The document discusses how to present a business case and make choices. It outlines a problem-solving model that involves defining the problem and criteria, evaluating alternatives through non-financial and financial analysis, making a choice, and implementing a plan with follow up. The document provides guidance on evaluating alternatives both financially and non-financially. It emphasizes the importance of planning implementation, controlling results through variance analysis, and effectively presenting the business case.
The basis of decision making for software development started in the 1980's with the application of classical discounted cash flow analysis.
This paper speaks to the extension of those principles to the development of Agile software
Managing in the presence of uncertaintyGlen Alleman
Uncertainty is the source of risk. Uncertainty comes in two types, aleatory and epistemic. It is important to understand both and deal with both in distinct ways, in order to produce a credible risk handling strategy.
1) The document discusses impact management for different stakeholders and provides a framework for a common impact management journey with different pathways according to methodological intensity.
2) It outlines three aspects to harmonize impact management: a common process, different stakeholder pathways according to intensity, and a toolkit of impact measurement and management methods.
3) The pathways range from more descriptive and interpretive to more prescriptive and factual, depending on a stakeholder's definitional framework and mandate for impact methodology. The document provides examples of applying the framework.
The role of Risk Assessment and Risk Management is to continuously Identify, Analyze, Plan, Track, Control, and Communicate the risks associated with a project.
The Webster’s definition of risk is the possibility of suffering a loss. Risk in itself is not bad. Risk is essential to progress and failure is often a key part of learning. Managing risk is a key part of success.
This document describes the foundations for conducting a risk assessment of a large-scale system development project. Such a project will likely include the procurement of Commercial Off The Shelf (COTS) products as well as their integration with legacy systems.
The document discusses various techniques for risk analysis in capital budgeting including probability, variance, coefficient of variation, payback period, risk-adjusted discount rate, certainty equivalent, sensitivity analysis, scenario analysis, simulation analysis, decision trees, and utility theory. It provides details on how to apply each technique and highlights their benefits and limitations.
Mgt 350 guide 1 1) Decision opportunities arise when problems or opportuni...rammohanreddycnr
1) Decision opportunities arise when problems or opportunities are recognized through critical thinking. Which of the following components may be a reason that managers ignore problems?
A. A lack of intellectual empathy makes it difficult to recognize stakeholder considerations.
B. The manager’s sense of urgency toward problems precludes action.
C. The manager prefers risk over certainty.
D. Some businesses exist in a problem free environment.
E. The manager is exercising intellectual courage in the face of resistance to problem solving.
This chapter discusses performance measurement and management in organizations. It outlines the benefits of performance measurement, such as performance planning, increased effectiveness of supervision, and improved employee morale. However, it also notes pitfalls like negative attitudes towards measurement. The chapter emphasizes that positive, immediate, and certain consequences are the most powerful motivators for employees' performance and behavior. Overall, it stresses that good performance management involves defining goals, monitoring rewards systems, and cultivating a culture where people feel safe and rewarded for change.
The document presents a collection of quotes from various teachers' conferences, associations, and publications spanning from 1703 to 1985. In each quote, educators express concern that students rely too heavily on new technologies of the time for writing and calculation and lack important basic skills. Over time, slates, paper, ink pens, fountain pens, ballpoint pens, and calculators were all criticized as students became too dependent on the new technologies and convenience replaced important traditional methods. The overall message is that each new generation of teachers has worried students are losing important skills due to technological changes, though the technologies criticized are now considered basic.
The basis of decision making for software development started in the 1980's with the application of classical discounted cash flow analysis.
This paper speaks to the extension of those principles to the development of Agile software
Managing in the presence of uncertaintyGlen Alleman
Uncertainty is the source of risk. Uncertainty comes in two types, aleatory and epistemic. It is important to understand both and deal with both in distinct ways, in order to produce a credible risk handling strategy.
1) The document discusses impact management for different stakeholders and provides a framework for a common impact management journey with different pathways according to methodological intensity.
2) It outlines three aspects to harmonize impact management: a common process, different stakeholder pathways according to intensity, and a toolkit of impact measurement and management methods.
3) The pathways range from more descriptive and interpretive to more prescriptive and factual, depending on a stakeholder's definitional framework and mandate for impact methodology. The document provides examples of applying the framework.
The role of Risk Assessment and Risk Management is to continuously Identify, Analyze, Plan, Track, Control, and Communicate the risks associated with a project.
The Webster’s definition of risk is the possibility of suffering a loss. Risk in itself is not bad. Risk is essential to progress and failure is often a key part of learning. Managing risk is a key part of success.
This document describes the foundations for conducting a risk assessment of a large-scale system development project. Such a project will likely include the procurement of Commercial Off The Shelf (COTS) products as well as their integration with legacy systems.
The document discusses various techniques for risk analysis in capital budgeting including probability, variance, coefficient of variation, payback period, risk-adjusted discount rate, certainty equivalent, sensitivity analysis, scenario analysis, simulation analysis, decision trees, and utility theory. It provides details on how to apply each technique and highlights their benefits and limitations.
Mgt 350 guide 1 1) Decision opportunities arise when problems or opportuni...rammohanreddycnr
1) Decision opportunities arise when problems or opportunities are recognized through critical thinking. Which of the following components may be a reason that managers ignore problems?
A. A lack of intellectual empathy makes it difficult to recognize stakeholder considerations.
B. The manager’s sense of urgency toward problems precludes action.
C. The manager prefers risk over certainty.
D. Some businesses exist in a problem free environment.
E. The manager is exercising intellectual courage in the face of resistance to problem solving.
This chapter discusses performance measurement and management in organizations. It outlines the benefits of performance measurement, such as performance planning, increased effectiveness of supervision, and improved employee morale. However, it also notes pitfalls like negative attitudes towards measurement. The chapter emphasizes that positive, immediate, and certain consequences are the most powerful motivators for employees' performance and behavior. Overall, it stresses that good performance management involves defining goals, monitoring rewards systems, and cultivating a culture where people feel safe and rewarded for change.
The document presents a collection of quotes from various teachers' conferences, associations, and publications spanning from 1703 to 1985. In each quote, educators express concern that students rely too heavily on new technologies of the time for writing and calculation and lack important basic skills. Over time, slates, paper, ink pens, fountain pens, ballpoint pens, and calculators were all criticized as students became too dependent on the new technologies and convenience replaced important traditional methods. The overall message is that each new generation of teachers has worried students are losing important skills due to technological changes, though the technologies criticized are now considered basic.
The document discusses developing a vision, mission, and values for an organization. It provides examples of elements to include in a vision statement like who the organization is, what it provides to customers, and how it operates. It also gives examples of components of a mission statement such as the products/services, customers, and expected results. Finally, it lists examples of organizational values around how employees and customers should be treated and how people in the organization will work. The overall purpose is to provide guidance on defining these key elements to guide an organization's goals and operations.
Rules while playing the game: CLICK ONLY THE "ACTION BUTTONS" BECAUSE IF YOU DIDN'T CLICK, YOU WILL GET LOST. Have fun playing. this is a POINT AND CLICK GAME
The document discusses developing a vision, mission, and values for an organization. It provides examples of elements to include in a vision statement like who the organization is and what it provides. It also gives examples of components of a mission statement such as the products/services, customers, and expected results. Finally, it lists examples of organizational values around how employees and customers should be treated to help govern work. The overall purpose is to define these key elements to guide the organization's goals and priorities.
1) Four Seattle ordinances affect vehicles residing in the city, including restrictions on parking for vehicles with unpaid tickets and defining "scofflaw" vehicles.
2) A study was conducted to estimate the population of people living in their vehicles in Ballard and North Seattle. Over 700 vehicles were observed and classified as cars, trucks, vans, or RVs.
3) The findings show the majority of vehicle residencies consisted of RVs, with averages of 32 in Ballard and 18% in North Seattle. The data collected can help inform actions to assist people living in vehicles.
This chapter discusses performance measurement and management in organizations. It outlines the benefits of performance measurement, such as performance planning, increased effectiveness of supervision, and improved employee morale. However, it also notes pitfalls like negative attitudes towards measurement. The chapter emphasizes that positive, immediate, and certain consequences are the most powerful motivators for employees' performance and behaviors. Overall, it stresses that good performance management involves defining goals, monitoring rewards systems, and cultivating a culture where people feel safe and rewarded for change.
Automatic Doors India , Revolving Doors India , Entrance Solutions in Indiambsllp
agta record and Blasi are global partners that provide entrance solutions. They develop a wide range of automatic door operators including sliding doors, swing doors, folding doors, revolving doors, under floor systems, and special doors. The document highlights some of their product ranges and solutions for different door types. It provides examples of revolving doors with 2 or 3-4 leaves, under floor operators, facade doors, and images of specialized door installations.
Este documento fornece uma introdução sobre barragens para graduandos. Aborda os principais tipos de barragens, componentes de barragens de terra, desvio de rios, investigação geotécnica e bibliografia básica sobre barragens.
This document discusses the strategic planning process and environmental analysis. It outlines examining the remote, industry, and local environments to understand challenges and opportunities. The remote environment considers economic, social, political, and technological issues. Industry analysis looks at the five competitive forces. The local environment analyzes issues specific to an individual organization. The document also discusses profiling an organization by identifying major areas of strength and weakness.
This document discusses decision-making and realizing goals through screening added value initiatives. It introduces the SAVI model for evaluating initiatives and outlines the components of a business case analysis for decision making. Key steps in the process include properly defining the problem, identifying goals and criteria, evaluating alternatives through financial and non-financial analysis, and selecting an option to implement along with follow up. The overall framework aims to systematically evaluate initiatives against strategic goals to identify the best solution.
This chapter discusses critical success factors from an industry and organizational perspective. It introduces models for analyzing the industry environment, including stages of industry evolution, to identify industry critical success factors. It also presents the SWOT analysis tool to match industry factors with an organizational profile and determine strategic approaches based on the organization's internal strengths and weaknesses and external opportunities and threats.
Chem e car_constitution_and_bylaws_8_17_2014 (1)Fadhel Alshaikh
The document outlines the constitution and bylaws of the Chemical Engineering Car Team student organization. It details the purpose of enriching members' experiences through the Chemical Engineering Car competition. It describes membership qualifications and prohibits discrimination. It outlines the executive council and division structure, duties of officers including the president and treasurer, election procedures, and amendments process. The bylaws further specify duties of the executive council in expenditures, promotions, and oversight of divisions.
This document outlines the six steps of performance measurement: 1) Separate strategic goals into input and output dimensions, 2) Develop output measures for each goal, 3) Develop input measures for each goal, 4) Check measures against the SAVI framework, 5) Use an effective recognition system, and 6) Build an organizational culture that supports improvement. Key aspects of a good measurement system include focusing on effectiveness, objectives, and key performance indicators related to factors like customers, products, and finances. Input and output measures should be linked to categories like speed, accuracy, volume, and investment.
This document provides an overview of key concepts in software project management including project evaluation, planning, categorization of projects, setting objectives, management principles, and stepwise project planning. It discusses the importance of software project management and compares software projects to other types of projects. Various methodologies, activities, life cycles, stakeholders, objectives, and management concepts are defined.
This document provides an overview of key concepts in software project management. It discusses the importance of project management, categorization of software projects, setting objectives, and stepwise project planning. Specific topics covered include project evaluation techniques like cost-benefit analysis, risk evaluation, and strategic program management. The document also provides examples of project management methodologies and definitions of core concepts.
The document discusses various aspects of project planning including defining the project scope, determining tasks and dependencies, estimating resources and costs, developing a baseline schedule, and monitoring progress against the baseline. It also covers investment criteria for evaluating projects, such as net present value, benefit-cost ratio, internal rate of return, payback period, and accounting rate of return. The document provides information on feasibility studies, their purpose and components.
This document provides an overview of quantitative analysis for management decision making. It defines quantitative analysis as the collection, organization, and interpretation of numerical data. There are two main types: descriptive analysis, which summarizes and presents data, and inferential analysis, which makes inferences, tests hypotheses, and determines relationships. Quantitative analysis simplifies mass data, aids decision making, and helps identify trends. It has various uses in business for tasks like resource allocation, inventory control, project management, and risk analysis. While powerful, it also has limitations like only dealing with quantitative data and producing probabilistic rather than exact conclusions. Computers now help analyze large datasets.
1. Firms have to choose which innovation projects to fund given that resources are limited and most projects fail. Quantitative methods like net present value (NPV) and internal rate of return (IRR) are commonly used but have limitations since cash flow estimates are unreliable.
2. Methods that combine qualitative and quantitative assessments are better able to account for long-term strategic implications. Firms may use screening questions, project mapping, Q-sort, conjoint analysis, or data envelopment analysis.
3. The chapter discusses quantitative methods like NPV and IRR, qualitative screening approaches, and techniques that blend qualitative and quantitative factors like project impacts, technical feasibility, and customer desirability to evaluate potential innovation projects.
This document discusses various tools and techniques used in project feasibility studies, decision making, and investment analysis. It provides information on:
1) Feasibility studies, which are undertaken early in a project to analyze technical, financial, legal, and risk factors. Cost-benefit analysis tools like net present value and internal rate of return are used to evaluate project feasibility.
2) Project appraisal involves evaluating feasibility studies to determine a project's likelihood of success based on social, technical, economic, financial, and environmental considerations.
3) Decision making in project management requires choosing between options using tools like decision trees, matrices, SWOT analysis, and voting. Cost-benefit analysis compares costs and benefits to aid decision
This document outlines Chapter 14 of Managerial Accounting II which discusses decision making and relevant costs and benefits. It covers the six steps in the decision making process and the managerial accountant's role in providing relevant information to managers. Relevant information must be pertinent to the decision, differ among alternatives, involve future costs/benefits, and allow for predictions. The chapter illustrates the identification of relevant versus irrelevant costs through examples of equipment replacement and flight route decisions at an airline. Sunk costs that cannot be changed are deemed irrelevant, while future differential costs that vary among alternatives are relevant.
This document provides an overview of decision making. It defines decision making as selecting a preferred course of action from two or more alternatives. The document outlines the characteristics of operations decisions and the framework for decision making, which involves defining the problem, establishing criteria, generating alternatives, evaluating alternatives, and implementing and monitoring the decision. It also discusses using decision models, including computer-aided models and economic models like break-even analysis, in decision making.
The document discusses developing a vision, mission, and values for an organization. It provides examples of elements to include in a vision statement like who the organization is, what it provides to customers, and how it operates. It also gives examples of components of a mission statement such as the products/services, customers, and expected results. Finally, it lists examples of organizational values around how employees and customers should be treated and how people in the organization will work. The overall purpose is to provide guidance on defining these key elements to guide an organization's goals and operations.
Rules while playing the game: CLICK ONLY THE "ACTION BUTTONS" BECAUSE IF YOU DIDN'T CLICK, YOU WILL GET LOST. Have fun playing. this is a POINT AND CLICK GAME
The document discusses developing a vision, mission, and values for an organization. It provides examples of elements to include in a vision statement like who the organization is and what it provides. It also gives examples of components of a mission statement such as the products/services, customers, and expected results. Finally, it lists examples of organizational values around how employees and customers should be treated to help govern work. The overall purpose is to define these key elements to guide the organization's goals and priorities.
1) Four Seattle ordinances affect vehicles residing in the city, including restrictions on parking for vehicles with unpaid tickets and defining "scofflaw" vehicles.
2) A study was conducted to estimate the population of people living in their vehicles in Ballard and North Seattle. Over 700 vehicles were observed and classified as cars, trucks, vans, or RVs.
3) The findings show the majority of vehicle residencies consisted of RVs, with averages of 32 in Ballard and 18% in North Seattle. The data collected can help inform actions to assist people living in vehicles.
This chapter discusses performance measurement and management in organizations. It outlines the benefits of performance measurement, such as performance planning, increased effectiveness of supervision, and improved employee morale. However, it also notes pitfalls like negative attitudes towards measurement. The chapter emphasizes that positive, immediate, and certain consequences are the most powerful motivators for employees' performance and behaviors. Overall, it stresses that good performance management involves defining goals, monitoring rewards systems, and cultivating a culture where people feel safe and rewarded for change.
Automatic Doors India , Revolving Doors India , Entrance Solutions in Indiambsllp
agta record and Blasi are global partners that provide entrance solutions. They develop a wide range of automatic door operators including sliding doors, swing doors, folding doors, revolving doors, under floor systems, and special doors. The document highlights some of their product ranges and solutions for different door types. It provides examples of revolving doors with 2 or 3-4 leaves, under floor operators, facade doors, and images of specialized door installations.
Este documento fornece uma introdução sobre barragens para graduandos. Aborda os principais tipos de barragens, componentes de barragens de terra, desvio de rios, investigação geotécnica e bibliografia básica sobre barragens.
This document discusses the strategic planning process and environmental analysis. It outlines examining the remote, industry, and local environments to understand challenges and opportunities. The remote environment considers economic, social, political, and technological issues. Industry analysis looks at the five competitive forces. The local environment analyzes issues specific to an individual organization. The document also discusses profiling an organization by identifying major areas of strength and weakness.
This document discusses decision-making and realizing goals through screening added value initiatives. It introduces the SAVI model for evaluating initiatives and outlines the components of a business case analysis for decision making. Key steps in the process include properly defining the problem, identifying goals and criteria, evaluating alternatives through financial and non-financial analysis, and selecting an option to implement along with follow up. The overall framework aims to systematically evaluate initiatives against strategic goals to identify the best solution.
This chapter discusses critical success factors from an industry and organizational perspective. It introduces models for analyzing the industry environment, including stages of industry evolution, to identify industry critical success factors. It also presents the SWOT analysis tool to match industry factors with an organizational profile and determine strategic approaches based on the organization's internal strengths and weaknesses and external opportunities and threats.
Chem e car_constitution_and_bylaws_8_17_2014 (1)Fadhel Alshaikh
The document outlines the constitution and bylaws of the Chemical Engineering Car Team student organization. It details the purpose of enriching members' experiences through the Chemical Engineering Car competition. It describes membership qualifications and prohibits discrimination. It outlines the executive council and division structure, duties of officers including the president and treasurer, election procedures, and amendments process. The bylaws further specify duties of the executive council in expenditures, promotions, and oversight of divisions.
This document outlines the six steps of performance measurement: 1) Separate strategic goals into input and output dimensions, 2) Develop output measures for each goal, 3) Develop input measures for each goal, 4) Check measures against the SAVI framework, 5) Use an effective recognition system, and 6) Build an organizational culture that supports improvement. Key aspects of a good measurement system include focusing on effectiveness, objectives, and key performance indicators related to factors like customers, products, and finances. Input and output measures should be linked to categories like speed, accuracy, volume, and investment.
This document provides an overview of key concepts in software project management including project evaluation, planning, categorization of projects, setting objectives, management principles, and stepwise project planning. It discusses the importance of software project management and compares software projects to other types of projects. Various methodologies, activities, life cycles, stakeholders, objectives, and management concepts are defined.
This document provides an overview of key concepts in software project management. It discusses the importance of project management, categorization of software projects, setting objectives, and stepwise project planning. Specific topics covered include project evaluation techniques like cost-benefit analysis, risk evaluation, and strategic program management. The document also provides examples of project management methodologies and definitions of core concepts.
The document discusses various aspects of project planning including defining the project scope, determining tasks and dependencies, estimating resources and costs, developing a baseline schedule, and monitoring progress against the baseline. It also covers investment criteria for evaluating projects, such as net present value, benefit-cost ratio, internal rate of return, payback period, and accounting rate of return. The document provides information on feasibility studies, their purpose and components.
This document provides an overview of quantitative analysis for management decision making. It defines quantitative analysis as the collection, organization, and interpretation of numerical data. There are two main types: descriptive analysis, which summarizes and presents data, and inferential analysis, which makes inferences, tests hypotheses, and determines relationships. Quantitative analysis simplifies mass data, aids decision making, and helps identify trends. It has various uses in business for tasks like resource allocation, inventory control, project management, and risk analysis. While powerful, it also has limitations like only dealing with quantitative data and producing probabilistic rather than exact conclusions. Computers now help analyze large datasets.
1. Firms have to choose which innovation projects to fund given that resources are limited and most projects fail. Quantitative methods like net present value (NPV) and internal rate of return (IRR) are commonly used but have limitations since cash flow estimates are unreliable.
2. Methods that combine qualitative and quantitative assessments are better able to account for long-term strategic implications. Firms may use screening questions, project mapping, Q-sort, conjoint analysis, or data envelopment analysis.
3. The chapter discusses quantitative methods like NPV and IRR, qualitative screening approaches, and techniques that blend qualitative and quantitative factors like project impacts, technical feasibility, and customer desirability to evaluate potential innovation projects.
This document discusses various tools and techniques used in project feasibility studies, decision making, and investment analysis. It provides information on:
1) Feasibility studies, which are undertaken early in a project to analyze technical, financial, legal, and risk factors. Cost-benefit analysis tools like net present value and internal rate of return are used to evaluate project feasibility.
2) Project appraisal involves evaluating feasibility studies to determine a project's likelihood of success based on social, technical, economic, financial, and environmental considerations.
3) Decision making in project management requires choosing between options using tools like decision trees, matrices, SWOT analysis, and voting. Cost-benefit analysis compares costs and benefits to aid decision
This document outlines Chapter 14 of Managerial Accounting II which discusses decision making and relevant costs and benefits. It covers the six steps in the decision making process and the managerial accountant's role in providing relevant information to managers. Relevant information must be pertinent to the decision, differ among alternatives, involve future costs/benefits, and allow for predictions. The chapter illustrates the identification of relevant versus irrelevant costs through examples of equipment replacement and flight route decisions at an airline. Sunk costs that cannot be changed are deemed irrelevant, while future differential costs that vary among alternatives are relevant.
This document provides an overview of decision making. It defines decision making as selecting a preferred course of action from two or more alternatives. The document outlines the characteristics of operations decisions and the framework for decision making, which involves defining the problem, establishing criteria, generating alternatives, evaluating alternatives, and implementing and monitoring the decision. It also discusses using decision models, including computer-aided models and economic models like break-even analysis, in decision making.
This document discusses benchmarking, which involves continuously comparing a company's strategies, products, and processes to world-class organizations in order to identify areas for improvement. It describes the benefits of benchmarking as cultural change towards new performance targets, performance improvement by defining gaps, and improving human resources through training. There are two types of benchmarking: strategic, which analyzes the environment and competition, and operational, which prioritizes key processes for cost reduction and differentiation. The benchmarking process involves measuring best-in-class performance, determining how it was achieved, and developing an improvement plan.
Developing innovative new products and services is expensive and time-consuming. It is also extremely risky—most studies have indicated that the vast majority of development projects fail
The document outlines the 8 main steps in the planning process:
1) Identifying opportunities by understanding the external and internal environments.
2) Setting objectives to provide direction. Objectives should be specific, measurable, and interconnected.
3) Determining planning premises about internal and external factors that will affect plans. Alternative premises are developed and verified.
4) Determining alternative courses of action available to achieve objectives.
5) Evaluating alternatives in light of goals and premises.
6) Selecting the ideal alternative based on analysis and achieving goals efficiently.
7) Formulating supporting plans like policies and budgets to implement the main plan.
8) Quantifying plans by creating budgets to standardize measurement
This document provides an overview of the Cost Benefit Analysis Method (CBAM) for analyzing architectural decisions. CBAM considers both the technical impacts of decisions as well as the associated costs and financial benefits. It involves stakeholders prioritizing scenarios, assigning utility values to quality attributes, developing architectural strategies to address scenarios, and calculating the costs and benefits of strategies to determine the highest return on investment. The process is iterative, with the second iteration incorporating uncertainty through risk assessment. CBAM aims to help organizations optimally allocate resources by selecting strategies that maximize financial gains and minimize risks.
1. Firms use both quantitative and qualitative methods to evaluate innovation projects for funding, as most projects fail and resources are limited. Commonly used quantitative methods like net present value (NPV) and internal rate of return (IRR) create financial estimates but rely on uncertain cash flow forecasts.
2. Qualitative methods structure discussions around screening questions from multiple perspectives. Combination methods incorporate quantitative and qualitative data, like conjoint analysis quantifying attribute importance or data envelopment analysis ranking projects on efficiency.
3. No single method is perfect, so firms balance quantitative financial analysis with qualitative strategic fit assessments in choosing the right innovation project portfolio.
1. Firms use both quantitative and qualitative methods to evaluate innovation projects due to the high risks and uncertainties involved. Commonly used quantitative methods include discounted cash flow analyses like net present value and internal rate of return, though estimates are unreliable.
2. Qualitative methods structure discussions around key criteria. Approaches that combine methods can better account for strategic implications beyond cash flows. Resources are also rationed, so a portfolio balance of different project types is important.
3. No single method is sufficient due to the complexities of innovation, so firms integrate multiple quantitative, qualitative and mixed approaches to evaluate projects from different angles.
1. Firms use both quantitative and qualitative methods to evaluate innovation projects due to the high risks and uncertainties involved. Commonly used quantitative methods include discounted cash flow analysis like net present value (NPV) and internal rate of return (IRR), but these have limitations as cash flow estimates are often unreliable.
2. Qualitative methods provide a more nuanced assessment by considering multiple criteria like strategic fit and technical feasibility, but are more subjective. Many firms combine quantitative and qualitative techniques to evaluate projects. Methods that facilitate discussion like screening questions and Q-sort can structure debates.
3. No single method is perfect, so a balanced portfolio of projects with different risk and return profiles is ideal. Firms must ration
The document discusses the purpose and role of internal auditing. It describes internal auditing as an independent function that examines and evaluates an organization's activities to help management discharge their responsibilities effectively. The objective is to promote control within the organization at a reasonable cost. The document outlines the audit process, including planning, performing, reporting, and following up on corrective actions. It provides best practices for tasks like risk assessment, test design, documentation, reporting findings, and building trust with auditees.
The document summarizes research on using multiple criteria decision analysis (MCDA) to model the venture capital funding selection process. It describes how MCDA was used to structure criteria, rate business plans, elicit weights, and analyze the top alternatives for an actual $2.3 million venture capital fund. The results aligned with the fund manager's actual selection. Sensitivity analysis showed the top alternatives were robust. While limited, the study demonstrated how MCDA can provide a more transparent, thoughtful process for venture capital decision making.
This document outlines the key components of developing terms of reference for a new library automation project. It discusses establishing the goal to install a new circulation system. The objectives are defined as developing circulation modules, enabling online reservations, and implementing automatic overdue fines. The scope, deliverables, organizational structure, initial tasks plan, risks, assumptions, and constraints are also addressed to provide management with enough information to decide if the project should proceed.
This document discusses measuring progress towards goals. It introduces performance measurement and explains that measuring progress scientifically captures desirable changes in performance areas. It outlines key aspects of developing a measurement system, including measuring activity levels and results. Good performance measures should be measurable, observable, reliable, controllable, and active. The document provides examples of measuring performance for buses, budgets, restaurants, grocery stores, and car dealerships using the four dimensions of speed, accuracy, volume, and investment.
The document discusses financial evaluation methods for analyzing decision alternatives. It defines key terms like investment costs, cost of capital, discounted cash flow analysis, and presents examples. The objectives of financial evaluation are to array and quantify expected results by comparing investment costs to financial benefits. Common metrics used are net present value, benefit-cost ratio, payback period, and internal rate of return.
This document discusses criteria for evaluating options and making decisions. It covers establishing decision criteria in multiple areas: financial, social/stakeholders, sustainability, environment, safety, customers. For each area, it lists sub-criteria and concepts for measurement. Financial criteria include returns, costs, value. Environmental criteria include emissions and waste. Social criteria include employment, culture, quality of life. Customer service criteria include satisfaction, impacts on customers. Risk is also an important criteria to consider. The document provides frameworks to comprehensively evaluate projects across these criteria.
This chapter discusses setting goals and managing change through goal cascading. It emphasizes that goals must be specific, measurable, achievable, results-oriented and time-bound. Goals cascade from high-level strategic goals set at the corporate level down to functional objectives and action plans at the operating level. Effective goal measurement shows progress and justifies further investment. While goals across divisions may compete, balancing priorities is key to managing change through either paradigm shifts or incremental shaping toward goals over time.
This document discusses the SAVI model for strategic management and goal setting. It introduces SAVI as an acronym that stands for speed, accuracy, volume, and investment. The SAVI model focuses on setting goals to provide added value to stakeholders. It describes the management cycle of goal setting, decision making and control, and performance measurement. The document provides details on each step of the SAVI model, including defining the vision, mission, values, opportunities/challenges, and critical success factors to develop corporate and operating goals. It emphasizes that goals should focus on sustainability, safety, stewardship, satisfaction, and profits.
This document discusses the SAVI model for strategic management and goal setting. It introduces SAVI as an acronym that stands for speed, accuracy, volume, and investment. The SAVI model focuses on setting goals to provide added value to stakeholders. It describes the management cycle of goal setting, decision making and control, and performance measurement. The document provides details on defining goals at both the corporate and operating levels to address challenges, opportunities, and critical success factors. It also outlines the benefits and risks of using the SAVI strategic goal setting process.
1. CHOICE AND
PRESENTING THE
BUSINESS CASE
A conclusion is sometimes the
place where you got tired of
thinking
1
2. Figure 9.1, the problem-solving model
PROBLEM STATEMENT
PROBLEM STATEMENT
CRITERIA
CRITERIA
ALTERNATIVES
ALTERNATIVES
NON-FINANCIAL ANALYSIS
NON-FINANCIAL ANALYSIS FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
MAKE A CHOICE
MAKE A CHOICE
IMPLEMENTATION PLAN &
IMPLEMENTATION PLAN &
FOLLOW UP
FOLLOW UP
2
3. MAKE A CHOICE
Other things being equal, the best
alternative to choose will be the
one having these characteristics:
an acceptable level of risk,
the largest benefits (financial and/or non-financial),
the lowest costs,
the best benefit/cost ratio.
The choice of best alternative should be
immediate and unanimous. If not, go back to the
beginning of the model.
3
4. Figure 9.2, Make a choice checklist
Yes/No
Do we share an understanding of the strategic plan?
Do we mutually understand the problem we are facing?
Do we agree on the type and relevance of decision criteria?
Are we all satisfied that the range of alternatives was broad
enough?
Do we agree that the qualitative data was relevant and accurate?
Do we agree that the quantitative data was relevant and
accurate?
Do we agree that the evaluation system effectively dealt with the
information?
Are we free from issues involving something other than this
problem situation? (Hidden agendas?)
4
5. The Evaluation Process
The evaluation of alternative courses of
action is a three‑stage process:
1. Data Collection
2. Analysis
3. Evaluation
5
6. The Evaluation Process
1.DATA COLLECTION
There are three types of data:
Quantitative data based on observations.
Qualitative data based on observations.
Data based on the opinions, intuition and
personal judgment of experts.
6
7. The Evaluation Process
2.ANALYSIS
Before ranking begins, the quality of the
information to be used in the evaluation
needs to be tested.
Good information should be used in the
analysis, bad information should be
discarded..
7
8. The Evaluation Process
3. Evaluation
1. Identify all major assumptions used in the
collection of data.
Time frame:
Physical life (Projected operating life).
Technological life (equipment obsolescence).
Product useful life (economic obsolescence).
8
9. The Evaluation Process
Cost data:
Sum of dollars associated with the total project
cycle, from the business case preparation to post
implementation evaluation.
Benefits/savings data:
Increase in revenues and/or decrease in costs
over the life of the project.
Increase in efficiency/productivity.
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10. The Evaluation Process
2.Identify operating and non-financial
impacts:
employees with appropriate skill sets may be unavailable
when required
availability of technology and support systems
environmental impact
compliance with legislated/regulatory requirements.
3.Risks:
Identify any risks that could affect the expenditure
initiative.
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11. The Evaluation Process
The evaluation system used for non-
financial impacts will be different for each
situation. (There is no standard practice for
evaluating the impact of a suggested solution on
customer perception or employee perception for
example. )
In the case of financial evaluation, there is
a standard procedure..
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12. Financial Evaluation
Chapter 8 dealt with the mechanics of the
financial evaluation … NPV. B/C Ratio,
Payback period and IRR.
Financial analysis is quite narrow.
There is more to the health of people, the
reduction of crime, and the safety of fish
than can be measured with money.
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13. Non-Financial Evaluation
Some business cases need to be advanced
even though they do not have benefits that can
be measured in financial terms.
Their true impact could only be measured using
some other measurement scale.
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14. Non-Financial Evaluation
Even when alternatives have no financial
benefits of any form, they all have a
financial cost.
One method to help rank non-financial
alternatives in order of preference is to
use financial costs to drive the rankings.
This is called “Critical Values” analysis.
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15. Non-Financial Evaluation
Imagine that park in the neighbourhood has a
present value of financial costs of negative
$712,800 which comes from the financial
spreadsheet assuming a $500,000 construction
cost and $25,000 per year in maintenance for an
estimated 20 year life of the project.
As there are no financial benefits, the present
value of the costs of the park must be matched
to the users of the park.
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18. Figure 9.5, The Value Of A Park Visit
This is to say that we are investing $27.91 in each park
visit per person. The financial value would then be
matched against some qualitative judgement.
Does it make sense to pay that much per park visit?
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19. Non-Financial Evaluation
Sometimes a business case has more
than one social impact. For example, if our
project will also create five new jobs in the
region we split the investment between the
two “Social” accounts.
The investment made per job is $8,366.20
and the investment per park visit is
$13.95.
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21. THE “EVALUATION MATRIX”
SPREADSHEET
The third tab on the spreadsheet presents
a tool that might be useful in the ranking
and selection of alternative solutions to a
problem.
The tool enables the decision-maker to
rank alternatives against the criteria that
meet the requirements of the strategic
plan.
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22. THE “EVALUATION MATRIX”
SPREADSHEET
Step 1, Establish Decision Criteria
Step 2, Apply Weighting Factors.
Step 3, Rank the Alternatives Against
Each Criteria.
Step 4, Calculate the Weighted Scores.
The result of this analysis is that the
alternative that best meets the most
important criteria will be given the highest
numerical value.
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24. INTEGRATING THE EVALUATION
WITH YOUR BUSINESS CASE
The spreadsheets are only tools to
support the business case.
The case itself will be a combination of
quantitative analysis provided by the
spreadsheets, and qualitative analysis
provided by the text of the case.
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25. Implementation plan and
Control Systems
Controlling projects and initiatives is an
absolutely critical element of being
effective in a management situation.
There are two focus areas in developing
control systems to manage expenditures.
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26. Implementation plan and Control
Systems
The first is to control the scope, time and
money spent while a project is being
constructed, and
the second is to control the operation of
the project while costs are incurred and
benefits are earned.
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27. IMPLEMENTATION PLAN
A project can only be called a success
when the implementation has proceeded,
the project has created the anticipated
benefits, and there is a measure of the
benefits received.
The implementation plan deals with two elements:
What has to happen to be successful?
How will you know if you have achieved the
benefits?
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28. IMPLEMENTATION PLAN
Step 1, Build the project
The construction phase should identify
project management responsibilities
Assign individual(s) to:
be in charge of the overall project
plan the project schedule
determine resource requirements
ensure that the project is completed on time/within
budget
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29. IMPLEMENTATION PLAN
Timetable
Develop a timetable to cover all phases of the
project that includes:
project duration
area of responsibilities
key project events
deliverables and due dates
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30. IMPLEMENTATION PLAN
Resource impacts
1) CAPITAL BUDGETS
2) OPERATING BUDGETS
3) NON-FINANCIAL BUDGET
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31. IMPLEMENTATION PLAN
Step 2, Control the Results
The difference between a budgeted amount
and an actual amount is called a variance. It
is the variance that causes a management
reaction. Variances are a powerful
management tool to use to control a process.
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32. VARIANCES AS A
MANAGEMENT TOOL
To be useful as a tool, we must consider
the following:
The variance fairly reflects a manager's control
area.
The variance isolates relevant deviations from the
plan.
Management reaction is appropriate to the
magnitude and severity of the variance.
The act of isolating variances and taking corrective
action causes desired changes in behavior.
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33. VARIANCE ANALYSES,
MANAGEMENT BY EXCEPTION
When performance is evaluated, two
factors are considered:
Has there been a deviation from the plan? If
so how large?
Was the deviation controllable, and by whom?
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34. VARIANCE THEORY
A variance analysis will generate
observations like.
Spending on materials and labour is $50,000 higher than
expected.
Customer demand is 15% less than expected
Customer satisfaction is 15% greater than expected
The emission if solid particulates into the airborne
environment is 5% more than expected
The impact on the economic system in terms of job
creation is 7% more than expected
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35. Variances:
Variances
identify the presence of a deviation from the plan
attach a value to the deviation from the plan
identify possible cause areas.
Variances do not
Fix blame
Suggest remedies
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36. Remedial action may involve
the following activities:
Directing the process into an "in control state", by
forcing the process to meet the budget.
Changing the budget if the variance was caused
by a permanent change in operating conditions
which causes the budget to be wrong
Ignoring the variance and taking no corrective
action on the assumption that the variance was a
temporary aberration that will not repeat itself
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37. WHEN TO INVESTIGATE
VARIANCES
Variances should be investigated when the cost of
investigating and correcting the process is less
than the cost of allowing the process to continue in
its out of control state.
A process appears to be heading for an out of
control state.
The variance is minimal but repeats itself constantly.
The investigation may have a desired behavioral
side effect.
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38. Making Effective Presentations
Effective business communication uses objective
language. We must persuade the reader that the
information we are providing is accurate, deserving
of consideration, relevant and important.
What we say and how we say it should be driven
by the needs of our reader.
It is important to align your written and oral
submissions with the information needs of the
reader in a convincing manner.
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39. Effective business presentations
Planning
Clearly establish the objectives and style of the report to
meet the reader's needs.
Using a Logic Model
Overcome resistance to change by presenting a
conclusion that is supported by objective facts and sound
business rationale.
Proving the Conclusions
Provide evidence as to the source of information used in
the analysis and evidence of the costs and benefits
associated with the solution to a problem.
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40. PLANNING YOUR CASE
PRESENTATION
Set your objective.
What do you wish to accomplish as a result of your
submission?
What must you convince the audience of to
achieve your objective?
What conclusions will you guide your audience to
reach?
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41. PLANNING YOUR CASE
PRESENTATION
Identify the concerns you have of the audience and their:
Perspective, (Financial? Performance? Image?)
Prior knowledge
- What do they know of your submission?
- What do they not know?
Attitude
- Indifference?
- Acceptance?
- Objection?
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42. PLANNING YOUR CASE
PRESENTATION
Identify additional conclusions the audience must reach
based on the audience analysis.
Identify the proof that can be provided to support each
conclusion the audience is required to reach.
Order your conclusions and proofs in descending order of
importance to your audience. What will they want to hear
first?
Identify the appropriate language to use with the given
audience.
Is your language personal?
Are you communicating in the active voice?
Are you using language that is simple and easy to understand?
A business case presentation must stand alone.
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43. BUSINESS CASE REPORT
FORMAT
A perfect business case will leave no questions in a
reader's mind, and will allow a logical and informed
decision to be made.
A) PREAMBLE
Describe the "big" picture.
B) PROBLEM DEFINITION
Clearly identify the problem being solved.
C) RECOMMENDED SOLUTION
Identify the alternative chosen early in the report.
D) SELECTION CRITERIA
Offer a description of the criteria used to make the choice
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44. BUSINESS CASE REPORT
FORMAT
E) ALTERNATIVES
Demonstrate to the reader that a sufficient number of good quality
alternatives were considered.
F) ANALYSIS OF ALTERNATIVES
Non-financial issues and Financial Issues
G) IMPLEMENTATION PLAN & FOLLOW UP
Offer a detailed implementation plan including project timelines and
management responsibilities, as well as a description of the measurement
tools that will be used to track progress and identify project benefits and
costs.
H) RISK ASSESSMENT
A detailed description of all risk elements, including project specific risk and
environmental risks should be included.
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45. PROVING YOUR
CONCLUSIONS
It is not sufficient evidence to simply say, "I believe this
to be true" or "It is common knowledge that..."
Credible evidence will be presented as:
Example
Expert testimony
Analogies
Statistics
Personal experiences
The emphasis should be on quality over
quantity. Too much evidence can be as
confusing as too little.
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46. CONCLUSIONS REGARDING
PRESENTATIONS
Business communications are concise, factual and to the
point.
An illogical or unsupported approach to communicating
solutions to problems may result in deferred action, even
though the chosen action best solves the problem.
The most efficient communicators will tailor the
presentation to the needs and perceptions of the
audience.
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47. CONCLUSIONS REGARDING
PRESENTATIONS
Good communications will actually improve the decision
making process.
It may be advisable to have your document reviewed by
a colleague prior to final submission. The author is often
too close to the document to notice deficiencies in
presentation style.
Make a point of learning from every proposal you submit,
the good ones and the bad ones.
Make a point of using the financial analyst for your
business unit or department. This person can make your
job easier.
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48. Chapter summary
Making a choice is easy if the analysis is complete and logical,
controlling the project is easy if expectations re reasonable and
variances are reviewed frequently, and
making a presentation is easy if a model is used that satisfies
the logic of the listener.
Its all easy if you follow a model. It becomes difficult,
confusing and frustrating when you depart from logic and
start being random or relying on gut feel or personal
opinion.
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49. Closing Remarks
There is one last aspect of business casing that
needs to be covered. It deals with performance
measurement, or showing evidence that the
results we are looking for are actually occurring.
The concept of performance measurement and
performance management are cover in section
3, chapters 10-12.
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