Chartered Global Management Accountant (CGMA) Enterprise Pillar: Managing People, Projects, and Organizational Strategy Flashcards

24 sample cards from the Enterprise Pillar: Managing People, Projects, and Organizational Strategy deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What are common reasons individuals resist organizational change?

   Fear of the unknown, loss of control or status, self-interest/economic loss, lack of trust, low tolerance for change, differing assessments (disagreement), habit and comfort with the status quo, and poor communication.

2. What four levels make up Edgar Schein's model of organizational culture?

   Schein's model has three levels: Artifacts (visible structures and behaviours), Espoused Values (stated strategies, goals, philosophies), and Basic Underlying Assumptions (unconscious, taken-for-granted beliefs that are the true source of values and action).

3. Name the four culture types in Charles Handy's model of organizational culture.

   Power culture (control from a central figure), Role culture (bureaucratic, defined by rules and job descriptions), Task culture (project/team and expertise focused), and Person culture (organization exists to serve the individuals within it).

4. What role does communication play in successful change management?

   Clear, frequent, two-way communication reduces uncertainty and resistance, builds trust, conveys the vision and rationale ('why'), addresses concerns, and engages stakeholders - making them feel involved and committed rather than imposed upon.

5. Define a 'change agent' and give the main types.

   A change agent is a person (internal or external) who leads, facilitates, and champions a change initiative. Types include leaders/managers (sponsors), internal specialists, external consultants, and the change champion who advocates and energizes the change among staff.

6. What is the role of leadership in organizational transformation?

   Leaders provide and communicate the vision, sponsor and resource the change, model the new behaviours, build coalitions, remove obstacles, motivate and reassure staff, and embed the change into culture - acting as the primary driver of sustained transformation.

7. What are the typical phases of the project lifecycle?

   Initiation (define and authorize), Planning (develop the detailed plan), Execution (carry out the work/implementation), Monitoring and Controlling (track and adjust), and Closure (deliver, review, and disband). Some models use Initiation, Planning, Execution, and Closure.

8. What is a project initiation document (PID) / business case used for?

   The business case justifies the project by setting out costs, benefits, risks, and strategic fit to gain authorization. The PID formally defines the project's scope, objectives, deliverables, stakeholders, and governance, serving as the baseline reference and authority to proceed.

9. What does the 'iron triangle' (triple constraint) of project management comprise, and what does it balance against?

   The three constraints are Time (schedule), Cost (budget), and Scope (quality/deliverables). They are interdependent - changing one affects the others - and are balanced to deliver the required Quality at the centre.

10. What is a Work Breakdown Structure (WBS)?

    A hierarchical decomposition of the total project scope into progressively smaller, manageable deliverables and work packages, used to organize and define the full scope and to support estimating, scheduling, and assigning responsibility.

11. In network analysis (critical path method), what is the 'critical path'?

    The longest sequence of dependent activities through the project network, which determines the shortest possible project duration. Activities on the critical path have zero float/slack, so any delay to them delays the whole project.

12. Define 'float' (slack) in critical path analysis.

    The amount of time an activity can be delayed without delaying the project's completion date (total float) or without delaying the start of a following activity (free float). Critical path activities have zero total float.

13. What is a Gantt chart used for in project planning?

    A Gantt chart is a horizontal bar chart that displays project activities against a timeline, showing each task's start, duration, and finish, their sequence and overlap, dependencies, and milestones - used to schedule, communicate, and track progress.

14. Outline the basic steps of the project risk management process.

    Risk identification, risk assessment/analysis (assessing probability and impact, e.g., via a probability-impact matrix), risk response planning (avoid, reduce/mitigate, transfer, or accept), and risk monitoring and control throughout the project.

15. What are the four common strategies for responding to a negative project risk (threat)?

    Avoid (eliminate the cause), Reduce/Mitigate (lower probability or impact), Transfer (shift to a third party, e.g., insurance or contract), and Accept (tolerate and prepare a contingency).

16. Distinguish quality assurance from quality control in project quality management.

    Quality assurance is process-oriented and proactive - it builds quality into the processes to prevent defects (e.g., standards, audits). Quality control is product-oriented and reactive - it inspects and tests deliverables to detect and correct defects against requirements.

17. In Earned Value Analysis, define Planned Value (PV), Earned Value (EV), and Actual Cost (AC).

    Planned Value (PV) is the budgeted cost of work scheduled to date. Earned Value (EV) is the budgeted cost of work actually completed to date. Actual Cost (AC) is the real cost incurred for the work completed to date.

18. Give the formulas for Cost Variance (CV) and Schedule Variance (SV) in earned value analysis.

    $$CV = EV - AC \qquad SV = EV - PV$$ A positive value is favourable (under budget / ahead of schedule); a negative value is unfavourable (over budget / behind schedule).

19. Give the formulas for the Cost Performance Index (CPI) and Schedule Performance Index (SPI), and state what a value below 1 means.

    $$CPI = \frac{EV}{AC} \qquad SPI = \frac{EV}{PV}$$ A value greater than 1 is favourable; a value less than 1 is unfavourable - meaning over budget (CPI) or behind schedule (SPI).

20. How is the Estimate at Completion (EAC) calculated using the CPI, and what does it represent?

    $$EAC = \frac{BAC}{CPI}$$ where BAC is the Budget at Completion. It represents the forecast total cost of the project at completion, assuming current cost performance (CPI) continues.

21. What is a project milestone, and how does it differ from a normal task?

    A milestone is a significant point or event in a project (e.g., phase completion, key deliverable, approval gate) that has zero duration - it marks an achievement or checkpoint, whereas a normal task consumes time and resources to complete work.

22. What are the key responsibilities of a project manager?

    Planning and defining scope, scheduling and resource allocation, budgeting and cost control, leading and motivating the project team, managing risk and quality, communicating with and managing stakeholders, monitoring progress, and delivering the project to time, cost, and quality.

23. What distinguishes a project team from a functional/operational team?

    A project team is temporary, cross-functional, and assembled to achieve a unique, defined objective with a finite lifespan; it disbands at project completion. A functional team is permanent, performs ongoing repetitive operations, and is grouped by specialism within the line hierarchy.

24. What is the role of a project sponsor?

    The project sponsor is the senior individual who owns the business case, secures funding and resources, champions the project at executive level, provides direction and high-level decisions, resolves escalated issues, and is ultimately accountable for the project delivering its intended benefits.

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