hector gaming company case study

3655 Words Aug 21st, 2014 15 Pages
Chapter 2
Organization Strategy AND Project SELECTION

Chapter Outline

1. The strategic management process: An overview
2. Why project managers need to understand organization strategy
3. Four activities of the strategic management process
4. The need for an effective project portfolio management system
Problem 1: The Implementation gap
Problem 2: Organizational politics
Problem 3: Resource conflicts and multitasking
5. A portfolio management system
A. Classification of the project
B. Selection criteria
C. Non-financial criteria
6. Applying a selection model
7. Sources and solicitation of project proposals
8. Ranking proposals and selection of projects
A. Managing the portfolio System
B. Balancing the portfolio
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6. Describe an operative system that will prioritize projects by their contribution to the strategic plan. How does this system assist in allocating organizational resources and avoiding overcommitment of resources? How does your system differ from the case study model?

A generic project priority system might include the following activities:
A. assessing the relative importance of organization objectives
B. developing criteria for selecting projects based on the project’s contribution to the organization’s objectives (value added)
C. prioritizing projects based on these criteria (and a balance of risk) using a weighting scheme
D. allocating resources to these selected projects
E. monitoring projects and use of organization resources

7. Why should an organization not rely only on ROI to select projects?

Financial criteria, like ROI alone, will not ensure that selected projects contribute to the mission and strategy of a firm. Other considerations such as developing new technology, public image, brand loyalty, ethical position, and maintaining core competencies should be considered. Furthermore, it is difficult or next to impossible to assess ROI for many important projects (e,g., Y2K projects). While ROI is likely to be a key consideration for many organizations, multiple screening criteria are recommended for selecting and prioritizing projects.

Exercises

1. You manage a hotel resort located on the

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