Strategic Planning & Vision Flashcards

A project controls manager is asked to align a capital project portfolio with the organization's five-year strategic plan. Which tool best maps individual projects to strategic objectives?

Answer: Strategic alignment matrix

A strategic alignment matrix explicitly links each project's deliverables and benefits to specific organizational strategic objectives.

Which financial metric is most commonly used to prioritize projects during the strategic portfolio selection process?

Answer: Net present value (NPV)

NPV accounts for the time value of money and compares the profitability of competing projects, making it the preferred portfolio prioritization metric.

During strategic planning, a PMO identifies that two approved projects compete for the same critical resource. The BEST initial action is to:

Answer: Perform resource leveling and present trade-off options to leadership

Resource leveling identifies scheduling options and trade-offs that can be presented to decision-makers before any project is cancelled or scope is changed.

An organization's strategic vision statement differs from its mission statement in that the vision:

Answer: Articulates the desired future state

A vision statement describes where the organization aspires to be in the future, while the mission statement defines its current purpose and activities.

Which planning horizon is typically associated with a project controls strategic plan?

Answer: One to five years

Strategic plans generally cover a one-to-five-year horizon, balancing long-term vision with actionable near-term initiatives.

A benefits realization plan in strategic project management is used to:

Answer: Measure whether expected business benefits are achieved after project delivery

A benefits realization plan establishes how, when, and by whom the intended strategic benefits of a project will be measured and confirmed post-delivery.

In strategic portfolio management, a 'bubble chart' is typically used to visualize:

Answer: Project risk versus return to support portfolio balancing decisions

Portfolio bubble charts plot projects by dimensions such as risk and return (or strategic value and cost), enabling leaders to balance the portfolio visually.