2. a) Define the term strategy as applied in project management.

(3marks)
Definition and Characteristics
Strategic decisions are the decisions that are concerned with whole environment in which the firm operates, the
entire resources and the people who form the company and the interface between the two
b) Outline five characteristics of strategic management. (5marks)
1.

Uncertain :

Strategic management deals with future-oriented non-routine situation.They create uncertainly.Managers are
unaware about the consequences of their decisions.
2.

Complex :

Uncertainly brings complexity for strategic management.Managers face environment which is difficult to
comprehend.External and internal environment is analysed.
3.

Organization wide :

Strategic management has organization wide implication.It is not operationspecific.It is a systems approach. It
involves strategic choice.
4.

Fundamental :

Strategic management is fundamental for improving the long-term performance of the organization.
5.

Long-term implication :

Strategic management is not concerned with day-to-day operation.It has long-term implications.It deal with
vision,mission and objective.
6.

Implication :

Strategic management ensure that strategic is put into action,implementation is done through action plans.
Characteristics/Features of Strategic Decisions
a.

Strategic decisions have major resource propositions for an organization. These decisions may be
concerned with possessing new resources, organizing others or reallocating others.

b.

Strategic decisions deal with harmonizing organizational resource capabilities with the threats and
opportunities.

c.

Strategic decisions deal with the range of organizational activities. It is all about what they want the
organization to be like and to be about.

d.

Strategic decisions involve a change of major kind since an organization operates in ever-changing
environment.

e.

Strategic decisions are complex in nature.

f.

Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot
of risk.

g.

Strategic decisions are different from administrative and operational decisions. Administrative decisions
are routine decisions which help or rather facilitate strategic decisions or operational decisions.
Operational decisions are technical decisions which help execution of strategic decisions. To reduce cost is
a strategic decision which is achieved through operational decision of reducing the number of employees
and how we carry out these reductions will be administrative decision.

The differences between Strategic, Administrative and Operational decisions can be summarized as followsStrategic Decisions

Administrative Decisions

Operational Decisions

Strategic decisions are long-term

decisions.

Administrative decisions are

taken daily.

Operational decisions are not

frequently taken.

These are considered where The

future planning is concerned.

These are short-term based

Decisions.

These are medium-period based

decisions.

Strategic decisions are taken in

Accordance with organizational
mission and vision.

These are taken according to

strategic and operational
Decisions.

These are taken in accordance with

strategic and administrative
decision.

These are related to overall Counter

planning of all Organization.

These are related to working of

employees in an Organization.

These are related to production.

These deal with organizational

Growth.

These are in welfare of

employees working in an
organization.

These are related to production

and factory growth.

c) Discuss the process of strategic management. (10marks)

Strategic Management Process - Meaning, Steps and Components
The strategic management process means defining the organizations strategy. It is also defined as the process by
which managers make a choice of a set of strategies for the organization that will enable it to achieve better
performance.

Strategic management is a continuous process that appraises the business and industries in which the organization
is involved; appraises its competitors; and fixes goals to meet all the present and future competitors and then
reassesses each strategy.
Strategic management process has following four steps:
1.

Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and

providing information for strategic purposes. It helps in analyzing the internal and external factors
influencing an organization. After executing the environmental analysis process, management should
evaluate it on a continuous basis and strive to improve it.

2.

Strategy Formulation- Strategy formulation is the process of deciding best course of action for
accomplishing organizational objectives and hence achieving organizational purpose. After conducting
environment scanning, managers formulate corporate, business and functional strategies.

3.

Strategy Implementation- Strategy implementation implies making the strategy work as intended or
putting the organizations chosen strategy into action. Strategy implementation includes designing the
organizations structure, distributing resources, developing decision making process, and managing
human resources.

4.

Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key
strategy evaluation activities are: appraising internal and external factors that are the root of present
strategies, measuring performance, and taking remedial / corrective actions. Evaluation makes sure that
the organizational strategy as well as its implementation meets the organizational objectives.

These components are steps that are carried, in chronological order, when creating a new strategic management
plan. Present businesses that have already created a strategic management plan will revert to these steps as per
the situations requirement, so as to make essential changes.

Components of Strategic Management Process

Strategic management is an ongoing process. Therefore, it must be realized that each component interacts with
the other components and that this interaction often happens in chorus.

3. a) Illustrate five principles of a good design system as applied in strategic management.

(10marks)
Organisational Design Principles
1. Principles for Independent Archives
2. Reduce the cost of using and acting on the evidence in the archive.
3. Engage new people in the records.

4.
5.
6.
7.
8.
9.
10.
11.

Preserve access to the evidence for as long as possible in as many ways as possible.
Use open standards
Think long term
Stay small, let others create meta-collections
Strive for universal accessibility, be accessible by default
Store the original record, present its essense over its resolution
Work together
Be wary of other peoples ideas

b) Define the term technology. (2marks)

The application of scientific knowledge for practical purposes, especially in industry.
c) In general, it is possible to identify three broad classes of technologies in a typical firms technological portfolio.
Discuss these classes. (6marks)
Production technologies
Assistive technologies

5. a) Define the term Risk and differentiate it from uncertainty. (2marks)

risk:- A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by
external or internal vulnerabilities, and that may be avoided through preemptive action.
Uncertainity:- 1.Decision making: Situation where the current state of knowledge is such that (1) the order or
nature of things is unknown, (2) the consequences, extent, or magnitude of circumstances, conditions, or events is
unpredictable, and (3) credible probabilities to possible outcomes cannot be assigned. Although too much
uncertainty is undesirable, manageable uncertainty provides the freedom to make creative decisions. See also risk.
2.Information theory: Degree to which available choices or the outcomes of possible alternatives are free from
constraints. See also entropy and information.
b) Clearly outline and discuss the process of project risk management. (16marks)
All risk management processes follow the same basic steps, although sometimes different jargon is used to
describe these steps. Together these 5 risk management process steps combine to deliver a simple and effective
risk management process.

Step 1: Identify the Risk. You and your team uncover, recognize and describe risks that might affect your project or
its outcomes. There are a number of techniques you can use to find project risks. During this step you start to
prepare your Project Risk Register.

Step 2: Analyze the risk. Once risks are identified you determine the likelihood and consequence of each risk. You
develop an understanding of the nature of the risk and its potential to affect project goals and objectives. This
information is also input to your Project Risk Register.

Step 3: Evaluate or Rank the Risk. You evaluate or rank the risk by determining the risk magnitude, which is the
combination of likelihood and consequence. You make decisions about whether the risk is acceptable or whether it
is serious enough to warrant treatment. These risk rankings are also added to your Project Risk Register.

Step 4: Treat the Risk. This is also referred to as Risk Response Planning. During this step you assess your highest
ranked risks and set out a plan to treat or modify these risks to achieve acceptable risk levels. How can you
minimize the probability of the negative risks as well as enhancing the opportunities? You create risk mitigation
strategies, preventive plans and contingency plans in this step. And you add the risk treatment measures for the
highest ranking or most serious risks to your Project Risk Register.

Step 5: Monitor and Review the risk. This is the step where you take your Project Risk Register and use it to
monitor, track and review risks.

Risk is about uncertainty. If you put a framework around that uncertainty, then you effectively de-risk your project.
And that means you can move much more confidently to achieve your project goals. By identifying and managing a
comprehensive list of project risks, unpleasant surprises and barriers can be reduced and golden opportunities
discovered.
6.

a) Identify and briefly discuss five important issues that managers should consider when evaluating project
screening models. (10marks)

What are Project Selection Methods?

Consider a scenario in which the organization you are working for has been handed a number of project contracts.
But due to resource constraints, the organization cannot take up all the projects at once. Therefore, a decision has
to be made as to which project needs to be taken up to maximize profitability.

This is where Project Selection Methods come into play. There are various methods to help you choose a project.
These can be divided into two categories, namely:
a.

Benefit Measurement Methods/comparative approach

Benefit/Cost Ratio

Cost/Benefit Ratio, as the name suggests, is the ratio between the Present Value of Inflow or the cost invested in a
project to the Present Value of Outflow which is the value of return from the project. Projects that have a higher
Benefit Cost Ratio or lower Cost Benefit Ratio are generally chosen over others.

Economic Model

The EVA or Economic Value Added is the performance metric that calculates the worth-creation of the
organization while defining the return on capital. It is also defined as the net profit after the deduction of taxes and
capital expenditure.

If there are several projects assigned to a project manager, the project that has the highest Economic Value Added
is picked. The EVA is always expressed in numerical terms and not as a percentage.

Scoring Model

The scoring model is an objective technique wherein the project selection committee lists relevant criteria, weighs
them according to their importance and their priorities and then adds the weighted values. Once the scoring of
these projects is completed, the project with the highest score is chosen.

Payback Period

The Payback Period is the ratio of the total cash to the average per period cash. In simpler terms, it is the time
necessary to recover the cost invested in the project.
The Payback Period is a basic project selection method. As the name suggests, the payback period takes into
consideration the payback period of an investment. It is the time frame that is required for the return on an
investment to repay the original cost that was invested. The calculation for payback is pretty simple.
When the Payback period is being used as the Project Selection Method, the project that has the shortest Payback
period is preferred since the organization can regain the original investment faster.

There are, however, a few limitations to this method:

It does not consider the time value of money
The benefits that accrue after the payback period are not considered, meaning it focuses more on the liquidity
while profitability is neglected.
Risks involved in individual projects are neglected.

Net Present Value

The Net Present Value is the difference between the projects current value of cash inflow and the current value of
cash outflow. The NPV must always be positive. When picking a project, one with a higher NPV is preferred.

The advantage of considering the NPV over the Payback Period is that it takes into consideration the future value
of money.

However, there are limitations of the NPV, too:

There isnt any generally accepted method of deriving the discount value used for the present value calculation.
The NPV does not provide any picture of profit or loss that the organization can make by embarking on a certain
project. For more details on the NPV and how to use the NPV as a tool to filter projects out, here's an insightful
article on calculating the opportunity costs for projects.

Discounted Cash Flow

It's well-known that the future value of money will not be the same as it is today. For example, $20,000 will not
carry the same worth 10 years down the line from today.

Thus, during calculations of cost investment and ROI, one must consider the concept of discounted cash flow.

Internal Rate Of Return

The Internal Rate of Return is the interest rate at which the Net Present Value is zero. This state is attained when
the present value of outflow is equal to the present value of inflow.

It is defined as the annualized effective compounded return rate or the discount rate that makes the net
present value of all cash flows (both positive and negative) from a particular investment equal to zero. The IRR is
used to select the project with the best profitability.

When using the IRR as the project selection criteria, care should be taken to ensure this is not used exclusively to
judge the worth of a project. This is because a project with a lower IRR might have a higher NPV and, assuming
there is no capital constraint, the project with the higher NPV should be chosen as this increases the shareholders'
wealth.
Opportunity Cost

The Opportunity Cost is cost that is being given up when picking another project. During project selection, the
project that has the lower opportunity cost is chosen.

Generally, most organizations use Benefits Measurement Methods to lead them into making a decision.

b.

Constrained Optimization Methods/mathematical approach

Constrained Optimization Methods, also known as the Mathematical Model of Project Selection, are used for
larger projects that require complex and comprehensive mathematical calculations.

The techniques that are used in Constrained Optimization Methods are as follows:

b) Outline three financial models that may be useful in making project selection decisions. (3marks)

c) List four factors that can be considered when evaluating project alternatives during project selection. (5marks)
1)Risk/Return Profiles

All investments come with a certain level of risk, and returns are not guaranteed. Its essential for an investor to
understand that there are various risks associated with alternative investments. Therefore, investors should
understand their risk/return profile, or how much they are willing to risk losing in exchange for potential gains. In
general, the greater the risk, the greater the potential return is associated with the investment. Given that every
investors risk/return profile is different, its crucial for investors to understand their appetite in order to find the
investment opportunity that best suits them.

2)Search Costs and Accessing the Managers

Once an investor has determined that they are comfortable with the risks and returns associated with alternative
investments, the next step is to identify and hire fund managers. Investors will need to compile a list of fund
managers, interview and conduct the proper due diligence, and weigh the costs and benefits of allocating to
different asset types. Search cost is a factor that investors need to take into consideration when it comes to
accessing and identifying fund managers.

Once investors compile a short list of potential fund managers with whom theyd like to initiate discussions with,
extensive research on the fund managers and associated firms is usually conducted. Research may include
checking FINRAs broker check to see if the fund manager has any SEC violations or pending infractions, or
analyzing and understanding the fund managers track record.

3)Understanding the Funds Complexity

The strategies and goals behind a venture capital fund, private equity fund, and a hedge fund vary significantly.
Each of these asset classes also have another layer of various strategies. For instance, typical hedge fund strategies
include global macro, event-driven, relative value arbitrage, quantitative, multi-strategy, and more. Investors
should have a comfortable understanding of how the fund generally behaves and the trading characteristics
behind the various fund strategies. While its okay for investors not to understand the specific algorithms behind a
quantitative fund, its imperative for the investor to understand the general strategic thesis of the fund.

4)Fee Structure

The standard fee structure for funds is the 2/20 model, a 2% annual management fee and 20% carry, or
performance fee, over a certain return threshold. Recently, there has been a rising level of investor discontent with
the 2/20 fee structure, and funds are starting to reconsider their fee structures to better align interests with their
investors. Having said that, investors should have a thorough understanding of the funds fee structure.
Understanding how performance fees are calculated, having a clear picture of execution and fund administration

costs, and knowing hurdle rates and redemption terms are all best practices when reviewing funds. Intricacies in
fee terms can result in significant differences in capital that flow back to investors.

Another factor investors should consider is whether fund managers invest in their own funds, which help align
incentives between both parties. Overall, investors should carefully evaluate and scrutinize the fees to insure that
the associated fees align investor and fund manager incentives.

5)Familiarity with the Due Diligence Process

Once investors have identified fund managers that are potential investment targets, completing the due diligence
process is usually next in line. Investors can access the industry standard due diligence questionnaire (DDQ)
provided by associations such as the Alternative Investment Management Association. It is also common during
the due diligence process for investors to meet face-to-face with the fund managers to discuss the funds
competitive differentiation from other funds, its strategy, and track record. In addition, many investors also vet the
brokerage firm and any other third party fund administrators that the fund works with in order to ensure that the
fund is engaging with top industry professionals.

6)Taxes

Last but not least, tax efficiency is a vital investment consideration for investors. While fund performance and
alpha are important, tax efficiency is just as crucial as it will have a significant impact on an investors bottom-line
profits. Investors should understand how the returns are taxed and if there are any tax risks associated with the
strategy. The last thing an investor would want is an audit from the IRS due to untested or questionable tax
strategies. Investors should always consult with their lawyers and financial advisors on tax efficiency strategies to
make sure any rules are not being crossed.

These are the general factors that an investor should take into consideration as they embark on allocating towards
alternative investments. Identifying the right alternative investment managers and conducting the due diligence
process may be timely, but the benefits may far outweigh the costs with when the appropriate measures are
taken.

DarcMatter is a Global FinTech platform that streamlines the capital raising process for Asset Managers and
provides Investors with transparent and direct access to funds in the Asset Management industry. Visit DarcMatter
at www.DarcMatter.com today.

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other advice. The Information on this website and provided from or through this forum is general in nature and is
not specific to you the User or anyone else.
7.

a) Differentiate between mission and vision statements. (4marks)

Organizations summarize their goals and objectives in mission and vision statements. Both of these serve different
purposes for a company but are often confused with each other. While a mission statement describes what a
company wants to do now, a vision statement outlines what a company wants to be in the future.
The Mission Statement concentrates on the present; it defines the customer(s), critical processes and it informs
you about the desired level of performance.
The Vision Statement focuses on the future; it is a source of inspiration and motivation. Often it describes not just
the future of the organization but the future of the industry or society in which the organization hopes to effect
change.
Features of an effective mission statement are:
-

Purpose and values of the organization

What business the organization wants to be in (products or services, market) or who are the
organization's primary "clients" (stakeholders)
What are the responsibilities of the organization towards these "clients"
What are the main objectives that support the company in accomplishing its mission

b) Outline the steps taken while crafting a mission statement. (4marks)

WHAT IS A VISION STATEMENT?
Your vision is your dream. It's what your organization believes are the ideal conditions for your community; that is,
how things would look if the issue important to you were completely, perfectly addressed. It might be a world
without war, or a community in which all people are treated as equals, regardless of gender or racial background.

Whatever your organization's dream is, it may be well articulated by one or more vision statements. Vision
statements are short phrases or sentences that convey your community's hopes for the future. By developing a
vision statement or statements, your organization clarifies the beliefs and governing principles of your
organization, first for yourselves, and then for the greater community.
There are certain characteristics that most vision statements have in common. In general, vision statements should
be:
Understood and shared by members of the community
Broad enough to include a diverse variety of local perspectives

Inspiring and uplifting to everyone involved in your effort

Easy to communicate - for example, they are generally short enough to fit on a T-shirt
Here are some examples of vision statements that meet the above criteria:
Caring communities
Healthy children
Safe streets, safe neighborhoods
Every house a home
Education for all
Peace on earth
WHAT IS A MISSION STATEMENT?
The next piece of the puzzle is to ground your vision in practical terms. This is where developing a mission
statement, the next step in the action planning process comes in. An organization's mission statement describes
what the group is going to do and why it's going to do that. For example, "Promoting care and caring at the end of
life through coalitions and advocacy."
Mission statements are similar to vision statements, in that they, too, look at the big picture. However, they're
more concrete, and they are definitely more "action-oriented" than vision statements. Your vision statement
should inspire people to dream; your mission statement should inspire them to action.
The mission statement might refer to a problem, such as an inadequate housing, or a goal, such as providing access
to health care for everyone. And, while they don 't go into a lot of detail, they start to hint - very broadly - at how
your organization might fix these problems or reach these goals. Some general guiding principles about mission
statements are that they are:
Concise. While not as short as vision statements, mission statements generally still get their point across in one
sentence.
Outcome-oriented. Mission statements explain the fundamental outcomes your organization is working to
achieve.
Inclusive. While mission statements do make statements about your group's key goals, it's very important that
they do so very broadly. Good mission statements are not limiting in the strategies or sectors of the community
that may become involved in the project.
The following examples should help you understand what we mean by effective mission statements.

"Promoting child health and development through a comprehensive family and community initiative."

"To create a thriving African American community through development of jobs, education, housing, and cultural
pride."
"To develop a safe and healthy neighborhood through collaborative planning, community action, and policy
advocacy."
"Promoting community health and development by connecting people, ideas and resources." (This is the mission
of the Community Tool Box)
WHY SHOULD YOU CREATE VISION AND MISSION STATEMENTS?
Why is it important that your organization develops vision and mission statements like those above? First of all,
because these statements can help your organization focus on what is really important. Although your
organization knows what you are trying to do to improve your community, it's easy to lose sight of this when
dealing with the day-to-day hassles that plague all organizations. Your vision and mission statements help
members remember what is important as you go about doing your daily work.

Second, your vision and mission statements let other individuals and organizations have a snapshot view of whom
your group is and what it wants to do. When your vision and mission statements are easily visible (for example, if
they are on the letterhead of your stationary), people can learn about your organization without having to work
hard for the information. Then, those with common interests can take the time necessary to learn more. Clearly,
this can be very helpful when you are recruiting other people and organizations to join in your effort.

Finally, vision and mission statements are also very helpful in having members who are focused and bound
together in common purpose. Not only do the statements themselves serve as a constant reminder of what is
important to your organization, the process of developing them allows people to see the organization as "theirs."
It's common sense: people will believe in something more completely if they had a hand in developing it.

There are many other reasons to develop vision and mission statements as well. For example, having clear and
compelling vision statements can:

Draw people to common work

Give hope for a better future
Inspire community members to realize their dreams through positive, effective action
Provide a basis for developing the other aspects of your action planning process: your mission, objectives,
strategies, and action plans
Having a clear mission statement can:

Convert the broad dreams of your vision into more specific, action-oriented terms
Explain your goals to interested parties in a clear and concise manner
Enhance your organization's image as being competent and professional, thus reassuring funding sources that their
investment was (or would be!) a smart choice
HOW DO YOU CREATE VISION AND MISSION STATEMENTS?
Armed with a better understanding of vision and mission statements, it's time for your organization to develop
them for itself. If your group has already developed vision and mission statements, you might wish to look at them
in light of the criteria we discussed above. If members of your organization feel your current statements could be
improved upon, this process can be used to modify them. Ready? Let's go!

LEARN WHAT IS IMPORTANT TO PEOPLE IN YOUR COMMUNITY

As developing your vision and mission statements is the first step in developing the action plan that will guide your
effort, it is especially important that these first steps are well grounded in community beliefs and values. Knowing
the important issues in your community is vital for the development of a strong, effective, and enduring action
group.

Therefore, one of the first steps you should take when developing the vision and mission of your organization will
be is to define the issue(s) that matter most to people in your community. How do you go about doing so?

There are many different ways you can gather this information, including:

Conduct "public forums" or "listening sessions" with members of the community to gather ideas, thoughts, and
opinions about how they would like to see the community transformed.

In public forums or listening sessions, people come together from throughout the community to talk about what is
important to them. These meetings are usually led by facilitators, who guide a discussion of what people perceive
to be the community 's strengths and problems, and what people wish the community was like. Someone usually
records these meetings, and a transcript of what is said provides a basis for subsequent planning.

Hold focus groups with the people interested in addressing the issue(s), including community leaders, people most
affected by the issues, businesses, church leaders, teachers, etc.

Focus groups are similar to public forums and listening sessions, but they are smaller and more intimate. Generally
speaking, they are comprised of small groups of people with similar backgrounds, so they will feel comfortable
talking openly about what concerns them. For example, the members of a group are generally about the same age,
are of the same ethnic group, or have another common experience. They are used in much the same way as public
forums, and also use facilitators and recorders to focus and take notes on the work done.

Your organization may choose to hold focus groups with several different groups of people, to get the most holistic
view of the issue at hand. For example, if your organization is involved in child health, you might have one focus
group with health care providers, another with parents or children, and still another with teachers. Once you have
a rough mission statement, you might again use a focus group to test it out.

Obtain interviews with people in leadership and service positions, including such individuals as local politicians,
school administrators, hospital and social service agency staff, about what problems or needs they believe exist in
your community.

Often, these individuals will have both facts and experiences to back up their views. If so, you can also use these
data later if and when you apply for funding, or when you request community support to address the issues. More
information on this topic can be found in Chapter 3, Section 12: Conducting Interviews.

Of course, these different ways to gather information from you community aren't mutually exclusive. In fact, if you
have the resources, it makes sense to do all of the above: to have some time for the community at large to
respond, then spend more time in focus groups with the people you believe might contribute greatly to (or be
most affected by) some of the issues brought up in your community listening session. And finally, some one on one
time with community leaders can only serve to strengthen your knowledge and purpose; remember, there are
undoubtedly many people in your community who have been wrestling with the same issues you are now looking
at for a long time. Take advantage of that experience; you don't want to reinvent the wheel!

DECIDE WHAT TO ASK

No matter if you are talking to one person or 300, your purpose is the same: to learn what matters in your
community. Here's a list of questions you might use to focus your discussions with community members. These
questions may be used for individual interviews, focus groups, public forums, or in any other way you choose to
gather information.

What is your dream for our community?

What would you like to see change?
What kind of community (or program, policy, school, neighborhood, etc.) do we want to create?
What do you see as the community's (or school's, neighborhood's, etc.) major issues or problems?
What do you see as the community's major strengths and assets?
What do you think should be the purpose of this organization (or effort)?
Why should these issues be addressed?
What would success look like?
When your organization is questioning people, the facilitator should encourage everyone to allow their most
idealistic, hopeful, and positive ideas to shine through. Don't worry right now about what's practical and what's
not - this can be narrowed down later. Encourage everyone to be bold and participate, and to remember that you
are trying to articulate a vision of a better community, and a better world.

DECIDE ON THE GENERAL FOCUS OF YOUR ORGANIZATION

Once members of your organization have heard what the community has to say, it 's time to decide the general
focus of your organization or initiative. First of all, what topic is most important to your organization and your
community? For example, will you tackle urban development or public health issues? Racism or economic
opportunity?

A second question you will need to answer is at what level will your organization work. Will your organization
begin only in one school, or in one neighborhood, or in your city? Or will your initiative's focus be broader, working
on a state, national, or even international level.

These are questions for which there are no easy answers. Your organization will need to consider what it has
learned from the community, and decide through thoughtful discussion the best direction for your organization.
We suggest you open this discussion up to everyone in your organization to obtain the best results.

Of course, if your organization is receiving grant money or major funding from a particular agency, the grant maker
may specify what the general goal of your group should be. For example, if your group accepts a grant to reduce
child hunger, at least part of its mission will be devoted to this purpose. Even in these circumstances, however, the
community should determine the ultimate vision and mission that will best advance what matters to local people.

DEVELOP YOUR VISION AND MISSION STATEMENTS

Now that your organization has a clearer understanding of what the organization will do and why, you are in a
prime position to develop the statements that will capture your ideas.

As you are looking at potential statements, remember to keep them broad and enduring. Vision and mission
statements that are wide in scope allow for a sense of continuity with a community's history, traditions, and broad
purposes. And vision and mission statements that are built to last will guide efforts both today and tomorrow.

Vision Statements

First of all, remind members of your organization that it often takes several vision statements to fully capture the
dreams of those involved in a community improvement effort. You don't need - or even want - to have just one
"perfect" phrase. Encourage people to suggest all of their ideas, and write them down - possibly on poster paper at
the front of the room, so people can be further inspired by the ideas of others. As you do this, help everyone keep
in mind:

What you have learned from your discussions with community members
What your organization has decided will be your focus
What you learned about vision statements at the beginning of this section
If you have a hard time getting started, you might wish to check out some of the vision statements in this section's
Examples. You might ask yourself how well they meet the above suggestions.

After you have brainstormed a lot of ideas, your group can discuss critically the different ideas. Oftentimes, several
of the vision statements will just jump out at you - someone will suggest it, and people will just instantly think,
"That's it!"

You can also ask yourselves the following questions about vision statements:

Will it draw people to common work?

Does it give hope for a better future?

Will it inspire community members to realize their dreams through positive, effective action?
Does it provide a basis for developing the other aspects of your action planning process?
A final caution: try not to get caught up in having a certain number of vision statements for your organization.
Whether you ultimately end up with two vision statements or ten, what is most important is that the statements
together give a holistic view of the vision of your organization.

Mission Statements

The process of writing your mission statement is much like that for developing your vision statements. The same
brainstorming process can help you develop possibilities for your mission statement. Remember, though, that
unlike with vision statements, you will want to develop a single mission statement for your work. After having
brainstormed for possible statements, you will want to ask of each one:

Does it describe what your organization will do and why it will do it?
Is it concise (one sentence)?
Is it outcome oriented?
Is it inclusive of the goals and people who may become involved in the organization?
Together, your organization can decide on a statement that best meets these criteria.

OBTAIN CONSENSUS ON YOUR VISION AND MISSION STATEMENTS

Once members of your organization have developed your vision and mission statements, your next step might be
to learn what other members of your community think of them before you start to use them regularly.

To do this, you could talk to the same community leaders or focus group members you spoke to originally. First of
all, this can help you ensure that they don't find the statements offensive in any way. For example, an initiative
that wants to include young men more fully in its teen pregnancy prevention project might have "Young men in
Asheville are the best informed" as one of their vision statements. But taken out of context, some people
community members might believe this statement means young men are given better information or education
than young women, thus offending another group of people.

Second, you will want to ensure that community members agree that the statements together capture the spirit of
what they believe and desire. Your organization might find it has omitted something very important by mistake.

DECIDE HOW YOU WILL USE YOUR VISION AND MISSION STATEMENTS

Finally, it's important to remember that while developing the statements is a huge step for your organization (and
one you should celebrate!), there is more work to be done. Next, you have to decide how to use these statements.
Otherwise, all of your hard work will have happening for nothing. The point is to get the message across.

There are many, many ways in which your organization may choose to spread its vision and mission statements. To
name just a few examples, you might:

Add them to your letterhead or stationary

Use them on your website
Give away T-shirts, or bookmarks, or other small gifts with them
Add them to your press kit
Use them when you give interviews
Display them on the cover of your annual report
...and so on. Again, this is a step that will use all of your creativity.

IN SUMMARY
Developing effective vision and mission statements are two of the most important tasks your organization will ever
do, because almost everything else you do will be affected by these statements. We hope that this section has
allowed you to feel more confident now in your group's ability to create successful and inspiring vision and mission
statements. Remember, think broadly and boldly! Good luck!
c) What is project portfolio management? (2marks)
d) Discuss the four objectives of project portfolio management. (8marks)

8.

a) Define the term project stakeholders giving examples. (2marks)

A project is successful when it achieves its objectives and meets or exceeds the expectations of the stake-holders.
But who are the stakeholders? Stakeholders are individuals who either care about or have a vested interest in your
project. They are the people who are actively involved with the work of the project or have something to either
gain or lose as a result of the project.

b) Why should a project manager care to manage stakeholders well? (3marks)

c) Identify three internal and three external stakeholders. (6marks)

PROJECT STAKEHOLDERS
- TOP MANAGEMENT
Top management may include the president of the company, vice-presidents, directors, division managers, the
corporate operating committee, and others. These people direct the strategy and development of the
organization.

On the plus side, you are likely to have top management support, which means it will be easier to recruit the best
staff to carry out the project, and acquire needed material and resources; also visibility can enhance a project
managers professional standing in the company.

On the minus side, failure can be quite dramatic and visible to all, and if the project is large and expensive (most
are), the cost of failure will be more substantial than for a smaller, less visible project.

Some suggestions in dealing with top management are:

Develop in-depth plans and major milestones that must be approved by top management during the planning and
design phases of the project.
Ask top management associated with your project for their information reporting needs and frequency.
Develop a status reporting methodology to be distributed on a scheduled basis.
Keep them informed of project risks and potential impacts at all times.
THE PROJECT TEAM
The project team is made up of those people dedicated to the project or borrowed on a part-time basis. As project
manager, you need to provide leadership, direction, and above all, the support to team members as they go about
accomplishing their tasks. Working closely with the team to solve problems can help you learn from the team and

build rapport. Showing your support for the project team and for each member will help you get their support and
cooperation.
Here are some difficulties you may encounter in dealing with project team members:
Because project team members are borrowed and they dont report to you, their priorities may be elsewhere.
They may be juggling many projects as well as their full-time job and have difficulty meeting deadlines.
Personality conflicts may arise. These may be caused by differences in social style or values or they may be the
result of some bad experience when people worked together in the past.
You may find out about missed deadlines when it is too late to recover.
Managing project team members requires interpersonal skills. Here are some suggestions that can help:
Involve team members in project planning.
Arrange to meet privately and informally with each team member at several points in the project, perhaps for
lunch or coffee.
Be available to hear team members concerns at any time.
Encourage team members to pitch in and help others when needed.
Complete a project performance review for team members.
YOUR MANAGER
Typically the boss decides what the assignment is and who can work with the project manager on projects.
Keeping your manager informed will help ensure that you get the necessary resources to complete your project.

If things go wrong on a project, it is nice to have an understanding and supportive boss to go to bat for you if
necessary. By supporting your manager, you will find your manager will support you more often.
Find out exactly how your performance will be measured.
When unclear about directions, ask for clarification.
Develop a reporting schedule that is acceptable to your boss.
Communicate frequently.
PEERS
Peers are people who are at the same level in the organization as you and may or may not be on the project team.
These people will also have a vested interest in the product. However, they will have neither the leadership
responsibilities nor the accountability for the success or failure of the project that you have.
Your relationship with peers can be impeded by:

Inadequate control over peers

Political maneuvering or sabotage
Personality conflicts or technical conflicts
Envy because your peer may have wanted to lead the project
Conflicting instructions from your manager and your peers manager
Peer support is essential. Because most of us serve our self-interest first, use some investigating, selling,
influencing, and politicking skills here. To ensure you have cooperation and support from your peers:
Get the support of your project sponsor or top management to empower you as the project manager with as much
authority as possible. Its important that the sponsor makes it clear to the other team members that their
cooperation on project activities is expected.
Confront your peer if you notice a behavior that seems dysfunctional, such as bad-mouthing the project.
Be explicit in asking for full support from your peers. Arrange for frequent review meetings.
Establish goals and standards of performance for all team members.
RESOURCE MANAGERS
Because project managers are in the position of borrowing resources, other managers control their resources. So
their relationships with people are especially important. If their relationship is good, they may be able to
consistently acquire the best staff and the best equipment for their projects. If relationships arent good, they may
find themselves not able to get good people or equipment needed on the project.

INTERNAL CUSTOMERS
Internal customers are individuals within the organization who are customers for projects that meet the needs of
internal demands. The customer holds the power to accept or reject your work. Early in the relationship, the
project manager will need to negotiate, clarify, and document project specifications and deliverables. After the
project begins, the project manager must stay tuned in to the customers concerns and issues and keep the
customer informed.
Common stumbling blocks when dealing with internal customers include:
A lack of clarity about precisely what the customer wants
A lack of documentation for what is wanted
A lack of knowledge of the customers organization and operating characteristics
Unrealistic deadlines, budgets, or specifications requested by the customer
Hesitancy of the customer to sign off on the project or accept responsibility for decisions

Changes in project scope

To meet the needs of the customer, client, or owner, be sure to do the following:
Learn the client organizations buzzwords, culture, and business.
Clarify all project requirements and specifications in a written agreement.
Specify a change procedure.
Establish the project manager as the focal point of communications in the project organization.
EXTERNAL CUSTOMER
External customers are the customers when projects could be marketed to outside customers. In the case of Ford
Motor Company, for example, the external customers would be the buyers of the automobiles. Also if you are
managing a project at your company for Ford Motor Company, they will be your external customer.
GOVERNMENT
Project managers working in certain heavily regulated environments (e.g., pharmaceutical, banking, or military
industries) will have to deal with government regulators and departments. These can include all or some levels of
government from municipal, provincial, federal, to international.
CONTRACTORS, SUBCONTRACTORS, AND SUPPLIERS
There are times when organizations dont have the expertise or resources available in-house, and work is farmed
out to contractors or subcontractors. This can be a construction management foreman, network consultant,
electrician, carpenter, architect, or anyone who is not an employee. Managing contractors or suppliers requires
many of the skills needed to manage full-time project team members.
Any number of problems can arise with contractors or subcontractors:
Quality of the work
Cost overruns
Schedule slippage
Many projects depend on goods provided by outside suppliers. This is true for example of construction projects
where lumber, nails, bricks, and mortar come from outside suppliers. If the supplied goods are delivered late or are
in short supply or of poor quality or if the price is greater than originally quoted, the project may suffer.
Depending on the project, managing contractor and supplier relationships can consume more than half of the
project managers time. It is not purely intuitive; it involves a sophisticated skill set that includes managing
conflicts, negotiating, and other interpersonal skills.
c) Outline the stakeholders management cycle. (7marks)
identify
prioritize key stakeholders

develop/identify their interests

action the plan
monitor the outcome and take corrective actions

POLITICS OF PROJECTS
1.

ASSESS THE ENVIRONMENT

Identify all the relevant stakeholders. Because any of these stakeholders could derail the project, you need to
consider their particular interest in the project.
Once all relevant stakeholders are identified, try to determine where the power lies.
In the vast cast of characters, who counts most?
Whose actions will have the greatest impact?
2.

IDENTIFY GOALS

After determining who the stakeholders are, identify their goals.

What is it that drives them?

What is each after?
Are there any hidden agendas or goals that are not openly articulated?
What are the goals of the stakeholders who hold the power? These deserve special attention.
3.

DEFINE THE PROBLEM

The facts that constitute the problem should be isolated and closely examined.
The question What is the real situation? should be raised over and over.
CULTURE OF STAKEHOLDERS
When project stakeholders do not share a common culture, project management must adapt its organizations and
work processes to cope with cultural differences. The following are three major aspects of cultural difference that
can affect a project:

Communications

Negotiations
Decision making

8 Tips to Effectively Manage Stakeholders

The task of managing project stakeholders can, ironically, turn out to be a project in itself a large, multi-fanged,
multi-headed beast that can prove uncontrollable. To find out how best to keep the beast at bay, I sought the
advice of three experienced project managers.
Heres what they had to say:

1. Identify all the stakeholders at the beginning of the project. You need to do this or face the problem of more
stakeholders with disruptive agendas joining after the project starts, said Ryan Endres, lead project manager,
Project Management Office, Department of Ophthalmology and Visual Sciences, University of Wisconsin Madison.

2. Ensure all the stakeholders agree on the projects deliverables and what their roles are. You need to have
complete agreement on the narrative of the project, the deliverables, and what peoples roles are, said Glen
Alleman, vice president, Strategic Consulting and Performance Management at Lewis & Fowler, a project
management and consulting firm in Niwot, CO. Before the project begins, its very important to establish rules of
engagement that define peoples functions, and whether they are leaders or followers. You dont want followers
clamoring to be leaders half-way through a project.
People need to agree on all of the requirements at the start of project, agrees Endres. Not doing so may result
in possible delays, cost overruns and project failure.
3. Get consensus on how to handle changes to the project. The more complex the project, the more changes you
will have, said Alleman. It is vital to the success of a project that all stakeholders agree on how to handle
changes.
4. Practice good communication. Again, this is something that needs to be defined at the start of the project. The
project team must determine the frequency of communication and what it will include, said Endres. Typically,
communication should be concise and focus on progress and value, he said. Communication should be
meaningful to all stakeholders.
5. Keep the project vision visible. Keeping the project vision accessible allows everyone to stay focused on what's
important, said Endres. This helps reduce the chance of scope creep.
6. Engage stakeholders throughout the process. Experts emphasize that is important to engage stakeholders in
problem-solving, reviewing new requirements, and creating lists of lessons-learned.
7. Agree on what "done" is. Stakeholders need to agree what done looks like, notes Endres. If they dont, the
project may easily get off track.

8. Finally, dont forget to empathize with other stakeholders. Your ability to put yourself in anothers shoes can be
crucial to the success or failure of a project, notes Josh Nankivel, president, pmstudent.com, Sioux Falls, SD. Dont
limit your analysis of the project to peoples interest and influence, he said. Identify what their goals are, what
context they bring with them, and relate to how they perceive the project will impact them.
Nankivel said an empathic analysis helps uncover hidden variables that can help a PM to decide how to deal with
issues. "For example, you may find it is more useful to spend time building trust with a low interest/low influence
stakeholder than a high interest/high influence stakeholder if the latter is highly inclined to support your project.

4. a) Expound on any six benefits of planning in project management. (9 marks)

ROJECT PLANNING A STEP BY STEP GUIDE
~ By Duncan Haughey
Businessman finding the solution to a maze
The key to a successful project is in the planning. Creating a project plan is the first thing you should do when
undertaking any project.
Often project planning is ignored in favour of getting on with the work. However, many people fail to realise the
value of a project plan for saving time, money and many problems.
This article looks at a simple, practical approach to project planning. On completion of this guide, you should have
a sound project planning approach that you can use for future projects.
Step 1: Project Goals
A project is successful when it has met the needs of the stakeholders. A stakeholder is anybody directly, or
indirectly impacted by the project.
As a first step, it is important to identify the stakeholders in your project. It is not always easy to determine the
stakeholders of a project, particularly those impacted indirectly. Examples of stakeholders are:
The project sponsor
The customer who receives the deliverables
The users of the project output
The project manager and project team
Once you understand who the stakeholders are, the next step is to find out their needs. The best way to do this is
by conducting stakeholder interviews. Take time during the interviews to draw out the requirements that create
real benefits. Sometimes stakeholders will talk about needs that aren't relevant and don't deliver benefits. These
can be recorded and set as a low priority.
The next step, once you have conducted all the interviews and have a comprehensive list of needs is to prioritise
them. From the prioritised list, create a set of easily measurable goals. A good technique for doing this is to review
them against the SMART principle. This way, the achievement of the goal will be easy to identify.
Once you have established a clear set of goals, they should be recorded in the project plan. It can be useful also to
include the needs and expectations of your stakeholders.

Now you have completed the most difficult part of the planning process; it's time to move on and look at the
project deliverables.
Step 2: Project Deliverables
Using the goals you have defined in step 1, create a list of things the project needs to deliver to meet those goals.
Specify when and how to deliver each item.
Add the deliverables to the project plan with an estimated delivery date. You will establish more accurate delivery
dates during the scheduling phase, which is next.
Step 3: Project Schedule
Create a list of tasks that need to be carried out for each deliverable identified in step 2. For each task determine
the following:
The amount of effort (hours or days) required for completing the task
The resource who will carry out the task
Once you have established the amount of effort for each task, you can work out the effort required for each
deliverable, and an accurate delivery date. Update your deliverables section with the more precise delivery dates.
At this point in the planning, you could choose to use a software package such as Microsoft Project to create your
project schedule. Alternatively, use one of the many free templates available. Input all of the deliverables, tasks,
durations and the resources who will complete each task.
A common problem discovered at this point is when you have an imposed delivery deadline from the sponsor that
is not realistic based on your estimates. If you discover this is the case, you must contact the sponsor immediately.
The options you have in this situation are:
Renegotiate the deadline (project delay)
Employ additional resources (increased cost)
Reduce the scope of the project (less delivered)
Use the project schedule to justify pursuing one of these options.
Step 4: Supporting Plans
This section deals with the plans you should create as part of the planning process. These can be included directly
in the plan.
Human Resource Plan
Identify, by name, the individuals and organisations with a leading role in the project. For each, describe their roles
and responsibilities on the project.
Next, specify the number and type of people needed to carry out the project. For each resource detail start dates,
the estimated duration and the method you will use for obtaining them.
Create a single sheet containing this information.
Communications Plan
Create a document showing who is to be kept informed about the project and how they will receive the
information. The most common mechanism is a weekly or monthly status report, describing how the project is
performing, milestones achieved and the work you've planned for the next period.
Risk Management Plan
Risk management is an important part of project management. Although often overlooked, it is important to
identify as many risks to your project as possible and be prepared if something bad happens.

Here are some examples of common project risks:

Time and cost estimate too optimistic
Customer review and feedback cycle too slow
Unexpected budget cuts
Unclear roles and responsibilities
No stakeholder input obtained
Not clearly understanding stakeholder needs
Stakeholders changing requirements after the project has started
Stakeholders adding new requirements after the project has started
Poor communication resulting in misunderstandings, quality problems and rework
Lack of resource commitment
Risks can be tracked using a simple risk log. Add each risk you have identified to your risk log; write down what you
will do in the event it occurs, and what you will do to prevent it from happening. Review your risk log on a regular
basis, adding new risks as they occur during the life of the project. Remember, if you ignore risks, they don't go
away.
Benefits of Planning in Project management
The Top Ten Benefits of Planning in Project Management
by Kathy Adams McIntosh, Demand Media
Project management refers to planning and overseeing the tasks necessary to achieve a goal. These goals can
include implementing a new software system, merging two departments or analyzing the purchase of a subsidiary.
The project manager gathers employees to create a project team. Together, the team creates a plan for
completing the project.
Direction
One of the challenges faced by project team members is the lack of knowing how to proceed. During the planning
process, the project team determines what tasks need to be completed. The planning process provides direction
for the team and its members.
Accountability
During the planning process, the project manager and the project team assign the responsibility for completing
each task to specific employees. The team benefits because one employee holds responsibility for each task and
can be held accountable. When an employee realizes he reaps the rewards and the consequences of not
completing his task, he places a higher priority on fulfilling his requirement.
Related Reading: Top Two Threats in Project Management
Adequate Resources
Many projects run out of resources before completion. Resources include both labor and finances. Planning
requires the team to consider what resources it needs to finish the project and eliminate the potential of
discontinuing the project for lack of resources.
Problem Anticipation
Many projects experience problems at different times before the project completes. These include losing
employees, missing deadlines or running out of funds. By planning the project, the team can proactively address
problems, reducing their impact on the project.
Shared Resources
Many employees work on multiple projects simultaneously. These employees divide their time between the two
projects and run the risk of having too much or not enough work. Planning allows the project leader to work out a
schedule which maximizes the employees available time.

Employee Expertise
After employees plan their assignments, they can invest time developing the skills to complete their assignments.
Some employees have the skills needed and increase those skills during the project. Other employees learn new
skills. The company benefits from the growing knowledge base of its employees.
Reliability
Companies base decisions on the assumption that a specific project will be completed on time or within its
financial budget. Project teams who spend time planning can reliably predict what it will cost in time or money to
complete.
Skill Discovery
When project team employees plan together, they learn which employees have skills necessary to complete
various tasks. These skills may not appear on the employees work history but still contain value for the company.
Without planning each task, the company may never realize these skills.
Project Completion
Some projects get started and never finish. Without planning, project team members pursue their own ideas and
forget about the project. Planning ensures that the team members know their role and that the project will be
completed.
Lessons Learned
While planning, the project team reviews the results of past projects. The team evaluates its successes and failures
from past projects. This allows the team to keep the successful processes and eliminate the failures.
b) Analyze the possible tactical issues in multi-project management (9 marks)

Strategy
Strategic management provides overall direction to the enterprise. Strategy formulation requires examining where
the company is now, deciding where it should go, and determining how to get it there. Strategic assessment
involves situation analysis, self-evaluation, and competitor analysis, both internal and external, microenvironmental and macro-environmental.
Objectives are determined by the results of the strategic assessment. These objectives should run parallel on a
timeline, some short-term and others long-term.
Tactics
Strategy involves the future vision of the business; tactics involve the actual steps needed to achieve that vision.
Tactics are practical steps for implementing strategy.
Operational Control
Operational control regulates the day-to-day output relative to schedules, specifications, and costs. Are product
and service output high-quality and delivered on time? Are inventories of raw materials, goods-in-process, and

finished products being purchased and produced in the desired quantities? Are the costs associated with the
transformation process in line with cost estimates? Is the information needed in the transformation process
available in the right form and at the right time? Is the energy resource being used efficiently?
Operational control can be a very big job, requiring substantial overhead for management, data collection, and
operational improvement. The idea behind operational control is streamlining the process to minimize costs and
work as quickly and efficiently as possible.