Discounted cash flow is a project investment valuation method whereby future cash flows are discounted by a rate that accounts for the time value of money. It is used to make decisions between various available projects, or to determine the economic feasibility of a project. For example, when a business is expecting revenue of $250,000 next year, the current value of … [Read more...]
The project plan is like the flight plan filed by a pilot prior to embarking on a journey. It communicates how the project will attempt to reach its destination. The project plan is the strategy that will be used to produce the project's products, services, or results. It is written in sufficient detail to communicate to executives and stakeholders how the project … [Read more...]
The art of making a decision is a daily occurrence for most people, both at home and at work. We've all experienced projects where the best path forward is unclear, or there is no option without a major negative side effect. What does the science say about decision making that could help us? Decision making is the process of choosing a course of action from among … [Read more...]
In the realm of project management, Artificial Intelligence (AI) is not just knocking on the door; it's already inside, reshaping the landscape with every passing day. As we look into the future, the integration of AI into project management promises a seismic shift in how projects are planned, executed, and ultimately, how project managers perform their roles. Here's a … [Read more...]
Selecting a contractor is one of the most difficult aspects of project management. It's why most large organizations have an entire department devoted to project procurement. Contractors all want the work, but how do you know they aren't too busy and will get to your project later than you'd like them to? How do you know they're really as capable as they … [Read more...]
The procurement side of project management can be daunting. Contractual issues are routinely some of the biggest and most expensive problems that require solving, and the parties are often very passionate about their case. Almost without fail, the common theme is that the issue could almost always have been addressed at the origin with a better contract. But alas, … [Read more...]
Every project has distinct roles that must be fulfilled in order to function properly and provide the products or services it was intended to provide. As a minimum, it needs a project manager and a project team who does the work, although those roles could be fulfilled by the same person. It also needs a connection to the larger corporate body who ensures funding is … [Read more...]
A common way to differentiate between business organizational structures is that of ongoing operational work versus capital projects. Operational work maintains an existing sales channel, whereas projects are one-time, unique expenditures with a defined budget, beginning and end dates, and they accomplish a specific goal. There are four types of organizational … [Read more...]
Carpenters have hammers, plumbers have wrenches, and programmers have computers. But does a project manager have any tools which help them perform their work better, quicker, or cheaper? Absolutely! In fact, if you don't use these tools you will be at a serious disadvantage to other project managers. And if you do, your career will see an order of magnitude return … [Read more...]
A google search for the term "lean project management" is a perplexity. At the time of this writing, the search results didn't even attempt to place a result for lean methodology applications to project management until the bottom of the first page. Once there, the articles and courses that purport to teach lean project management as if lean was just another well … [Read more...]
