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Better Performance
         B tt P f
    in Project Management (PM)
    the almost complete guide…
                    p   g




Axel Böhm
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."
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
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:   Additional interesting information
Module 20:   What’s next
Module 21:   Bibliography and links to the www
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.
MODULE 1 WHAT IS A PROJECT & WHAT
       1:
         IS MANAGEMENT?
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).
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
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.
What is Management?
10


     From this perspective, Henri Fayol considered management to
     consist of five functions:
                                                         Planning




                                  Controlling                             Organizing




                                          Coordinating
                                                     g              Leading
                                                                          g
Project Management…
11
Your Turn:
12


     What is ‘performance’?
     What is a Project & what is Management?
                   j                 g
      …
      …
      …
      …
MODULE 2: PMI’S NINE PROJECT
MANAGEMENT KNOWLEDGE AREAS
    - AND WHAT IS PROJECT
        MANAGEMENT?
PMI’s
     Nine P j t M
     Ni Project Management Knowledge Areas
                         tK    l d A
14



          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
#1
     #1- Project Integration Management
15


      The ’elements’:

        Building the Project Plan
        Project Execution
        Integrated Change Control

      Bringing it all together:
      Project Management “Nerve Center !
                              Nerve Center”!
#2 - Project Scope Management
16


      Staying vigilant in defining and containing scope
      throughout the project!

        Project Initiation
        Scope Planning
        S       l    i
        Scope Definition
        Scope Verification
        Scope Change Control
#3 - Project Time Management
17


      Determining What Gets Done and When through:


        Activity Definition

        Activity Sequencing

        Activity Duration Estimating

        Schedule Development

        Schedule Control
#4 - Project Cost Management
18



      Planning for Resources

      Estimating Costs

      Creating the Budget

      Managing/Controlling
      the Budget
#5 - Project Quality Management
19



      Quality Planning

      Quality Assurance

      Quality Control
#6 - Project Human Resource Management
20



      Organizational Planning
      Staff Acquisition
              q
      Team Development
#7
     #7- Project Communications Management
21



      Keeping Stakeholders informed
      (
      (and involved!)
                    )

       Communications Planning
       Dissemination of Information
       Progress Reporting
       Administrative Closure
#8 - Project Risk Management
22


      Expect the Unexpected!
       Risk Management Planning

       Risk Identification

       Qualitative Risk Analysis

       Quantitative Risk Analysis

       Risk Response Planning

       Risk Management and Control
#9 - Project Procurement Management
23


     For Projects Using Outside Resources:

         Procurement Planning
         Solicitation Planning
         Solicitation
         Source Selection
         Contract Administration
         Contract Closeout
Your Turn: What We Know Already
24


      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!
So what is Project Management?
25

     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
So what is Project Management?
26

     A Systematic Process for Managing Project Implementation
       1.    Understand the project
       2.    Structure the organization
       3.    Build the team
       4.    Analyze the context
       5.    Refine objectives, scope, and other project parameters
       6.    Prepare the work breakdown structure (WBS), Responsibility Matrix, and
             Master Summary Schedule
       7.    Plan and schedule with critical path method (CPM)
       8.
       8     Obtain management approval
       9.    Design control and reporting systems
             (Time, Cost, Resources, Scope, Performance and Quality)
       10.   Organize p
               g       procurement
       11.   Execute and control the work
       12.   Terminate the project
Your Turn:
27


     What are the 9 PM Knowledge Areas
      …
      …
      …
      …
      …
      …
      …
      …
      …
MODULE 3: THE TRIPLE
   CONSTRAINT
The Triple Constraint
29

     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
Triple Constraint Trade Offs
                       Trade-Offs
30




                                                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
Triple Constraint: Setting Priorities
31

                                                      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?
Your Turn:
32


     What are the triple constraints?
      …
      …
      …
MODULE 4: THE PROJECT LIFE
          CYCLE
The Project Life Cycle
34




            General Form of a Project Life Cycle

                            Project

        Phase 1
        Ph        Phase 2
                  Ph        Phase 3
                            Ph        Phase...
                                      Ph         Phase " "
                                                 Ph    "n"
Project Life Cycles Are Like Snowflakes!
35

           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
Project Life Cycles Are Like Snowflakes!
36




        Program/Project
         Identification




                           Completion &
                          Evaluation Phase
                                             PCM Model
Project Life Cycles Are Like Snowflakes
37


         Continuous I
         C   i      Improvement




                    Lessons
                                                                   Learned

                                      Project

          IInitiation
             iti ti      Definition
                         D fi iti     Planning
                                      Pl i       IImplementation
                                                     l    t ti        Closure
                                                                      Cl
Project Life Cycles Are Like Snowflakes
38

       IDENTIFICATION


                    PREPARATION


                           APPRAISAL


                                       NEGOTIATION



                                             IMPLEMENTATION
     ILO/UN Model

                                         EVALUATION
Project Life Cycles Are Like Snowflakes
39




     ILO/UN Model

                            Implementation
Project Life Cycles Are Like Snowflakes
40


        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
Benefits of a Project Life Cycle
41


     •    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
The Project Life Cycle we will use…
42

                                 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
Your Turn:
43


     Which ‘steps/sequences’ you will find in a Project Life
     Cycle (make sure you get them in the right order) ?
       …
       …
       …
       …
MODULE 5: PROJECT SELECTION
How Projects Come to Be
                          Be…
45


      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.
Sacred Cows and Pressing Needs
                             g
46

     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!
An Important Selection Criterion
47

     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.
Selection Tools
48



        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
Weighted Criteria
49

                    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
Weighted Criteria
     (example, using scale of 1-5)
50

                           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
Unweighted Criteria
     (example, using scale of 1-5)
51

                                   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
Forced Pair Comparisons for Priorities
52

     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
How to use the Forced Pair Comparisons
53

      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
How to Use Forced Pair Comparisons
     Example:
54


     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
How to Use Forced Pair Comparisons
     Example (continued):
     E    l (    ti   d)
55

          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.
How to Use Forced-Pair Comparisons
     Example (concluded):
56

     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
Practice: Placing Priorities on a Short List
                     g
57


              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
Your Turn:
58


     How projects come to be? What could be selection
     methods?
      …
      …
      …
      …
      …
MODULE 6: PROJECT
  ENVIRONMENT, FACTORS,
  ENVIRONMENT FACTORS
STAKEHOLDERS AND ACTORS
Project Environment…
60

     Do
     D not forget a Project is a System …
         tf     t P j ti         S t


                               The Environment

                                 The Project


           Inputs                 Processes      Outputs
Project Environment…
61

     …aS t
       System in a System…
              i    S t

                              The Environment

                            The Project Organization
        Inputs
                                   The Project

                   Inputs          Processes      Outputs



                                                             Outputs
                                                             Customers
                                                                 or
                                                            Beneficiaries
Project Environment…
62


     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
Project Environment…
63



     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
Project Environment…
64


     Project Cycle M
     P j     C l Management




                                         QUALITY at EX in the 2000s
                              feedback




                                                     XIT
                              feedback




                                                                 0
Project Environment…
65

     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
Project Environment…
66

     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 i
                         important?
                              t t?
     •   Risk: Likelihood something will go wrong
     •   Power: Degree of control or influence


              Assign High, Low, or Medium rating to each in a matrix/tabel
                  g    g ,    ,                g                    /
Project Environment…
67


     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
Project Environment…
68

     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)!
Project Environment…
69


     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
Project Environment…
70


     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
Project Environment…
71


     Use Linkages to Increase Influence

     Formal                      Informal

     •   committees              •   meetings

     •   project coordinator     •   p
                                     plans

     •   task forces             •   teambuilding

     •   incorporation or merger •
              p              g       personality
                                 •   rewards
Project Environment…
72



     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!
Project Environment…
73



         Worksheet 1: Sector Analysis
         Project:
         Sectors            Actors      Factors
         Infrastructure
         Technology
         Financial
         Commercial
         Political/Legal
         Physical
Project Environment…
74

     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
Project Environment…
75

     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
Project Stakeholders
76


      “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
Project Stakeholders: Partial List of
     Candidates for Stakeholder Roles
77

      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
Identifying Project Stakeholders
            y g     j
78

                         Potential Stakeholders
                               Stakeholders Inside the Team




                           Stakeholders Within the Organiz ation




                           Stakeholders Outside the Organiz ation
Project Stakeholders
79

     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
Your Turn:
80


     Project stakeholders how to identify and
     categorizing them?
       …
       …
       …
       …
       …
       …
MODULE 7: DEFINING SCOPE
Defining Scope
82


      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.
Preliminary Context Diagrams:
           Deconstruction
           D      t   ti
83

                                                      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.”
Scope (Context) Diagrams
     Defining the E d P d t
     D fi i th End Product
84

                               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
Scope (Context) Diagrams
     Defining the End Product (continued)
85



                  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
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)
86


                                                               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
Scope (Context) Diagram
     (applied to project team charged with delivery of the product -
     continued)
87


                               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
Your Turn:
88


     How to define Scope?
      …
      …
      …
MODULE 8: SMART OBJECTIVES
Writing SMART Objectives
90




              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
MODULE 9: RISK MANAGEMENT
            AND
  PROJECT ASSUMPTIONS
Risk Management
92

     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.
Risk Management
93

     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.
Risk Management
94


     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.
Risk Management
95

     A risk breakdown structure (RBS)
        i kb    kd     t   t
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
Risk Management
              g
97

     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
Your Turn: Project Risk Scenarios
                   j
98

                                                                     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.
Project Assumptions                                       PCM
                                                                C

99


     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.
Project Assumptions
100



      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
Project Assumptions                                        PCM
                                                                  C

101


      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.
Project Assumptions   PCM
                             C

102
Project Assumptions
103

      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!
Risk Management
104

      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
Risk Management
105

      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
Risk Management
106

      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
Project Assumptions
107



       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!
Your Turn:
108


      What are Risks and Assumptions and how to deal
      with them?
       …
       …
       …
       …
       …
       …
MODULE 10: THE PROJECT
      CHARTER
The Project Charter
110


       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.
Why Have a Project Charter?
111


       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.
Project Charter Components
112

       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.
Your Turn: Starting the Charter
113

                   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:
The LogFrame,
      a P j t Cycle Management Tool
        Project C l M        tT l
114


       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
The LogFrame, what can it be used for?
115

       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’!
Your Turn:
116


      What is the Project Charter?
       …
       …
       …
       …
       …
       …
MODULE 11: RESPONSIBILITIES AND
WORK BREAKDOWN STRUCTURES
Responsibility Matrix (RM)
118

       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!
Responsibility Matrix (RM)
119


       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
Responsibility Matrix (RM)
120


                        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
Responsibility Matrix (RM)
121



      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
Assigning Responsibilities:
      Responsibility Matrix
      R       ibilit M t i
122


          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
Work Breakdown Structures
123


      Breaking down the elephant…




                 Tail       Legs    Body   Head
Work Breakdown Structures
124


       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
Work Breakdown Structures
125


      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
Work Breakdown Structures
126


      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
Work Breakdown Structures
127


      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
Work Breakdown Structures
128

                       Project Management - Level 2
      Project          Level 3                        Level 4
      Management       Project Start and Finish
                                                      Contract Award
                                                      Complete Project
      WBS element                                     Kick-off meeting

      decomposition,
                                                      Monthly/Quarterly Project Reviews
                                                      Corporate Reviews
                       Meetings and Reviews           In-Process Review
      example                                         Close-out Meeting
                                                      Action Item Tracking System

                                                      Monthly Progress Report
                       Reports                        Annual Report
                                                      Budget/Financial Status Report

                                                      Project Charter
                                                      Master Schedule
                       Plans                          Project Plan (Current and Future Phases)
                                                      Risk M
                                                      Ri k Management and Oth Pl
                                                                       t   d Other Plans
                                                      Project Financing and Budget

                                                      Schedule Tracking
                                                      Cost Tracking
                                                      Earned Value Management
                       Controle                       Variance Analysis
                                                      Corrective Action
                                                      Work-Arounds

                                                      Project Management Office
                       Administrative                 Space/Relocation
                                                      Correspondence Control System

                                                      Procurement/Purchasing
                       Project S
                       P j     Support                Subcontract Management
                                                      Contract Management
Work Packages
129


       Lowest l
       L      level of WBS i called a Work Package, if further
                  l f       is ll d W k P k            f h
       deconstruction into activities is possible.


         May be assigned as a subproject
         May be subordinated into WBS structure for estimating
         purposes


       Activities t thi l
       A ti iti at this level become the basis for time and duration
                            lb       th b i f ti          dd    ti
       estimates.
Work Packages
      Should the WP be decomposed further?
130

      Yes/No
      Y /N     Is there need t improve the accuracy of costs and duration estimates?
               I th        d to i      th            f    t    dd    ti     ti  t ?

               Is there more than one individual responsible for the work contents?

               Is there a need to cost-out activities internal to the WP?

               Is there a need to know precisely the timing of activities internal to the WP?

               Are there any dependencies between the internal activities and or other WP‘s?

               Are there any significant time breaks in the execution of the work processes internal to the work
               elements?

               Do resource requirements within the WP change over time?

               Do the
               D th pre-requisites differ among the internal deliverables within the work element?
                            i it diff           th i t     l d li    bl    ithi th      k l     t?

               Are there any acceptance criteria applicable before completion of the entire WP?

               Can a portion of the work to be performed within the WP be scheduled as a unit?

               Are there any specific risks that require focussed attention to a portion of the WP. requiring further
               division to separate them?

               Is the WP understood clearly and completely to the satisfaction of various stakeholders?
The Master Summary Schedule (MSS)
131

       What is it?

         A schedule of summary activities
         (life-cycle sub-phases and process elements)
         (lif     l    b h        d          l      )
         Combination of WBS and process structure
           It describes work elements (objects) and actions
              d    ib      k l     t ( bj t ) d ti
           It is written in nouns and verbs

       Why is it important?
          For CPM planning: It will disaggregate summary
          activities into activities for CPM
            ti iti i t      ti iti f
          It is useful for reporting to senior management
The Master Summary Schedule (MSS)
132

      How does a MSS looks like?
       CODE                 RESP.                        WEEKS


              From WBS
                                           4    8           12          16           20           24
                                    Prepare
       10     Plan           (A)

       20     Site           ( )
                             (C)               Prepare                              Summary
                                                                                    Activities
       30     Foundation     (C)
                                                            Construct
       40     Frame          (C)

       50     Roof           (SC)                                       Construct

       60     Systems        (SC)
              Plumbing       (P)                                                      Construct
              Electrical     (E)
              Telephone      (T)
       70     Project mgt    (PM)                                                           Install
                                                                                            I t ll




                                                Continuous activity
The Master Summary Schedule (MSS)
133


      How to prepare the MSS

       Convert WBS into outline and use as labels for left axis
       Use unit of time for control period along horizontal axis and draw
       timeline
       Use terminology from process structure whenever possible to name
       summary activities
       Identify,
       Identify assign duration (time) draw, label and code summary
                                 (time), draw
       activities (process sub-phases and process elements) for each work
       package.
Summary
134


        WBS Work breakdown structure     Framework for planning budgets,
                                         F        kf     l   i   b d t
                                         schedules and control systems

        MSS M t summary schedule
            Master        h d l          Draft overall schedule


        RM Responsibility matrix         Clarify roles and responsibilities


      Next step:

      Detailed planning and scheduling and assigning resources at
      the activity level
Sources of Project Activities: Brainstorming
135
More Sources of Project Activities:
      UsingTemplates
136


       Don’t reinvent the wheel!

         As you get more projects under
         your belt, work with other project teams to develop templates for
         WBS’s to use as a starting point.

         Remember, no two projects are ever exactly alike (remember the
         “unique” in the definition of a project)! The template should be a
         starting p
                g point—to be tailored to the specific needs of the current
                                                p
         project.

         Even with the time spent in tailoring, templates can be enormous
         time-savers.
Your Turn:
137


      What is a RM and a WBS and how to manage
      them?
        …
        …
        …
        …
        …
        ...
MODULE 12: PROJECT SCHEDULING
Project Scheduling
139


       The Program (or Project) Evaluation and Review Technique,
       commonly abbreviated PERT, is a model for project management
       designed to analyze and represent the tasks involved in completing a
       given project.
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide
Better Performance In Project Management! The Almost Complete Guide

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Better Performance In Project Management! The Almost Complete Guide

  • 1. Better Performance B tt P f in Project Management (PM) the almost complete guide… p g Axel Böhm
  • 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. 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. 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: Additional interesting information Module 20: What’s next Module 21: Bibliography and links to the www
  • 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.
  • 6. MODULE 1 WHAT IS A PROJECT & WHAT 1: IS MANAGEMENT?
  • 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. 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. 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. What is Management? 10 From this perspective, Henri Fayol considered management to consist of five functions: Planning Controlling Organizing Coordinating g Leading g
  • 12. Your Turn: 12 What is ‘performance’? What is a Project & what is Management? j g … … … …
  • 13. MODULE 2: PMI’S NINE PROJECT MANAGEMENT KNOWLEDGE AREAS - AND WHAT IS PROJECT MANAGEMENT?
  • 14. PMI’s Nine P j t M Ni Project Management Knowledge Areas tK l d A 14 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
  • 15. #1 #1- Project Integration Management 15 The ’elements’: Building the Project Plan Project Execution Integrated Change Control Bringing it all together: Project Management “Nerve Center ! Nerve Center”!
  • 16. #2 - Project Scope Management 16 Staying vigilant in defining and containing scope throughout the project! Project Initiation Scope Planning S l i Scope Definition Scope Verification Scope Change Control
  • 17. #3 - Project Time Management 17 Determining What Gets Done and When through: Activity Definition Activity Sequencing Activity Duration Estimating Schedule Development Schedule Control
  • 18. #4 - Project Cost Management 18 Planning for Resources Estimating Costs Creating the Budget Managing/Controlling the Budget
  • 19. #5 - Project Quality Management 19 Quality Planning Quality Assurance Quality Control
  • 20. #6 - Project Human Resource Management 20 Organizational Planning Staff Acquisition q Team Development
  • 21. #7 #7- Project Communications Management 21 Keeping Stakeholders informed ( (and involved!) ) Communications Planning Dissemination of Information Progress Reporting Administrative Closure
  • 22. #8 - Project Risk Management 22 Expect the Unexpected! Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Management and Control
  • 23. #9 - Project Procurement Management 23 For Projects Using Outside Resources: Procurement Planning Solicitation Planning Solicitation Source Selection Contract Administration Contract Closeout
  • 24. Your Turn: What We Know Already 24 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!
  • 25. So what is Project Management? 25 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
  • 26. So what is Project Management? 26 A Systematic Process for Managing Project Implementation 1. Understand the project 2. Structure the organization 3. Build the team 4. Analyze the context 5. Refine objectives, scope, and other project parameters 6. Prepare the work breakdown structure (WBS), Responsibility Matrix, and Master Summary Schedule 7. Plan and schedule with critical path method (CPM) 8. 8 Obtain management approval 9. Design control and reporting systems (Time, Cost, Resources, Scope, Performance and Quality) 10. Organize p g procurement 11. Execute and control the work 12. Terminate the project
  • 27. Your Turn: 27 What are the 9 PM Knowledge Areas … … … … … … … … …
  • 28. MODULE 3: THE TRIPLE CONSTRAINT
  • 29. The Triple Constraint 29 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
  • 30. Triple Constraint Trade Offs Trade-Offs 30 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
  • 31. Triple Constraint: Setting Priorities 31 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?
  • 32. Your Turn: 32 What are the triple constraints? … … …
  • 33. MODULE 4: THE PROJECT LIFE CYCLE
  • 34. The Project Life Cycle 34 General Form of a Project Life Cycle Project Phase 1 Ph Phase 2 Ph Phase 3 Ph Phase... Ph Phase " " Ph "n"
  • 35. Project Life Cycles Are Like Snowflakes! 35 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
  • 36. Project Life Cycles Are Like Snowflakes! 36 Program/Project Identification Completion & Evaluation Phase PCM Model
  • 37. Project Life Cycles Are Like Snowflakes 37 Continuous I C i Improvement Lessons Learned Project IInitiation iti ti Definition D fi iti Planning Pl i IImplementation l t ti Closure Cl
  • 38. Project Life Cycles Are Like Snowflakes 38 IDENTIFICATION PREPARATION APPRAISAL NEGOTIATION IMPLEMENTATION ILO/UN Model EVALUATION
  • 39. Project Life Cycles Are Like Snowflakes 39 ILO/UN Model Implementation
  • 40. Project Life Cycles Are Like Snowflakes 40 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
  • 41. Benefits of a Project Life Cycle 41 • 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
  • 42. The Project Life Cycle we will use… 42 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
  • 43. Your Turn: 43 Which ‘steps/sequences’ you will find in a Project Life Cycle (make sure you get them in the right order) ? … … … …
  • 44. MODULE 5: PROJECT SELECTION
  • 45. How Projects Come to Be Be… 45 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.
  • 46. Sacred Cows and Pressing Needs g 46 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!
  • 47. An Important Selection Criterion 47 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.
  • 48. Selection Tools 48 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
  • 49. Weighted Criteria 49 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
  • 50. Weighted Criteria (example, using scale of 1-5) 50 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
  • 51. Unweighted Criteria (example, using scale of 1-5) 51 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
  • 52. Forced Pair Comparisons for Priorities 52 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
  • 53. How to use the Forced Pair Comparisons 53 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
  • 54. How to Use Forced Pair Comparisons Example: 54 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
  • 55. How to Use Forced Pair Comparisons Example (continued): E l ( ti d) 55 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.
  • 56. How to Use Forced-Pair Comparisons Example (concluded): 56 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
  • 57. Practice: Placing Priorities on a Short List g 57 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
  • 58. Your Turn: 58 How projects come to be? What could be selection methods? … … … … …
  • 59. MODULE 6: PROJECT ENVIRONMENT, FACTORS, ENVIRONMENT FACTORS STAKEHOLDERS AND ACTORS
  • 60. Project Environment… 60 Do D not forget a Project is a System … tf t P j ti S t The Environment The Project Inputs Processes Outputs
  • 61. Project Environment… 61 …aS t System in a System… i S t The Environment The Project Organization Inputs The Project Inputs Processes Outputs Outputs Customers or Beneficiaries
  • 62. Project Environment… 62 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
  • 63. Project Environment… 63 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
  • 64. Project Environment… 64 Project Cycle M P j C l Management QUALITY at EX in the 2000s feedback XIT feedback 0
  • 65. Project Environment… 65 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
  • 66. Project Environment… 66 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 i important? t t? • Risk: Likelihood something will go wrong • Power: Degree of control or influence Assign High, Low, or Medium rating to each in a matrix/tabel g g , , g /
  • 67. Project Environment… 67 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
  • 68. Project Environment… 68 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)!
  • 69. Project Environment… 69 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
  • 70. Project Environment… 70 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
  • 71. Project Environment… 71 Use Linkages to Increase Influence Formal Informal • committees • meetings • project coordinator • p plans • task forces • teambuilding • incorporation or merger • p g personality • rewards
  • 72. Project Environment… 72 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!
  • 73. Project Environment… 73 Worksheet 1: Sector Analysis Project: Sectors Actors Factors Infrastructure Technology Financial Commercial Political/Legal Physical
  • 74. Project Environment… 74 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
  • 75. Project Environment… 75 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
  • 76. Project Stakeholders 76 “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
  • 77. Project Stakeholders: Partial List of Candidates for Stakeholder Roles 77 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
  • 78. Identifying Project Stakeholders y g j 78 Potential Stakeholders Stakeholders Inside the Team Stakeholders Within the Organiz ation Stakeholders Outside the Organiz ation
  • 79. Project Stakeholders 79 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
  • 80. Your Turn: 80 Project stakeholders how to identify and categorizing them? … … … … … …
  • 82. Defining Scope 82 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.
  • 83. Preliminary Context Diagrams: Deconstruction D t ti 83 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.”
  • 84. Scope (Context) Diagrams Defining the E d P d t D fi i th End Product 84 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
  • 85. Scope (Context) Diagrams Defining the End Product (continued) 85 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
  • 86. 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) 86 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
  • 87. Scope (Context) Diagram (applied to project team charged with delivery of the product - continued) 87 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
  • 88. Your Turn: 88 How to define Scope? … … …
  • 89. MODULE 8: SMART OBJECTIVES
  • 90. Writing SMART Objectives 90 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
  • 91. MODULE 9: RISK MANAGEMENT AND PROJECT ASSUMPTIONS
  • 92. Risk Management 92 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.
  • 93. Risk Management 93 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.
  • 94. Risk Management 94 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.
  • 95. Risk Management 95 A risk breakdown structure (RBS) i kb kd t t
  • 96. 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
  • 97. Risk Management g 97 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
  • 98. Your Turn: Project Risk Scenarios j 98 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.
  • 99. Project Assumptions PCM C 99 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.
  • 100. Project Assumptions 100 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
  • 101. Project Assumptions PCM C 101 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.
  • 102. Project Assumptions PCM C 102
  • 103. Project Assumptions 103 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!
  • 104. Risk Management 104 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
  • 105. Risk Management 105 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
  • 106. Risk Management 106 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
  • 107. Project Assumptions 107 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!
  • 108. Your Turn: 108 What are Risks and Assumptions and how to deal with them? … … … … … …
  • 109. MODULE 10: THE PROJECT CHARTER
  • 110. The Project Charter 110 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.
  • 111. Why Have a Project Charter? 111 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.
  • 112. Project Charter Components 112 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.
  • 113. Your Turn: Starting the Charter 113 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:
  • 114. The LogFrame, a P j t Cycle Management Tool Project C l M tT l 114 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
  • 115. The LogFrame, what can it be used for? 115 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’!
  • 116. Your Turn: 116 What is the Project Charter? … … … … … …
  • 117. MODULE 11: RESPONSIBILITIES AND WORK BREAKDOWN STRUCTURES
  • 118. Responsibility Matrix (RM) 118 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!
  • 119. Responsibility Matrix (RM) 119 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
  • 120. Responsibility Matrix (RM) 120 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
  • 121. Responsibility Matrix (RM) 121 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
  • 122. Assigning Responsibilities: Responsibility Matrix R ibilit M t i 122 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
  • 123. Work Breakdown Structures 123 Breaking down the elephant… Tail Legs Body Head
  • 124. Work Breakdown Structures 124 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
  • 125. Work Breakdown Structures 125 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
  • 126. Work Breakdown Structures 126 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
  • 127. Work Breakdown Structures 127 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
  • 128. Work Breakdown Structures 128 Project Management - Level 2 Project Level 3 Level 4 Management Project Start and Finish Contract Award Complete Project WBS element Kick-off meeting decomposition, Monthly/Quarterly Project Reviews Corporate Reviews Meetings and Reviews In-Process Review example Close-out Meeting Action Item Tracking System Monthly Progress Report Reports Annual Report Budget/Financial Status Report Project Charter Master Schedule Plans Project Plan (Current and Future Phases) Risk M Ri k Management and Oth Pl t d Other Plans Project Financing and Budget Schedule Tracking Cost Tracking Earned Value Management Controle Variance Analysis Corrective Action Work-Arounds Project Management Office Administrative Space/Relocation Correspondence Control System Procurement/Purchasing Project S P j Support Subcontract Management Contract Management
  • 129. Work Packages 129 Lowest l L level of WBS i called a Work Package, if further l f is ll d W k P k f h deconstruction into activities is possible. May be assigned as a subproject May be subordinated into WBS structure for estimating purposes Activities t thi l A ti iti at this level become the basis for time and duration lb th b i f ti dd ti estimates.
  • 130. Work Packages Should the WP be decomposed further? 130 Yes/No Y /N Is there need t improve the accuracy of costs and duration estimates? I th d to i th f t dd ti ti t ? Is there more than one individual responsible for the work contents? Is there a need to cost-out activities internal to the WP? Is there a need to know precisely the timing of activities internal to the WP? Are there any dependencies between the internal activities and or other WP‘s? Are there any significant time breaks in the execution of the work processes internal to the work elements? Do resource requirements within the WP change over time? Do the D th pre-requisites differ among the internal deliverables within the work element? i it diff th i t l d li bl ithi th k l t? Are there any acceptance criteria applicable before completion of the entire WP? Can a portion of the work to be performed within the WP be scheduled as a unit? Are there any specific risks that require focussed attention to a portion of the WP. requiring further division to separate them? Is the WP understood clearly and completely to the satisfaction of various stakeholders?
  • 131. The Master Summary Schedule (MSS) 131 What is it? A schedule of summary activities (life-cycle sub-phases and process elements) (lif l b h d l ) Combination of WBS and process structure It describes work elements (objects) and actions d ib k l t ( bj t ) d ti It is written in nouns and verbs Why is it important? For CPM planning: It will disaggregate summary activities into activities for CPM ti iti i t ti iti f It is useful for reporting to senior management
  • 132. The Master Summary Schedule (MSS) 132 How does a MSS looks like? CODE RESP. WEEKS From WBS 4 8 12 16 20 24 Prepare 10 Plan (A) 20 Site ( ) (C) Prepare Summary Activities 30 Foundation (C) Construct 40 Frame (C) 50 Roof (SC) Construct 60 Systems (SC) Plumbing (P) Construct Electrical (E) Telephone (T) 70 Project mgt (PM) Install I t ll Continuous activity
  • 133. The Master Summary Schedule (MSS) 133 How to prepare the MSS Convert WBS into outline and use as labels for left axis Use unit of time for control period along horizontal axis and draw timeline Use terminology from process structure whenever possible to name summary activities Identify, Identify assign duration (time) draw, label and code summary (time), draw activities (process sub-phases and process elements) for each work package.
  • 134. Summary 134 WBS Work breakdown structure Framework for planning budgets, F kf l i b d t schedules and control systems MSS M t summary schedule Master h d l Draft overall schedule RM Responsibility matrix Clarify roles and responsibilities Next step: Detailed planning and scheduling and assigning resources at the activity level
  • 135. Sources of Project Activities: Brainstorming 135
  • 136. More Sources of Project Activities: UsingTemplates 136 Don’t reinvent the wheel! As you get more projects under your belt, work with other project teams to develop templates for WBS’s to use as a starting point. Remember, no two projects are ever exactly alike (remember the “unique” in the definition of a project)! The template should be a starting p g point—to be tailored to the specific needs of the current p project. Even with the time spent in tailoring, templates can be enormous time-savers.
  • 137. Your Turn: 137 What is a RM and a WBS and how to manage them? … … … … … ...
  • 138. MODULE 12: PROJECT SCHEDULING
  • 139. Project Scheduling 139 The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT, is a model for project management designed to analyze and represent the tasks involved in completing a given project.