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Capital Projects : What Every Executive Needs to Know to Avoid Costly Mistakes and Make Major Investments Pay Off.

By: Material type: TextTextPublisher: Newark : John Wiley & Sons, Incorporated, 2016Copyright date: ©2016Edition: 1st edDescription: 1 online resource (227 pages)Content type:
  • text
Media type:
  • computer
Carrier type:
  • online resource
ISBN:
  • 9781119119241
Subject(s): Genre/Form: Additional physical formats: Print version:: Capital ProjectsOnline resources:
Contents:
Capital Projects: What Every Executive Needs to Know to Avoid Costly Mistakes and Make Major Investments Pay Off -- Contents -- Acknowledgments -- 1: Falling Short of Expectations: How Executives Struggle to Deliver the Value from Their Capital Projects -- Background and Basis for the Book -- Capital Projects Create Value -- Most Projects Create Less Value Than Expected -- Results Apply to All Types of Projects -- Sources of Value Erosion Are Not Limited to Cost and Schedule Overruns -- How to Deliver the Value Promised -- Causes of Value Erosion Often Start Early -- 2: Why the Stage-Gate Process Is the Best Tool Executives Can Use to Get the Most Value from Their Capital Projects -- A Necessary Process -- How Does the Process Work? -- Assess: What Do We Want to Accomplish? -- Select and Define: How Should We Accomplish It? -- What Is the Role of Executives in the Process? -- Different Kinds of Executives -- Project Governance Structures -- Stage-Gates and Executive Control -- 3: The Project Frame: Understand the Opportunity before Starting a Project -- Typical Contents of a Project Frame -- Unlock Value by Finding a Better Option -- How to Develop a Project Frame -- Where Are We Now? -- Where Do We Want to Be? -- Use the Frame for Executive Alignment and Endorsement -- Develop the Target Condition -- How Do We Get There? -- 4: The Critical Project Sponsor Role -- Who Is the Project Sponsor? -- Overview of Project Sponsor Role -- Assign a Project Sponsor as the Initial Business Case Is Developed -- Requirements for a Strong Project Sponsor -- Make the Project Sponsor Own the Business Case -- Establish the Mandate for the Project Sponsor -- Hold Project Sponsors Accountable at the Stage-Gates -- Focus on the Project Sponsor Behaviors That Produce Robust Business Cases -- Building a Strong Project Sponsor and Project Manager Relationship.
Choosing the Right Project Sponsor -- Seniority and Credibility -- Knowledge of the Business and Its Operations -- Interpersonal and Critical Thinking Skills -- Understanding of Basic Project Management Concepts -- Continuity -- 5: The Single Most Important Thing an Executive Can Do to Make Any Capital Project Succeed: Define Clear Objectives -- Business Objectives versus Project Objectives -- Developing Clear Objectives -- Developing Comprehensive Objectives -- Confirm Alignment of Objectives with Business and Corporate Strategy -- Surface Strategic Objectives Early -- Communicating the Objectives -- Communicate the Uncertainty in the Business Case to Get Better Project Objectives -- Explain the Objectives Face-to-Face -- Executives Have to Show Up and Participate -- Prioritizing the Objectives -- 6: The Executive's Role in Building and Supporting High-Performing Project Teams -- Executive Leaders Lead -- Invest in a Strong Owner Project Team -- Why You Need a Functionally Integrated Team -- Help the Project Manager Get the Resources for a Functionally Integrated Team -- Do Not Outsource the Owner Team Role -- More Experienced Project Teams Do Better Projects -- Strategies for Coping with Staffing Shortages -- Executives Working Together to Support the Project -- 7: Project Definition: The Fundamental Capital Project Concept Every Executive Must Understand -- Strong Project Definition Preserves Value and Produces Better Assets -- Build Better Performing Assets with Strong Project Definition -- Executives Control the Quality of Project Definition -- Understand the Cost of Weak Project Definition -- Be Careful When Trading Fast Schedule for Strong Project Definition -- Reduce the Number of Schedule-Driven Projects -- More Project Definition Is Not Necessarily Better.
8: It's Going to Cost How Much!?!: A Guide to Help Executives Avoid Capital Cost Surprises -- Key Concepts to Understand about Capital Cost Estimate Accuracy -- Factor the Cost Estimate Range into Decision Making -- The Cone of Uncertainty Progressively Narrows -- Develop Your Own Cone of Uncertainty -- Insist the Investment Analysis Include the Full Range of the Estimate -- Be Careful Making Commitments Based on the Assess Gate Estimate -- Improve Project Definition to Narrow the Cost Estimate Range -- Contingency Requirements Are Usually Underestimated When Project Definition Is Weak -- Follow These Rules to Get Contingency Right -- Insist That the Risk Analysis Has Some Empirical Basis -- Set Contingency to Have the Same Chance of an Overrun as an Underrun -- Use Robust Project Controls -- Recognize That Contingency Does Not Pay for Business-Driven Scope Changes -- Use Management Reserve to Lower the Chances of an Overrun -- Accept That Overruns Will Happen -- 9: Using a Project Steering Committee to Improve Executive Decision Making -- How to Build a Strong Steering Committee -- Who to Include in the Steering Committee -- Run the Steering Committee Efficiently -- Make Decisions at the Right Level -- Do Not Dilute Project Sponsor Accountability -- 10: Risk Management: A Mechanism to Understand Project Risk and Decide What to Do -- Risk Management: Identify, Analyze, and Manage Individual Risks -- Practices for Getting the Most from Risk Management -- Scrutinize Risks to Decide Whether They Are Worth Taking -- Understand That the Estimate of the Risk Is Probably Too Low -- Be Careful with Making Late Changes in Response to Business Risk -- Strong Risk Management Does Not Substitute for Strong Project Definition -- 11: Approve, Recycle, Cancel, or Hold: Making Good Stage-Gate Decisions -- Capital Investment Decisions Are Made at the Stage-Gates.
Three Gates Provide Adequate Control -- The Business Question Asked and Answered at Each Stage-Gate -- Use Your Early Stage-Gates Better -- Four Choices for the Stage-Gate Decision -- Information Used in an Investment Decision -- Rules for Strong Gates -- Account for Human Nature -- Get Some Assurance -- Hold People Accountable -- The Slippery Slope of Granting Exceptions to Stage-Gate Deliverables -- 12: Executive Role, Executive Control: 12 Essential Rules -- Rule 1: Use the Stage-Gate Process -- Rule 2: Start by Framing the Project -- Rule 3: Ensure Project Sponsor Involvement -- Rule 4: Develop Clear Objectives -- Rule 5: Invest in Owner Teams and Provide the Support They Need -- Rule 6: Reach a Strong Level of Project Definition -- Rule 7: Factor the Accuracy of the Capital Cost Estimate into Decision Making -- Rule 8: Set Contingency in Accordance with Project Risk -- Rule 9: Build an Effective Steering Committee -- Rule 10: Use a Robust Risk Management Process -- Rule 11: Keep the Stage-Gates Strong -- Rule 12: Be Coachable -- Glossary -- Index -- End User License Agreement.
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Capital Projects: What Every Executive Needs to Know to Avoid Costly Mistakes and Make Major Investments Pay Off -- Contents -- Acknowledgments -- 1: Falling Short of Expectations: How Executives Struggle to Deliver the Value from Their Capital Projects -- Background and Basis for the Book -- Capital Projects Create Value -- Most Projects Create Less Value Than Expected -- Results Apply to All Types of Projects -- Sources of Value Erosion Are Not Limited to Cost and Schedule Overruns -- How to Deliver the Value Promised -- Causes of Value Erosion Often Start Early -- 2: Why the Stage-Gate Process Is the Best Tool Executives Can Use to Get the Most Value from Their Capital Projects -- A Necessary Process -- How Does the Process Work? -- Assess: What Do We Want to Accomplish? -- Select and Define: How Should We Accomplish It? -- What Is the Role of Executives in the Process? -- Different Kinds of Executives -- Project Governance Structures -- Stage-Gates and Executive Control -- 3: The Project Frame: Understand the Opportunity before Starting a Project -- Typical Contents of a Project Frame -- Unlock Value by Finding a Better Option -- How to Develop a Project Frame -- Where Are We Now? -- Where Do We Want to Be? -- Use the Frame for Executive Alignment and Endorsement -- Develop the Target Condition -- How Do We Get There? -- 4: The Critical Project Sponsor Role -- Who Is the Project Sponsor? -- Overview of Project Sponsor Role -- Assign a Project Sponsor as the Initial Business Case Is Developed -- Requirements for a Strong Project Sponsor -- Make the Project Sponsor Own the Business Case -- Establish the Mandate for the Project Sponsor -- Hold Project Sponsors Accountable at the Stage-Gates -- Focus on the Project Sponsor Behaviors That Produce Robust Business Cases -- Building a Strong Project Sponsor and Project Manager Relationship.

Choosing the Right Project Sponsor -- Seniority and Credibility -- Knowledge of the Business and Its Operations -- Interpersonal and Critical Thinking Skills -- Understanding of Basic Project Management Concepts -- Continuity -- 5: The Single Most Important Thing an Executive Can Do to Make Any Capital Project Succeed: Define Clear Objectives -- Business Objectives versus Project Objectives -- Developing Clear Objectives -- Developing Comprehensive Objectives -- Confirm Alignment of Objectives with Business and Corporate Strategy -- Surface Strategic Objectives Early -- Communicating the Objectives -- Communicate the Uncertainty in the Business Case to Get Better Project Objectives -- Explain the Objectives Face-to-Face -- Executives Have to Show Up and Participate -- Prioritizing the Objectives -- 6: The Executive's Role in Building and Supporting High-Performing Project Teams -- Executive Leaders Lead -- Invest in a Strong Owner Project Team -- Why You Need a Functionally Integrated Team -- Help the Project Manager Get the Resources for a Functionally Integrated Team -- Do Not Outsource the Owner Team Role -- More Experienced Project Teams Do Better Projects -- Strategies for Coping with Staffing Shortages -- Executives Working Together to Support the Project -- 7: Project Definition: The Fundamental Capital Project Concept Every Executive Must Understand -- Strong Project Definition Preserves Value and Produces Better Assets -- Build Better Performing Assets with Strong Project Definition -- Executives Control the Quality of Project Definition -- Understand the Cost of Weak Project Definition -- Be Careful When Trading Fast Schedule for Strong Project Definition -- Reduce the Number of Schedule-Driven Projects -- More Project Definition Is Not Necessarily Better.

8: It's Going to Cost How Much!?!: A Guide to Help Executives Avoid Capital Cost Surprises -- Key Concepts to Understand about Capital Cost Estimate Accuracy -- Factor the Cost Estimate Range into Decision Making -- The Cone of Uncertainty Progressively Narrows -- Develop Your Own Cone of Uncertainty -- Insist the Investment Analysis Include the Full Range of the Estimate -- Be Careful Making Commitments Based on the Assess Gate Estimate -- Improve Project Definition to Narrow the Cost Estimate Range -- Contingency Requirements Are Usually Underestimated When Project Definition Is Weak -- Follow These Rules to Get Contingency Right -- Insist That the Risk Analysis Has Some Empirical Basis -- Set Contingency to Have the Same Chance of an Overrun as an Underrun -- Use Robust Project Controls -- Recognize That Contingency Does Not Pay for Business-Driven Scope Changes -- Use Management Reserve to Lower the Chances of an Overrun -- Accept That Overruns Will Happen -- 9: Using a Project Steering Committee to Improve Executive Decision Making -- How to Build a Strong Steering Committee -- Who to Include in the Steering Committee -- Run the Steering Committee Efficiently -- Make Decisions at the Right Level -- Do Not Dilute Project Sponsor Accountability -- 10: Risk Management: A Mechanism to Understand Project Risk and Decide What to Do -- Risk Management: Identify, Analyze, and Manage Individual Risks -- Practices for Getting the Most from Risk Management -- Scrutinize Risks to Decide Whether They Are Worth Taking -- Understand That the Estimate of the Risk Is Probably Too Low -- Be Careful with Making Late Changes in Response to Business Risk -- Strong Risk Management Does Not Substitute for Strong Project Definition -- 11: Approve, Recycle, Cancel, or Hold: Making Good Stage-Gate Decisions -- Capital Investment Decisions Are Made at the Stage-Gates.

Three Gates Provide Adequate Control -- The Business Question Asked and Answered at Each Stage-Gate -- Use Your Early Stage-Gates Better -- Four Choices for the Stage-Gate Decision -- Information Used in an Investment Decision -- Rules for Strong Gates -- Account for Human Nature -- Get Some Assurance -- Hold People Accountable -- The Slippery Slope of Granting Exceptions to Stage-Gate Deliverables -- 12: Executive Role, Executive Control: 12 Essential Rules -- Rule 1: Use the Stage-Gate Process -- Rule 2: Start by Framing the Project -- Rule 3: Ensure Project Sponsor Involvement -- Rule 4: Develop Clear Objectives -- Rule 5: Invest in Owner Teams and Provide the Support They Need -- Rule 6: Reach a Strong Level of Project Definition -- Rule 7: Factor the Accuracy of the Capital Cost Estimate into Decision Making -- Rule 8: Set Contingency in Accordance with Project Risk -- Rule 9: Build an Effective Steering Committee -- Rule 10: Use a Robust Risk Management Process -- Rule 11: Keep the Stage-Gates Strong -- Rule 12: Be Coachable -- Glossary -- Index -- End User License Agreement.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.

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