The day-to-day processes the project manager relies upon to ensure that all parts of the project work together. Show Project Integration Management identifying and managing the points of interaction between various elements of a project. it involves determining the strength and weaknesses of an organization, studying the opportunities and threats of the business environment, predicting future trends, and projecting the need for new products and services. - focusing on broad organizational needs: need, funds, will. - categorizing information technology projects: a problem, an opportunity, or a directive. - performing net present value or other financial analyses: NPV, ROI, Payback analysis. - using a weighted scoring model. - implementing a balanced scorecard. Methods for selecting projects a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. calculated by subtracting the project costs from the benefits and then dividing by the costs. (total discounted benefits - total discounted costs) / discounted costs ROI (Return on Investment) A technique that provides a systematic process for selecting projects based on numerous criteria A methodology that converts an organization's value drivers such as customer service, innovation, operational efficiency, and financial performance to a series of defined metrics. 1. Developing the project charter. 2. Developing the projectmanagement plan. 3. Directing and managing projectwork. 4. Monitoring and controlling project work. 5. Performing integrated change control. 6. Closing theproject or phase. Project Integration Management Processes a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management. - A project statement of work. - A business case. - Agreements. - Enterprise environmental factors. - Organizational process assets . Inputs for developing project charter Formal and informal plans, policies, procedures, guidelines,information systems, financial systems management systems lessons learned, and historical information that can influence a project's success. Organizational Process Assets a document used to coordinate all projectplanning documents and help guide a project’s execution and control - Introduction or overview of the project. - Description of how the project is organized. - Management and technical processes used on the project. - Work to be done, schedule, and budget information. Common Elements of a Project Management Plan The majority of time and money of the project is usually spent on it. - Expert judgment - Meetings - Project management information systems Project Execution Tools and Techniques the approved project management plan plusapproved changes - Influencing the factors that create changes to ensure that changes are beneficial. - Determining that, a change has occurred. - Managing actual changes as they occur. Integrated Change Control main objectives A formal, documented process thatdescribes when and how official project documents and work may be changed. (Describes who is authorized to make changes and how to make them) A formal group of people responsible for approving or rejecting changes on a project. ensures that the descriptions of the project’s products are correct and complete tools track the execution of business process flows Business Service Management (BSM) Process: Develop Project Charter Output: Project Management Plan Process: Develope Project Management Plan Outputs: deliverables, work performance data, change requests, project management plan updates, project documents updates. Process: Direct and Manage Project Work Outputs: change requests, project management plan updates, project documents updates. Process: Monitor and Control Project Work Outputs: approved change requests, change log, project management plan updates, project documents updates. Process: Perform Integrated Change Control Outputs: final product, service, or result transition; organizational process assets updates. Process: Close Project or Phase What is a balanced scorecard (BSC)?The balanced scorecard is a management system aimed at translating an organization's strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization's strategic goals are met. A key premise of the balanced scorecard approach is that the financial accounting metrics companies traditionally follow to monitor their strategic goals are insufficient to keep companies on track. Financial results shed light on what has happened in the past, not on where the business is or should be headed. The balanced scorecard system aims to provide a more comprehensive view to stakeholders by complementing financial measures with additional metrics that gauge performance in areas such as customer satisfaction and product innovation. The business performance management framework was laid out in a 1992 paper published in the Harvard Business Review by Robert S. Kaplan and David P. Norton, who are widely credited with having developed the balanced scorecard system. Here is how Kaplan and Norton began their 1992 paper: What you measure is what you get. Senior executives understand that their organization's measurement system strongly affects the behavior of managers and employees. Executives also understand that traditional financial accounting measures, like return on investment and earnings per share, can give misleading signals for continuous improvement and innovation -- activities today's competitive environment demands. The traditional financial performance measures worked well for industrial age companies, but they are out of step with the skills and competencies companies are trying to master today. What are the four balanced scorecard perspectives?The balanced scorecard approach examines performance from four perspectives.
Why use the balanced scorecard?Kaplan and Norton cited two main advantages to the four-pronged balanced scorecard approach.
"Even the best objective can be achieved badly," the authors stated in their 1992 treatise. Faster time to market, for example, can be achieved by improving the management of new product introductions. It can also be accomplished, however, by making products that are only incrementally different from the existing ones, thus diminishing the company's competitive advantage in the market long term. What are examples of a balanced scorecard?In their 1993 paper, Putting the Balanced Scorecard to Work, Kaplan and Norton offered examples of how several companies applied the balanced scorecard, including Rockwater, an underwater engineering firm listed as a wholly-owned subsidiary of Brown & Root/Halliburton; Advanced Micro Devices; and Apple. The Apple case study is especially interesting in retrospect. According to the authors, Apple (then known as Apple Computer) developed a balanced scorecard to expand the focus of senior management beyond metrics such as gross margin, return on equity and market share. A small steering committee, versed in the strategic thinking of executive management, chose to include all four scorecard categories and develop measurements within each category.
Among the highlights of Apple's balanced scorecard planning are the following:
Apple also included shareholder value as a key performance indicator (KPI), even though this measure is a result, not a driver of strategic performance, Kaplan and Norton wrote. Apple intended its emphasis on shareholder value to offset the previous emphasis on such short-term metrics as gross margin and sales growth, with a focus on investments that could impact future performance. Apple included shareholder value as a key performance indicator in the balanced score approach the company developed.Elements of a balanced scorecardIn their 1993 paper, Kaplan and Norton offered guidance on how to build a balanced scorecard. The process they discussed applies to business units and describes what they refer to as "a typical project profile" for developing balanced scorecards. In brief, here are the eight actionable steps they list.
History of the balanced scorecardKaplan and Norton stressed that the balanced scorecard is not a template to be applied to businesses in general or even industrywide. Businesses must devise customized scorecards to fit their different market situations, product strategies and competitive pressures. Neither should the balanced scorecard approach be viewed strictly as a performance measurement system. Rather, it is a strategic management system that will "clarify, simplify and then operationalize the vision at the top of the organization," Kaplan and Norton wrote. How a company's mission statement and vision are operationalized to create value is up to the employees. "The measures are designed to pull people toward the overall vision," Kaplan and Nolan wrote. "Senior managers may know what the end result should be, but they cannot tell employees exactly how to achieve that result, if only because the conditions in which employees operate are constantly changing." In the mid-1990s, the scorecard was modified to strengthen the link between performance measures and strategic objectives using a "strategy map." In the late 1990s, the design approach was again tweaked to include the vision or destination statement -- a statement of what "strategic success" or the "strategic end state" would look like. Criticism of the balanced scorecard method includes charges that Kaplan and Norton failed to cite earlier research on this method and complaints about technical flaws in its methods and designs. Others have noted that the four perspectives do not reflect important aspects of nonprofit organizations and government agencies -- for example, social dimensions, human resource elements and political issues. The balanced scorecard approach to management gained popularity worldwide following the 1996 release of Kaplan and Norton's text, The Balanced Scorecard: Translating Strategy into Action. Kaplan subsequently published another book on the subject, called The Balanced Scorecard: You Can't Drive a Car Solely Relying on a Rear View Mirror. A 2013 brief by Bain & Company, "Management Tools & Trends 2013," lists the balanced scorecard as the fifth most used strategic management tool globally.
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