Difficulty: Medium
Correct Answer: To allow the use of project management tools such as earned value analysis to calculate return on investment and overall performance for operational initiatives.
Explanation:
Introduction / Context:
Management by projects is an approach in which organizations treat certain aspects of ongoing operations as if they were projects, applying standard project management tools and techniques even though the work may be recurring. This idea appears in PMP style questions to test whether you understand why an organization would benefit from bringing project management discipline and measurement techniques into areas that are not traditionally viewed as discrete projects.
Given Data / Assumptions:
Concept / Approach:
By treating parts of operations as projects, organizations can define clear objectives, schedules, budgets, and performance metrics for what might otherwise be loosely managed initiatives. This enables them to use techniques like earned value analysis to track cost and schedule performance, to evaluate return on investment, and to make informed decisions about continuing, modifying, or ending specific efforts. Rather than merely keeping project managers busy, this approach provides more rigorous control and transparency over operational improvement initiatives, product rollouts, or recurring campaigns.
Step-by-Step Solution:
Step 1: Recognize that management by projects is about applying project management discipline to operational work.
Step 2: Recall that project management tools such as earned value allow detailed tracking of cost and schedule performance against a baseline.
Step 3: Consider that organizations want to understand the financial and performance impact of operational initiatives, including ROI.
Step 4: Compare answer choices and look for the one that emphasizes using project management tools to measure and control performance, especially with ROI.
Step 5: Identify option C as the only choice that directly links management by projects to the use of PM tools like earned value to calculate ROI and performance.
Verification / Alternative check:
In practice, organizations might treat a recurring marketing campaign or a series of process improvements as projects so they can plan resources, set baselines, and track actuals using project management software. Earned value analysis can then show whether those campaigns or improvements are on budget and on schedule, and whether they are delivering expected benefits. This kind of structured measurement is a key benefit of management by projects, supporting option C as the correct answer.
Why Other Options Are Wrong:
Option A suggests keeping project managers employed as the primary reason, which is not a strategic benefit and does not align with PMI thinking. Option B understates the impact and ignores the powerful performance measurement capabilities of project tools. Option D focuses on job descriptions rather than on planning and control benefits. Option E is incorrect because project management tools do not eliminate planning; they require and reinforce structured planning. Only option C correctly highlights the use of project tools like earned value to calculate ROI and manage performance on nonproject work.
Common Pitfalls:
A common pitfall is assuming that project management is only useful for one time efforts, when in reality its techniques can bring clarity and control to recurring operations as well. Another mistake is to see management by projects as a labeling exercise instead of recognizing the deeper benefit of rigorous measurement and governance. Remember that the real value comes from applying methods like earned value, schedule tracking, and formal change control to initiatives that might otherwise be loosely managed.
Final Answer:
An organization may use management by projects on nonproject work to allow the utilization of project management tools such as earned value analysis to calculate return on investment and overall performance for operational initiatives.
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