Management: Alternatives, Hierarchy Processes & Control Systems

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(1) In your own words, describe the two distinct sets of project alternatives dealt with in every evaluation. In your description, identify an example of each set. Following the descriptions, discuss why the comparison of investment alternatives is difficult when each alternative is useful, even outside of the project.

Every evaluation deals with two distinct sets of project alternatives: explicit and implicit. The explicit alternative set focuses on the analysis of the details, while implicit alternative set is at the global level outlining the framework and minimum standards only. Explicit sets of projects alternatives are limited in both scope and numbers. Explicit set of project alternatives are very focused on a specific issue identified by the individual impacted, thus the number of alternatives to be considered are small and immediate in nature. For example, a new call center system proposed by the manager of the call center or a dashboard reporting tool presented by the director of the project management office (PMO). Explicit alternatives are problematic in that the recommended choices can have an increased level of bias and can be narrowly focused to individualize needs instead of having an organizational view. To offset this risk, implicit alternatives are often used.

Implicit project alternative sets represent all projects past and near future. Because this set contains future projects in which the specifications can be unknown, the description is never at the detail level. This set focuses on possibilities. Implicit project alternatives establish minimum standards to support project decision-making. An example of the implicit alternative set is a situation in which a new project is coming down the pipe and the portfolio manager needs to determine rather the project will yield the required minimum 10% return. Since this is a future effort, the portfolio manager researcher historical projects with simpler scopes and timeframes. The portfolio manager is able to determine multiple fundamentally similar projects in which the return was at least 12%. Thus the portfolio manager is able to assume this project will return the minimum return. Implicit alternatives provided a framework to increase project selection alignment with organizational objectives. However, implicit alternatives also have built in risks associated with the assumptions being made and the validity of historical project data.

(2) Research and find an article related to the analytical hierarchy process used in project management. Perform an online search, and locate an online article that is at least two to three pages. Read the ...