Project Management and the Stock Market
-
Upload
lou-russell -
Category
Education
-
view
128 -
download
0
description
Transcript of Project Management and the Stock Market
![Page 1: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/1.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Projects and the Stock Market
“A billion here and a billion there, and pretty soon you're talking real money.” - Everett Dirksen
Presented by Lou Russell,
Russell Martin & Associateswww.russellmartin.com @nolecture 317.475.9311
![Page 2: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/2.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
• Basic Financials for PMs
• Prediction is a Guess• Delays Aren’t Free
PM2 - 2
Agenda
![Page 3: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/3.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
PM2 - 3
Different Kinds of Costs: Assets and Expenses
consumableinvestment
PROFIT = Revenue - Expense
![Page 4: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/4.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
PM2 - 4
Assets and Expenses
New Development = investment (depreciated)
Maintenance = expense
![Page 5: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/5.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Stock Prices impact…
• Perceived worth of the company• Investment options available to the company• Credit Line interest rate• Bonuses for Executives
![Page 6: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/6.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Predictions Are a Guess: The Capital Plan
0
10
20
30
40
50
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
PM2 - 6
Business Strategy
BUSINESS OBJECTIVES: To meet our business strategies, our publically traded company will INVEST in the following:
• Ramp up new product offerings
• Improve call center efficiencies
• … your project?
![Page 7: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/7.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
You are managing a new product development project. You will be ‘building the new products’ by solving as many Tripletts as possible.
Here’s how you solve the puzzle: find the ONE WORD that can be used before or after each of the three provided words to make a common word.
An example:
TRIPLETT: pack, feed, yard SOLUTION:
Predict how many you will solve after 1 minute and after 2 minutes by typing two numbers in the chat window like this:
3 4 (totals 7)
PMX - 7
Predicting Revenue
![Page 8: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/8.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
1. SMOKE - COMPUTER – PLAY2. GUN - SLOT – TIME3. BURGLAR - CLOCK – FIRE4. WEED - WASH – TIME5. CRIER - DOWN - GHOST 6. PAN - MIX – CHEESE7. HERRING - CROSS – TAPE8. EVIL - GLASSES – WITNESS9. ORANGE - INSURANCE – SECRET10. BABY - SHOW – DOUBLE11. TREASURE - BARRIER – EASTER12. ACTIVE - MAIL – BOX13. BODY - CHANNEL - MUFFIN 14. LEADER - WESTERN – LABOR15. DOUGH - CHEST – CRACKER16. ROADS - DOUBLE – STITCH17. PUBLIC - SECOND – POLL18. TAG - DROPPING – MAIDEN19. DEATH - FORGE – GIRL20. MAIL - AMERICAN – LANE21. SILENT - MARE – CLUB22. FREE - MAGAZINE – CAPSULE23. RED - BOTTLE – BLOT24. NUMBER - JOB – COUPLE25. BAD - LETTER – LEAK26. FIRE - WRESTLING – CHAIR27. BASKET - DETERGENT - DIRTY PMX - 8
Tripletts
![Page 9: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/9.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
PM2 - 9
Public Business Strategy
![Page 10: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/10.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Public Business Strategy
Projects (with due dates)
![Page 11: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/11.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
PM2 - 11
Project Revenue – Project Cost) =
(Earnings Per Share) EPS/ Stock Price
1/4ly Profit
Public Business Strategy
Projects (with due dates)
![Page 12: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/12.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Delays Aren’t Free
![Page 13: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/13.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
You have been assigned to be the project manager of a planned 9 month capital project that was scheduled to begin in March, but has been delayed three months. No one on the team has accumulated labor yet for this project. You and the team will now begin accumulating labor beginning 6/1.
What could be the financial impact on the company with the delay?
PMX - 13
The Financial Impact of Change
![Page 14: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/14.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Revenue predictions by Quarter based on Capital Projects (New Production Facility)
Delay of project Two Days into next Quarter
Cost ‘waits’ (does not increase or decrease)
Revenue projection is missed
Street notices: Stock price goes done
H E double toothpicks occurs
![Page 15: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/15.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
PM2 - 15
Benefits and then Project Costs
BENEFIT (What is the RETURN on the investment?):• Increased sales• Increased productivity (lower cost of goods sold)• Increased quality (higher end products)• Increased service (higher customer loyalty)• Avoid fines / litigation (regulatory adherence, compliance)• Increased brand (market share / stock value)
![Page 16: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/16.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Seek first to generate revenue at the lowest cost.
PM2 - 16
Benefits and then Project Costs
COSTS (INVESTMENT):
IT: Software, hardware and IT People
Non IT: People, marketing, training…
![Page 17: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/17.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Potential changes to a project:$ Additional scope$ Under-estimated – needs more time$ Under-budgeted – needs more money$ Resource contention – understaffed
PM2 - 17
The Financial Impact of Change
Revisit the
numbersWhen BENEFITS OR COSTS CHANGE,
the project may no longer be a good capital investment
![Page 18: Project Management and the Stock Market](https://reader036.fdocuments.us/reader036/viewer/2022070315/554f1ac4b4c9058b388b4c96/html5/thumbnails/18.jpg)
R U S S E L L M A R T I N
A S S O C I A T E S&
R U S S E L L M A R T I N
A S S O C I A T E S&
Page 18
How Can I Get More HELP?
At www.russellmartin.com:
• Visit our RMA Virtual Playground www.russellmartin.ning.com for free resources
• Purchase assessments, courses (in-a-box), books, webinars
• Get our LEARNING FLASH e-zine for more tips and tools
• Find out about public webinars and workshops
• Buy fun stuff in the store
Page 18 © Russell Martin & Associates www.russellmartin.com