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Effective Project Management_handout
1. 2013 RI CONVENTION
Effective Project Management
(& The Maji Mazuri Project)
Fred Abrams, PMP, CPL
– Rotary Club of Dayton Ohio USA
Rakhee Kantaria
– Rotary Club of Muthaiga, Nairobi, Kenya
2. 2013 RI CONVENTION
Session Objective
• Understand how to apply the international
(ISO) standards for effective project
management to volunteer-run Rotary
projects:
– Planning for control of cost and schedule
– Managing risks that can derail the project
• Become the best possible steward of the
donated money you are spending.
3. 2013 RI CONVENTION
Session Outline
• Defining the project
• What Rotary says about project management
• The ANSI/ISO Standard for project management
• Managing the Maji Mazuri Project
• Lessons Learned
4. 2013 RI CONVENTION
The Project Scope
• 1997 Visit To Kenya By Dayton Rotary
– Goal: A Project to Help Vulnerable Children
– Beneficiary Organization – Primary host for visit
– Picked a Host Nation Rotary Club Partner
– Defined the project
• Five Years and Three Rotary Matching Grants in
Execution
– Total (RI and non-RI) Budget: $368,217
• RI Grant Content: $211,295
• Outside of RI Grants: $156,922
– Managed as one consolidated project
5. 2013 RI CONVENTION
The Challenge
What We Found and How to help?
Vulnerable Children
– AIDS Orphans Surviving in
The Mathare Valley Slum
7. 2013 RI CONVENTION
How To Help ?
• Changing The Slum?
– Overwhelming Challenge
• Helping The Children?
– Rescue Kids and Establish A Sanctuary
• Safe and Self-Sufficient
– Provide Quality Healthcare and Education
8. 2013 RI CONVENTION
Some Project Highlights
• Visit By RI President Banerjee
– Dec 2011
– First project featured in his
opening plenary comments
in Bangkok (June 2012)
• Feature in “The Rotarian”
March 2012
• Visit by RI President Tanaka –
July 2012
10. 2013 RI CONVENTION
Rotary Foundation Guidance
• RI Document 605A
– “Communities In Action – A Guide to
Effective Projects”
– Top Level Guidance
• RI Document 1000 – new in 2012
– “Grant Management Manual”
– Focus on new “Global Grants”
– Chapter 3 is project management
– Sustainability Required
11. 2013 RI CONVENTION
RI Document 605A
(A Guide To Effective Projects)
• Chapter 2 – Choosing A Project
– Fit the overall interest of the club
– Sustainable: long term solutions to chronic problems
• Chapter 3 – Making A Plan (4 pages)
– Scope appropriate to club’s resources
– Project Work Plan & Detailed Budget
• Tasks, responsibilities, resources, budget, timing
• Chapter 4 – Taking Action
– Raising Funds
– Managing Activities (especially managing volunteers)
12. 2013 RI CONVENTION
RI Document 1000
• Chapter 1 – Planning a Global Grant Project
– Develop Project Plan (Sustainable Solutions)
– Financial Management Plan (Budget/Financing)
• Chapter 3- Implementing, Monitoring, Evaluating (2 pages)
– Monitor how closely you are following the plan, adjust
– Evaluate against goals
– Disciplined financial recordkeeping
– Have technical reviews and site visits
13. 2013 RI CONVENTION
What Does Rotary mean by Sustainability?
• Economic
– Self-Sufficient Operations
• Environmental
– Local resources and Low Pollution
• Cultural
– Include local leaders and diverse cultures
• Social
– Training to prepare workers, men and women
14. 2013 RI CONVENTION
International Standard
For Project Management
• The Project Management Institute (PMI)
– Source of ANSI/ISO Standard (www.pmi.org)
– Guide to The Project Management Body of Knowledge
– PMBOK® Guide (587 Pages)
– Training and International Certification in the standards
(Project Management Professional –PMP)
• Some Key Elements of Effective Project
Management
• Rigorous Requirements Process and Scope Definition
• Rigorous planning considering dependencies and risks
– Based on, and controlled by a Work Breakdown
Structure-WBS
• Project Scope is controlled, Changes are analyzed
15. 2013 RI CONVENTION
The Work Breakdown Structure -WBS
• Foundation of Effectively Planning, Executing
and Controlling Projects
• Logical Grouping of the work to be done
– All work on a specific element is under one heading
– Not necessarily a timeline listing
• Costs, Schedules, Responsibilities and Risks are
tied to individual lines in the WBS
– Work Packages – each with a budget and risk analysis
– Dependencies among WBS activities is depicted
• Schedule reflects dependencies
16. 2013 RI CONVENTION
Why Projects Fail - Two Key Reasons
• Planning did not consider risks to cost and
schedule and adjust accordingly
• Once planned, the scope of the project was
not controlled in a disciplined manner
– Changes made without re-planning and
modifying the WBS and its work packages
17. 2013 RI CONVENTION
Defining Our Project
• The Beneficiary Organization
– Maji Mazuri: 20+ years of success
– Head-start Center and Micro-enterprise in the Slum
– Owned Farmland in countryside SW of Nairobi
• Ambitious Goal
– Create a self-sufficient sanctuary for AIDS orphans
rescued from the slum
• Energy, Water and Food Self-Sufficient
• Cost Reducing and Revenue Generating Business Model
– Farm industry and a Farm industry Building
• Provide Health Care and Education
– Long Term: Build and equip a clinic and school
18. 2013 RI CONVENTION
Determining The Scope - Sustainability
• Cannot depend on charity to operate site
• Economic: Reduce Costs of Operation
– Diesel Generator for electric to pump water
• Replace with Wind and Solar (Environmental Sustainability)
– Cooking Fuel – wood and charcoal
• Replace with bio-gas (Environmental Sustainability)
– Food for children – extensive purchases
• Increase on-site food production
– Barn and Animals
– Irrigation (efficient micro-drip)
– Assure adequate water (pumping and rainwater harvest)
– Greenhouses for high yields
20. 2013 RI CONVENTION
Self-Sufficiency: Emphasis on Sustainability
• Food Self-Sufficiency
– Needs Water – Need Water Self-Sufficiency
• For People – Water Purity Essential
• Crops and Animals – Efficient Use Essential
– Need Barn and Greenhouses
– Needs Cooking Fuel –Need Self-Sufficiency
• Dependence on wood and charcoal expensive
– Needs Cooking and Serving Equipage
– Needs Refrigeration
• Needs electricity
21. 2013 RI CONVENTION
Our Top Level WBS
• 1.0 Management
• 2.0 Energy Self-Sufficiency
• 3.0 Water Self-Sufficiency
• 4.0 Facilities and Infrastructure
• 5.0 Food Self-Sufficiency
• 6.0 Child Health
• 7.0 Education & Training
• 8.0 Commerce (Revenue Generation)
22. 2013 RI CONVENTION
Management Dimensions
• 1.1 Project Management
– 1.1.1 Project Plans
– 1.1.2 Project Meetings
• 1.1.2.1 Local (Dayton)
• 1.1.2.2 On Site (Kenya)
• 1.2 RI Grant Management
– 1.2.1 Grant Proposals
– 1.2.2 Grant Reporting
• 1.3 Financial Management
– 1.3.1 Fund Raising
– 1.3.2 Budget Execution
• 1.4 Website Management
23. 2013 RI CONVENTION
Our WBS – Detail Examples
• 2.0 – Energy Self-Sufficiency
– 2.1 Electrical
• 2.1.1 Wind Turbine
• 2.1.2 Solar Cells
• 2.1.3 Charge Controller and Battery Bank
• 2.1.4 Inverter
• 2.1.5 Power Distribution
• 2.1.6 Building wiring and lighting
– 2.1.6.1 Existing Structures
– 2.1.6.2 New Barn
– 2.1.6.3 New Farm Industry Building
– 2.1.6.4 New Clinic
– 2.1.6.5 New School
– 2.2 Fuel
• 2.2.1 Animal Bio Gas Plant
– 2.2.1.1 Anaerobic Digester
– 2.2.1.2 Bio Gas Distribution
– 2.2.1.3 Bio Gas Stoves
• 2.2.2 Bio Gas Toilets
– 2.2.2.1 Anaerobic Digester
– 2.2.2.2 Bio Gas Distribution
– 2.2.2.3 Bio Gas Bladder Storage
• 2.2.3 Generator Conversion to Diesel/Biogas
• 2.2.4 Bio Gas Sales
Note:
Construction Non RI
Budget Segregation
24. 2013 RI CONVENTION
Our WBS – Detail Level
• 3.0 Water Self Sufficiency
– 3.1 Borehole
• 3.1.1 Pump
• 3.1.2 De-Fluoridation
– 3.2 Rainwater Harvest
• 3.2.1 Collection & Storage
– 3.2.1.1 Existing Buildings
– 3.2.1.2 New Barn
– 3.2.1.3 New Farm Industry Building
– 3.2.1.4 New Clinic
– 3.2.1.5 New School
• 3.2.2 Pumping
• 3.2.3 Chlorination
– 3.3 Micro-Drip Irrigation
• 3.3.1 Phase One
• 3.3.2 Phase Two
– 3.4 Solar Hot Water
• 3.4.1 Phase One
• 3.4.2 Phase Two
25. 2013 RI CONVENTION
The Planning Process
• Have a good definition of dependencies
• Application to this project
– Food and Subsistence Depends on Water
– Water Supply depends on
• Collection and Ability to Pump and Store
– Ability to Pump depends on electricity
• Cannot afford to run diesel generator
• Top Priorities – Phase One
– Electric Power – Wind and Solar
– Rainwater Harvest
– Micro-drip Irrigation for crop yields
– Build a barn for animals
26. 2013 RI CONVENTION
Water
Self-Sufficiency
Food
Self-Sufficiency
Cooking
Grow Food Crops
Water
Self-Sufficiency
Food
Self-Sufficiency
Cooking
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Food Crops
Cooking
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Food Crops
Cooking
Water
Self-Sufficiency
Food
Self-Sufficiency
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Food Crops
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Food Crops
Water
Self-Sufficiency
Food
Self-Sufficiency
Cooking
Grow Food Crops
Water
Self-Sufficiency
Food
Self-Sufficiency
Raise Animals
Power
27. 2013 RI CONVENTION
Electrical Power Rainwater Harvest
Irrigation
Barn
Water
Self-Sufficiency
Borehole Pump
Grow Animal Feed
Animals Manure
Distribution Pump
Bio-Gas Plant
Food
Self-Sufficiency
Cooking
Grow Food Crops
Fertilizer
Eggs
Milk
MeatDe-Fluoridation
Chlorination
Equip Kitchen/
Dining Hall RI Grant Funded
Outside of Grant
Methane
Water
Self-Sufficiency
Food
Self-Sufficiency
Cooking
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Food Crops
Cooking
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Animal Feed
Grow Food Crops
Cooking
Water
Self-Sufficiency
Food
Self-Sufficiency
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Food Crops
Water
Self-Sufficiency
Food
Self-Sufficiency
Grow Animal Feed
Grow Food Crops
Water
Self-Sufficiency
Food
Self-Sufficiency
Cooking
Grow Animal Feed
Grow Food Crops
Water
Self-Sufficiency
Food
Self-Sufficiency
Borehole Pump
Rainwater Harvest
Borehole PumpBorehole Pump
Rainwater Harvest
Borehole Pump
28. 2013 RI CONVENTION
Agile Project Management
(For Those Familiar with Project Management)
• We actually used agile techniques
– A detailed planning horizon
• The entire five year project was laid out at the
beginning in three phases (and grants)
• 1.Electrical and Water projects (including irrigation) plus barn
• 2.Bio Gas, Solar Hot Water, Greenhouses, Road, Farm industry
• 3.Constructing and Equipping Clinic and School
• Detailed planning commenced as we progressed
closer to the planning horizon
– Asked: Does anything from prior phase need more
attention? (…and it did!)
29. 2013 RI CONVENTION
Issues
• Rotary International Money cannot be spent on
construction (e.g. building the barn) or on
interior finishing of a structure (e.g. wiring for
lights inside a building).
• Resolution
– Find a donor to pay for construction of barn
– Mid Term: Donor for Farm Industry Building
– Long Term: Donors for clinic and school
– Use Dayton Rotary funds for wiring
31. 2013 RI CONVENTION
Self-Sufficiency - Food
• Barn: Get Bid, Raise Money, Contract
– Outside of RI Grant – Non-Rotarian Donor
• Greenhouses (Frame and Plastic-not construction)
– Place in next grant application
– Include rainwater harvest, irrigation, bug screens
• Animals: Provide after Barn Built
– Heifer International
• Church Adoption of Project via Heifer
– Rotary Inner Wheel, other donors.
33. 2013 RI CONVENTION
Self-Sufficiency -Food
• Implement Bio-Gas for cooking
– Anaerobic Digester for cow manure
• Put in second grant application
– Expand to Bio-Gas Toilets
• Put in long-term plan (third grant)
– Bladder Storage of methane
• Put in long term plan (unfunded option)
– Increased Capacity and pump to allow sales
• Put in long term plan (unfunded option)
34. 2013 RI CONVENTION
Self-Sufficiency - Food
• Provide for farm industries
– Processing crops
– Preparing animal feed
• Silage Production, Hay baling
• Sunflower seed processing
– Sell services for revenue generation
– Construct a farm industry building
• Outside of RI Grant
35. 2013 RI CONVENTION
Economic Sustainability
Inter-relationships
• Grow Sunflowers/Harvest Seeds
– Use Rotary Provided Press to extract oil
• Use oil for cooking
– reduce expense of purchase
• Make “Sun Butter”
– Consume or sell
• Sell oil not needed
– generate revenue
– Use residue as chicken feed
• Reduce cost of feeding chickens
• Eggs and meat for children – reduce food costs
• Sell excess in marketplace – generate revenue
36. 2013 RI CONVENTION
The Big Plan
• Expand Irrigation as water availability
increases
• Provide solar hot water for kitchen and
hand washing
• Add refrigeration and freezer
37. 2013 RI CONVENTION
New Demands - (Scope Increases)
• Greenhouses very successful
– Double the number
• Power demands grow more than expected
– Increase solar and batteries, larger inverter
and decrease pump electrical load
38. 2013 RI CONVENTION
Risk Management (Beyond Technical Risks)
• Risks can be negative or opportunity
• Task Duration
– How long will something take
• Especially where other tasks depend on it’s completion to
start
• Task Cost
– Changes in exchange rate and Cost Inflation
• From Quote to Funds Available
– Contingency Reserve in quotes
• Risk is the product of the likelihood it happens and the
impact if it happens.
• Identified Risks should be constantly monitored
42. 2013 RI CONVENTION
Duration & Cost
Likelihood
Duration
Or Cost
Most
Likely
“MODE”
Worst
Case
Average
“MEAN”
Midpoint
“MEDIAN”
80%
RESERVE
HOW RISKY IS
THIS ACTIVITY?
43. 2013 RI CONVENTION
Cost Risk
• Exchange Rate
– RI Provides a value to use for each country
• Inflation
• Planning for risk
– Cannot pad RI Grant quotes
– Can have quotes include contingency reserve
– “Quote Valid” timeframes awaiting funding
– Best to include things in the grant budget than can be
dropped off if higher priority needs demand more
money. Things you want to do, but not critical
• Re-program or defer content if needed
44. 2013 RI CONVENTION
Addressing Risks
Once Identified & Analyzed
• Avoidance
– Can we do something less risky?
• Mitigation
– Can we reduce the likelihood of the risk?
– Can we reduce the impact from the risk?
• Deflection
– Can we insure against the risk impact?
• Includes warranties on material and performance
45. 2013 RI CONVENTION
Risk Example
• RI Grant for Maji Mazuri included
– Two Phases of Solar Hot Water Heating
• #1 - Dish and Hand Washing Demands (essential)
• #2 – Hot water for showers (very desirable)
• Encountered Electrical Issues – $$ needed (negative impact)
• Greenhouses were phenomenal success (opportunity)
– Desirable opportunity to increase from 4 to 8 bays
• Reprogrammed funds from solar hot water phase 2
• Key – New demands were already in the project plan
simplifying tradeoff reprogramming.
• Overall Budget – no change
48. 2013 RI CONVENTION
Risk Example
• RI Grant Included Fixing road to site to assure all-
weather access. Critical Need.
• Grant Budget assumed worst case changes for each road
segment and use of single contract to a road contractor.
• Strategy: Included road work into clinic and school
construction contract – segregated line items.
• Reality:
– Budget: Ksh 937, 500 (US$ 11,000)
– Actual: Ksh 440,000 (US$ 5,200)
• Surplus held in reserve through next rainy season to
confirm adequate fix and then reprogrammed
– Had to add Fluoride Filtration to borehole water after Rotarian
Article in March 2012 led us to test water for fluoride.
50. 2013 RI CONVENTION
Risks Harder To Predict
• Political Turbulence
– Delays in dealing with government
– Unrest impacting security
• New and urgent requirements
– Scope changes needed.
• Delivery Schedule Promises not kept
• Weather and its impacts
– Drought versus rain impact to roads
• Plan not followed
– Critical activity omitted
• Fundraising Risk – ability to raise money needed
– Especially for non RI Grant Construction aspects
51. 2013 RI CONVENTION
Implementing Bio-Gas Risks
• Design Assumptions on manure
– Quantity and Quality
• Qualifications of vendor
– Double check by outside experts
53. 2013 RI CONVENTION
Meeting Fundraising Risk
• Funds Needed for DDF and RI Match
– Implemented an adoption program
• Funds Needed for construction
– Obtained large challenge grants
– Involved non-Rotary organizations (churches)
– Adoption program for buildings & classrooms
Element Cost RI Money Donation Source
Construct Clinic $38,500 $0 $38,500 Cincinnati Rotary
School Computer Room $11,000 $0 $11,000 Tipp City Rotary
Element Cost RI Money Donation Source
School Rainwater $750 $350 $400 Middletown Rotary
Bio-Gas Stoves $600 $200 $400 Batavia Rotary
58. 2013 RI CONVENTION
Funding Maji Mazuri Project: $368,217
Dayton Rotary
and Rotarians
38%
6670 DDF
15%
RI - TRF
13%
Rotary Clubs -
other than Dayton
20%
Churches
3%
Non-Rotarians
10%
Rotarians - Direct
1%
$145, 294
$78,000$60,000
$50,000
(Non-6670)
21 of 50 Clubs
In District 6670
60. 2013 RI CONVENTION
Meeting The Sustainability Challenge
• Economic (Self-Sufficient Operations)
– Cost Reductions and Revenue Generation
• Environmental (Local resources/Low Pollution)
– Used locally manufactured products, Green Energy Sources
• Cultural (Include local leaders and diverse cultures)
– Coordination with surrounding Masai population – advantages
– Mixing of ethnicities (tribal backgrounds) in school
– Hosting inter-tribal cooperation workshops at site
• Social (Training to prepare workers, men and women)
– Vocational focus included in newly built and equipped school
– School population ended up well over 50% girls
61. 2013 RI CONVENTION
Partner Roles
• Dayton Rotary (same PM for entire project)
– Overall Grant and Project Management
– Fundraising for matches and construction
• Muthaiga Rotary (3 different PMs in 5
years)
– Funds Management
– Facility Specifications for contracts
– Contract Management / Quality Assurance
62. 2013 RI CONVENTION
Surprises and Lessons Learned
• Impact of violence after 1997 elections
– Expansion of scope to include IDP camp girls
• Planned 50/50 boys-girls was unrealistic
– And should have been obvious to us
• Warranties on technical aspects critical
• You can’t force your beneficiary
organization to follow all your plans for
them
• Following project management standards
makes a big difference
63. 2013 RI CONVENTION
Bottom Lines
• Applied Rigorous Project Management
– Cost and Schedule Controlled
– Tradeoffs and Reprogramming accomplished
• Self-Sufficient Sanctuary Established
– Energy, Water, Food
– Green Goals Implemented
• Children safe, receiving health care and
education
• Addressed all goals for RI Grants and Reach-Out
to Africa (ROTA)
• Superb support and participation by RI Districts
6670 (Ohio) and 9200 (East Africa)
