Question

Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that the projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing?

A) Padding estimatesB) Planning horizonC) Project structureD) PeopleE) Organization culture

Answer 1

Answer: Option (b) is correct.

Here in this case, Ed is recognizing Planning Horizon, i.e. Ed notices that the projects took six months or longer time to complete. They were noticeably way off the estimates.

The planning horizon refers to the quantity of time a firm will ponder upon the future while executing a strategic plan.