You manage a large hotel on the South Beaches of the Kauai island of Hawaii. The owners of the property have shifted their strategic objective from the traditional all-inclusive fun-in-the-sun destination to eco-tourism which focuses on environmental awareness and education.

1 There are both financial and non-financial criteria that need to be considered when selecting which project will be supported within an organization. Describe the financial and non-financial methods of project selection and explain the differences between (a) compliance, (b) strategic and (c) operational projects. Give three reasons why an organization may support projects that do not have high profit margins.

2 Refer to the scenario above, how would you classify the following projects in terms of compliance, strategic, and operational?

a Convert the pool heating system from electrical to solar power.

b Build a 4-mile nature hiking trail.

c Renovate the horse barn.

d Launch a new promotional campaign with Hawaii Airlines.

e Build a new Electronic Building Management System that automates the security system of the hotel

f Convert 12 adjacent acres into a wildlife preserve.

g Update all the bathrooms in the hotel that are over 10 years old.

h Change hotel brochures to reflect eco-tourism image.

i Test and revise disaster response plan.

j Introduce wireless internet services in caf and lounge areas.

3 Discuss how project selection might be different in an agile versus a plan-driven or traditional project management framework. Identify at least one of the projects in the Hawaii hotel scenario above that could be attempted using the agile project management methodology.