Better Performance In Project Management! The Almost Complete Guide


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An example of some (in this version not entirely complete) training handouts about Project Management. Some additions based on contributions from 'slideshare' users have been included!

Ein Beispiel (Auszug) für Teilnehmerunterlagen zu einem Projekt Management Kurs. Diese Version enthält einige neue Folien! Vielen Dank dafür bei den jeweiliegen 'contributors'!

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Better Performance In Project Management! The Almost Complete Guide

  1. 1. Better Performance in Project Management (PM) the almost complete guide… p g Axel Böhm
  2. 2. Performance Improvement, definition 2 The American Society of Training & Development (ASTD) defines Performance Improvement as "the process of identifying the and analyzing important organizational and individual performance gaps, planning for future performance improvement, designing and developing cost-effective and p , g g p g ethically justifiable interventions to close performance gaps, i l implementing the interventions and evaluating the ti th i t ti d l ti th financial and non-financial results."
  3. 3. PROJECT MANAGEMENT MODULE TOPICS Module 1: What is a project & what is management Module 2: PMI’s nine project management knowledge areas Module 3: The triple constraint Module 4: The project life cycle Module 5: Project selection j Module 6: Project environment , factors, stakeholders and actors Module 7: Defining scope Module 8: SMART Objectives Module 9: Risk management and project assumptions Module 10: Project charter Module 11: Responsibilities and work breakdown structures Module 12: Project scheduling
  4. 4. PROJECT MANAGEMENT MODULE TOPICS Module 13: Controlling and monitoring Module 14: Project management software Module 15: Project close Module 16: PMI’s project management maturity model Module 17: M d l 17 The Th project team and project structure j tt d j t t t Module 18: Project communications Module 19: Project Management Processes Module 20: The next steps
  5. 5. Please note: 5 Besides its function as a PowerPoint presentation, this handout is meant to give participants additional information related to Project Management. The sequence of pages (if presented) might change due to the actual flow of the training. A copyright note: ‘The content is based on the American Society for Training and Development (ASTD) and the Project Management Institute (PMI) training workshop series and is supplemented with material from Pro Consulting and Training (Pro Consulting and Training). The copyright for the pictures used is with the respective owner.
  7. 7. What is a Project? 7 “A temporary endeavor undertaken to create a unique product or service.”* Term M e a n s th a t a P r o je c t temporary Has a beginning and end endeavor Involves effort, work effort to create Has an intention to produce something (project "deliverables" unique One of a kind, rather than a collection of identical items product Tangible objects, but could include things like computer software, film or stage works service Might include the establishment of a day-care center, center for instance, but not its daily instance operations. *2000 PMBOK Guide (p. 4).
  8. 8. What is a Project? Some more ‘definitions’ definitions 8 A project is a package of activities in a specific sector, carried out in a set region, within a limited period of time, by project executing agencies (which may be supervised by politically answerable institutions and supported by funding and consultative agencies), with the aim of obtaining certain results, g g ), g , which will lead to an agreed project purpose. A project may form part of an overall program. Several projects may be packaged where they cover similar sectoral, organisational or geographical area. Programmes may include projects which work in the same sector, sub sector sub-sector or region, and which can be put together to make a clearly defined concept. Such projects may be promoted through the same executing agency. Certain deliveries of materials and equipment, or other inputs in support of equipment sectoral or sub-sectoral objectives, may also be financed as programs. There is no sharp distinction between projects, packages of projects and programs. programs
  9. 9. What is Management? 9 Theoretical scope Th ti l Mary Parker Follett (1868–1933), who wrote on the topic in the early twentieth century and defined management as "the art of getting things done through people". One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan; or as the actions taken to reach one's intended goal. This applies even in situations where planning does not take place.
  10. 10. What is Management? 10 From this perspective, Henri Fayol considered management to consist of five functions: Planning Controlling Organizing Coordinating g Leading g
  11. 11. From Management Cycle to Project M P j t Management Cycle tC l 11 Management Cycle b H. F M t C l by H Fayol (1841-1925) l Project M P j t Management Cycle tC l People Policies Initiating I iti ti Planning Closing Planning COST Controlling Organizing SCOPE TIME Processes Monitoring & Executing Coordinating Leading Controlling Procedures
  12. 12. The essential Project Management questions… ti 12 I keep six honest serving men p g (They taught me all I knew); Their names are: What and Why and When and How and Where and Who (Rudyard Kipling, from ‘The Elephant’s Child’ in Just So Stories).
  13. 13. Working the (management) pyramide… 13 THE TARGET ACHIEVED? WHAT and HOW Quality Management WHEN and COSTS Budget WHO and HOW MUCH Capacity Plan WHAT until WHEN Operation Chart WHAT Structured Project Plan WHY Clear Target
  14. 14. Project Management… 14
  15. 15. Your Turn: 15 What is ‘performance’? What is a Project & what is Management? j g … … … …
  17. 17. PMI’s Nine P j t M Ni Project Management Knowledge Areas tK l d A 17 1. Integration Management 2. Scope Management p g 3. Time Management 4. Cost Management 5. Quality Management 6. Human Resource Management 7. 7 Communications Management 8. Risk Management 9. 9 Procurement Management
  18. 18. #1 #1- Project Integration Management 18 The ’elements’: Building the Project Plan Project Execution Integrated Change Control Bringing it all together: Project Management “Nerve Center ! Nerve Center”!
  19. 19. #2 - Project Scope Management 19 Staying vigilant in defining and containing scope throughout the project! Project Initiation Scope Planning S l i Scope Definition Scope Verification Scope Change Control
  20. 20. #3 - Project Time Management 20 Determining What Gets Done and When through: Activity Definition Activity Sequencing Activity Duration Estimating Schedule Development Schedule Control
  21. 21. #4 - Project Cost Management 21 Planning for Resources Estimating Costs Creating the Budget Managing/Controlling the Budget
  22. 22. #5 - Project Quality Management 22 Quality Planning Quality Assurance Quality Control
  23. 23. #6 - Project Human Resource Management 23 Organizational Planning Staff Acquisition q Team Development
  24. 24. #7 #7- Project Communications Management 24 Keeping Stakeholders informed ( (and involved!) ) Communications Planning Dissemination of Information Progress Reporting Administrative Closure
  25. 25. #8 - Project Risk Management 25 Expect the Unexpected! Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Management and Control
  26. 26. #9 - Project Procurement Management 26 For Projects Using Outside Resources: Procurement Planning Solicitation Planning Solicitation Source Selection Contract Administration Contract Closeout
  27. 27. A quick analysis… 27 How would you rate on a scale from 1 – 5: How relevant  How important is  Does your  Does your Your own  is that  PMI  PMI that knowledge for  th t k l d f organization  i ti organization  i ti knowledge  k l d knowledge for  Knowledge Management Areas your  organization  have that  apply the  on this  your daily  to have? knowledge? knowledge? area? work? Integration Management Scope Management Time Management Cost Management Quality Management Human Resources Management g Communication Management Risk Management Procurement Management Procurement Management
  28. 28. Your Turn: What We Know Already 28 Look back over your previous experience in project management! How many of the nine knowledge areas did you use? ( (Probably all nine!) y ) Take a quick inventory and point to your most successful application and the most difficult one to manage! Pick up at least one new tip from others right now!
  29. 29. So what is Project Management? 29 The use of resources to accomplish project objectives, which objectives includes: • Applying knowledge, competencies and skills pp y g g , p • Defining, planning, scheduling and controlling • Leadership, communicating and coordinating • Starting up and dissolving project teams • Balancing requirements, schedule and resources • Being sensitive to people • Managing both deliverables and processes
  30. 30. So what is Project Management? 30 AS t Systematic P ti Process for M f Managing Project Implementation i P j tI l t ti 1. Understand the project 2. Structure the organization 3. Build the team 4. Analyze the context 5. Refine objectives, scope, and other project parameters j , p , p j p 6. Prepare the work breakdown structure (WBS), Responsibility Matrix, and Master Summary Schedule 7. Plan and schedule with critical path method (CPM) 8. Obtain management approval 9. Design control and reporting systems (Time, Cost, Resources, Scope, Performance and Quality) 10. Organize procurement 11. Execute and control the work 12. Terminate the project
  31. 31. Your Turn: 31 What are the 9 PM Knowledge Areas … … … … … … … … …
  33. 33. The Triple Constraint 33 The three constraints that all projects are facing and that are constantly overlooked /underestimated Time Cost Quality/Scope OR, IN Fast ast Cheap PLAIN ENGLISH Good
  34. 34. Triple Constraint Trade Offs Trade-Offs 34 Cost Quality/Scope Constraint Required Adjustment Alternatives Req ired Adj stment Alternati es (One or Change Combination of Both) Shorter Time Higher Cost Reduced Quality or Narrowed Scope Reduced Cost More Time Reduced Quality or Narrowed Scope Higher Quality or More Time Higher Cost Increased Scope p
  35. 35. Triple Constraint: Setting Priorities 35 Prior ity Matrix Constraint 1 2 3 Measurement Time Cost Quality/Scope Q lit /S •Must be set by customer and sponsor near startup. •May change over time, but a change is a significant event! E x a m p l e o f a C o m p l e te d P r i o r i ty M a t i x f r a C o n str u cti o n P r o je ct t t tr fo t ti j t Co n s tra i n t 1 2 3 Me a s u re m e n t Building must be completed by Time X October 31 of this year to accommodate corporate move. Costs for the project must not Cost X exceed $22.5 million. Must provide workspace for 120 call p p Quality/Scope X center staff. If these are the established priorities and measurements, what are some of the implications for the project if the project starts running late or shows signs of exceeding budget?
  36. 36. Your Turn: 36 What are the triple constraints? … … …
  38. 38. The Project Life Cycle 38 General Form of a Project Life Cycle Project Phase 1 Ph Phase 2 Ph Phase 3 Ph Phase... Ph Phase " " Ph "n"
  39. 39. Project Life Cycles Are Like Snowflakes! 39 Simple Three-Phase Project Life Cycle Si l Th Ph P j t Lif C l Project Initiation Execution Close Out Close-Out Nine-Phase Project Life Cycle Project Formulate Concept Evaluate Concept Verify Scope Design Construct Deploy Maintain Close
  40. 40. Project Life Cycles Are Like Snowflakes! 40 Program/Project Identification Completion & Evaluation Phase PCM Model
  41. 41. Project Life Cycles Are Like Snowflakes 41 Continuous I C i Improvement Lessons Learned Project IInitiation iti ti Definition D fi iti Planning Pl i IImplementation l t ti Closure Cl
  43. 43. Project Life Cycles Are Like Snowflakes 43 ILO/UN Model Implementation
  44. 44. Project Life Cycles Are Like Snowflakes 44 Phase or Identification Preparation Approval Financing Implementation Operations Stage Ex Post Evaluation Project Profile Product or Pre- Prepared Process or feasi- and Deliverable bility Budget Study for Feasibility y Project j Donor Final Cons- Feasi- F i Study/ Proposal Agreement Design truction bility Preliminary for included in Study Design Project Capital Budget Financing Decision 1 2 3 4 5 6 7 maker Sector Sector Sector Central Financing Sector Sector Ministry Ministry, Ministry Planning Institution Ministry Ministry Planning Unit and Unit and Ministry y Ministry of Finance of Finance Typical Project Life Cycle for a Technical Cooperation Country Program/Project
  45. 45. Benefits of a Project Life Cycle 45 • Establishes a common framework for developing the project! • Defines the system for managing projects, including phases and decision points! • Provides a common l P id language f th d for the development process! l t ! • Institutionalizes a management system! • Improves communication, coordination and control! These points do hold true for any type of project! ILO/UN
  46. 46. The Project Life Cycle we will use… 46 Project Life Cycle Used in this Workshop Project Initiation Definition Planning Implementation Closure Phase Pur po se Initiation Introduce proje ct to attain approval and cre ate proje ct charte r De finition D fi iti Docume nt proje ct scope , d li rable s, and me th d f D t j t de live bl d thods for containing scope . Planning Cre ate plan docume nting the activitie s re quire d to comple te the proje ct, along w ith se que nce of activitie s, re source s assigne d to the activitie s, and re sulting sche dule and budge ts. Imple me ntation Exe cute and manage the plan, using artifacts cre ate d in the planning phase . Closure Formally re vie w the proje ct, including le ssons le arne d and turnove r of proje ct docume ntation. ntation
  47. 47. Your Turn: 47 Which ‘steps/sequences’ you will find in a Project Life Cycle (make sure you get them in the right order) ? … … … …
  49. 49. How Projects Come to Be Be… 49 Project selection can be a difficult process, especially when there are a large number of potential projects competing for scarce money. Some selection methods are highly intuitive; others try to add rigor through more scientific selection processes.
  50. 50. Sacred Cows and Pressing Needs g 50 Some selection ‘criteria’ can b S l i ‘ i i ’ be: “Sacred Cow” selection—Senior Management wants it! (it may often turn out well; many visionary projects start here)! Business opportunity (make more money)! Savings potential (save more money)! Keeping up with competition (example, many e-commerce projects were in response to competitor’s initiatives)! p p ) Government or regulatory requirements! URGENCY!!! Disaster recovery initiatives!
  51. 51. An Important Selection Criterion 51 Sanity Ch k S it Check: Does the project fit in with the stated goals of the organization? Which of the following meet this criterion? Why or why not? An A environmental group proposes a project to raise money by selling aerosol cans of i l j i b lli l f a powerful new pesticide. A video store chain proposes to develop a web site for ordering and distributing deo sto e c a p oposes de e op eb s te o o de g a d d st but g videos. A bank offers a free rifle to anyone opening a new savings account. A restaurant equipment manufacturer decides to introduce a line of high-end refrigerators for the consumer market.
  52. 52. Selection tools: Ishikawa diagrams 52 Also called fishbone diagrams or cause-and-effect diagrams, are diagrams that show the causes of a certain incident. Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential factors causing an overall effect.
  53. 53. Selection tools: Ishikawa diagrams 53 Ishikawa diagrams were proposed by Kaoru Ishikawa in the 1960s, who pioneered quality management processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management. It was first used in the 1960s, and is considered one of the seven basic tools of quality management, along with the histogram, Pareto chart, l f li l i h h hi P h check sheet, control chart, flowchart, and scatter diagram. It is known as a fishbone diagram because of its shape, similar to the side view of a fish skeleton. k l t Mazda Motors famously used an Ishikawa diagram in the development of the Miata sports car, where the required result was "Jinba Ittai or "Horse and Rider as One . The main causes Jinba Ittai" Horse One" included such aspects as "touch" and "braking" with the lesser causes including highly granular factors such as "50/50 weight distribution" and "able to rest elbow on top of driver's door". Every factor identified in the diagram was included in the final design.
  54. 54. Selection tools: Ishikawa diagrams 54 Causes Causes in the diagram are often categorized, such as to the 4 M's, described below. Cause-and- effect diagrams can reveal key relationships among various variables, and the possible causes g y p g p provide additional insight into process behavior. Typical (but you can define your own/add) categories are: The original 4 M's Machine (Equipment) Method (Process/Inspection) Material (Raw materials, Consumables etc.) Manpower The 4 P's (Used In Service Industry) People Process Policies Procedures
  55. 55. Selection Tools 55 N u m e r i c Me th o d De s c r i p ti o n Payback Period Determines how quickly a project recoups its costs Net Present Value Estimates the current worth of anticipated cash flows resulting from the project Unweighted Selection Scores multiple projects against a set of selection criteria, with all criteria being equal Weighted Selection Scores multiple projects against a set of selection criteria, with each criterion assigned a numeric weight Pairwise Priorities Rank ordering a number of candidate projects by systematically comparing one with each of the others
  56. 56. Weighted Criteria 56 Item Weight t Criteria 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total: 0 Total: 0 Total: 0 Total: 0 Total: 0
  57. 57. Weighted Criteria (example, using scale of 1-5) 57 Item Weight t Project A Proje ct B Project C Criteria 4 5 3 Good ROI 3 12 15 9 0 0 2 3 5 CEO Like s It Lik 5 10 15 25 0 0 5 4 2 Provide Be tte r 4 20 16 8 0 0 Se rvice 4 4 5 Ma tch Ne w Initia tives of 3 12 12 15 0 0 Our Compe tition Winner!! ( (hmmmm…) ) 0 0 0 0 0 Total: 54 Total: 58 Total: 57 Total: 0 Total: 0
  58. 58. Unweighted Criteria (example, using scale of 1-5) 58 Item Project A Project B Project C Criteria Good ROI 4 5 3 0 0 CEO Likes It 2 3 5 0 0 Provide Better 5 4 2 0 0 Our Service Winner!! Match New (Still! So the Initiatives of 4 4 5 0 0 boss Competition was right..) 0 0 0 0 0 Total: 15 Total: 16 Total: 15 Total: 0 Total: 0
  59. 59. Forced Pair Comparisons for Priorities 59 Allows individuals or groups to rank order lists of candidate projects (or All i di id l t k d li t f did t j t ( anything, for that matter!) Simple Works well for fewer than 20 items 1 -- 2 1 -- 3 2 -- 3 1 -- 4 2 -- 4 3 -- 4 1 -- 5 2 -- 5 3 -- 5 4 -- 5 1 -- 6 2 -- 6 3 -- 6 4 -- 6 5 -- 6 1 -- 7 2 -- 7 3 -- 7 4 -- 7 5 -- 7 6 -- 7 1 -- 8 2 -- 8 3 -- 8 4 -- 8 5 -- 8 6 -- 8 7 -- 8 1 -- 9 2 -- 9 3 -- 9 4 -- 9 5 -- 9 6 -- 9 7 -- 9 8 -- 9 1 -- 10 2 -- 10 3 -- 10 4 -- 10 5 -- 10 6 -- 10 7 -- 10 8 -- 10 9 -- 10 Item Scores 1 2 3 4 5 6 7 8 9 10
  60. 60. How to use the Forced Pair Comparisons 60 Generate list of items. items For project selection, this will be the list of candidate projects. Number the items for identification purposes. Use the grid to compare each item with the other items on the list, circling the item g p , g that is the more preferred of the two. (You must make a choice for each pair!) Count the number of times each item was circled and enter its score on the bottom line of the grid. grid Rank order the list using the scores you have derived. The item with the highest score is #1. The item with the second-highest score is #2. ( case of a tie, you may g (In ,y y either do a mini-grid for the tied items, or refer to your original preference when you were circling the items in the grid above.) Use less than a full grid for fewer than 10 items; expand grid for more items. items
  61. 61. How to Use Forced Pair Comparisons Example: 61 Seven Books I Have Always Wanted to Read and Haven’t 1. Middlemarch 2. Ulysses 3. Remembrance of Things Past 4. War W and P d Peace 5. Moby Dick 6. Anna Karenina 7. Pride and Prejudice
  62. 62. How to Use Forced Pair Comparisons Example (continued): E l ( ti d) 62 1 -- 2 1 -- 3 2 -- 3 1 -- 4 2 -- 4 3 -- 4 1 -- 5 2 -- 5 3 -- 5 4 -- 5 1 -- 6 2 -- 6 3 -- 6 4 -- 6 5 -- 6 1 -- 7 2 -- 7 3 -- 7 4 -- 7 5 -- 7 6 -- 7 1 -- 8 2 -- 8 3 -- 8 4 -- 8 5 -- 8 6 -- 8 7 -- 8 1 -- 9 2 -- 9 3 -- 9 4 -- 9 5 -- 9 6 -- 9 7 -- 9 8 -- 9 1 -- 10 2 -- 10 3 -- 10 4 -- 10 5 -- 10 6 -- 10 7 -- 10 8 -- 10 9 -- 10 Item Scores 1 2 3 4 5 6 7 8 9 10 2 * 5 1 * 4 2 1 6 * Break ties. In this case, #1 and #6 as well as #3 and #6 were tied. Ties were broken merely by referring to previous choice made in the grid.
  63. 63. How to Use Forced-Pair Comparisons Example (concluded): 63 Ranked List f the Seven B k I H R k d Li t of th S Books Have Al Always W t d t R d and H Wanted to Read d Haven’t ’t 1. Pride and Prejudice 2. Ulysses 3. War and Peace 4. Middlemarch Middl h 5. Moby Dick 6. Remembrance of Things Past 7. Anna Karenina
  64. 64. Practice: Placing Priorities on a Short List g 64 1 -- 2 1 -- 3 2 -- 3 1 -- 4 2 -- 4 3 -- 4 1 -- 5 2 -- 5 3 -- 5 4 -- 5 1 -- 6 2 -- 6 3 -- 6 4 -- 6 5 -- 6 1 -- 7 2 -- 7 3 -- 7 4 -- 7 5 -- 7 6 -- 7 1 -- 8 2 -- 8 3 -- 8 4 -- 8 5 -- 8 6 -- 8 7 -- 8 1 -- 9 2 -- 9 3 -- 9 4 -- 9 5 -- 9 6 -- 9 7 -- 9 8 -- 9 1 -- 10 2 -- 10 3 -- 10 4 -- 10 5 -- 10 6 -- 10 7 -- 10 8 -- 10 9 -- 10 Item Scores 1 2 3 4 5 6 7 8 9 10
  65. 65. Your Turn: 65 How projects come to be? What could be selection methods? … … … … …
  67. 67. Project Environment… 67 Do D not forget a Project is a System … tf t P j ti S t The Environment The Project Inputs Processes Outputs
  68. 68. Project Environment… 68 …aS t System in a System… i S t The Environment The Project Organization Inputs The Project Inputs Processes Outputs Outputs Customers or Beneficiaries
  69. 69. Project Environment… 69 Actors and Factors as Inputs and Outputs The Environment Inputs Outputs The Project O ga at o Organization Supplies Facilities Reports School The Accounting A ti Project P j t Improved instruction Money Improved Labor economic g growth Government agencies
  70. 70. Project Environment… 70 Actors (Stakeholders) Outside and Factors as Environment (outside of parent organization) Inputs and Outputs Actors • people • institutions • ... Actors A t Inputs Project Outputs Factors Factors • climate • inflation • ... Stakeholders: Actors with an interest in or who could be impacted by the project
  71. 71. Project Environment… 71 Project Cycle M P j C l Management QUALITY at EX in the 2000s feedback XIT feedback 0
  72. 72. Project Environment… 72 Step: Process f E i St P for Environmental Analysis t lA l i 1. Scan environment and identify y The Environment actors/factors; in terms of inputs and outputs; geopolitically and by sector! The Project 2. Screen in terms of dependency, risk, Inputs and power! Processes Outputs 3. Identify problem and beneficial actors and factors! 4. Develop strategies and act! Boundary 5. Repeat throughout implementation! p g p
  73. 73. Project Environment… 73 Step: Screen A t St S Actors and Factors dF t 1. List them 2. Rate them in terms of: • Dependency: H D d How iimportant is the actor/factor to the t t i th t /f t t th successful completion of the project! • Risk: Likelihood something will go wrong • Power: Degree of control or influence Assign High, Low, or Medium rating to each in a matrix!
  74. 74. Project Environment… 74 Actors & Factors Matrix A F M i Degree of Degree of Degree of Degree of dependency risk power problem Actor 1 medium high high Actor 2 low medium low Actor 3 high high low high Factor 1 low medium low Factor 2 low high low Factor 3 high high low
  75. 75. Project Environment… 75 Definition of dependency D fi iti fd d • How important is the actor or factor to the successful completion p p of the project! Definition of risk • the chance that something will go wrong (hinder the completion of the project in a significant way)!
  76. 76. Project Environment… 76 Definition of Power: Ability to make something occur; ability to get someone to do something one wants done! POWER: High = control Medium = influence Control Low (none) = appreciation Influence I fl Appreciation
  77. 77. Project Environment… 77 After your Analysis Develop Strategies and Act Af A l i D l S i dA Use general STRATEGIES: Formulate Specific ACTIONS • Reduce dependency ? • Reduce risk ? • Increase power ? • Capitalize on beneficial ? actors acto s and factors facto s
  78. 78. Project Environment… 78 Use Linkages to Increase Influence Formal Informal • committees • meetings • project coordinator • p plans • task forces • teambuilding • incorporation or merger • p g personality • rewards
  79. 79. Project Environment… 79 Continuously Scan the Project Environment Scanning is not a one-time event Circumstances change Keep current • list of problem actors and factors, • Strategies and • contingency plans!
  80. 80. Project Environment… 80 Worksheet 1: Sector Analysis Project: Sectors Actors Factors Infrastructure Technology Financial Commercial Political/Legal Physical
  81. 81. Project Environment… 81 Worksheet 2 Actor F t G id W k h t 2: A t Factor Grid Project: Degree of Degree of Degree of Degree of risk dependency power problem Actors Factors H=High M=Medium M M di L=Low
  82. 82. Project Environment… 82 Worksheet 3 Managing Problem Actors & Factors W k h t 3: M i P bl A t F t Project: Decreasing Increasing Decreasing Linkages degree of degree of degree of risk Formal/Informal dependency power Actors Factors
  83. 83. Project Stakeholders 83 “Individuals “I di id l and organizations th t are actively d i ti that ti l involved in the project, or whose interest may be pos t e y o egat e y a ected positively or negatively affected as a result of project esu t o p oject execution or project completion.” 2000 PMBOK Guide Short list Project benefacto P oject benefactor Project requestor Project manager and team Those affected by the project
  84. 84. Project Stakeholders: Partial List of Candidates for Stakeholder Roles 84 Project b P j t benefactor and upper management f t d t Project sponsor Project office/project advisory boards Executive management Project P j t requestor t Project manager and team If a team member has a line manager, he or she is a key stakeholder as well. (They hold the strings for your team member.) Internal Consultants Legal Audit Telecommunications IT infrastructure Quality assurance Human Resources Department External entities affected by the project Customers Vendors Governmental agencies Other regulatory bodies
  85. 85. Identifying Project Stakeholders y g j 85 Potential Stakeholders Stakeholders Inside the Team Stakeholders Within the Organiz ation Stakeholders Outside the Organiz ation
  86. 86. Project Stakeholders 86 Putting even more detail to the stakeholder… stakeholder Analyse the characteristics of the group e.g.: Composition (homogenous or in-homogeneous group in regard to ethnic, social, religious and cultural factors); Status of the group (informal, formal, social status, legal status, organisational structure, etc.); Purpose of their existence and main functions; Needs; Motives and interests, openly expressed or hidden; Hopes, wishes, expectations - fears, apprehensions, reservations; Attitudes (opinions, prejudices, taboos, etc.) towards project related factors, e.g. change, progress, work, strangers; Potentials and deficiencies/Strength and weaknesses of the group (e.g. knowledge, skills, behaviour, commitment, etc.); ); Resources (power, possessions, influence, monopolies, connections); What could the group contribute to or withhold from the project? Implications for the planning. planning PCM
  87. 87. Your Turn: 87 Project stakeholders how to identify and categorizing them? … … … … … …
  89. 89. Defining Scope (The range of one's perceptions thoughts, or actions ) one s perceptions, thoughts actions.) 89 Product S P d Scope versus P j Project S Scope Product Scope: The sum of the features that make up the product or service created by the project. Project Scope: All of the activities and resources required to produce the target product or service. Describe the Project Scope by defining the: situation before situation after project start / project end contents non-contents goals non-goals
  90. 90. Defining Scope 90 Situation before: Situation after: • ... • ... • ... • ... • ... Project Start: • ... • ... <date> • ... Project „xxx“ Contents: Non-Contents: Goals: Non-Goals: • ... • ... • ... • ... • ... • ... • ... • ... • ... • ... • ... • ... • ... • ... • ... • ...
  91. 91. Preliminary Context Diagrams: Deconstruction D t ti 91 Widget Wid t World Manage Sell Manage Maintain Run Enterprise Widgets Systems Accounts HR (IT Dept) Manage Support Sell Support Develop Design Hire Develop Maintain Sales Sales Product y Systems y Systems Websites Staff Courses Employee Records p y (Our Context) • Here we’ve drilled down into the Widget World organization and depicted the major functions within the company. company • Ideally, the top level should encompass the entire organization. • We have been charged with evaluating a flawed sales support system that provides automated training and support to the sales staff. The scope of the training product is therefore the box labeled “Support Sales.”
  92. 92. Scope (Context) Diagrams Defining the E d P d t D fi i th End Product 92 Login and Lesson Participation Usage Statistics IT Dept Sales Staff Ad Hoc Product and Procedures Inquiries Sales Staff Information Ad Hoc Product and and Access Sales Support Sales Staff Permissions Sales Performance Support Managers Course Lessons, Training Product Assessments, and Learner Sales Staff Evaluations a t c pat o Participation and Progress Reports Sales Staff Participation and P ti i ti d Course Progress Reports HR Development Department Group Content Updates
  93. 93. Scope (Context) Diagrams Defining the End Product (continued) 93 Software The software product, usually drawn as a Product rounded-corner square, and always in the center of the graphic One rectangle for each class of individual Individuals Who (e.g., customer) or organization (e.g., HR) Interact Wi h I With that might interact with the software Software Product solution One rectangle ( g (with an extra line inside Systems That the top) for each class of system (e.g., Interact With your HR S ystem) that may interact with Software Product the software product One arrow for each major class of information that flows to or from the software product
  94. 94. Scope (Context) Diagrams (applied to project team charged with delivery of the product) ( li d t j tt h d ith d li f th d t) 94 Request for Infrastructure IT Systems HR Dept Requirements Support Approvals/$ Interim Versions Completed System Project Internal to Develop Focus Group Sales Staff Support Recommendations/ Participants Approvals Progress Reports System Template Designs Internal Web Sales Design Managers Group Content Rules
  95. 95. Scope (Context) Diagram (applied to project team charged with delivery of the product - continued) 95 Software The name of the software development project, Development usually appearing in the center of the graphic as Project a rounded-corner square Any Individuals or One rectangle for each class of individual (e.g., Organizations project sponsor) or organization (e.g., IT Interacting With Department) that may interact with your Project Team software development project team in developing the software product One rectangle (with an extra line inside the top) Systems That for each class of system (e.g., a course module Interact With Project Team library) that be used by the software development project team in developing the software product p One arrow for each major class of information that flows to or f h fl from software d f development l project team
  96. 96. Your Turn: 96 How to define Scope? … … …
  98. 98. Writing SMART Objectives 98 S pecific Objectives should be stated in terms that include some quantitative target for the end product. M easurable There should be some way of actually testing whether or not that stated target has been met. A ttainable The desired objective must be one that is actually possible to ac e e achieve within t e t e a d cost pa a ete s p o ded t the time and parameters provided. R elevant The desired objective should relate directly to the organization's business b siness needs and stated mission mission. T The boundaries for completion date of the desired objective should be either a specific date or time or an "offset" from the beginning of the project. (For example, must be completed within five months of project launch.) ime-Bound
  100. 100. Risk Management 100 Project Management Institute (PMI) Definition: "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project objective , objective”, requires that both opportunities and threats be addressed to maximize/minimize these advantages/disadvantages. How to handle them: Risks that may affect the project for better or worse can be identified and organized into risk categories. Risk categories should be well defined and should reflect common sources of risk for the industry or application area.
  101. 101. Risk Management 101 Risk t Ri k categories include the following: i i l d th f ll i • Technical, quality, or performance risks —such as reliance on unproven or complex technology, unrealistic performance goals, changes to the technology used or to i d h l d industry standards d i d d during the project h j • Project-management risks —such as poor allocation of time and resources, inadequate quality of the p j , q q y project p plan, p , poor use of p j project management disciplines • Organizational risks —such as cost, time, and scope objectives that are internally inconsistent, lack of prioritization of projects, inadequacy or y , p p j , q y interruption of funding, and resource conflicts with other projects in the organization • External risks —such as shifting legal or regulatory environment, labor such issues, changing owner priorities, country risk, and weather. Force majeure risks such as earthquakes, floods, and civil unrest generally require disaster recovery actions rather than risk management.
  102. 102. Risk Management 102 A risk breakdown structure (RBS) provides a hierarchical way to organize risks, proceeding from an overview of risks associated with an entire project to general categories and individual risks. The method, developed by Project Management Professional Solutions Ltd. Director of Consultancy David Hillson, mirrors the work breakdown structure. As part of this first step in the risk management process, an organization might specify the methods used to actually identify risks. For example, brainstorming sessions might identify "communication" problems under "management risk while financial models might evaluate "financial" uncertainties under "commercial risk.'' In the next steps, specific risks are identified within each of the named categories along with some ranking of their severity and strategies for managing those risks. As these strategies are successfully mapped, project managers gain a better understanding of the levels of risk prevalent within alt areas of a project, and they're able to work systematically to reduce those risks. Source: D.A. Hillson's "The Risk Breakdown Structure as an Aid to Effective Risk Management," presented in June at the PMI Europe 2002 Conference, Cannes, France.
  103. 103. Risk Management 103 A risk breakdown structure (RBS) i kb kd t t
  104. 104. Risk Management Risk Identification Worksheet Scenario: Risk Identification Worksheet Enter risk scenario (how an event could jeopardize project outcome). Rate probability, impact, and degree of control using Probability Impact Control Index rating scale of: 1 = Low Financial Impact: 2 = Medium Action to be Taken: Ignore Eliminate Manage 3 = High g Mitigations: Compute risk index using formula: Probability * Impact Risk Index = Control Contingencies: If possible, enter financial impact. Determine actions to take: Ignore (do nothing) Manager of This Risk: Eliminate (sidestep) Actions Taken Manage Action: Date: For managed risks, indicate mitigations and contingencies and assign risk manager. Log actions taken as they occur. L ti t k th
  105. 105. Risk Management g 105 Giving Risks Priorities Maintain inventory of all risks identified—updating probabilities, impacts, and controls if changes occur. Risk Priority Worksheet Risk ID Risk Scenario Probability Impact Control Index 1 Key stakeholders unavailable during project definition phase 2 3 2 3 2 Vendors late in delivering required software for security system 2 2 1 4 3 Loss of key team member in middle of project 1 3 2 1.5 4 Power failure due to seasonal storms 1 3 1 3 5 Final regulations controlling administration of new system late 2 3 1 6 6 Scope changes require additional tasks and resources 2 3 2 3 Focus attention on the risks with the highest indices!!! Risk Priority Worksheet Risk ID Risk Scenario Probability Impact Control Index 5 Final regulations controlling administration of new system late 2 3 1 6 2 Vendors late in delivering required software for security system 2 2 1 4 1 Key stakeholders unavailable during project definition phase 2 3 2 3 4 Power failure due to seasonal storms 1 3 1 3 6 Scope changes require additional tasks and resources 2 3 2 3 3 Loss of key team member in middle of project* 1 3 2 1.5
  106. 106. Your Turn: Project Risk Scenarios j 106 Risk Identification Worksheet Scenario: 1. Individually identify and jot down four possible risk scenarios this Probability Impact Control Index project might face. Financial Impact: 2. Share these within your group and create a Risk Priority Action to be Taken: Ignore Eliminate Manage Worksheet of your pooled risks. Mitigations: 3. Score the risks. 4. 4 For the top two brainstorm at two, Contingencies: least one mitigation and one contingency. Manager of This Risk: 5. 5 Use the Risk Identification Actions Taken Worksheet as a guide, but you do Action: Date: not need to complete one for this exercise.
  107. 107. Project Assumptions PCM C 107 How d H does PCM d fi define, f formulate and h dl ‚Assumptions‘? l d handle A i ‘? Assumption Definition: A ti D fi iti Conditions/factors that must exist/are important if the program/project is to succeed but which are not under the succeed, direct control of the project, because they do not have e.g. : • a mandate for it and or • did choose not to control it and or • are outside the projects intervention.
  108. 108. Project Assumptions 108 Risk Project Management Assumption PCM Definition: Institute (PMI) Definition: "an uncertain event or condition Conditions/factors that must exist/are important if the that, if it occurs, has a positive or , , p program/project is to succeed, negative effect on a project but which are not under the direct control of the project, objective”, requires that both because they do not have e.g. : y g opportunities and threats be • a mandate for it and or addressed to maximize/minimize • did choose not to control it and these advantages/disadvantages. or • are outside the projects intervention. intervention
  109. 109. Project Assumptions PCM C 109 Where to fi d and h Wh find d how to word A d Assumptions? i ? • Assumptions can be derived from a variety of analytical tools, such Stakeholder Analysis Problem/Objective Tree, Analysis of Analysis, Tree Alternatives, SWOT, just to name a few. • Assumptions will be worded as p p positive conditions ( (i.e. like ‘Results/Outputs’). • Assumptions will be weighted according to their importance and probability • One uses the IF-AND-THEN logic, to make sure that the Assumption is on the right level: e.g. IF an Activity is done AND eg the Assumption comes true, THEN the Result/Output will be achieved.
  110. 110. Project Assumptions PCM C 110
  111. 111. Project Assumptions 111 Assumptions, continued A ti ti d There might be quite a number of potentially important Assumptions, which we have to make about any Result/Output or even Activity and it is neither useful nor possible to list them all. What is required is the specification of the most important Assumptions for each level of the hierarchy. Generally, the significance of these Assumptions - i.e. the ability of the factor to affect achievement - rises through the hierarchy. Uncertainty will rise at the ‘Result/Output’ to hierarchy Result/Output ‘Goal/Purpose’ linkage level and will become very significant at the ‘Goal/Purpose’ to ‘Overall Goal’ linkage level. Uncertainty at this level is high, because the achievement of the ‘Overall Goal’ depends upon the achievement of one or more complementary inputs. Some additional remarks Avoid to many Assumptions in your LogFrame. Those that are important and can be ‘managed’ by the implementation team have to be at least monitored and they might even become additional Activities, which have to be carried out! Sometimes planning teams have a tendency to 'shy-away' from stating Assumptions. Do not fall into that trap either! Even some manageable Assumptions might turn into Killer Assumptions if they are ignored!
  112. 112. Risk Management 112 Finding Risks/Assumptions using a PEST analysis It is a tool that strategy consultants use to scan the external macro- environment in which an organisation or company operates. PEST is an acronym for the following factors: Political factors Economic factors Social factors, and Technological factors. PEST factors play an important role in the value creation opportunities of a strategy. However they are usually beyond the control of the corporation and must normally be considered as either threats or opportunities Remember macro opportunities. macro- economical factors can differ per continent, country or even region, so normally a PEST analysis should be performed per country. In the table on the following page y you find examples of each of these factors. p
  113. 113. Risk Management 113 Example PEST matrix Political (incl. Legal) Economic Social Technological factors factors factors factors Environmental regulations Government research Economic growth g Income distribution and protection spending Demographics, Interest rates & Industry focus on Tax policies Population growth monetary policies technological effort rates, Age distribution International trade Government New inventions and regulations and Labour/ social mobility spending development restrictions Contract enforcement law Unemployment Rate of technology Lifestyle changes Consumer protection policy transfer Work/career and Life cycle and speed of Employment laws Taxation leisure attitudes technological Entrepreneurial spirit obsolescence Government organization Exchange rates Education Energy use and costs and attitude (Changes in) Competition regulation p g Inflation rates Fashion, hypes , yp Information Technology Health consciousness Stage of the Political Stability & welfare, feelings on (Changes in) Internet business cycle safety Consumer (Changes in) Mobile Safety regulations Living conditions confidence Technology
  114. 114. Risk Management 114 Other f t Oth ‚factors‘ that can be included… ‘ th t b i l d d Internal factors External factors o Design o Government policy o Procedures + decision making o Economic background o Finances o Social background o Physical structure o Framework for external M+E of o Organizational structure performance o Manpower o y Information system Sustainability factors o Vision, Mission, Mandate o Policy support o Appropriate technology o Institutional and management capacity g p y o Economic and financial viability o Socio-cultural and gender issues o Environmental protection
  115. 115. Project Assumptions 115 Almost every lesson includes the reminder “Don’t Assume!!” Turn that around and make it “Document Assumptions!” Don’t expect others to read your mind. Capture as many assumptions as possible to include in your initial project charter. Don t Don’t be surprised if others do not share all your assumptions. This is the time to resolve differences— before the project is underway!
  116. 116. Your Turn: 116 What are Risks and Assumptions and how to deal with them? … … … … … …
  118. 118. The Project Charter 118 The Th project charter i the project’s “li j h is h j ’ “license to do b i d business.” ” It should come from someone outside the project itself with funding-access, resource-assignment and decision-making authority sufficient to support the project. This person is usually known as the project sponsor.
  119. 119. Why Have a Project Charter? 119 Primary purpose: to get approval to proceed with the project and P i l d i h h j d obtain sufficient approval for resources to move to the next phase of the project. Communicate to stakeholders and other interested parties the mission and objectives of the project. i i d bj ti f th j t Communicate to the project team what they are expected to accomplish.
  120. 120. Project Charter Components 120 Project Mission Project Scope Project Objectives Project Assumptions Project Constraints j Milestones Project Risks Stakeholders Signature Page Granting Authority to Proceed In some organizations, the project charter is an evolving document. Many of the components listed will change as the project moves into the project definition phase.
  121. 121. Your Turn: Starting the Charter 121 List at least Three SMART Objectives Objectives. Project Assumptions List at least three Project Assumptions. Project Constraints See Project Priority Matrix in Appendix. List any other constrain Project Phases P j Ph Indicate the phases of the proposed project. Milestones List major milestones for p oject identified so far. ( c ude at st ajo esto es o project de t ed a (Include least five throughout the life of the project.) Project Risks Attach Risk Identification Worksheets and Risk Priority Stakeholders Attach Potential Stakeholders Worksheet Worksheet. Signature Page Granting Authority to Proceed Obtain signatures of Project Sponsor and Project Manager. Project Sponsor Signature: Project Manager Signature:
  122. 122. The LogFrame, a P j t Cycle Management Tool Project C l M tT l 122 Project Objectively Means of Assumptions Description Verifiable Verification (MoV) Indicators (OVI) Overall Goal Why is it important for the country/ society Project Purpose What are the needs for the target group/ beneficiaries Outputs/ What will be Results the results Activities What will the Inputs Costs, etc project do to achieve the results PCM
  123. 123. The LogFrame, what can it be used for? 123 It is an aid to logical thinking and an instrument by which a strategy, instrument, strategy product, program, project and implementation process may be structured and described for planning and analytical purposes. purposes It can be used as well for or be the basis for a M+E system or oven a Management Information S t M tI f ti System (MIS). One can define with it (MIS) O d fi ith services/products, budgets, breakdown of responsibilities and use it for further operational planning. planning If prepared correctly, the LogFrame is a concise document, easy to use and to apply, and eventually lessening the workload of those responsible for the various phases of the project cycle. It serves as a ‘project charter’!
  124. 124. Your Turn: 124 What is the Project Charter? … … … … … …
  126. 126. Responsibility Matrix (RM) 126 What is it? A tool for clarifying organizational roles and responsibilities Every organizational role is clear to members of the team and the co- co operating partners! Each work package has an clearly identified “owner” ,in order that no two groups think they are responsible for the same work package! Why is it the RM important? It promotes discussion and agreement about roles, responsibilities and organizational relationships! It clarifies who is responsible for each work package! It is the source of information for preparing the master summary schedule and CPM plan!
  127. 127. Responsibility Matrix (RM) 127 Why is it the RM important? It promotes discussion and agreement about roles, responsibilities and organizational relationships! It clarifies who i responsible for each work package! l ifi h is ibl f h k k ! It is the source of information for preparing the master summary schedule and CPM plan
  128. 128. Responsibility Matrix (RM) 128 Organizational unit, example WBS Project P oject element Owner Architect Government Contractor manager Plan A W C C C Site A C W A Code W = Does work C = Must be consulted A = Approve I = Information only
  129. 129. Responsibility Matrix (RM) 129 How to do it… Draw a matrix (grid) List WBS elements down the left-hand side column left hand List organizational units along the top row Use codes for level of involvement Discuss and agree on roles g
  130. 130. Assigning Responsibilities: Responsibility Matrix R ibilit M t i 130 Cross-reference of tasks and resources assigned to the project C f f k d i d h j (RACI chart), another example. Project Item Sponsor Project Manager Project Team Project Office Project Definition A A R I Risk Management A R R C Detailed Design A R R C Weekly Web Bulletin I R R I etc. R= Responsible R ibl A= Accountable C= Consulted I= Informed f
  131. 131. Work Breakdown Structures 131 Breaking down the elephant… Tail Legs Body Head
  132. 132. Work Breakdown Structures 132 Work B W k Breakdown Structures (WBSs) help organize the activities kd S (WBS ) h l i h i i i required to meet the objectives of the project. Focus is on deliverables! May be organized by: phase of the project component
  133. 133. Work Breakdown Structures 133 8 Steps to prepare a OP/WBS 1. 1 Step: List major activities 2. Step: Break activities down into manageable tasks 3. Step: Clarify sequence and dependencies 4. Step: Estimate start-up/time, duration and completion of Activities 5. Step: Summarize scheduling of major Activities 6. Step: Define milestones 7. Step: Define expertise/personnel required p p /p q 8. Step: Allocate tasks/responsibilities among the team
  134. 134. Work Breakdown Structures 134 Phase-Based WBS Ph B d Partial WBS for Software Project Based on Phase Customer Relationship Management System Project Management Requirements Design Build Planning g Client Interviews Logical Design g g Logical Design g g etc. Reporting Review of Current Workflows Process Models Process Models Administration Business Objectives Use Cases Use Cases Meetings Preliminary Test Planning Logical Data Models Physical Data Models Documentation Planning Documentation Planning Training Requirements
  135. 135. Work Breakdown Structures 135 Component-Based WBS C B d Partial WBS for Luxury Townhouse Complex by Component IYHTAYCAI* Village Project (*If you have to ask, you can't affort it) Project Management Buildings Land Planning Sales and Marketing Planning Townhouse Units Water and Sewers Advertising Reporting Clubhouse Roads and Access Lanes Association Declarations Administration Gatehouses Retention Ponds General Legal Meetings M ti Pro Sh P Shop 18-Hole Golf Course 18 H l G lf C Documentation Planning Documentation Planning Permits and Inspections Maintenance Staffing Requirements Permits and Inspections