Models and Their Characteristics | Free Essay Example

Models and Their Characteristics

Words: 610
Topic: Tech & Engineering
Updated:

The choice of a model for the project is not an easy task; in order to locate the appropriate mode for the project in question to exist and evolve in, one must take the key features of the latter into account and evaluate the opportunities, which each mode of operations opens for the project manager.

Traditionally, non-numeric and numeric selection models are identified (Bodmer, 2014). According to the existing definition, a numeric model is a framework that allows for viewing the project through the lens of financial assets and the related issues, whereas non-numeric models help identify environmental issues regarding the key factors affecting the project, including both internal and external ones (Bodmer, 2014).

When identifying the model to be used as a basis for the project, one must bear in mind that models cannot be viewed as the actual solutions to the key problems of the project, nor should they be viewed as the tools for decision-making; instead, models should become the framework, in which the project needs to be implemented (Bodmer, 2014). Needless to say, both numeric and non-numeric models have their benefits as well as problems.

As far as the latter are concerned, it helps an organization identify the key effects, which it has on the environment and the population. As a result, the rates of customer satisfaction can be increased if the project manager puts a stronger emphasis on the concern for environment and human health (Kloppenborg, 2014). Unfortunately, the lack of focus on the financial issues may jeopardize the feasibility of the project, since the existing funds need to be calculated carefully and distributed reasonably (Hahn, 2011).

The numerical approach, on the contrary, helps locate the slightest financial risks and, thus, eliminate them efficiently or, at the very least, reduce them to the minimum. However, the numerical approach lacks a focus on customer relations; consequently, adoption of the specified approach may result in a significant drop in customer loyalty rates (Hahn, 2011).

As it has been stressed above, the choice of a proper model depends on the goals and assets of the project to be implemented for the most part. Sice neither of the approaches mentioned above can be deemed impeccable, it is crucial to make sure that the choice of the framework to operate in aligns with the key goals of an organization.

For instance, the non-numerical model has to be used by the organizations, which view their sustainability practices as their key assets and, therefore, are willing to represent themselves as environmentally friendly and caring for the health of the stakeholders involved. For the leaders, who are willing to keep the key financial processes in their focus and, therefore, hope that their financial assets will help make the organization and the associated projects profitable, the numerical method must be viewed as the ultimate solution.

In other words, the choice of the model, in accordance with which the organization is going to operate, depends on its mission and vision to a considerable extent. Indeed, the mission of a company often heralds the goals and ethical principles, which the organization is going to attain and comply with in the course of its operations. Therefore, the leader of an organization or a project must avoid discrepancies in the mission and the choice of the framework at all costs.

Reference list

Bodmer, E. (2014). Corporate and project finance modeling: Theory and practice. New York City, New York: John Wiley & Sons.

Hahn, V. G. (2011). Creating sustainable shareholder value with Lean Six Sigma: Evaluation and portfolio selection of Lean Six Sigma projects. Köln, Germany: Books on Demand.

Kloppenborg, T. (2014). Contemporary project management. Stanford, Connecticut: Cengage Learning.