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Honicker Corporation Portfolio Milestone

Kristie Lin

Colorado State University Global

PJM 500 Module 2 Portfolio Milestone

Dr. Melinda Hollingshed

2/21/21

2

Honicker Corporation Portfolio Milestone

The Project Management Institute (PMI) created guidelines to help businesses understand

how to manage projects successfully. Some of these guidelines include determining a project

champion and establishing a project management office (PMO) that will manage and provide

guidance for projects. The PMO will take charge with implementing a methodology that the

organization will follow. This is so that the organization has a process that they can repeat

multiple times, and know that the outcome of the project will be successful. Having a

methodology established can also help the organization remain competitive in the marketplace.

Principle Components Discussion

There are many components to project management, but the principle components are

distinguishing between project, program, and portfolio management, project selection, the

project charter, project organization, project planning, project scheduling, project estimating,

monitoring and control, project closure, communication management, risk management, and the

role of information technology. All of these components must be constructed in order for a

project to be successful.

Project, Program, and Portfolio Management Distinction

There is a variation between project, program, and portfolio management. Projects are

temporary and will shut down once they are completed and have delivered whatever they were

chartered to do (Weaver, 2010). In contrast, programs are groups of projects that are managed

altogether, rather than individually (Weaver, 2010). Additionally portfolio management focuses

more on choosing programs that will ultimately help achieve the organization’s goals (Project

Management Institute, 2017). That is not to say that project and program management do not

3

work towards meeting the organization's goals either because they do. Project and program

management are just subsets of portfolio management.

Project Selection

Selecting what projects to take on is crucial to an organization’s success. There are many

factors to consider when selecting projects. Resources, costs, time, organizational goals, benefits,

and risks of completing the project. Utilizing a project selection process or method would allow

the project management office or project manager to determine if the project is worth taking on.

Methods could include a cost-benefit analysis, a scoring model, net present value, internal rate of

return, or discounted cash flow. Different methods can be used for different types of projects. For

instance, net present value would be a better project selection method for long-term projects,

while shorter projects would benefit from the internal rate of return method (Reiter & Song,

2018).

Project Charter

Nowadays the project charter is an internal legal document that identifies managers, their

personnel, responsibilities, and the scope of the project (Kerzner, 2017). If the charter includes

the scope baseline and a management plan, it can be utilized as the project plan (Kerzner, 2017).

According to Kerzner (2017), a project charter should include the identification of the project

manager, business purpose, assumptions and constraints, summary of the conditions defining the

project, description of the project, objectives of the projects, project scope, key stakeholders and

their roles, risks, and the involvement by certain stakeholders. The project charter does not have

to be limited by just these components and depending on the complexity of the project, there

could be more additions.

Project Organization

4

Project Planning

Project Scheduling

Project Estimating

Monitoring and Control

Project Closure

Communication Management

Risk Management

Role of Information Technology

Simulation Scenario Analysis

In the Delphi Printer simulation, the tasks are clear. The senior project manager must

develop a new and innovative printer in six months. The first step of doing so is determining the

project scope, schedule, and resources needed for the project. It is important to establish a

timeline so that investors are aware of when they can expect a return on their investment. The

senior project manager also needs to be able to allocate an adequate amount of resources. Too

little or too many resources can decrease performance and result in the project failing. Not

enough people on the project team can create burnout and frustration, while having too many

people working on the project will cost the organization more money, and it is a waste of

resources. The senior project manager also creates schedules for meetings, whether that is

one-on-one meetings or team meetings, as well as, determining how many prototypes to design.

Lessons Learned

Recommendations

Case Study Analysis

5

The Honicker Corporation under previous management was very conservative and did

not expand their organization into the international market. When a new management team came

aboard in 2009, the organization had acquired four companies, Alpha, Beta, Gamma, and Delta

Companies, in an attempt to venture into the international market. Honicker already had an

established enterprise project management methodology (EPM) that was successful. However,

trying to incorporate their methodology into the newly acquired four companies would prove to

be a greater challenge than they initially thought.

With all four companies, the implementation of Honicker’s EPM or a new EPM would be

a challenge because a new EPM system is a huge change for all the companies involved, and

change is never easy. Alpha already had an EPM system that they thought was better than

Honicker. Beta had barely comprehended project management, while both Gamma and Delta

Companies had no clue what project management entailed. Moreover Honicker had to deal with

the challenges of establishing an EPM that would satisfy all stakeholders, laws, and governments

from the different countries that these companies were located in.

Honicker had initially thought that the implementation of the new EPM would take about

two months, however, they had quickly realized that it would take up to two years after the

kickoff meeting. This was due to the increased resistance from all four companies. The increased

resistance was most likely due to confusion or fear of the unknown, lack of communication, lack

of competence, and lack of trust (Rick, 2011). If Honicker wants to win the support of all four

companies, they need to understand the expectations, motivations, and needs of each company.

That starts with creating a culture within each company that fosters an open environment where

everyone involved feels comfortable in voicing their opinions. Developing a clear line of

6

communication that runs both ways will help build trust, decrease confusion and the fear of the

unknown.

Conclusion

7

References

Kerzner, H. (2017). Project management: A systems approach to planning, scheduling, and

controlling (12th ed.). Hoboken, NJ: John Wiley & Sons.

Project Management Institute. (2017). A guide to the project management body of knowledge

(6th ed.). Project Management Institute.

Reiter, K., & Song, P. (2018). ​Gapenski's fundamentals of healthcare finance​. Chicago, IL:

Association of University Programs in Health Administration.

Rick, T. (2011). ​Top 12 reasons why people resist change​. Meliorate.

https://www.torbenrick.eu/blog/change-management/12-reasons-why-people-resist-chang

e/

Weaver, P. (2010). Understanding programs and projects—oh, there's a difference!. Newtown

Square, PA: Project Management Institute.

8

Appendix A

Project Charter Template

Stakeholders

Milestones or Gates

Project Title:

Projected Start Date:

Projected End Date:

Project Sponsor:

Project Manager:

Project Description:

Project Objectives:

Project Scope:

Name Success Criteria

1.

2.

3.

Milestone/Gate Status Deadline

9

Risks, Assumptions Constraints

Benefits

1.

2.

3.

4.

KPI Baseline Goal

1.

2.

3.

4.

Project manager signature:

Project sponsor signature:

1

Honicker Corporation Portfolio Milestone

Kristie Lin

Colorado State University Global

PJM 500 Module 2 Portfolio Milestone

Dr. Melinda Hollingshed

2/21/21

2

Honicker Corporation Portfolio Milestone

The Project Management Institute (PMI) created guidelines to help businesses understand

how to manage projects successfully. Some of these guidelines include determining a project

champion and establishing a project management office (PMO) that will manage and provide

guidance for projects. The PMO will take charge with implementing a methodology that the

organization will follow. This is so that the organization has a process that they can repeat

multiple times, and know that the outcome of the project will be successful. Having a

methodology established can also help the organization remain competitive in the marketplace.

Principle Components Discussion

There are many components to project management, but the principle components are

distinguishing between project, program, and portfolio management, project selection, the

project charter, project organization, project planning, project scheduling, project estimating,

monitoring and control, project closure, communication management, risk management, and the

role of information technology. All of these components must be constructed in order for a

project to be successful.

Project, Program, and Portfolio Management Distinction

There is a variation between project, program, and portfolio management. Projects are

temporary and will shut down once they are completed and have delivered whatever they were

chartered to do (Weaver, 2010). In contrast, programs are groups of projects that are managed

altogether, rather than individually (Weaver, 2010). Additionally portfolio management focuses

more on choosing programs that will ultimately help achieve the organization’s goals (Project

Management Institute, 2017). That is not to say that project and program management do not

3

work towards meeting the organization's goals either because they do. Project and program

management are just subsets of portfolio management.

Project Selection

Selecting what projects to take on is crucial to an organization’s success. There are many

factors to consider when selecting projects. Resources, costs, time, organizational goals, benefits,

and risks of completing the project. Utilizing a project selection process or method would allow

the project management office or project manager to determine if the project is worth taking on.

Methods could include a cost-benefit analysis, a scoring model, net present value, internal rate of

return, or discounted cash flow. Different methods can be used for different types of projects. For

instance, net present value would be a better project selection method for long-term projects,

while shorter projects would benefit from the internal rate of return method (Reiter & Song,

2018).

Project Charter

Nowadays the project charter is an internal legal document that identifies managers, their

personnel, responsibilities, and the scope of the project (Kerzner, 2017). If the charter includes

the scope baseline and a management plan, it can be utilized as the project plan (Kerzner, 2017).

According to Kerzner (2017), a project charter should include the identification of the project

manager, business purpose, assumptions and constraints, summary of the conditions defining the

project, description of the project, objectives of the projects, project scope, key stakeholders and

their roles, risks, and the involvement by certain stakeholders. The project charter does not have

to be limited by just these components and depending on the complexity of the project, there

could be more additions.

Project Organization

4

Project Planning

Project Scheduling

Project Estimating

Monitoring and Control

Project Closure

Communication Management

Risk Management

Role of Information Technology

Simulation Scenario Analysis

In the Delphi Printer simulation, the tasks are clear. The senior project manager must

develop a new and innovative printer in six months. The first step of doing so is determining the

project scope, schedule, and resources needed for the project. It is important to establish a

timeline so that investors are aware of when they can expect a return on their investment. The

senior project manager also needs to be able to allocate an adequate amount of resources. Too

little or too many resources can decrease performance and result in the project failing. Not

enough people on the project team can create burnout and frustration, while having too many

people working on the project will cost the organization more money, and it is a waste of

resources. The senior project manager also creates schedules for meetings, whether that is

one-on-one meetings or team meetings, as well as, determining how many prototypes to design.

Lessons Learned

Recommendations

Case Study Analysis

5

The Honicker Corporation under previous management was very conservative and did

not expand their organization into the international market. When a new management team came

aboard in 2009, the organization had acquired four companies, Alpha, Beta, Gamma, and Delta

Companies, in an attempt to venture into the international market. Honicker already had an

established enterprise project management methodology (EPM) that was successful. However,

trying to incorporate their methodology into the newly acquired four companies would prove to

be a greater challenge than they initially thought.

With all four companies, the implementation of Honicker’s EPM or a new EPM would be

a challenge because a new EPM system is a huge change for all the companies involved, and

change is never easy. Alpha already had an EPM system that they thought was better than

Honicker. Beta had barely comprehended project management, while both Gamma and Delta

Companies had no clue what project management entailed. Moreover Honicker had to deal with

the challenges of establishing an EPM that would satisfy all stakeholders, laws, and governments

from the different countries that these companies were located in.

Honicker had initially thought that the implementation of the new EPM would take about

two months, however, they had quickly realized that it would take up to two years after the

kickoff meeting. This was due to the increased resistance from all four companies. The increased

resistance was most likely due to confusion or fear of the unknown, lack of communication, lack

of competence, and lack of trust (Rick, 2011). If Honicker wants to win the support of all four

companies, they need to understand the expectations, motivations, and needs of each company.

That starts with creating a culture within each company that fosters an open environment where

everyone involved feels comfortable in voicing their opinions. Developing a clear line of

6

communication that runs both ways will help build trust, decrease confusion and the fear of the

unknown.

Conclusion

7

References

Kerzner, H. (2017). Project management: A systems approach to planning, scheduling, and

controlling (12th ed.). Hoboken, NJ: John Wiley & Sons.

Project Management Institute. (2017). A guide to the project management body of knowledge

(6th ed.). Project Management Institute.

Reiter, K., & Song, P. (2018). ​Gapenski's fundamentals of healthcare finance​. Chicago, IL:

Association of University Programs in Health Administration.

Rick, T. (2011). ​Top 12 reasons why people resist change​. Meliorate.

https://www.torbenrick.eu/blog/change-management/12-reasons-why-people-resist-chang

e/

Weaver, P. (2010). Understanding programs and projects—oh, there's a difference!. Newtown

Square, PA: Project Management Institute.

8

Appendix A

Project Charter Template

Stakeholders

Milestones or Gates

Project Title:

Projected Start Date:

Projected End Date:

Project Sponsor:

Project Manager:

Project Description:

Project Objectives:

Project Scope:

Name Success Criteria

1.

2.

3.

Milestone/Gate Status Deadline

9

Risks, Assumptions Constraints

Benefits

1.

2.

3.

4.

KPI Baseline Goal

1.

2.

3.

4.

Project manager signature:

Project sponsor signature: