Post Implementation Review This Post Implementation Review template will help you to perform a post project review for your project, soon after it has finished. By performing a post project review, you can identify the project successes, deliverables, achievements and lessons learned. The post project review is the last critical step in the project life cycle, as it allows an independent party to validate the success of the project and give confidence to the stakeholders that it has met the objectives it set out to achieve. This template helps you perform a Post Implementation Review by: Measuring the benefits and objectives Deciding whether the project was within scope Assessing the final deliverables produced Reviewing the project against schedule Comparing the expenditure against budget Stating the final outcome of the project The Post Implementation Review template also helps you to: Identify the key project achievements and milestones Document any lessons learned for future projects Communicate its success to stakeholders This Post Implementation Review template provides you with the steps needed to review a project and document its overall level of success. It includes all of the sections, tables and practical examples you need, to document a Post Implementation review today. What is a Post Implementation Review? A Post Implementation Review, or Post Project Review, is performed after a project is complete. The purpose of a Post Implementation Review is to determine whether the project was successful and identify any lessons learned. A Post Implementation Review also looks at whether the project produced the required deliverables within the agreed timeframe. The overall achievements are also documented in the Post Implementation Review report. When to conduct a Post Implementation Review? The best time to conduct a Post Implementation Review is between 1 and 6 months after a project has completed. By then, the project deliverables will have been handed over to the customer and the benefits of the project
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Post Implementation Review
This Post Implementation Review
template will help you to perform a post project review for your project, soon after it has finished.
By performing a post project review, you can identify the project successes, deliverables, achievements and lessons learned.
The post project review is the last critical step in the project life cycle, as it allows an independent party to validate the success of the project and give confidence to the stakeholders that it has met the objectives it set out to achieve.
This template helps you perform a Post Implementation Review by:
Measuring the benefits and objectives Deciding whether the project was within scope Assessing the final deliverables produced Reviewing the project against schedule Comparing the expenditure against budget Stating the final outcome of the project
The Post Implementation Review template also helps you to:
Identify the key project achievements and milestones Document any lessons learned for future projects Communicate its success to stakeholders
This Post Implementation Review template provides you with the steps needed to review a project and document its overall level of success. It includes all of the sections, tables and practical examples you need, to document a Post Implementation review today.
What is a Post Implementation Review?
A Post Implementation Review, or Post Project Review, is performed after a project is complete. The purpose of a Post Implementation Review is to determine whether the project was successful and identify any lessons learned. A Post Implementation Review also looks at whether the project produced the required deliverables within the agreed timeframe. The overall achievements are also documented in the Post Implementation Review report.
When to conduct a Post Implementation Review?
The best time to conduct a Post Implementation Review is between 1 and 6 months after a project has completed. By then, the project deliverables will have been handed over to the customer and the benefits of the project will be clear. A Post Implementation Review is a critical part in the project life cycle, as it's during this review that the success of the project is measured. This template includes all of the content you need, to perform a Post Implementation Review today.
7.Measuring and Controlling Assets Employed
Measuring and Controlling Assets Employed
The purpose of measuring assets employed are analogous to the purposes for profit centers. The purpose being
to provide information that is useful in making sound decisions about assets employed and to motivate managers
make these sound decisions that are in the best interests of the company.
Also , to measure the performance of business units as an economic entity.
Long Term Investment
Long term investments can be a strategic and control issue:
Long term investment decisions are made after long term strategy is decided (not the other way
around).
Also, strategic leverage affects how much investments in long term assets are necessary.
Consequently, if decisions about long term investments are made incorrectly, strategy and strategic
leverage are less likely to be accomplished.
Long term investments are generally huge in their monetary and non-monetary impact.
As such, if managers and others do not take all precautions when investing and later, in measuring the
usefulness of the assets and their contribution, it will have significant adverse impact.
· Therefore, measuring long term assets is also a control issue of great importance
Performing investment analysis
Unless an organization is a 100% service organization, profits are generated ONLY if you have
investments.
Therefore, earning a satisfactory return on the investments employed is necessary.
The investors in stock compute such a return routinely (e.g. Ford and G.M.).
To compare two units, A and B, without considering the investment made in each is meaningless.
First, a manager should invest in assets only if the assets will produce adequate returns.
Second, when an asset is not providing adequate return (the expected return could change over the
years), it is time to “disinvest” or reduce further investments into this asset.
Two ways to relate profits and investments and to compare investment alternatives
1. Return on Investments (ROI)
2. Economic Value Added (EVA)
ROI
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a
number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of
the investment; the result is expressed as a percentage or a ratio.
The return on investment formula:
ROI = (Gain from Investment – Cost of Investment) / Cost of Investment
In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
EVA
A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as "economic profit")
EVA = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital)
Cost of Capital
The minimum return an organization must earn on its investments to meet investor expectations.
Cost of capital is specific to each organization and depends on several factors such as the type of
industry in which it operates, how risky the organization is, the rate at which it can borrow from outside and
more (borrowing, in this context, refers to both debt and equity).
If an investment returns more than the cost of its capital, the investment is positive and if not, it is
negative and as well not invested.
ROI can lead to poor decisions:
Encourages division managers to retain assets beyond their optimal life and not to invest in new assets which would increase the denominator.
Can cause corporate managers to over- allocate resources to divisions with older assets because they appear to be relatively more profitable.
Capital may be allocated towards least profitable divisions, at the expense of the most profitable divisions.
So, when computing ROI or EVA, don’t use net book value of the asset but use gross book value (original
purchase price ignoring depreciation).
Advantages of using EVA
EVA ranks project on profits in excess of the cost of capital (EVA increases).
With EVA, all business units have the same profit objective for comparable investments.
EVA permits the use of different interest rates for different investment projects.
EVA has greater correlation with a firm’s market value (it optimizes shareholder value).
ROI versus EVA
In practice, most businesses use ROI because it is simpler to compute and understand.
It is also comprehensive in the sense that it considers the entire balance sheet and income statement.
Unlike ROI – a percentage, EVA is a dollar amount and does not allow for intra and inter company
comparisons.
There is considerable debate about the right approach to management control over fixed assets .Reporting on the economic performance of an investment center is quite different from reporting on the performance of the manager in charge of that center.
I n t r o d u c t i o n t o t h e b a l a n c e d s c o r e c a r dThe background
No single measures can give a broad picture of the organisation’s health.
So instead of a single measure why not a use a composite scorecard involving a number of different measures.
Kaplan and Norton devised a framework based on four perspectives – financial, customer, internal and learning and growth.
The organisation should select critical measures for each of these perspectives.
Origins of the balanced scorecard
R.S. Kaplan and D.P. Norton -”The Balanced Scorecard- measures that drive performance”. Harvard Business Review, January 1992
-”The Balanced Scorecard”, Harvard University Press, 1996. “Kaplan and Norton suggested that organisations should focus their efforts on a
limited number of specific, critical performance measures which reflect stakeholders key success factors” (Strategic Management, J. Thompson with F. Martin)
What is the balanced scorecard?
A system of corporate appraisal which looks at financial and non-financial elements from a variety of perspectives.
An approach to the provision of information to management to assist strategic policy formation and achievement.
It provides the user with a set of information which addresses all relevant areas of performance in an objective and unbiased fashion.
A set of measures that gives top managers a fast but comprehensive view of the business.
The balanced scorecard…
Allows managers to look at the business from four important perspectives. Provides a balanced picture of overall performance highlighting activities that
need to be improved.
Combines both qualitative and quantitative measures.
Relates assessment of performance to the choice of strategy.
Includes measures of efficiency and effectiveness.
Assists business in clarifying their vision and strategies and provides a means to translate these into action.
In what way is the scorecard a balance?
The scorecard produces a balance between:
Four key business perspectives: financial, customer, internal processes and innovation.
How the organisation sees itself and how others see it.
The short run and the long run
The situation at a moment in time and change over time
Main benefits of using the balanced scorecard
Helps companies focus on what has to be done in order to create a breakthrough performance
Acts as an integrating device for a variety of corporate programmes
Makes strategy operational by translating it into performance measures and targets
Helps break down corporate level measures so that local managers and employees can see what they need to do well if they want to improve organisational effectiveness
Provides a comprehensive view that overturns the traditional idea of the organisation as a collection of isolated, independent functions and departments
Project managementFrom Wikipedia, the free encyclopedia
Project management is the discipline of planning, organizing, securing, managing, leading, and controlling
resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end
(usually time-constrained, and often constrained by funding or deliverables),[1] undertaken to meet unique
goals and objectives,[2] typically to bring about beneficial change or added value. The temporary nature of
projects stands in contrast with business as usual (or operations),[3] which are repetitive, permanent, or
semi-permanent functional activities to produce products or services. In practice, the management of these
two systems is often quite different, and as such requires the development of distinct technical skills and
management strategies.
The primary challenge of project management is to achieve all of the project goals[4] and objectives while
honoring the preconceived constraints.[5] Typical constraints are scope, time, and budget.[1] The secondary
—and more ambitious—challenge is to optimize theallocation of necessary inputs and integrate them