strategic relevance
Determines whether the project should be done and requires that the desired future state established in the project concept definition is aligned with, coordinated with, or in support of the organizational strategic objectives set by senior leadership.
operational relevance
A project responsibility that requires that the desired future state described in the project concept definition is aligned with, coordinated with, or in support of the operational priorities authorized by tactical management for the stated management horizon.
project requirement
a statement that defines the functionality that a project is designed to accommodate and how the functionality will be achieved and satisfied by the solution
business requirement
defines why the project is being conducted
functional requirement
refer to what the project will accomplish
technical requirement
detail how the project will meet the business and functional requirements
project selection
the act of choosing a project from among competing proposals
project selection criteria
the standards and measurements an organization uses to select and prioritize projects
project selection methods
systematic approaches that decision makers use to analyze the value of a proposed project
decision model(s)
provide a framework for comparing competing project proposals by helping decision makers compare the benefits of one project with another
Benefit Measurement Models
Analyze the predicted value of the completed projects in different ways. Four common methods are:Cost-benefit analysisScoring ModelsPayback periodEconomic Models
Discounted Cash Flow (DCF)
Compares the value of the future cash flows of the project to today's dollars.
Net Present Value (NPV)
the sum of the present values of expected future cash flows from an investment, minus the cost of that investment
payback period
the amount of time required for an investment to generate cash flows sufficient to recover its initial cost
internal rate of return
the discount rate at which the net present value of an investment project is zero; the rate of return of a project over its useful life
decision tree
a scoring and rating system in which selection criteria are arranged along branches of a tree flowchart. The project is evaluated against criterion #1 on branch #1. If it meets the criterion, it is evaluated against criterion #2 on branch #2, and so on. If the project fails to meet any one criterion, it is removed from consideration.
criteria profiling
A decision model that is used to evaluate and score alternatives on each criterion. In this model, the project continues to be considered even if it fails to meet some of the criteria. At the end of consideration, the project is scored on the number of criteria met. The project is compared to other projects under consideration
weighted factor
different factors are weighted and factored into evaluation scoring; for example, a project might get one point for meeting a low-priority criterion and three points for meeting a high-priority criterion.
Q-sorting
a measurement scale employing a sophisticated form of rank ordering using card sorts
Delphi-technique
A decision-making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader.
feasibility analysis
determine whether a project is doable and likely to succeed
First-time, first-use penalty
Any disadvantage or obstacle created by the fact that a project will generate an outcome that has never been created before, and consequently nobody within the organization has any experience with the operation of the new capability
cost-benefit analysis
presents a project's estimated costs alongside its predicted benefits to help decision makers make informed decisions about project selection
statement of work (SOW)
a document that describes the products or services that the project will supply, defines the business need that it is designed to meet, and specifies the work that will be done during the project
business case
a document that justifies the investments made for a project and describes how a particular investment is in accordance with the organization's policy
high-level scope definition
This describes the project objectives, high-level deliverables, high-level resource requirements, high-level risks, and the reason for the project.
(Σ values of future cash flows) - initial investment
NPV= ?
project charter
a document that formally launches and authorizes a new project, or authorizes an existing project to continue to the next phase.
stakeholder analysis
the formal process of gathering and analyzing quantitative and qualitative information to identify and all the stakeholders of a project
stakeholder register
A document that includes details related to the identified project stakeholders
stakeholder management strategy
Created to ensure maximum support and minimize the negative impacts of stakeholders throughout the project life cycle
stakeholder analysis matrix
document listing project stakeholders and describes their interests and the ways in which they influence the project