Payback period is the length of time required for an investment to recover its capital. It is the amount of time required until the investment is in a break even position. It is generally used for investments that involve a large up front capital outlay, such as the construction of an industrial facility or development of a software product. The shorter the payback … [Read more...]
The internal rate of return (IRR) of a project is the expected growth rate of a project investment. It can be compared to the rate of return obtained by investing the money in the stock market or in other projects. Organizations typically calculate IRR to make decisions between several investment alternatives. It is the discount rate that results in a net present … [Read more...]
In the complex world of project management, success has traditionally been measured by hitting targets related to scope, time, cost, and quality. However, there's an increasingly recognized truth that transcends these metrics: The perception of success by stakeholders is often the most crucial determinant of a project's real success. This perspective shifts focus … [Read more...]
How do large corporations make the decision to proceed with a project? What data or metrics do they consider prior to investing billions into a new plant, a new high rise condo, or major I.T. project? Capital budgeting refers to the financial modelling that evaluates the feasibility and compares potential project investments. At the end of the day, organizations … [Read more...]
Many projects and organizations purchase external goods, services, consultants, contractors and suppliers in a process called procurement. Although it's a very efficient and capable way to deliver project work, it has its own limitations that must be recognized in order for the procurements to go smoothly. A procurement strategy establishes the methods and procedures … [Read more...]
A procurement management plan documents how a project will conduct its procurement (purchasing). In the Project Management Body of Knowledge (PMBOK Guide), it is the component of the overall Project Management Plan that deals with external purchasing for the project. It is separate from the statement of work (SOW), also known as the terms of reference (TOR) which … [Read more...]
Project management is more than just working with numbers, charts, templates, graphs, and computer systems. A common denominator in all projects is people. There is nothing more powerful than a project manager who utilizes one of the three main project management methodologies but focuses most of their time on being a strong leader. This is because strong project … [Read more...]
A Gantt chart is a graphical depiction of a project schedule in which project task durations are shown as horizontal bars. Gantt charts are the easiest and most intuitive way to communicate a project schedule. They are created as part of the Project Management Plan, and give stakeholders an instant picture of what the project is set to accomplish, and when. But they … [Read more...]
In today’s digital age, social media is not just for sharing personal updates or marketing products; it's an incredibly powerful tool for project managers aiming to improve project delivery. When used strategically, social media can enhance communication, collaboration, stakeholder engagement, and even project marketing. Here are six ways that project managers can … [Read more...]
In the scrum development framework (part of the Agile project management methodology) the scrum master is the servant leader for the scrum team. They are not the boss nor the project manager. Rather, they promote scrum practices and facilitate scrum meetings. They are the resident scrum expert within the team and attempt to maximize the productivity of the … [Read more...]
