OM480

1
OM480

• Project Strategies
• Goal Setting
• (With Material from the Text Authors)

2
Overview

• Project Definition
• Goal Statements
• Resource Requirements
• Managing Requirement Conflict
• Managerial Commitment

3
Strategic Management Process
4
Strategy, Objectives and Project Linkages
5
Cause-and-Effect Worksheet Example
6
Project Definition

• Project Goal
• Envisioned future state of solving a known
  problem
• Specifications
• Time
• Cost
• Integration of people, time, money, activities,
  and skills

7
Goal Statements

• Statement of the desired future state involving
• End Users
• Questions about utility
• Upper Management
• Question relationship to corporate strategy
• Engineering Functions
• Questions on design/development of solution
• Business Functions
• Payback period, cost objectives, financial
  measures

8
Strategy, Objectives, and Project Linkages
9
Project Goal Life Cycle
FEEDBACK LOOPS
Develop Functional Specs
Verify Specs w/ Customer
Customer IDs Need
Ballpark Resource Estimates
Functional Specs to Design Specs
Design Specs to Engineer- ing Specs
FEEDBACK LOOPS
FEEDBACK LOOPS
Produce Field Prod/Svc
Develop Prototype
Stakeholder Feedback
FEEDBACK LOOPS
10
Strategic Management Process
2-1
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Financial Selection Criteria

• Payback Model
• Time to recover project investment
• Investment /Annual Net Savings PB
• Widely used
• Emphasis on Cash Flow
• Net Present Value (NPV)
• Desired rate of return
• (Est. Annual Cash Flow/Project Cost) X 100 RoR
• Compare RoR of project(s) to target

12
Project Screening Process
13
Project Screening Process
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Portfolio of Projects By Type
15
Project Screening Matrix
16
Selling Commitment

• Accept Multiple Realities
• Varying Impressions and Perceptions
• Develop Broadly Specific Goal(s)
• Enhances Buy-in
• Consensus over Compromise
• Customer trumps other Stakeholders
• Completely satisfy needs, profitably!

17
Resource Planning

• Establish realistic expectations
• People s, skills, authority
• Money buy the needs first
• Time plan backward, execute forward
• Budget factors
• Capital physical plant and machinery
• Expense payroll, travel, consumables
• Contingency 10-15 for Murphy

18
Conflicting Project Goals

• Market Conditions
• Windows of opportunity change
• Compatibility
• Conflicts between activities, goals, competing
  interests
• Politics
• Senior leader support (or lack thereof)
• Resource Availability
• Project prioritization/reallocation

19
Managing Conflict

• Influence
• Sell WIFM around goal
• Proaction
• Invite criticism
• Adjust and communicate
• Conflict Negotiation
• Separate people from issue
• Maintain balance
• Communicate

20
Project Priority System
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Rank Objectives
Analyze objective independently in three
dimensions
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Major Project Proposal
Date _______
Number _______
23
Risk Analysis
24
Project Portfolio Matrix