Deck 2: Organization Strategy and Project Selection

Question 1

Objectives should be specific, marketable, assignable, realistic, and time related.

Answer 1

False

Question 2

Mission statements typically change frequently, responding to changes in the external environment.

Answer 2

False

Question 3

If a proposed project does not meet one of the designated "must" objectives it should be immediately removed from consideration.

Answer 3

True

Question 4

Project management historically has been preoccupied solely with the planning and execution of projects while strategy was under the purview of senior management.

Question 5

Opportunities and threats can be viewed as flip sides of each other; that is, a threat can be viewed as an opportunity, and vice versa.

Question 6

Studies have shown that companies using predominantly financial criteria to prioritize projects yield unbalanced portfolios and projects that aren't strategically aligned.

Question 7

Strategy is implemented through projects.

Question 8

The assessment of the external and internal environments is called the SWOT analysis.

Question 9

The information gap refers to the lack of understanding and consensus of organization strategy among top and middle-level managers.

Question 10

Many organizations have three different kinds of projects in their portfolio: compliance, operational, and sacred cows.

Question 11

One benefit of project portfolio management is that it can justify killing a project that doesn't support organization strategy.

Question 12

The first step in the Strategic Management Process is to set long-range goals and objectives.

Question 13

One way to offset the influence of politics on project management within an organization is to have a well-defined project selection model.

Question 14

The NPV financial model measures the time it will take to recover the project investment.

Question 15

Project managers should not engage in organizational politics.

Question 16

Strategy formulation ends with cascading objectives or projects assigned to lower divisions, departments, or individuals.

Question 17

Intermittent and infrequent scanning of the external environment is required when managing organization strategy.

Question 18

A written mission statement provides focus for decision making when shared by organizational managers and employees.

Question 19

Organizational objectives set targets for all levels of the organization not just for top management.

Question 20

Generally, people working on several projects at the same time are more efficient than people working full-time on one project.

Question 21

Multi-weighted scoring models include only quantitative criteria, not qualitative.

Question 22

Which of the following is NOT one of the characteristics of effective objectives?

A) Realistic
B) Assignable
C) Flexible
D) Specific
E) Measurable

Question 23

A project selection process that is strongly linked to strategy results in

A) the most profit.
B) better utilization of the organization's resources.
C) more projects.
D) a larger and more diverse organization.
E) stronger core competencies.

Question 24

Which of the following is NOT true for strategic management?

A) It should be done once every few years just before developing the operating plan.
B) It supports consistency of action at every level of the organization.
C) It develops an integrated and coordinated long-term plan of action.
D) It positions the firm to meet the needs of its customers.
E) It involves responding to changes in the external market and allocating scarce resources to improve a competitive position.

Question 25

Which of the following would be classified as an organizational opportunity?

A) Low debt
B) Excellent employees
C) Increasing product demand
D) Talented management
E) Government regulation

Question 26

Which of the following problems refers to lack of understanding and consensus of organization strategy among top and middle-level managers? This also can result when top management formulates strategy and leaves implementation to functional managers.

A) Multitasking
B) Organization politics
C) Implementation gap
D) Resource conflicts
E) Employee turnover

Question 27

Which of the following is the correct order for the strategic management process?

A) Strategies, mission, objectives, projects
B) Objectives, projects, mission, strategies
C) Mission, strategies, objectives, projects
D) Objectives, mission, strategies, projects
E) Projects, mission, strategies, objectives

Question 28

Which of the following questions does the organization's mission statement answer?

A) What are our long-term strategies?
B) What are our long-term goals and objectives?
C) How do we operate in the existing environment?
D) What do we want to become?
E) All of these are answered by the mission statement.

Question 29

Why do project managers need to understand their organization's mission and strategy?

A) To reduce project duration and increase the number of projects implemented
B) So they can make appropriate decisions and adjustments and be effective project advocates
C) It is only important for senior management to understand the organization's mission and strategy
D) To get their job done and increase opportunities for promotion
E) So that they can make sure the customer is satisfied

Question 30

Restricting project proposals within an organization may lead to missed opportunities.

Question 31

A proposed project that ranks high on most criteria may not be selected because the organization's portfolio already includes too many projects with the same characteristics.

Question 32

Which of the following would be classified as an organizational external threat?

A) Slowing of the economy
B) Excellent employees
C) Poor product quality
D) Declining facilities
E) High labor costs

Question 33

In order to formulate strategies that align with the mission, some of the activities the organization will need to perform are

A) assess internal strengths and weaknesses.
B) analyze competitors.
C) examine the external environment.
D) know their core competencies.
E) All of these should be considered when formulating strategies.

Question 34

The assessment of the external and internal environments is called _______ analysis.

A) SWOT
B) Competitive
C) Industry
D) Market
E) Strategic

Question 35

Which of the following is NOT one of the traditional components found in mission statements?

A) Major products and services
B) Profitability
C) Target customers and markets
D) Geographic domain
E) Contribution to society

Question 36

All of the following are symptoms of organizations struggling with strategy disconnect and unclear priorities EXCEPT

A) frequent conflicts between managers.
B) inadequate resources.
C) confused employees regarding which projects are more important.
D) not enough projects within the portfolio to make a profit.
E) people are working on multiple projects and feel inefficient.

Question 37

Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating?

A) Sacred cow
B) Pet project
C) Political necessity
D) Special undertaking
E) Strategic ploy

Question 38

Project managers who understand the role that their project plays in accomplishing the organization's strategy will be inclined to do all of the following EXCEPT

A) demonstrate to senior management how their project contributes to the firm's mission.
B) explain to team members why certain project objectives and priorities are critical.
C) explain to stakeholders why certain project objectives and priorities are critical.
D) be able to respond appropriately to delays and / or questions about product design.
E) be able to focus on problems or solutions if the project is a low priority strategically.

Question 39

Which of the following is NOT one of the requirements for successful implementation of strategies through projects?

A) Allocation of resources
B) Prioritizing of projects
C) Motivation of project contributors
D) Adequate planning and control systems
E) Quality management

Question 40

Which of the following is NOT true about organizational politics?

A) Project managers should not engage in organizational politics.
B) Politics can have a significant influence on which projects receive funding.
C) Politics exist in every organization.
D) Politics can influence project selection.
E) Politics can play a role in the aspirations behind projects.

Question 41

A project screening matrix typically contains all of the following EXCEPT

A) the list of available projects.
B) specific criteria.
C) weights assigned to specific criteria.
D) costs to complete each project.
E) All of these are typically contained.

Question 42

Examples of nonfinancial criteria include all of the following EXCEPT

A) capturing a larger market share.
B) reducing dependency on unreliable suppliers.
C) preventing government intervention and regulation.
D) making it difficult for competitors to enter the market.
E) calculating the time it will take to recover the project investment.

Question 43

Regardless of the criteria differences among different types of projects, typically the most important criterion for project selection is

A) how the project will balance risk within the project portfolio.
B) the project's fit to the organization strategy.
C) compliance.
D) nonfinancial.
E) profit.

Question 44

Project selection criteria are typically classified as

A) financial and nonfinancial.
B) short-term and long-term.
C) strategic and tactical.
D) required and optional.
E) cost and schedule.

Question 45

One who endorses and lends political support for the completion of a specific project is known as the

A) Project manager.
B) CEO.
C) Project sponsor.
D) Project lead.
E) Sacred cow.

Question 46

The following are responsibilities of the governance team when managing a portfolio system EXCEPT

A) deciding how organizational resources are allocated among the different types of projects.
B) publishing the priority of every project and ensuring the process is open and free of power politics.
C) evaluating the progress of the projects in the portfolio.
D) constant scanning of the external environment to determine if organizational selection criteria need to be changed.
E) communicating which projects are approved.

Question 47

People within an organization working on multiple efforts concurrently is an indicator of

A) completely allocated staff.
B) shrewd scheduling.
C) optimized processes.
D) project prioritization
E) too many projects taken on at once.

Question 48

When creating a selection model, it is important to

A) make it mathematically complex so it cannot be "gamed".
B) not use it as the final determination for project selection.
C) assure the objectivity of the model.
D) make certain the units used in the model are not inconsistent.
E) keep it secret from those submitting project proposals.

Question 49

Project Priority Systems can resolve

A) lack of consensus and understanding among top and middle managers.
B) internal political issues.
C) over-sharing of resources.
D) what to do next.
E) All of the these alternatives are correct.

Question 50

Which of the following is true of multi-weighted scoring models?

A) Will include quantitative criteria.
B) Will include qualitative criteria.
C) Each criterion is assigned a weight.
D) Projects with higher scores are considered more desirable.
E) All of these are true.

Question 51

The __________ financial model measures the current value of all cash inflows using management's minimum desired rate of return.

A) CABB
B) ARR
C) IRS
D) IRB
E) None of these alternatives are correct

Question 52

When a prioritization team is balancing projects, they consider all factors except for

A) Risk.
B) Resource demand.
C) Leadership style.
D) Type of project.
E) All of these alternatives are correct.

Question 53

Typically, a project sponsor is

A) instrumental in approving a project.
B) key to support a project to its' completion.
C) a lower-level staff member.
D) key to support a project to its' completion and a lower-level staff member.
E) instrumental in approving a project and key to support a project to its' completion.

Question 54

Projects are usually classified into all but one of the following categories. Which one is NOT one of the typical classifications?

A) Compliance and emergency
B) Operational
C) Strategic
D) Political necessity
E) All of these are typical classifications.

Question 55

Which of the following is NOT true when managing a portfolio system?

A) The qualities of a particular project are assessed within the context of existing projects.
B) It does not require a constant effort.
C) Within a small organization it can be managed by a small group of key employees.
D) It requires input from senior management.
E) It involves monitoring and adjusting criteria to reflect the strategic focus of the organization.

Question 56

When it comes to project prioritization, senior management is responsible for

A) setting the course for the organization.
B) directing the organization to a strong future position.
C) determining the priority of each project.
D) developing a culture where everyone contributes to the goals of the organization.
E) All of the these choices are correct.

Question 57

An operational project is one that

A) must be completed.
B) supports an organizations' long-run mission.
C) can improve organizational performance.
D) is completed to meet regulatory compliance.
E) always is extremely relevant to the strategic vision of the organization.

Question 58

Which of the following is NOT a problem associated with the absence of a project portfolio system?

A) Organizational politics
B) Lack of funding
C) Resource conflicts
D) Multitasking
E) Implementation gap

Question 59

A SWOT analysis provides the Project Manager with

A) a direct linkage to goals.
B) an identifiable strategic alternative.
C) potential critical issues facing the organization.
D) an identifiable strategic alternative and potential critical issues facing the organization.
E) a direct linkage to goals and an identifiable strategic alternative.

Question 60

Jack's organization has many projects ongoing concurrently. He finds himself starting and stopping work on one task to go and work on another task, and then return to the work on the original task. Jack is experiencing

A) poor scheduling.
B) excess work burden.
C) flexible tasking.
D) multitasking.
E) burnout.

Question 61

What the organization wants to become and the scope of the firm in terms of its product or service would be identified in the organization's ____________.

A) values
B) mission statement
C) lessons learned
D) goals
E) objectives

Question 62

Project proposals are employed when _____and are used to make ______decisions.

A) a project idea is considered worthwhile, project selection
B) a project concept fails to get acceptance, project cost estimation
C) a high-level organization official wishes to submit a proposal, project scheduling
D) a project concept fails to gain acceptance, project cost and scheduling
E) a high-level organization official wishes to submit a proposal, project cost and scheduling

Question 63

The management system that spans the lifetime of the project is called the ____.

A) lifetime cycle model
B) project lifetime model
C) phase gate model
D) lifetime phase exit model
E) lifetime model

Question 64

In a SWOT analysis, strong competition, reduced product demand, and a maturing product life cycle are examples of external __________.

A) weaknesses
B) opportunities
C) threats
D) targets
E) strengths

Question 65

If a preliminary proposal is approved, then ____.

A) the project is funded and execution begins
B) a project manager and staff are assigned to develop a more comprehensive implementation plan
C) the project is funded and formal detailed planning begins
D) the project is funded or shelved awaiting funding
E) the project is allocated limited resources

Question 66

High-ranking managers who endorse and lend political support for the completion of a specific project are known as project _________.

A) managers
B) leaders
C) politicians
D) sponsors
E) executives

Question 67

Three possible outcomes emanate from each gate. They are ____.

A) continue, kill, enhance
B) reduce scope, kill, increase scope
C) proceed, cancel, or revise and submit
D) encourage, discourage, pass
E) allocate resources, reduce resources, cancel

Question 68

A project that a powerful, high-ranking official is advocating is often termed a(n) ___________.

A) Bread-and-butter project
B) Sacred cow
C) Pearl
D) Oyster
E) White elephant

Question 69

How strategies will be realized, given available resources, is answered through __________.

A) projects
B) resource allocation
C) implementation
D) frameworks
E) strategy formulation

Question 70

The assessment of the internal and external environments is known as a(n) ________.

A) SWOT analysis
B) PDSA wheel
C) Constraint-based reasoning
D) Internal / external assessment
E) Forecasting

Question 71

A weighted scoring model typically uses several weighted selection criteria to evaluate project proposals. An example of this would be a(n) ____________.

A) project screening matrix
B) selection criterion
C) weighted score
D) score multiplication
E) project proposal

Question 72

At each gate a(n) _______ is made.

A) assessment
B) evaluation
C) analysis
D) decision
E) judgement

Question 73

________ translate the organization's strategy into specific, concrete, and measurable terms.

A) Vision statements
B) Mission statements
C) Lessons learned
D) Goals
E) Objectives

Question 74

________ change infrequently and may require revision only when the nature of the business changes or shifts.

A) Vision statements
B) Mission statements
C) Lessons learned
D) Goals
E) Objectives

Question 75

In a SWOT analysis, good product quality, low debt, and an established supplier network are examples of internal ________.

A) weaknesses
B) opportunities
C) threats
D) targets
E) strengths

Question 76

The first part of the management system that spans the lifetime of the project is called the ____.

A) project selection process
B) project exit process
C) project phase exit
D) project kill process
E) project gate process

Question 77

The purpose of the management system that spans the lifetime of any project is _____.

A) ensure the project stays within budget
B) ensure the project remains on schedule
C) ensure the project stays within both budget and schedule
D) ensure the project is worthwhile and is contributing to the goals and strategy of the organization
E) All of these alternatives are correct

Question 78

Strategy is implemented through ________.

A) portfolios
B) products
C) projects
D) policies
E) people

Question 79

The process of assessing "what we are" and deciding and implementing "what we intend to be and how we are going to get there" is ______________.

A) strategic management
B) vision and mission setting
C) reflection and inquiry
D) goal and objective clarity
E) mission assessment

Question 80

The strategic activity that focuses on what needs to be accomplished is

A) review and define the organizational mission.
B) reflection and inquiry into the organization's history of past projects.
C) analyze and formulate strategies.
D) set objectives to achieve strategy.
E) implement strategies through projects.