Time related objectives.

Phase Gate Model

A series of gates that a project must pass through to be completed, ensuring investment in worthwhile projects.

Net Present Value (NPV)

A method that uses management’s minimum desired rate of return to compute the present value of all net cash inflows.

Payback Model

Measures the time the project will take to recover the project investment.

Checklist Models

Use a list of questions to review potential projects and determine their acceptance or rejection.

Multi-Weighted Scoring Models

Evaluate project proposals using several weighted selection criteria.

Bread-and-butter projects

Involve evolutionary improvements to current products and services; low risk, modest commercial value.

Oysters

Involve technological breakthroughs with tremendous commercial potential; high risk and high value.

Pearls

Represent revolutionary commercial advances using proven technology; low risk but more costly.

White elephants

Projects that showed promise at one time but are no longer viable.

Project Screening Process

Evaluates proposals for balance and assigns project managers to develop detailed implementation plans.