Nombre: Angela Guadalupe Rincon Vzz Matrícula: 3044394

Parte 2 en equipo con Ana Paulina Martinez 2981703

Nombre del curso: Administración de Nombre del profesor: Ricardo Gutierrez

Proyectos Reyes

Módulo: 1 Actividad / Evidencia: 2

Fecha: 24/01/25

 Bibliografía: Crawford, L. (2006). Turne, Aligning Capability with Strategy:

Categorizing of Projects to do the Right Projects and Do Them
Right. Project Management Journal.

 Larson, E., & Gray, C. (2011). Project management: The managerial

process. USA: McGraw-Hill.

 PMI. (2013). Guía de los fundamentos para la dirección de proyectos (Guía

del PMBOK) (5th ed.).

 Rivera, F. (2015). Administración de Proyectos: Guía para el

aprendizaje (2nd ed.). Pearson Education Mexico.
Activity 2. My first project portfolio.

Description:
Through this practical case, you will understand the benefits of
a project portfolio.

Objective:
To select the best project out of a company’s project portfolio.

Requirements:
Bring to class the previous activity in digital form.

Instructions:

1. First, answer the following questions:

a. Why should an organization prioritize their projects?

Ensure you correctly allocate company resources based on your unique
needs.
It is important to have the projects organized, since you need criteria to
be able to evaluate the organization strategy and the objectives can be
met, since it is important to be able to communicate to the part of the
team that they are interested in the project so that everyone can
generate ideas for projects and achieving them since it not only depends
on having them, but also on the people who work on it who have
experience and who are experts in the role assigned to them.

b. How many methods are there for choosing projects within a

company?
 Checklist Method
 Multiple Assessment Scoring Method
 Recovery Period Model
 Net Present Value Model (NPV)
 Internal Rate of Return (IRR)

c. Why should the selection of projects of an organization not be

solely based
on the ROI?
 Financial returns don't capture all strategic value
 Some projects have intangible benefits (e.g., brand reputation,
customer satisfaction)
 Long-term strategic alignment may be more important than short-
term financial gains
 Risk mitigation and innovation are crucial considerations

d. How does the check-list work?

 This is the most-commonly used method.

 It uses a list of questions to revise potential projects and
determine their approval or rejection.
 It is very flexible when choosing among many types of projects.
 It is difficult, if not impossible, to rate and prioritize projects based
on importance.
 Unfortunately, this model can lead to power games, politics, and
other manipulation tactics.

The checklist method involves:

 Creating a comprehensive
list of criteria for project
selection
 Developing specific
questions or requirements
 Evaluating potential projects against these predefined
criteria
 Scoring or rating projects based on how well they meet
each checkpoint
 Providing a systematic and objective approach to project
screening
 Ensuring projects align with organizational goals
and capabilities

e. How does the multiple assessment scoring method work

for choosing
projects?

 It is done through a matrix for the rating

of a project.
  It includes qualitative and/or quantitative criteria, for each criteria
a weight must be assigned.
 Projects can be compared with the assessment score.
 The best projects are those which get the best score.

2. Then, create a table that shows the advantages and

disadvantages of the project selection methods and answer the
previous questions.

Method Advantages Disadvantages

Checklist Method Provides a systematic, Oversimplifies
structured approach complex project
to project evaluation; assessments; lacks
reduces subjective depth; may miss
decision-making; easy nuanced project
to implement. characteristics
Multiple Comprehensive Time-consuming
Assessment evaluation across process; requires
Scoring Method multiple dimensions; careful criterion
allows weighted design; potential for
criteria; provides scoring bias.
holistic project
assessment.
Recovery Period Focuses on Ignores cash flows
Model investment payback beyond recovery
time; simple to period; doesn't
understand; quick measure overall
initial project project profitability;
screening. limited long-term
perspective.
Net Present Value Accounts for time Complex calculation
Model (NPV) value of money; requirements;
considers entire depends on accurate
project lifecycle; future cash flow
provides financial predictions; sensitive
comparison to chosen discount
accounting for future rate.
cash flows.
Internal Rate of Measures project Can be misleading
Return (IRR) profitability; allows with irregular cash
comparison between flows; doesn't indicate
different projects; project scale;
 considers entire assumes constant
investment period. reinvestment rate.

3. Mention some of the characteristics that every manager must

consider managing their project portfolio
1. Strategic Alignment
 Ensure projects support overall organizational strategy
 Maintain clear connection between projects and business goals

2. Resource Optimization
 Balance project demands with available resources
 Manage team capacity and workload
 Prevent resource overallocation

3. Risk Management
 Assess potential risks for each project
 Develop mitigation strategies
 Maintain a balanced risk profile

4. Financial Considerations
 Evaluate financial implications
 Consider both short-term and long-term financial impacts
 Balance financial returns with strategic value

5. Flexibility and Adaptability

 Create mechanisms for periodic portfolio review
 Allow for project adjustments

4. Investigate the Larson & Gray ́s Matrix of a project portfolio

and describe each

 Bread-and-butter projects: they imply improvements for the evolution of curre

services. Some examples of this
kind of projects are efforts to
reduce costs and manufacturing
 times, improving the company’s information systems, among
others.
 Pearl projects: they represent the revolutionary commercial
progress that use proved technical advancements. Some examples
of this kind of projects are the next generation of microprocessors,
obtaining underground images to locate hydrocarbons, among
others.
 Oyster projects: they include technological advancements with
increased commercial remuneration. For example, embryonic DNA
treatments and the new kinds of metallic alloys.
 White elephant projects: they are projects that at some
moment in time were promising but are not feasible anymore. For
example, products for a saturated market or a powerful source of
energy with collateral toxic effects.

5. There are two criterio for selecting projects,mention them.

In the financial selection criteria, there is

a recovery period model and a net
present value model:
 Recovery Period Model
 It measures the time that will be
needed to recover the project’s
investment.
 Refunding is the simplest and mostly used model, it emphasizes
cash flows. The shortest refunds are the most wanted.
 Generally, risky projects are discarded, meaning those with very
lengthy refund periods.
 Refunding does not use money’s chronological value.

6. ¿What is Project Management?

Using the PMI’s (2013) definition, project management is

applying knowledge, skills, tools and techniques to the
activities of the project to fulfill with its requirements.