PMP – Notes on Salience model, Business value, Total cost of ownership, Risk Categories, Project coordinator and Project expeditor

Salience model

for analysing project stakeholder: used for identifying and analysing the projects stakeholders needs.

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Details of each type of the stakeholders you could find in any project:

Definitive:  Critical project stakeholder, whom should be managed with focus

Dominant: Stakeholder with power and legitimacy, but do not have the urgency. But one should focus on their expectations.

Dependent: Stakeholder without no real power, but should be managed because they are very easy to influence other stakeholders and hence the project.

Dangerous: Stakeholder who can be influence the project’s success. With high power and urgency, they can force their view. Hence they should be engaged and satisfied all the time.

Dormant: Stakeholder with higher power, but with low urgency and low legitimacy.  Because of the high power hey have, can impact the project.  Should be managed carefully. Ex. Top Management, CEO

Discretionary: Stakeholder with high legitimacy, with low power and urgency. These stakeholders should be kept updated often, and one should try to fulfil all their requirements.

Demanding: Stakeholder who are much spoken, and may influence the projects outcome if their requirements are not met. Should be managed carefully.

Monitor Dormant, Discretionary Low priority
Keep Informed Dominant, Demanding Low priority
Keep Satisfied Dangerous Mid priority
Manage Closely Definitive, Dependent High priority

The stakeholders needs can change during the projects, and manager should always identify and mark the stakeholders in one of the categories and fulfil needs appropriately.

Project coordinator and Project expediter

Differences described below, project coordinator is more powerful than expediter.

  • Expediter: communicates the project progress report, and personally can’t make any decisions. Mostly the roles are found in functional organization
  • Coordinator: have the power to make some decisions, with some authority.

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Business value

Project management purpose is to deliver business value to the customer by executing the project. Business value is one the important parameter considered whether or not the project should be executed. If the business value is not delivered, then the project is considered as not successful.

Total cost of ownership

Purchase price + cost of ownership

Total cost of ownership is not just the purchase price, but in addition the cost incurred for the ownership. For example, if you purchase a car the total cost of ownership would be the purchase price plus the cost incurred for usage, service, insurance and fuel.

Risk Categories

Categorically risk are identified and recorded based on type and source

Source

  • External – unpredictable: regulatory, hazards, etc
  • Internal – mostly predictable: Schedule, cost, resource, quality, etc.
  • Technical – design issues, complexities, etc
  • Legal – patent risks, licenses violation, contact obligations, etc

Type

  • Project management risk – risks arising because of poor application of management disciplines (improper scheduling, time and resources)
  • Organizational risks – risk arising because of conflicts with other projects, inappropriate prioritizations of projects

 

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