Deck 2: Project Selection and Prioritization

Question 1

The organization's leadership should establish guiding principles such as the vision and mission for an organization before developing strategic objectives.

Answer 1

True

Question 2

While there is a wide variety of projects across organizations,the degree of formality used in selecting them is largely uniform.

Answer 2

False

Question 3

Portfolio management aligns with organizational strategies by selecting the right projects,prioritizing work,and providing needed resources.

Answer 3

True

Question 4

Scoring models are most useful when there are multiple projects and several criteria to consider.

Question 5

Strategic analysis is an important first step in setting strategic direction.

Question 6

A portfolio is a collection of projects,programs,subportfolios,and operations managed as a group to achieve strategic business objectives.

Question 7

The vision should present a positive,inspiring and vivid description of the organization as it currently exists.

Question 8

The degree of formality used in selecting projects varies widely across organizations.

Question 9

Projects tend to be the primary method for implementing many objectives.

Question 10

The prioritization of projects in a portfolio should consider whether the demands of performing each project are clearly understood.

Question 11

None of the financial project selection models ensure alignment of the project with an organization's strategic goals.

Question 12

The internal part of strategic analysis considers opportunities and threats posed by competitors,suppliers and regulatory agencies among others.

Question 13

Strategic analysis is often called SWOT - Start With Objectives Template (SWOT).

Question 14

The organization's leadership should establish the strategic objectives to set the stage for the strategic analysis.

Question 15

A project portfolio is a useful storage medium that enables the project manager to consolidate all project information in a single,convenient location.

Question 16

Strategic analysis is often called SWOT - Strengths,Weaknesses,Opportunities and Threats (SWOT).

Question 17

Strategic objectives describe both long and short term results that are desired,along with measures to determine their achievement.

Question 18

Strategic objectives should focus decisions regarding which projects to select and how to prioritize them.

Question 19

If an organization does not have the right capabilities,a project may be too difficult to complete successfully.

Question 20

Payback period models do not consider the amount of profit that may be realized after the costs are paid.

Question 21

All of the following represent appropriate sources to identify new potential projects EXCEPT:

A) existing and potential customers
B) the operations staff within the organization
C) industry and trade journals
D) lessons learned from previous projects

Question 22

Scoring models are very useful in providing input regarding the starting order of projects.

Question 23

All of the following statements concerning project portfolios are true EXCEPT:

A) The projects in a portfolio are grouped to be managed collectively.
B) Portfolios cannot include operations and programs.
C) Portfolios usually include a mix of high-risk and low-risk projects.
D) All projects in a portfolio contribute to the organization's goals.

Question 24

There are times that certain projects must be selected regardless of any considerations such as strategic fit,profitability or probability of success.

Question 25

The document that describes why the project is needed,and may include estimated costs and benefits,is called a:

A) program management plan
B) business case
C) SWOT analysis
D) guiding principle

Question 26

Which of the following responses most accurately depicts the correct sequence of activities in the strategic planning process?

A) strategic objectives - strategic analysis - guiding principles - flow-down objectives
B) guiding principles - strategic analysis - strategic objectives - flow-down objectives
C) strategic analysis - guiding principles - strategic objectives - flow-down objectives
D) guiding principles - strategic objectives - flow-down objectives - strategic analysis

Question 27

Which of the following statements best describes the contemporary use of financial models and scoring models for project selection?

A) These methods are often used together to ensure financial and non-financial factors are both considered.
B) Financial methods are preferred because they ensure alignment with the organization's strategic goals.
C) Scoring models are unreliable because they fail to consider financial factors.
D) One of these techniques is typically used to the exclusion of the other,due to time demands.

Question 28

Many writers have stated that effective objectives should be:

A) broad - to cover many dimensions of the business
B) measurable - to track progress
C) unachievable - to inspire maximum performance
D) resource based - to focus on the inputs

Question 29

Traditional financial models are most useful when there are multiple projects and several criteria to consider.

Question 30

Which of the following statements concerning strategic analysis is true?

A) Strategic analysis focuses exclusively upon external analysis.
B) External analysis focuses on the strengths and weaknesses of the organization.
C) Internal analysis focuses on the threats and opportunities facing the organization.
D) External analysis focuses on the threats and opportunities facing the organization.

Question 31

When a firm prepares to submit a proposal,it is really conducting a small project with the primary deliverable of the project being a compelling and complete proposal.

Question 32

A clear and compelling vision will have all the following characteristics EXCEPT:

A) often requires extra effort to achieve.
B) often requires several years to achieve.
C) provides detailed roadmap for managing a project
D) helps stakeholders to understand the direction of the firm.

Question 33

When a client company decides to engage an external contractor to perform project work,it must be prepared to submit a proposal and prepare a bid.

Question 34

In addition to considering financial factors,project selection should often consider how well each project fits with the organization's strategic planning.

Question 35

Which of the following statements correctly describes a weakness associated with the financial project selection model?

A) The benefit-to-cost models favor projects which generate the smallest absolute return over a specified period.
B) Payback period models do not consider the profit to be realized after the costs are paid.
C) The Net Present Value (NPV)method does not consider the time value of money.
D) The Internal Rate of Return (IRR)method is difficult to use when a project has conventional cash flows.

Question 36

All of the following factors should be assessed to determine an organization's ability to perform projects EXCEPT:

A) Does the organization have free and open communication,creativity,and empowered decision making?
B) Does the organization have a clearly defined project management process?
C) Do teams and individuals follow instructions well?
D) Does the organization monitor and understand it's external environment?

Question 37

Project selection scoring models are very useful in providing performance data that can be used to terminate a project.

Question 38

All of the following factors influence the opportunities and threats an organization must consider when performing a strategic analysis EXCEPT:

A) competitors
B) suppliers
C) regulatory agencies
D) employees

Question 39

Portfolios deal with all of an organization's projects,while programs deal with:

A) ongoing operations
B) a specific group of related projects
C) resource availability
D) tradeoffs between schedule,scope and quality

Question 40

Portfolio management helps an organization achieve its strategic goals in all of the following ways EXCEPT:

A) managing ongoing projects
B) providing needed resources
C) selecting the right projects
D) prioritizing work to be done

Question 41

Figure 2-1 Project Selection and Prioritization Matrix

Based on the information provided in Figure 2-1,which criterion is most important to the leadership team?

A) strategic fit
B) risk
C) market potential
D) probability of success

Question 42

Describe the advantages and limitations of scoring models in project selection.

Question 43

Once selected projects have been prioritized,it is time to assign resources to projects based on their order of priority.Resources could include all of the following EXCEPT:

A) subject matter experts
B) equipment
C) quality metrics
D) money

Question 44

All of the following may be negotiated between a client company and a contractor EXCEPT:

A) the amount of money to be paid.
B) quality standards
C) selection criteria for scoring models
D) personnel assignments

Question 45

Figure 2-1 Project Selection and Prioritization Matrix

Based on the information provided in Figure 2-1,which project has the highest probability of success?

A) Project A
B) Project B
C) Project C
D) Project D

Question 46

Which of the following is NOT a typical source selection criterion that an organization would use to evaluate potential contractors?

A) life cycle cost
B) references
C) personalities
D) technical approach

Question 47

All of the following criteria serve as a valid basis for identifying potential projects in most organizations EXCEPT:

A) social need
B) environmental considerations
C) technological advances
D) internal politics

Question 48

All of the following organizations can effectively use a scoring model to select and prioritize competing projects EXCEPT:

A) the leadership team
B) client companies
C) contractor companies
D) program management office

Question 49

Describe the relationship between the strategic planning process and portfolio management in an organization.

Question 50

Describe the advantages and limitations of financial models in project selection.

Question 51

Figure 2-1 Project Selection and Prioritization Matrix

Based on the information provided in Figure 2-1,which project is least attractive based on the strategic fit?

A) Project A
B) Project B
C) Project C
D) Project D

Question 52

Figure 2-1 Project Selection and Prioritization Matrix

Consider the information provided in Figure 2-1.Based on the results in the project selection and prioritization matrix,which project would you select if you were limited to selecting only one project?

A) Project A
B) Project B
C) Project C
D) Project D