Business Savvy Project Manager

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• IntroductionPermissionsPart One Building Foundational KnowledgeChapter 1 Project Management as a Business FunctionA Few Revelations as We Begin…The Landscape of Project Management Is ChangingHow Expectations of Projects Are ChangingHow Expectations of Project Managers Are ChangingHow the Definition of Project Success Is ChangingSome Other Significant ChangesAdopting a Total Asset Life Cycle FocusSo…How Are Projects Connected to the “Bottom Line,” Anyway?Chapter 2 The Core of Business Knowledge: Finance and AccountingFinance: The BasicsWhat Is Financial Management?How Are Projects Financed?The Weighted Average Cost of CapitalThe Cash Management CycleAccounting: The BasicsWhat is GAAP?Measuring Financial Health: The Balance SheetMeasuring Profit: The Income StatementMeasuring the Way Money Moves: The Cash Flow StatementMaking Sense of Financial Statements by Using Ratio AnalysisFinancial Accounting versus Managerial AccountingChapter 3 Fundamentals of Organizational ManagementWhat Is Organizational Management?Historical PerspectivesSound Organizational Management through Sound Organizational PlanningElements of Strategic PlanningPrimary Competitive StrategySituation AnalysisElements of Tactical PlanningCompetitive AdvantageStructural DesignElements of Operational PlanningOverarching Linkages in Organizational PlanningInformation Management ConfigurationBusiness Process ManagementThe Value Chain of Business FunctionsHow Organizations Improve their Business ProcessesChapter 4 Cost Management in OrganizationsOrganizational Budgeting and ControlThe Basic Process of BudgetingThe Master BudgetRelating the Master Budget to ProjectsThe Responsibility Center: Concept and PracticeAbout Cost Accounting SystemsFixed Costs, Variable Costs, and Mixed CostsCosts Related to Management and OperationsCosts Related to Quality ManagementCosts Related to Buying and SellingCosts Related to Project EconomicsPart Two Applying Sound Business Practices at the Enterprise LevelChapter 5 Project Portfolio Management, Phase I: Identifying the “Right” Business InitiativesAbout the Process of Capital BudgetingProject Portfolio Management: Moving in the Direction of BusinessThe Benefits of Using a Project Portfolio Management ApproachGuiding Principles of the Project Portfolio Management ApproachThe Basic Building Blocks of the Project Portfolio Management ProcessesProject Portfolio Management: A Three-Phase ProcessProject Portfolio Management: Step by StepPhase I: Identifying, Quantifying, and Financing the Right Business InitiativesThe Start of Portfolio Development: Identifying Long-Range GoalsIdentifying Quantified Business Initiatives (Strategic and Operational)Establishing a Project Financing StrategyHow Can You Be Sure You Have a Sound Approach to Identifying the “Right” Initiatives?The Biggest Challenge in Identifying the “Right” Initiatives: Knowing When to StopChapter 6 Project Portfolio Management, Phase II: Identifying, Categorizing, and Prioritizing Project SolutionsIdentifying Solutions to Address Business InitiativesIntroduction to the Alternative Identification and Analysis ProcessAlternative Identification and Analysis: Step by StepConfiguring the Portfolio CategoriesPrioritizing Projects within Portfolio Categories: Why and HowAn Overview of the Attribute Scoring MethodologyPutting It All Together: The Weighted Factor Scoring MatrixChapter 7 Project Portfolio Management, Phase III: Selecting, Launching, and Coordinating ProjectsThe Project Listing Process: A ReviewSelecting the Best Projects and Constructing the Final Portfolio ListingUnderstanding the Difference between Justification, Selection, and AuthorizationAvoiding the “Selected, but Not Justified” SyndromeApplying Project Screening TechniquesGuidelines for Administering an Effective Project Prioritization ProcessKnowing Where to “Draw the Line: It’s All about LimitationsConducting a Final Portfolio ReviewDeveloping a Project Launch SequenceConsiderations During Project InitiationConduct Post-Project (and Portfolio) AuditsPart Three Applying Sound Business Practices at the Project LevelChapter 8 Project Economics, Part I: Foundational PrinciplesThe Time Value of MoneyFuture Value and CompoundingPresent Value and DiscountingThree Methods for Calculating the Time Value of MoneyRate of Return: The BasicsDiscounted Cash Flow MethodologyChapter 9 Project Economics, Part II: Preparing for a Project Financial AnalysisThe Anatomy of Project Cash FlowThe Foundation of Any Financial Analysis: The Cash Flow ChartThe Process of Identifying and Modeling the Cash Flows of a ProjectGuidelines for Modeling Cash FlowsProper Treatment of Special Cash Flow TypesThree Basic Project Cash Flow ModelsChapter 10 Project Economics, Part III: Performing a Project Financial AnalysisSeparating Fact from Fiction in the Project Financial Analysis ProcessThe Four Basic Financial MetricsPerforming a Project Financial Analysis: A Comprehensive ExampleCalculating the Four Basic Financial MetricsPutting the Financial Metrics Together: Evaluating the InvestmentFinancial Analysis in Reverse: Calculating the Maximum Justifiable Project CostEnhancing the Financial Analysis Process by Introducing RiskChapter 11 Risk Management, Decision-Making, and BusinessThe Objectives of Risk Management and Decision-MakingDealing with Risk and Uncertainty in Business DecisionsRisk and Uncertainty: A Quick RefresherSources of Business and Financial Uncertainty in Project Investment DecisionsReducing Risk by Using Higher-Quality InformationReducing Risk by Modifying Financial Analysis Process ParametersUsing Sensitivity Analysis as Part of the Financial Analysis ProcessIdentifying the Appropriate Variables for a Sensitivity AnalysisPerforming a One-Dimensional Sensitivity AnalysisPerforming a Multidimensional Sensitivity AnalysisPerforming Sensitivity Analysis using Monte Carlo SimulationUsing Break Even Analysis for Business DecisionsUsing Decision Trees in Financially Based Decision-MakingPart Four Preparing the Business CaseChapter 12 Business Cases and Business Case PreparationWhy Use a Business Case Approach?What Is a Business Case?General Applications of Business CasesBenefits of Using a Formal Business Case ApproachConditions that Trigger a Formal Business Case ApproachWho Prepares the Business Case?The Business Case Development ProcessCritical Success Factors in Business Case DevelopmentQualities of a Well-Prepared Business CaseRecommended Business Case Structure: An OverviewPart Five AppendixesAppendix A Guidelines for Preparing a Project Business CaseAppendix B Interest TablesGlossaryIndex