Executive Summary This summary addresses the project selections criteria and high-level process for managing this Tampa, Florida--based company’s proposed Strategic Business Units (SBUs). The most current report indicates this company’s current revenue to be $350 million annually, but the Operations SBU recognizes that more must be done to expand while controlling costs if this company is going to continue to grow. Currently, the company has several projects in the works, but the Operations SBU has recognized the need to establish a solid, company-wide portfolio management process if we are to meet and exceed the company’s vision; to become the cruise ship industry’s worldwide “provider of choice”. The memo proposal below would establish a company-wide project selection criterion for a proposed portfolio management process. Proposed Portfolio Process As indicated above, this company is in need of a formalized portfolio management process beginning with a standardized project selection process to aid senior management in determining the order in which projects should be selected. Project selection is crucial in today’s market as the downturn in today’s economic strata seems to be only making it ever increasingly challenging for today’s execs to remain on top. Selecting the right project at the right time is crucial if the company’s mission/vision and strategies are to be met. This project selection starts at the executive level of the parent company, once executives
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The first project proposal is Match My Doll Clothing line expansion consisted of expanding matching doll and child’s clothing and accessories. The second project proposal is Design Your Own Doll by creating customizable “one of a kind” doll features through the company’s website. The project selection criteria would base on quantitative and qualitative analysis. The quantitative analysis would base on the evaluation of discounting cash flow forecasts to determining the Net Present Value (NPV), Internal Rate of Return (IRR), and the Payback period of each proposed project. The qualitative analysis would include the potential project value of the company’s overall strategy, innovation, key project risks, and the project interdependencies to the whole company.
Develop a decision framework for project portfolio management at XYZ highlighting objectives, constraints, risks involved, alternatives, and information required for analysis.
* Management of the portfolio by means of a set of selection criteria for proposed projects, as well as reallocating, reprioritizing, and/or rescheduling current projects at various phases of the pipeline, (thus the portfolio and project management processes become interconnected, and the portfolio is constantly reevaluated).
Expert judgement is the primary tool used to bring the project together. From development of the project charter and development plan, to execution, monitoring and changing, and close of the project, expert skills and experience is used to manage and carry out the tasks to project completion. The project manager must use their expert judgement, with inputs from stakeholder interviews and the project management office to manage the project successfully.
The deliverable for Part 1 is a written proposal for the project selection criteria and a high level description of a proposed portfolio management process. You may also be expected to make an informal presentation of the report in class.
In the current business environment, the demand for project managers is ever growing. In short, project management is a provisional project constrained by time, cost and scope (A guide to the project management body of knowledge, 2013). Between the immense organization, optimization, and communication assets skilled project management brings to a project, it is easy to see why project management is a booming field of study. Furthermore, project management can be both financially and personally rewarding when long term milestones and goals come to fruition.
A company the size of the Global Infrastructure Group has many options when considering a project selection process. Any project taken on by the company must align with its goal and corporate strategy. Morris and Jamieson (2004) and Dey (2006) argue that project portfolio management is a “bridge between strategy and operation” and enables organizations to transform the organization's vision into realities or successfully implement their corporate strategies (Khalili-Damghani & Tavana, 2014). In project selection, the company’s senior managers must establish strategic intent. Strategic intent will contain the company’s objectives and should result in a strategy map. Goals should be clear, realistic and measurable. Goals should also have an end state e.g. President Kennedy established a goal of landing a man on the moon within a decade. The Global Infrastructure Group’s senior managers should be leading by establishing a clear strategy and obtainable goals to get all projects focused on meeting these goals by aligning to the organization’s strategy. Once strategy and goals are defined, those involved in the project selection process should consider how the proposed project will align with the goals and strategy. Factors they should consider
Portfolio management supports an organization’s mission and goals by ensuring the program is managed properly and the timing is on a set schedule. Portfolio management supports the accomplishments and the preferred outcomes. The tools and techniques involved assist with the efficiency and the effectiveness. The portfolio management supports in the organization utilizes the resources where they can be applied throughout the organization. Portfolio management assists with creating the operational needs throughout the period of the project. The portfolio management achieves with the vision, mission, and goals and even identify the risk. The time cost and all resources that would be required help identifying within the goals.
The PDQ project will take a detail process that will help launch the appropriate software technology along with existing processes in order to implement new cutting edge innovations. Although technology is not the only leverage for improving project management, modern technology is an important element (Kendall & Austin, 2013). Today, businesses depend on technology to produce more in less time and with minimal resources making modern technology a critical component to a successful business. In today’s high tech world, it is important to develop and execute effective project management strategies that will place the company at a competitive level. Companies must continue to work on projects that will drive their business to innovate and change for the better (Shenhar & Dvir, 2997).
Level 2: Structured Process and Standards – Project portfolio standards exist in the company but projects are not held to any structured standard. Although management is open to the idea of project portfolio management standards, nothing is done to make sure projects or portfolios adhere to any specific standards. Documentation of basic processes is kept but there is no overall consistent understanding or involvement in project portfolio management.
c After the acceptance of all stakeholders is achieved, actual growth begins and a project management methodology needs to be selected based on the major areas seeking improvement. A project tracking and monitoring system has to be in place for improved estimation of project life-cycle.
The process of deciding and which project should be priority based on business requirements and goals could be a very difficult decision. Since, every project in the company holds importance but because there is a budget which is funded the departments have to select those project priorities to maximize their budgets and fulfill business goals
First an IT portfolio should be created for each project to allow for projects to be reviewed and prioritized effectively.