Question

Question 1.

A) What are some of the business and other developments that have increased the importance of effective project management? Why is the implementation of projects important to strategic planning in business organizations?

B) Describe a project selection approach that will prioritize projects by their contribution to the strategic plan. Why should an organization not rely only on financial criteria to select projects?

Answer 1

A) The importance or project management has increased because of the large businesses which works as per the client requests. Many large businesses like IT, Construction or Developmental would work on the basis of what client would want. As per the requests of the client, specified projects are then created by the company to make sure the employees are working as per the projects recieved and make sure the steategic goals that is being set by the clients for his projects are effectively achieved and delivered.

Implementation of the projects id important for the strategic planning and also for the project managers process because it helps in revealing new challenges and new issues that the project planners have not anticipated. These implementation jelpsnin resulting for mote refined strategies, goals, products and processes to achieve the best results possible for the project.

B) A project selection apporach that would help us select the project on the basis of contribution made to the strategic plan would be Cost benefit method. This is a quantifiable method which helps us in analysisng the benefits that a project would provide and the same benefits should be more than what costs are being invested in the same project. This would help us in selection of the project on the basis of what effective contributions are made for the strategic plan of profit maximisation. Higher the ratio of benefits to cost, higher would be the opportunity and rate of selection.

Only the financial criteria like ROI or cost benefit analysis is not used alone for the selection of the projects because they are not sufficient to ensure and contribute where the mission or strategy of the organisation is achieved well or not. For example, if the strategy of the firm is to maintain a higher goodwill, ROI would not only be essential. You would be requiring the qualitative aspects of the project selection like client's requests, or the affect in the market to make sure your strategy of the firm, the goals and the long term vision is well achieved with the project selection and objectives.