Managing Projects

Managing Projects Management Level – Paper E2 Project and Relationship Management Lecture - 027 Vidya Rajawasam ACMA CGMA MBA

Managing Projects In the previous lecture, we have discuss about the • Introduction • Triggers for change • Classification of change • Approaches to strategic change • Overcoming resistance to change • Change management models

Managing Projects In this lecture, we will discuss about the • Introduction • Project Management • Key areas of project management • Project constraints • Project management process • Project initiation

Managing Projects What is a project? ‘A project is a series of activities designed to achieve a specific outcome within a set budget and timescale. It has clear start and end points, a defined set of objectives, and a sequence of activities in between.’ Bruce, A. and Langdon, K. Project Management (2001)

Managing Projects What is a project? A well managed project will: • deliver the deliverables • achieve the associated benefits • result in customer satisfaction.

Managing Projects What is a project? There are two types of deliverable: 1. ‘Hard’ projects – often delivering a physical entity, such as a bridge or a new product. 2. ‘Soft’ projects – possibly delivering a new work process or an organizational change.

Managing Projects What is a project? The deliverables usually have associated benefits. For example, a new IT system may result in lower unit costs, save staff time and/or enhance product or service quality. Every project has at least one customer group. Success should be measured not just in terms of deliverables, but in end user satisfaction.

Managing Projects What is a project? Features of a successfully managed project include: 1. Clearly defined goals, widely communicated and understood. 2. A defined project start and end. 3. Resources (time, money and people) allocated separately to routine work. 4. An organised, methodological approach. 5. A well led and motivated team of people. 6. Control and monitoring systems.

Managing Projects Project Management Project management is human activity that achieves a clear objective against an agreed timescale. The follow types of activity can be seen as “projects”: • A one off event. • A budget and set of resources to achieve a specific goal. • A project manager organizing the project. • A clear objective with an agreed timescale.

Managing Projects Project Management “The integration of all aspects of a project, ensuring that the proper knowledge and resources are available when and where needed, and above all to ensure that the expected outcome is proceeded in a timely, cost- effective manner” – CIMA Terminology

Managing Projects Key areas of Project Management Key areas of project management that need to be understood and managed correctly if projects are to be successful. They are the core objectives of the project and they need to be met. • Scope: In order to provide clarity and ensure team members stay focused, a clear scope of what the project covers and doesn’t cover is crucial. Otherwise tasks can wonder off track and lead to non-value added time.

Managing Projects Key areas of Project Management Time: Another key objective is time. The project should have a realistic time frame and act as a deadline for when activities need to be completed. It’s no use have an open ended project otherwise results will be never be achieved.

Managing Projects Key areas of Project Management Cost: The project board and directors will be keen to keep costs under control too, otherwise the benefits gained in the project may not outweigh the expense occurred in delivering the results to the business. Resources: The right resources and expertise should be allocated to the project otherwise the delivery will be in danger.

Managing Projects Key areas of Project Management Quality: The end customer will want to receive the required quality they was set out in the deliverable’s. If the quality is not met then the project will deemed to be a failure. Procurement: The materials purchases need to be kept under control and also the quality needs to the be maintained. A focus on procurement is crucial for the project manager.

Managing Projects Key areas of Project Management Integration: The project should be well managed and integrated into the business at every possible stage. There needs to be sufficient control and well planned tasks. Communication: Possibly the biggest point to consider, ALL stakeholders need to be well informed and communication to the end customer and business should be clear, concise and on a regular basis.

Managing Projects Key areas of Project Management Risks: They need to be understood by the project manager and minimized at every opportunity.

Managing Projects Project Constraints Project constraints are anything that restricts or dictates the actions of the project team. That can cover a lot of territory. The triple constraints—time, resources, and quality - are the big hitters, and every project has one or two, if not all three, of the triple constraints as a project driver.

Managing Projects Project Constraints

Managing Projects Project Constraints Many projects in the Information Technology area, for instance, are driven by time. Projects in the pharmaceutical industry are driven by quality but may have time or resources as a secondary constraint.

Managing Projects Project Constraints For example, a business relocation project would likely primarily be constrained by time. The secondary constraint for such a project would budget - there is a limit to how much can be spent. What you want to do now is to document the project constraints. You can basically use the same techniques you use to document project requirements and project assumptions.

Managing Projects Review MCQs Following can be categorized as project deliverables ? • Increase in employee remunerations • Organizational change • Decrease in employee motivation • Non of the above

Managing Projects Review MCQs The features of successful project are? • Clearly defined goals • Limited timelines • Additional allocation of overheads • Non of the above

Managing Projects The project management process The project management process follows the stages of the project life-cycle. According to the Project Management Institute this can be represented by a five-step process. The stages are:

Managing Projects The project management process The stages are: Initiation. This phase sets out the development of a vision for a project and the establishment of goals and objectives. At this stage, the key individuals will be brought together to form the project team. The scope, objectives and customer expectations of the project will need to be determined.

Managing Projects The project management process The stages are: Planning. This involves defining the resources required to complete the project, devising a schedule, developing a budget and planning how the project team will achieve the constraints of time, budget, performance specifications and resources.

Managing Projects The project management process Executing. This is sometimes referred to as project implementation and performance and involves putting the plan into action, providing leadership and coordination to project team members and others (e.g. subcontractors or consultants) that will result in achieving project objectives. This stage stresses the need to keep resources and team members focused upon the project tasks.

Managing Projects The project management process Controlling. This stage is concerned with measuring the project’s progress and assessing whether it differs from the plan. If it differs, corrective action needs to be taken; this may lead to re-planning, which may in turn lead to a goal change. At this stage, the project manager must decide among alternatives for solving problems.

Managing Projects The project management process Closing. This phase is about ensuring that the project is finally completed and conforms to the latest definition of what was to be achieved.

Managing Projects Project initiation Setting project objectives Projects are initiated when a need or an objective is identified. Objectives are those things that the organisation wants to achieve. Typically, top-level objectives are profit-oriented, or in non-profit-making organisations objectives will be to improve the standard of living or education, and so on of members.

Managing Projects Project initiation Setting project objectives It is usually a function of the board of directors to determine the high-level organizational objectives. These objectives are then converted from ‘whats’ into ‘hows’ by undertaking projects.

Managing Projects Project initiation Identifying project proposals Turning objectives into realizable projects can be difficult for organisations for a number of reasons: ● Prioritizing objectives is not always straightforward, as different members of the organisation will have different priorities.

Managing Projects Project initiation Identifying project proposals. ● There is likely to be more than one way to achieve any objective. ● Not all objectives can be attained within the same time frame because of limited resources

Managing Projects Project initiation Identifying project proposals. At a strategic level, a project manager may have very little or no input at all in the process of identifying projects. However, as the key organizational strategies are identified and increasingly defined by discussions, brainstorming, and negotiation, strategies will become programs of change. A project becomes a strategy to achieve an objective.

Managing Projects Project initiation Identifying project proposals. Example, if a corporate objective for a pharmaceutical company is to expand its Asian markets, a research project into an endemic disease might achieve this. This process of identifying objectives, refining and classifying them, rating them according to need and organizational importance, and finally establishing the links between objectives and strategies, leads to the final formulation of a project.

Managing Projects Project initiation Formation of project proposals As the organisation determines its objectives and the strategies to achieve these objectives, gradually a set of priorities will emerge, that is those strategies that are considered the most effective to realize objectives. It is likely at this point that the organisation will have a number of strategic options.

Managing Projects Project initiation Formation of project proposals As yet, no attempt will have been made to determine the benefits of achieving a particular objective, nor determine whether it is feasible. This will be considered later in this chapter.

Managing Projects Project initiation Formation of project proposals Obviously, this must be done before a project can be carried out, that is a project cannot exist without an objective to achieve. As organisations are unlikely to have the resources to carry out all strategies, it is important to identify those strategies that provide the most benefit and achieve the organization's most important objectives.

Managing Projects Project initiation Formation of project proposals Also, as the organisation identifies its key objectives more clearly, the proposals for action become more detailed and more accurate judgment can be made on costs and benefits.

Managing Projects Review MCQs Project Management phases are? • Expansion stage • Forecasting • Planning • Non of the above

Managing Projects Review MCQs What is true related to achieving project objectives? • All objectives can be achieved without any failure. • There can be multiple objectives that needs to be achieved from a single project. • Objective prioritization is not important. • Non of the above.

Managing Projects Lecture Summary We have discussed the • Introduction • Project Management • Key areas of project management • Project constraints • Project management process • Project initiation

Managing Projects Management Level – Paper E2 Project and Relationship Management Lecture - 027 Vidya Rajawasam ACMA CGMA MBA

Managing Projects