Description
Valuable business skills from a leading project management expert To make the leap from average to superior, you must develop the skills to manage each project like a small business. The Business-Savvy Project Manager thoroughly explains key concepts, principles, and tools for project managers to provide organizations with superior return-oninvestment and top performance. From portfolio management and strategic alignment to calculation of economic metrics and effective use of both financial and nonfinancial criteria in project proposals, it gives you the business savvy for top-level performance and certain career success. McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide Introduction Permissions Part One Building Foundational Knowledge Chapter 1 Project Management as a Business Function A Few Revelations as We Begin… The Landscape of Project Management Is Changing How Expectations of Projects Are Changing How Expectations of Project Managers Are Changing How the Definition of Project Success Is Changing Some Other Significant Changes Adopting a Total Asset Life Cycle Focus So…How Are Projects Connected to the “Bottom Line,” Anyway? Chapter 2 The Core of Business Knowledge: Finance and Accounting Finance: The Basics What Is Financial Management? How Are Projects Financed? The Weighted Average Cost of Capital The Cash Management Cycle Accounting: The Basics What is GAAP? Measuring Financial Health: The Balance Sheet Measuring Profit: The Income Statement Measuring the Way Money Moves: The Cash Flow Statement Making Sense of Financial Statements by Using Ratio Analysis Financial Accounting versus Managerial Accounting Chapter 3 Fundamentals of Organizational Management What Is Organizational Management? Historical Perspectives Sound Organizational Management through Sound Organizational Planning Elements of Strategic Planning Primary Competitive Strategy Situation Analysis Elements of Tactical Planning Competitive Advantage Structural Design Elements of Operational Planning Overarching Linkages in Organizational Planning Information Management Configuration Business Process Management The Value Chain of Business Functions How Organizations Improve their Business Processes Chapter 4 Cost Management in Organizations Organizational Budgeting and Control The Basic Process of Budgeting The Master Budget Relating the Master Budget to Projects The Responsibility Center: Concept and Practice About Cost Accounting Systems Fixed Costs, Variable Costs, and Mixed Costs Costs Related to Management and Operations Costs Related to Quality Management Costs Related to Buying and Selling Costs Related to Project Economics Part Two Applying Sound Business Practices at the Enterprise Level Chapter 5 Project Portfolio Management, Phase I: Identifying the “Right” Business Initiatives About the Process of Capital Budgeting Project Portfolio Management: Moving in the Direction of Business The Benefits of Using a Project Portfolio Management Approach Guiding Principles of the Project Portfolio Management Approach The Basic Building Blocks of the Project Portfolio Management Processes Project Portfolio Management: A Three-Phase Process Project Portfolio Management: Step by Step Phase I: Identifying, Quantifying, and Financing the Right Business Initiatives The Start of Portfolio Development: Identifying Long-Range Goals Identifying Quantified Business Initiatives (Strategic and Operational) Establishing a Project Financing Strategy How Can You Be Sure You Have a Sound Approach to Identifying the “Right” Initiatives? The Biggest Challenge in Identifying the “Right” Initiatives: Knowing When to Stop Chapter 6 Project Portfolio Management, Phase II: Identifying, Categorizing, and Prioritizing Project Solutions Identifying Solutions to Address Business Initiatives Introduction to the Alternative Identification and Analysis Process Alternative Identification and Analysis: Step by Step Configuring the Portfolio Categories Prioritizing Projects within Portfolio Categories: Why and How An Overview of the Attribute Scoring Methodology Putting It All Together: The Weighted Factor Scoring Matrix Chapter 7 Project Portfolio Management, Phase III: Selecting, Launching, and Coordinating Projects The Project Listing Process: A Review Selecting the Best Projects and Constructing the Final Portfolio Listing Understanding the Difference between Justification, Selection, and Authorization Avoiding the “Selected, but Not Justified” Syndrome Applying Project Screening Techniques Guidelines for Administering an Effective Project Prioritization Process Knowing Where to “Draw the Line: It’s All about Limitations Conducting a Final Portfolio Review Developing a Project Launch Sequence Considerations During Project Initiation Conduct Post-Project (and Portfolio) Audits Part Three Applying Sound Business Practices at the Project Level Chapter 8 Project Economics, Part I: Foundational Principles The Time Value of Money Future Value and Compounding Present Value and Discounting Three Methods for Calculating the Time Value of Money Rate of Return: The Basics Discounted Cash Flow Methodology Chapter 9 Project Economics, Part II: Preparing for a Project Financial Analysis The Anatomy of Project Cash Flow The Foundation of Any Financial Analysis: The Cash Flow Chart The Process of Identifying and Modeling the Cash Flows of a Project Guidelines for Modeling Cash Flows Proper Treatment of Special Cash Flow Types Three Basic Project Cash Flow Models Chapter 10 Project Economics, Part III: Performing a Project Financial Analysis Separating Fact from Fiction in the Project Financial Analysis Process The Four Basic Financial Metrics Performing a Project Financial Analysis: A Comprehensive Example Calculating the Four Basic Financial Metrics Putting the Financial Metrics Together: Evaluating the Investment Financial Analysis in Reverse: Calculating the Maximum Justifiable Project Cost Enhancing the Financial Analysis Process by Introducing Risk Chapter 11 Risk Management, Decision-Making, and Business The Objectives of Risk Management and Decision-Making Dealing with Risk and Uncertainty in Business Decisions Risk and Uncertainty: A Quick Refresher Sources of Business and Financial Uncertainty in Project Investment Decisions Reducing Risk by Using Higher-Quality Information Reducing Risk by Modifying Financial Analysis Process Parameters Using Sensitivity Analysis as Part of the Financial Analysis Process Identifying the Appropriate Variables for a Sensitivity Analysis Performing a One-Dimensional Sensitivity Analysis Performing a Multidimensional Sensitivity Analysis Performing Sensitivity Analysis using Monte Carlo Simulation Using Break Even Analysis for Business Decisions Using Decision Trees in Financially Based Decision-Making Part Four Preparing the Business Case Chapter 12 Business Cases and Business Case Preparation Why Use a Business Case Approach? What Is a Business Case? General Applications of Business Cases Benefits of Using a Formal Business Case Approach Conditions that Trigger a Formal Business Case Approach Who Prepares the Business Case? The Business Case Development Process Critical Success Factors in Business Case Development Qualities of a Well-Prepared Business Case Recommended Business Case Structure: An Overview Part Five Appendixes Appendix A Guidelines for Preparing a Project Business Case Appendix B Interest Tables Glossary Index
