1. Report on
Business Analysis of Social Service Organization
Arience Strategies,
Bangalore.
Prepared By:
C M SHAMEER
Registration No:
14010121101
Under the Guidance of
Dr Dolphy M Abraham
Program Director – Doctoral Program,
Alliance University
In partial fulfilment of the Course-Industry Internship Programme (IIP) in the
Semester II of the
Master of Business Administration (Batch of 2014)
Bangalore
2. Master of Business Administration
Industry Internship Programme (IIP)
Declaration
This is to declare that the report entitled “Business Analysis of Social Service
Organization” has been made for the partial fulfilment of the Course: Industry Internship
Programme (IIP) in Semester II (Batch: July 2014-2016) by me at Arience Strategies,
Bangalore under the guidance of Dr Dolphy M. Abraham, Program Director – Doctoral
Program.
I confirm that this report truly represents my work undertaken as a part of my Industry
Internship Programme (IIP). This work is not a replication of work done previously by any
other person. I also confirm that the content of the report and the views contained therein have
been discussed and deliberated with the Faculty Guide.
Signature of the Student :
Name of the Student (In Capital Letters) : SHAMEER C M
Registration No : 14010121101
3. Master of Business Administration
Certificate
This is to certify that Mr C M SHAMEER Registration no: 14010121101 has completed the
Report entitled “Business Analysis of Social Service Organization” in “Arience Strategies,”
Bangalore under my guidance for the partial fulfilment of the Course: Industry Internship
programme (IIP) in Semester II of the Master of Business Administration.
Signature of Faculty Guide:
Name of the Faculty Guide: Dr Dolphy M. Abraham,
Program Director – Doctoral Program,
Alliance University,
Bangalore.
4.
5. ACKNOWLEDGEMENT
First and foremost I would like to thank the Almighty God, my family members and
my friends for encouraging me to do this project work.
I express my sincere thanks and heartfelt gratitude to Mr Pramod Kumar, Managing
Director of Arience Strategies for allowing me to do my internship in Arience Strategies,
Bangalore. Mr Pramod Kumar made my internship very interesting with inspiration,
enthusiasm and his great efforts to explain things clear and simple. Throughout the intern
period, he provided me encouragement, sound advice, good teaching, company and lot of good
ideas. It was a great learning experience and he had helped me a lot in enhancing my
knowledge about the Project Management-Business Analysis. I find no words to express my
deep rooted thanks for his valuable guidance.
I express my profound gratitude to Dr Dolphy M. Abraham, Program Director –
Doctoral Program, Alliance University, for allowing me to work under his guidance. He has
provided valuable inputs to build my internship and has also been a constant support.
I thank Arience Strategies, Bangalore for granting me permission to do my project
work in its premises. I would also like to convey my sincere gratitude to all the staff, friends
and well-wishers who extended their fullest co-operation with regard to my project.
Finally, I thank Alliance School of Business for providing me an opportunity to face
the reality in the corporate world and I would like to thank all the ones that helped to bring out
this project work a great success.
C M SHAMEER
6. LIST OF CONTENTS
S.NO CHAPTER PAGE
No.
1 Executive Summary 1
2 Introduction 3
2.1 Introduction to Management Consultancy
Industry
4
2.1.1 Global scenario of Management Consultancy 7
2.1.2 Indian Scenario of Management Consultancy 8
2.1.3 Industry structure of Management
Consultancy in India
11
2.1.4 Porter’s Five Force Model 12
2.2 Company Overview 15
2.2.1 Philosophy and Vision 15
2.2.2 Organisation Structure of the Company 16
2.2.3 Operations of the Company 16
2.2.4 SWOT Analysis 17
3 Project Profile 19
3.1 Objectives 20
3.2 Methodology 20
3.3 Introduction to Project Management 21
3.4 Project Charter 24
3.4.1 Background / Justification 25
3.4.2 Goals 25
3.4.3 Objective 25
8. LIST OF FIGURES
Figure
No
Description Page No.
2.1 Organization Structure of Arience 16
3.1 Project Management Process 22
5.1 Organization Structure of Social Service
Organization
33
5.2 Cause and Effect Analysis 34
9. LIST OF TABLES
Table
No.
Description Page
No.
4.1 Expenses of the Social Service Organisation 28
4.2 Income details of the Social Service Organisation 29
4.3 Deficit of the Organisation per year 29
4.4 Breakup of ₹ 42,00,000 for different programs 30
5.1 Cost structure of the social service organisation 34
10. LIST OF GRAPHS
Graph No Description Page
4.1 Expenses of the social service organization 16
4.2 Deficit of the organization per year 22
4.3 Breakup of ₹ 42, 00,000 for different programs 34
5.2 Cause and Effect analysis 34
12. 2
EXECUTIVE SUMMARY
Arience Strategies is a management consulting company which aims at achieving
excellence with convergence of different global standards and methodologies. Arience has
a team of highly experienced professionals which helps in providing consulting services,
project management support services, education and training services to diverse industry
sectors. Arience Strategies is a commercial consulting company which provides expertise,
support and project teams to the Arience Foundation in carrying out various social projects.
Arience Foundation undertakes various non- profit projects which are sponsored by
Arience Strategies. These projects help the MSME enterprises, rural cooperatives and
various social sectors in carrying out their businesses and solving their business problems.
It involves rigorous study of these social projects and deployment of global operating
standards in the fields of application.
Current scenario shows how such organizations are unable to perform to maximum
capability due to lack of cost planning, or lack of well-defined organization structure etc.
This report shows how the Project Management and business analysis was done for
respective Social Service Organization by providing them Organization Structure and Cost
Structure.
14. 4
2.1 Introduction to Management Consultancy Industry
Management consultancy is the practice of helping organization to improve their
performance operating primarily through the analysis of existing organizational problems
and the development of plans for improvement.
Management consultancy often brings their own proprietary knowledge /
methodologies / framework to guide the identification of problems and to serve as the basis
for recommendation for more effective and efficient ways of performing work task. As a
result of their exposure to and relationships with numerous organizations, consulting firms
are also said to be aware of industry "best practices", although the specific nature of
situations under consideration may limit the transferability of such practices from one
organization to another.
Management Consultancy firm helps a company to identify future goals, current
skills and fault lines by using their best practices, branding and strategies, marketing
decisions, motivation and incentives , as well as technology adaptation, production line
efficiency and profitable accounting.
Assignments for management consultant:
1. Review an organisation's corporate objectives and strategy
2. Review an organisation's structure and staffing
3. Apprising, selecting, and determining the remuneration structure for executives
4. Preparing and implementing development programme
5. Improving revenue and profitability
6. Increase cost effectiveness
7. Introduce new or better management techniques such as information technology,
personnel incentives, asset management, and re-engineering.
8. Planning and controlling the execution of projects which are outside the normal
experience of the organisation's staff
15. 5
Management consultant firm must have below characteristics:
1. Passion for acquiring knowledge and technical competence
2. Willingness to change and adapt new ideas
3. Recognize present paradigm and shift to new paradigm
4. Passion for give more than 100% all the time
5. High developed, motivated and intellect
6. Genuine concern and compassion for others
7. Vision
8. Courage
9. Sincerity
10. Ethics
Industry Trends:
1. Consulting Firms Accept Assignments with Contingency Fees
2. Accounting Firms Taking Large Market Share of Consulting Contracts
3. Many Industry Sectors Seek Consulting and Outsourcing Income, Competing with
Pure Consultancies
4. Major Corporations and Organizations Develop Internal Consultants and Seek
Outside Clients
5. Corporate Clients Want Solid Returns on IT Investments
6. Federal Government Consulting Is Curtailed in Some Agencies as Part of Budget
Austerity and Defence Cutbacks
7. Consultancies Position Themselves to Serve Global Markets and Multinational
Corporations
8. Off shoring to India Drives Changes in Global Consulting
9. BPO and KPO: White-Collar and Professional Tasks are off shored to a Growing
Extent.
10. New MBA’S desire consulting and accounting jobs.
16. 6
Major Roles and responsibilities in Management consultant firm:
1. Analyst:
1.1 Collect data for company overview- interviews , surveys, market reports
1.2 Analytical Modelling- analysts do most of excel heavy lifting, models vary
from market segmentation to cost reduction.
2. Senior Analyst:
2.1 Client interaction
2.2 Develop complex models
3. Consultant:
3.1 Consultants own a work stream (work module) in the project
3.2 Analysis structure
3.3 Creating the sections client presentation documents
3.4 Interacting with the client on a day to day basis on their level
3.5 Managing upwards to engagement managers and the senior team members in
the firm
4. Engagement firms:
4.1 Client Work: Engagement managers own the overall responsibility of the
project management, management of junior team, analysts and consultants.
The senior team depends on them to get the work done according to quality
the standards of the firm and in a timely fashion. They interact heavily with
the client as the project leads
4.2 Marketing: Engagement managers market firm’s services to new/existing
clients, develop white papers about industries.
4.3 People Development: They participate in recruiting, screening candidates and
campus presentations, informal meeting with candidates, interviewing.
5. Principal:
5.1 Client work: Principals oversee client assignments part time or full time on
larger projects. They deal with senior executives with clients, usually at Vice
president or C-level.
5.2 Marketing: Principal usually are aligned to several key clients and develop a
market position. They forge a niche and want to be known in the firm and in
17. 7
the marketplace with that niche. They demonstrate thought leadership to build
firm’s offerings
5.3 Sales: Principal is often leads to write and coordinate proposals and participate
in sell meetings. They are in active contact with their set of key clients to
generate new leads. In some firms, they have sales targets
5.4 People Development: They are active in all aspects of recruiting and may lead
overall recruiting efforts.
2.1.1 Global scenario of Management Consultancy:
Global consulting industry revenue is about $449 billion in 2015 according to
Plunkett research estimates. This represents reasonable growth from $415 billion in 2014.
Growth in global trade has rebounded from the very low level of the recession. This fuelled
demand for consulting of all kinds including management, human resource and technology.
The growing globalization of business and industry in general led inevitably to the
globalization of the leading consulting companies. Major consultancies operate offices in
the most important business centres in Europe and Asia-Pacific as well as in North and
South America. Africa is the next consulting frontier, as rapid economic growth has been
enjoyed by a handful of African nations in spite of problems ranging from lack of
infrastructure to social turmoil and terrorism. Many consultancies operate worldwide and
have multi-ethnic, multilingual employee bases. In particular, major consulting firms have
opened large numbers of offices in Brazil, India and China in recent years.
India’s largest outsourced business and technology consulting firms were
complaining that clients were delaying or cancelling projects as 2009 began. However, in
recent years, corporate profits in general grew dramatically, meaning that executives are
now more willing to authorize new consulting projects as long as they see the potential for
a good return on the cost.
Firms with multi-cultural staffing capability and offers in strategic cities worldwide
will benefit in particular. Recent growth of developing nation economy gave huge
opportunities to the consulting firm’s special in the countries South Korea, china, Indonesia
18. 8
and India both in government and private sectors contracts in industries range from
transport to health care.
Top 10 Consultancy Companies are:
1. Bain & Company
2. McKinsey & Company
3. The Boston Consulting Group
4. PWC Network (Formerly Booz & Company)
5. Deloitte Consulting LLP
6. PwC (Price Water House Cooper) LLP (Consulting Practise)
7. The Brattle Group
8. Oliver Wyman
9. The Cambridge Group
10. Accenture.
2.1.2 Indian Scenario of Management Consultancy:
India has been globally recognized for its fast paced development. The service
sector has been growing at a fast pace with a compound annual growth rate (CAGR) at 8.5
per cent for period 2000-01 to 2013-14 and it contribute around 57 per cent to the gross
domestic product.
In parallel, it leads to increasing demand for consultancy services, both for domestic
and foreign firms, a study by ASSCOHAM the consulting sector in India to grow at an
Compound Annual Growth Rate (CAGR) of 30 per cent.
The Indian consultancy industry reportedly stands at Rs. 13,000 Cr for the year
2008, by the year 2010 it was Rs. 17,000 cr. In the year 2013, the Management consultancy
industry crossed Rs. 22,000 cr. Indian consultancy industry has largest concentration in
Delhi and Mumbai followed by Kolkata and Chennai. As per ASSCHOM former president
Venugopal Dhoot, the US, UK, Japan, China, Saudi Arabia are competence with the India
Consultancy Firms.
19. 9
Indian Consultancy Companies have strong capabilities of strong knowledge
human resource and strong economy such as India economy shown growth in areas of
automobile, power, aviation, infrastructure, service in every sector very Management
consultancy can grow, due to strong presence of IT sector make India consultancy services
as keep favourite place for consultancy service for Multi nation companies.
Latest Trends in Consultancy Industry in INDIA:
1. Fast Growth
The consulting industry is trying its best to accommodate the demand and big
consulting companies are merging the small consultancy companies.
2. One Stop for all solution:
Like any other industry, the consultancy industry made one stop for all solutions.
Knowledge management tools, practises, databases and internet make it possible
for consultancy to draw up knowledge of every type of solution to every problem.
3. Shortage of people:
Shortage of human resource became the greatest threat to the consultancy firms as
small consultancy firm’s unable to get well qualified people for their offers and for
big consultancy company’s attrition, high salary became problem. Some of
companies made an integrated MBA with colleges towards specific need of
consultants.
4. Nature of projects: Moving towards high end strategy consulting
Management consulting in India has traditionally about capital funding and market
size. Due to increase in competition due to globalization, many Indian companies
are using management consulting are using in their high end strategies which
includes reduce cost; implement new market strategies, relationship with
customers.
5. Public Sector:
Management consulting has entered into public sector as central and state
governments have identified the importance of management consulting. The
governments has realized the importance of data and analytical driven approach to
solve complex problems and farming policies at the macroeconomic level. For
20. 10
example Gujarat government gave work of market assessment of the Rs. 78,000
crore Gujarat International Finance Tec-City (GIFT) to a top tier management
consulting.
Major challenges faced by Management consultancy firms in India:
1. Data:
Getting accurate and adequate data is a major issue in India. If we go by the inputs,
market assessment, feasibility or sizing assignments are very few and far between in
developed economies whereas India is replete with such projects. One should not be
surprise by the fact that Indian-based KPOs and analytics firms do an excellent job
crunching numbers for their foreign clients but struggle while coming up with such
insights for Indian clients and most of the blame lies with quality of data. The need for
3-4 types of ID proofs in India is another proof that data is not “proven” yet. So you
may have a hard time drawing meaningful insights out of them.
2. Experience:
With major consulting firms having less than two decades of presence in India and the
country witnessing major changes in the intervening period, one may still be some
distance away from being “too-old” to “know it all” as far as Indian landscape is
concerned. Similarly for the clients, one of the major reasons for their apprehensions
or expectations is their limited experience of engaging with the consultants.
3. Relation between firm and customer:
One of the major roadblocks is the inability of the prospective interviewees to
differentiate industry standards or information from strategic and confidential
information. But things may change if you have close contact that connects you with
the right person. It could also boil down to consultant’s capability.
4. Clients Requirements:
Indian clients are excepting far from what they want and what they offer, this leads to
major problem to the firms. Multi-tasking expertise are not available right now.
21. 11
5. Competition:
In India, health competition is not healthy among small players they competition with
each other in terms of price wars not in terms of quality of service.
Other challenges:
1. Lack of proper management.
2. Inability to get new clients
3. Over promising results.
4. Lack of communication skills
5. Diversity
6. Different priority from place to place.
2.1.3 Industry structure of Management Consultancy in India:
The management consulting services across all industries and sectors, this leads to
create the industry into segmentation wise with each layer catering to a distinct set of needs
1. Global management consulting firms:
They have an edge over low –cost domestic players due to their experience and
knowledge investments. Their experience talent and deep relationship with clients
make them ideal for high-level strategy projects that require macroeconomic or global
perspectives. Majority of domestic businesses (especially SMEs) cannot afford their
services, leaving ample room for domestic players to bridge the supply gap, with a
much more viable value proposition in terms of service and fees. With near saturation
and declining profit margins at the bottom of the management consulting pyramid,
Indian consulting firms are moving up the value chain towards high-end technology
consulting. However, winning credibility as a management consulting firm is a huge
challenge. Indian IT firms realize these limitations and as a result, are now spending
increasingly on innovation and R&D.
2. Niche Management Consulting Firms:
They focus on particular Functions or set of industries. At smaller management
consulting firms, clients get a senior professional for the full duration of the project,
22. 12
while a big-brand global firm typically offers blended packages with senior consultants
working part-time on strategy and junior associates overseeing execution. Rising talent
levels, flexible business models and competitive billing rates have helped these firms
to pit themselves against established players. With their hands-on experience with the
smaller domestic clients, they can spot emerging trends faster – making them best
positioned for projects that involve both strategizing and long-term execution.
3. Operational Consulting Firms:
These firms are both divisions of global firms or individual firms tackling operational
problems. These firms deal with projects that are more inward-looking for the clients
and include cost structuring, organizational change, supply-chain innovation.
2.1.4 Porter’s five force model:
Bargaining power of suppliers:
This is one of the major parts of the management consulting industry. These
consultancies are built upon the competence of their consultants.
It is important to have the knowledge of the company and the way they work as well
as the local knowledge and competence required at the subsidiary level.
However, it is not always available and the firm needs to find ways to recruit the top
talents and make themselves into an attractive employer.
It is crucial for a new company that enters the market to build its image not just for the
potential clients but also for potential employees. Being at job fairs, announcing
positions and marketing themselves in different ways will help them be more visible
and hopefully build an image that will attract competent people to their business.
This can also entail higher start-up costs since marketing can cost a lot and since there
is a lack of consultants their bargaining power for salary will be higher and probably
cost more for the company to hire people.
Another point to that is worth considering when entering a new market is if the country
or area can supply such competence. Some areas of the world do not have the literacy
rate or higher education that is required in order to bring people to the competence level
23. 13
that management consultancies demand. This would be one of the crucial areas to focus
on since this is what builds the company.
Threat of new entrants:
The importance is to make sure that your company has an existing client relationship
and image within that market.
As one barrier, it might create greater cost to enter the market.
As a management consultancy, it is important to keep up with the trends and desires
from companies. Seeing where the problems seem to lie and where companies are
willing to spend their money.
Keeping to the same tactic might cause difficulties for the company in the future if
others come with better services and solutions.
Bargaining power of buyers:
Consultancies build their customer base upon relationships and referrals from satisfied
clients. It is important to foster a good image so that the clients feel confident in that
they know what they get. There should be substance behind the image.
However, since services are consumed at the same time as you pay for it, it is not easy
to examine the quality before the buy. That is why referrals and satisfied customers,
who can spread the word about the company, are essential and lead to ways of gaining
more business, either from existing clients or through new clients.
One big difference that exists between some manufacturing firms and consultancies is
the quantity of customers available.
If it is a new company, it is crucial to have some ties to the market from existing clients
who are able to improve the company’s image on that market. Therefore, it is important
to analyse the potential clients in the market.
There will always be different trends showing what area will be slightly more
prosperous to look into. For example, Corporate Social Responsibility has been a hot
topic and area to work in, however, as all companies see it as a basic part to have in
their business, it has become institutionalized and companies know how to deal with
this area.
24. 14
Fostering and caring for the clients relationship makes sure that the company will have
a stable growth. Never be satisfied with the clients you have, always see potential for
more.
Consultancies are much affected by the economic development in the country or area.
If the companies do not have money to pay for their services, they won’t hire the
consultancies and therefore there will be less business for them. In bad times, it is good
to have stable and long term relationships with certain clients to ensure perseverance.
This leads us into ensuring perseverance in the face of substitutes.
Threat of substitutes:
It is important to be more specialized focused, but broad enough to cover areas that can
potentially foster business for the consultancy.
Having the right competence and knowledge to enable the consultancy to be a little
broader but at the same time very specific can give it room to move out of their usual
business when there are recessions.
Consultancies need to be up to date and always be a step ahead of companies so that
they do not lose their purpose for these companies.
Rivalry among existing players:
The consultancies fringe in on each other’s areas of expertise but not enough to seem
like a serious threat to their specific area.
If the economic development is slow, then there might be some tension between the
different consultancies. The different consultancies have to fight to recruit the right
talent to their business
25. 15
2.2 Company Overview
Arience Strategies is a management company with a vision of achieving excellence
with convergence of various global standards and methodologies. With a team of highly
experienced professionals, Arience is providing consulting service, education & training
services, project management support services to diverse industry sectors.
Arience helps organizations to align their day to day operations with strategic
objective by streamlining management process, optimize team productivity and by
effectively applications of tools &techniques.
Arience Strategies started their operations from 01 September, 2009.
Arience Strategies has Arience Foundation which takes two programs.
1. Arience Research
It is management maturity enhancement program for non-profit organization to:
Lead Change and Inspire innovation
Manage complex, Multi-cultural global projects
Building an integrated management approach
Achieving excellence in project delivery
Enhancing productivity and Profitability
2. Arience Mentor
It is an initiative for individuals who are affected by economic situations
Personal counselling and guidance
Professionals mentoring and coaching
Continuous improvement and growth
2.2.1 Philosophy and Vision
Vision: Achieving excellence with convergence of various global standards and
methodologies.
26. 16
Philosophy: Utilize globally accepted methodologies, tools & techniques for providing
value to our stakeholders.
2.2.2 Organization Structure of the Company
Fig 2.1: Organization Structure of Arience
2.2.3 Operations of the Company
Project Management Services
Build an integrated project and program management methodology
Setting up PMO (PM Office) / PMCoE (PM Centre of Excellence)
PM Process Maturity Assessment & Improvement
Enhance PM productivity and profitability
Business Analysis and Requirement Engineering process implementation
Agile and Scrum adoption in projects
27. 17
Project Management Technology Consulting
Project Management software deployment
PM process implementation on software tool
Requirement Management tools implementation
Competency Enhancement Services
Specialized training includes:
Project Management/Program Management
Risk Management
Business Analysis
Project planning & Monitoring with Microsoft Project
Professionals mentoring, counselling and coaching
Agile and Scrum methodology
Certifications Programs:
PMI-PMP/CAPM Certification
IREB-CPRE Certification Workshop
SCRUM Master Certification Workshop
2.2.4. SWOT Analysis:
Strengths:
1. Strong Management
2. Size Advantage
3. Economics of Scale
4. Unique Products
5. Brand Name
6. Quick Response
7. Quality process
Weakness:
1. Out-dated Technology
2. High Staff Turnover
3. No market presence
4. Less Cash Flow
5. Lack of marketing expertise
28. 18
Opportunities:
1. Emerging Markets
2. Innovation
3. New services
4. New Products
5. New Markets
Threats:
1. Volatile Currencies
2. Bad Economy
3. Government Regulations
4. Political Risk
5. Technology change
6. Price wars
30. 20
PROJECT PROFILE
3.1 Objectives
To understand the roles and responsibilities of the personnel in the Social Service
Organization for providing them with the suitable Organization Structure.
To understand all the cost related activities of Social Service Organization for
providing them with the Cost Structure.
3.2 Methodology
The objectives of this project are to provide the Organization Structure and Cost Structure
to the Social Service Organization.
Primary Sources of the data are
The primary data was collected with direct interactions with the various personals
of the organization.
1. Employees of the Social Service Organization.
2. Parents of the children with special needs.
3. Employees of Arience Strategies.
4. Top Management of Arience Strategies.
5. Top Management of Social Service Organization.
6. Website of Arience Research Foundation
7. Partners of the Social Service Organization.
8. Donors of the Social Service Organization.
Secondary Sources of the data are
1. Website of Social Service organization
2. Website of Arience Strategies
31. 21
3.3 Introduction to Project Management
Project Management is the application of knowledge, skills, tools, and techniques to
project activities to meet the project requirements. Project Management is accomplished
through the appropriate application and integration of the 47 logically grouped project
management processes, which are categorised into five process groups.
The five process groups are:
Initiating,
Planning,
Executing,
Monitoring and Controlling, and
Closing
Managing a project typically includes, but not limited to
Identifying requirements;
Addressing the various needs, concerns and expectations of the stakeholders in
planning and executing the project;
Setting up, maintaining, and carrying out communications among stakeholders
that are active, effective, and collaborative in nature;
Managing Stakeholders towards meeting project requirements and creating
Project deliverables;
Balancing the competing project constraints, which include:
Scope,
Quality,
Schedule,
Budget,
Resources, and
Risks
The specific project characteristics and circumstances can influence the
constraints on which the project management team needs to focus. The Project
team needs to be able to assess the situation, balance the demands, and maintain
32. 22
proactive communication with stakeholders in order to deliver a successful
project.
Due to the potential for change, the development of the project management plan
is an iterative activity and is progressively elaborated throughout the project’s
life cycle. Progressive elaboration involves continuously improving and detailing
a plan as more detailed and specific information and more accurate estimates
become available. Progressive elaboration allows a project management team to
define work and manage it to a greater level of detail as the project evolves.
A guide to the Project Management Body of Knowledge (PMBOK Guide) was first
published by the Project Management Institute (PMI) as a white paper in 1987 in an attempt
to provide a standardized project management practices as a document. The PMBOK guide
organizes its contents by processes as it views work as series of overlapping processes
For any process, three parts are necessary-
Input
Tools and Technique
Output
There are altogether 47 processes in the PMBOK guide, categorized in five groups.
Figure 3.1 – Project Management Processes
33. 23
3.3.1 Initiating Process
Defines the nature and scope of the project
Understanding the Business environment
Analysing various needs in terms of measurable goals
Reviewing of current operations
Financial Analysis and
Stakeholder Analysis
Developing the Project Charter
3.3.2 Planning
Describing the process like flow chart
To plan time, cost and resources, to estimate the work needed, and to effectively
manage risk
In NPD, conceptual design is also involved
Work Breakdown Structure
Deliverable oriented decomposition of project into smaller components
Organize plans, workloads and management of teams
3.3.3 Execution
Project Plan Execution – implementing the course of action
Quality Assurance – regular checks to verify that the project is aligned with the
quality standards
Team Development – developing an efficient team with necessary skills
Information distribution(in timely manner)
Solicitation - Choosing the potential sellers and maintaining relationships with
them.
3.3.4 Controlling
To identify variances from the project plan
Scope
Scope Verification
Scope change control
Time (Schedule control)
Cost
Quality
Performance Reporting
Risk Monitoring and Control
34. 24
3.3.5 Closing
Contract closeout
Completion and settlement of the contracts
Administrative closeout
Formalizing the project completion
Project evaluation
Documenting lessons learnt for future use
3.4 Project Charter
As the main outcome of the Initiation phase of the project, developing the project
charter becomes the immediate document which supports that a project exists and gives
the authority to the project manager in guiding the project in right directions.
The Project Charter outlines the purpose, objectives, and scope of the project with the
focus on requirements of Stakeholders with relevance to project management global
standards.
The purpose of a Project Charter is:
To provide an understanding of the project and connecting the processes with the Project
Management Institute (PMI) standards
To establish early on in the project the general scope
The elements included in the project charter are as follows:
Project goals and objectives
Project Deliverables
Project constraints
Project Assumptions
Project Milestones
Project References
35. 25
3.4.1 Background / Justification
As an intern in Arience Strategies, based on the client requirement - Cost
Structure and Organization Structure are to be provided.
3.4.2 Goals
To understand the roles and responsibilities of the personnel in the Social Service
Organization for providing them with the suitable Organization Structure.
To understand all the cost related activities of Social Service Organization for
providing them with the Cost Structure.
3.4.3 Objective
To provide Organization Structure and Cost Structure to the Social Service
Organization within two and half months with two interns.
3.4.4 Scope
To provide Organization Structure and Cost Structure with necessary
recommendations and their impact on the respective Organization
3.4.5 Major Deliverables
1. Project Charter
2. Organization Structure
3. Cost Structure
3.4.6 Stakeholders
1. Employees of the Social Service Organization.
2. Parents of the children with special needs.
3. Employees of Arience Strategies.
4. Top Management of Arience Strategies.
5. Top Management of Social Service Organization.
6. Partners of the Social Service Organization.
7. Donors of the Social Service Organization.
3.4.7 Project Constraints
The constraints of the Project are
1. Limited Time
2. Limited Budget
3. Two Interns
36. 26
3.4.8 Project Milestones
1. Meeting Clients – D + 1 week
2. Conducting interviews with the parents of the children with special needs – D + 2
weeks
3. Providing daily reports- from April 26th
2015 to July 11th
2015
4. Organization Structure – D + 6 weeks
5. Cost Structure – D + 7 weeks
Note: D refers to Today’s Date i.e. May 10th 2015
38. 28
4.1Observations & Analysis
TABLE 4.1: EXPENSES OF THE SOCIAL SERVICE ORGANIZATION
GRAPH 4.1: EXPENSES OF THE SOCIAL SERVICE ORGANIZATION
4,80,000
19,20,000
10,80,000
22,80,000
1,50,000 1,50,000
3,00,000
1,44,000
-
5,00,000
10,00,000
15,00,000
20,00,000
25,00,000
COSTINCURREDPERYEAR
PARAMETERS
Expenses of the Organization
39. 29
TABLE 4.2: INCOME DETAILS OF THE SOCIAL SERVICE ORGANIZATION
Table 4.3: DEFICIT OF THE ORGANIZATION PER YEAR
40. 30
GRAPH 4.2: DEFICIT OF THE ORGANIZATION PER YEAR
TABLE 4.4: BREAKUP OF ₹ 42, 00,000 FOR DIFFERENT PROGRAMS
65,04,000
25,65,000
39,39,000
-
10,00,000
20,00,000
30,00,000
40,00,000
50,00,000
60,00,000
70,00,000
Total Expense Total Income DEFICIT
Amount
Parameter
DEFICIT OF THE ORGANIZATION PER YEAR
41. 31
GRAPH 4.3: BREAKUP OF ₹ 42, 00,000 FOR DIFFERENT PROGRAMS
8,64,000 8,64,000
11,04,000
3,12,000 3,12,000
7,44,000
-
2,00,000
4,00,000
6,00,000
8,00,000
10,00,000
12,00,000
0
10
20
30
40
50
60
70
80
School setup
academy
Extra curricular
programs
Early
intervention
program
Special young
children
program 1
Special young
children
program -2
One on One
Program
Break up of ₹ 4200000 for different programs
No. of Children Expenses incurred per year
44. 34
The social service organization currently is working in an unstructured manner. As
per the discussions held with the organization’s members, it has been found that the various
roles and responsibilities are not clearly defined; also the business functions are practiced
in an informal manner. Various personnel’s have common functions to perform that lead
to confusion on who has to perform what functions.
FIG 5.2: CAUSE AND EFFECT ANALYSIS
5.2 Cost Structure
Table 5.1: Cost Structure of the Social Service Organization
45. 35
The Total Expenditure of the respective Social Service Organization is
₹ 65, 04,000.
The Total Income of the respective Social Service Organization is ₹ 25, 65,000.
Therefore, the difference between the total income and total expenditure is ₹ 39, 39,000 in
negative which is very clear that the respective Social Service Organization is in DEFICIT of
₹ 39, 39,000.
47. 37
6.1 RECOMMENDATIONS
1. Recruit people who are loyal and have zest to work for the cause are to be recruited.
2. Properly define the organization structure and distribute the roles and
responsibilities across various levels so that there is no confusion by adding new
posts.
3. Properly define the Cost Structure and try to decrease the costs to maximum extent
in various levels of the activities or programs.
4. As there is a fixed location for different programs at Malleshwaram, it can be used
for organizing workshops, trainings, etc.
5. So that additional costs incurred for organizing workshops, trainings, etc. at
different locations can be reduced.
6. A sum of ₹ 5, 42,000/- is required to meet the ongoing activities every month.
7. So, fundraising activity must be effectively implemented to meet the ongoing
activities.
8. Conduct Fundraising campaigns.
9. Tie up with Corporates – which is beneficiary not only to the Social Service
Organizations but also to the Corporates. i.e., NGO – Corporate Partnerships.
10. It is often thought that NGOs would benefit more from such partnerships, but there
are positive incentives that could or should concern the private sector as well,
especially when focusing on the long-term benefits partnerships may afford.
11. “The world has spent many years debating what business can offer the NGOs, but
what NGOs can offer the corporate world is a recent trend.”
12. Because, Company reputation is becoming more and more important to both
investors and consumers. “A company’s impact on its stakeholders is an emerging
benchmark of corporate performance since stakeholders are beginning to ask what
companies can do for society, not what society can do for companies.” – Image
and Credibility.
13. In the public eye, NGOs are more trustworthy than corporations in terms of
benefiting society. So, a company that partners with an NGO can hope to be seen
as trustworthy and be more credible in its attempts at CSR through this association.
48. 38
14. All these clearly mention that Corporates may strive for partnership with NGOs.
15. So, an effective Fund raising campaign definitely helps Social Service Organization
by which if any corporate agrees to tie up and donate funds from the salaries of
their employees every month, then the cost of fund raising mechanism and the
cost of deducting amount from accounts of the employees is zero at any point
of time.
16. As this respective organization is a certified trust which provides 80G certification
that helps in tax exemption, employees might feel free to donate.
17. A diversified fund-raising programme can be implemented. An interesting
thumb-rule - closer the donor, smaller the amount. A person walking on the street
in your town may provide only small change that he currently has in his pocket.
But a more 'distant' person or organization may provide more funding.
18. Step out of the 'charity' angle. Develop clear professionalism among the staff
members. Always be willing to provide info on the NGO's goals and objectives, as
well as programmes. Get third party organizations to write about the programme
and projects. Keep good relations with the media, and cultivate spokespersons
among the staff members.
19. All staff members of an NGO should spend part of their time in fund raising - each
catering to different aspects of the process - writing proposals, finding and
networking with donors, negotiating, writing reports etc.
20. Creating NGO Networks, NGO service centres, information kiosks etc. help in
pooling and developing the knowledge and skills needed for this purpose.
50. 40
CONCLUSION
The entire report summarizes on how the Organization Structure and Cost Structure
was done for a social service organization. It explains how various information was
gathered to understand the organization structure and the business processes undertaken by
the social service organization. Through interviews conducted, an understanding of the
project requirements obtained to create a project charter wherein the project scope,
objectives, deliverables were clearly defined. An understanding of the PMI standards for
project management was obtained and implemented. The recommendations were listed for
the respective Social Service Organization to overcome its BUDGET DEFICIT. The
impact / benefits of those recommendations on the organization are as follows:
Achieve sustainability
Overcome deficits
Increase effectiveness of the service offered
Never run out of money to meet ongoing activities
51. 41
7.1 LEARNING OUTCOME
The following are the different learnings that has happened to me during my internship.
They are
1. Handling clients - a challenging task which was done successfully
2. Collecting requirements for the project
3. Matching the collected requirements with the core objectives of the project
4. Satisfying Stakeholders
5. Identifying Stakeholders based on the Project
6. Preparation of Organization Structure
7. Preparation of Cost Structure
8. Project Management Concepts
9. Clear understanding capability of the objectives of the project
10. Developing Project Charter
52. 42
REFERENCES
1. Project Management Institute, Project Management Body of Knowledge, Fifth
Edition.
2. http://ariencestrategies.net/
3. www.arience.com
4. http://repository.upenn.edu/cgi/viewcontent.cgi?article=1022&context=curej
