Project Management Summary PDF

The Need for Projects ===================== - Projects get more important because of the digital industry - The quicker the world is, the more important it is to go cross-functional - We need to master the elements of traditional project management - Projects sometimes don\'t touch c...

The Need for Projects ===================== - Projects get more important because of the digital industry - The quicker the world is, the more important it is to go cross-functional - We need to master the elements of traditional project management - Projects sometimes don\'t touch customers - start up projects - A Project is an undertaking with a defined starting and a defined end. - limited time frame What is a Project? ================== Projects must have\'s: ---------------------- - Efficiency - Work quickly and effective - Have stakeholders that support and are willing to push forward - Make people understand what you want to achieve w/ project - sell the project in the beginning. Rationalize why this project for the government, clients etc. Project definition Summarized: ------------------------------ - Specific objectives (certain specifications) - Defined start and end dates (timeline) - Funding limits (budget) - Human and nonhuman resources (bring in experts) - Multifunctional focus Elements of Projects: --------------------- - Complex - Limited by budget, schedule, resources - Developed to resolve a clear goal or set of goals - Customer-focused General Project Characteristics: -------------------------------- - **Ad-hoc endeavors** with a clear life cycle - Building blocks in the design and execution of organizational **strategies** - Responsible for the **newest, most improved products, services and processes** - Providing a philosophy and strategy for the **management of change** - **Crossing of functional and organizational boundaries** - **Traditional management functions** of planning, organizing, motivating, directing and controlling - **Customer Satisfaction** within technical, cost and schedule objectives - Terminated upon successful completion What's the difference between a Project and a Process? ====================================================== Process Project ----------------------------------- -------------------------------------- Repeating process or product New process or product Several objectives One objective Ongoing Limited People are homogeneous (the same) People are heterogeneous (different) Systems already in place Systems must be created Performance, cost & time known Performance, cost & time uncertain Part of line organization Outside of line organization Supporting established practice Violating established practice Supporting status quo Upsetting status quo Why are Projects important? =========================== Many projects fail because: --------------------------- - Missing communication between customers and project management - Budget & time limits Projects are important to master challenges like these ------------------------------------------------------ - Shortened product life cycles - Narrow product launch windows (finding the optimum point to launch a new product) - Increasingly complex and technical products - Emergence of global markets - Economic period marked by low inflation The Project Life Cycles ======================= Project Life Cycle Stages ------------------------- Chart, histogram Description automatically generated **Conceptualization:** development of initial goal and technical specifications **Planning:** development of detailed specifications, schedules, schematics and plans (If you're uncertain -- ask for more planning time!) **Execution:** actual work of project is performed **Termination:** project is transferred to customer, resources get reassigned, project is closed  Red circle: **Point of no return:** too many resources have been put into the project that you can't recover cost if you don't finish it (sometimes projects might not be finished in time but it would still be more beneficial to finish late than stopping the whole project). **Project Stake:** total resources spent Determinants of Project Success =============================== Quadruple Constraint of Project Success --------------------------------------- Diagram, venn diagram Description automatically generated(key elements for successful projects) Managing a project typically includes: - Identifying requirements, - Addressing the various needs and expectations of the stakeholders - Balancing the competing project constraints Four dimensions of project success Importance: ----------------------------------------------  Understanding Success Criteria (Atkinson Model): ------------------------------------------------ (Iron Triangle as a set of components in a comprehensive set of measures) +-----------------+-----------------+-----------------+-----------------+ | **Iron | **Information | **Benefits | **Benefits | | Triangle** | System** | (Organization)* | (Stakeholders)* | | | | * | * | +=================+=================+=================+=================+ | \- Cost | \- | \- Improved | \- Satisfied | | | Maintainability | efficiency | users | | \- Quality | | | | | | \- Reliability | \- Improved | \- Social and | | \- Time | | effectiveness | environmental | | | \- Validity | | impact | | | | \- Increased | | | | \- Information | profits | \- Personal | | | Quality | | development | | | | \- Strategic | | | | \- Use | goals | \- Professional | | | | | learning, | | | | \- Organization | contractors' | | | | learning | profits | | | | | | | | | \- Reduced | \- Capital | | | | waste | suppliers, | | | | | content project | | | | | team, economic | | | | | impact to | | | | | surrounding | | | | | community | +-----------------+-----------------+-----------------+-----------------+ Project Management Maturity =========================== Chart, radar chart Description automatically generated Responsibilities of a Project Manager ------------------------------------- 1. Selecting a team 2. Developing project objectives and a plan for execution 3. Performing risk management activities 4. Cost estimating and budgeting 5. Scheduling 6. Managing resources W2: The Organizational Context: Strategy, Structure and Culture Projects and Organizational Strategy ==================================== **Strategic Management** (the science of formulating, implementing and evaluating *cross-functional decisions* that enable and *organization* to achieve its *objectives)* consists of: 1. Developing Vision statements and mission statements 2. Formulating, Implementing and evaluating 3. Making cross-functional decisions 4. Achieving objectives Where are we heading. Projects are the way to implement strategies. What we want to achieve. Projects are the stepping-stones of corporate strategy à the firm's strategic development is a driving force behind project development:  Relationship of strategic Managements ------------------------------------- A picture containing timeline Description automatically generated **Mission:** Giving roadmap of where you want to go (defined by top management and board of directors) **Objectives:** giving some concretes -- long term **Strategy:** How you're going to achieve that, definition of where you want to go but you don't have to be strict about it. Leaves room for certain amount of interpretation so you don't always have to change it. **Goals:** short term -- need to fit the objectives and can't go the other way. **Programs:** where project management is mainly involved *If the company doesn't achieve a goal it's easier to change the goal than the strategy.* Stakeholder Management ====================== **Stakeholders** are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development. As a Project Manager -- find out what their expectations are and teach them what they should be to a certain extent.  Managing Stakeholders following these 6 steps: ---------------------------------------------- 1. Assess the environment 2. Identify the goals of the principal actors 3. Assess your own capabilities 4. Define the problem 5. Develop solutions 6. Test and refine the solutions Stakeholder Management Cycle ---------------------------- 1. Identify Stakeholders 2. Gather information on stakeholders (where do they stand? Do you have to convince them? 3. Identify stakeholders' mission (listen to them, maybe adjust project objectives) 4. Determine stakeholders' strengths and weaknesses 5. Identify stakeholder strategy 6. Predict stakeholder behavior 7. Implement stakeholder management strategy Organizational Structure ======================== Key Elements ------------ 1. Designates formal reporting relationships like the number of levels in hierarchy and the span of control) 2. Identifies groupings of individuals into departments and departments into the total organization 3. Design of systems for effective communication, coordination and integration across departments 3 Forms of Organizational Structures ------------------------------------ ### Functional organization structure (standard) People performing similar activities in same department Diagram Description automatically generated **Strengths** **Weaknesses** ------------------------------------------------------------------- -------------------------------- Firm's design maintained Functional siloing (see ovals) Fosters development of in-depth knowledge Lack of customer focus Standard career paths Projects may take longer Project team members remain connected with their functional group Projects may be sub-optimized ### Project organization structure People in project teams on temporary assignments  **Strengths** **Weaknesses** ---------------------------------------- ------------------------------------------------------- Project Manager sole authority Expensive to set up & maintain teams Improved communication Chance of loyalty to the project rather than the firm Effective decision-making No pool of specific knowledge Creation of project management experts Workers unassigned at project end Rapid response ### Matrix organization structure Dual hierarchy in which functions and projects have equal prominence Timeline Description automatically generated **Strengths** **Weaknesses** -------------------------------------------------------------------- --------------------------------------------------------------- Suited to dynamic environments Dual hierarchies mean two bosses Equal emphasis on project management and functional efficiency Negotiation required in order to share resources Promotes coordination across functional units Workers caught between competing project & functional demands Maximizes scarce resource s / you can rope in the recourses needed Project management offices (PMO) ================================ Central unit that oversees and improves the management of projects and is the resource center for technical details, expertise, repository and center for excellence. 3 Forms of PMO's ---------------- 1. **Weather station:** monitoring and tracking 2. **Control tower:** project management is a skill to be protected and supported -- performs 4 functions: a. Establishes standards for managing projects b. Consults on how to follow these standards c. Enforces the standards d. Improves the standards 3. **Resource pool:** maintain and provide a cadre of skilled project professionals PMO's can be placed in any one of several locations within a firm: ------------------------------------------------------------------  W3: Project Charter and Stakeholder Management How do Projects start? ====================== - Ideas - Challenges - Goals 4 Steps to Initiate a Project ============================= 1. Request a project 2. Gather information and talk to stakeholders 3. Create a project charter 4. Get the approval from the management Stakeholder Management ====================== Practical Approach: Visualize the Relationships ----------------------------------------------- The closer they are to the project leader the easier it is to influence them Diagram Description automatically generated  Practical Approach: Analyze Influence and Interest -------------------------------------------------- A picture containing table Description automatically generated Project Charter =============== A document issued by the sponsor that formally authorizes the project. It includes goals deliverables, risks, etc. (Pinto = statement of work) Goals need to be smart ====================== - **S**pecific - **M**easurable - **A**ttractive - **R**ealistic - **T**ime-bound W4: Project Selection and Management Project Organization -- Roles and Responsibilities ================================================== - **Project Leader / Project Manager** (usually the same person) - **Project Steering Committee** (onetime committee for just this project) - **Project Sponsor** (usually the person that came up with the idea first, not in the steering committee) - **Company Executive Committee** (functional body of the companies and not always directly involved in the project) - **Company Board of Directors** (functional body of the companies and not always directly involved in the project) Project Portfolio Management ============================ *The systematic process of selecting, supporting and managing the firm's collection of projects.* Managers routinely ask themselves: - What projects should the company fund? - Does the company have the resources to support them? - Does this project make good business sense? - Is this project complementary to other company projects? - Portfolio Management requires: - Decision making - Prioritization - Review - Realignment - Reprioritization of a firms projects Project Selection ================= It is important to have a structure and make decisions based on facts. àScreening Models help managers pick the best project. They are either numeric or nonnumeric and should have: - Realism - Capability - Flexibility - Ease of use - Cost effectiveness - Comparability Issues in screening & selecting a Project: ------------------------------------------ - Risk -- unpredictability to the firm - Commercial -- market potential - Internal operating -- changes in firm operations - Additional -- image, patent, fit, etc. Project Screening Models ======================== All models only partially reflect reality and have both objective and subjective factors imbedded. 1. Checklist models 2. Scoring models 3. (Analytical hierarchy process) 4. Financial models 5. Profile models 1. Checklist model ------------------ List of criteria applied to possible projects. Checklists are valuable for recording opinions and encouraging discussion. - Requires agreement on criteria (numeric or non-numeric) - Assumes all criteria are equally important (no ranking) Treemap chart Description automatically generated A total assessment is made from this checklist 2. Scoring model ---------------- Each project receives a score that is the weighted sum of its grade on a list of criteria. They require: - Agreement on criteria - Agreement on weights for criteria - A score assigned for each criteria Calendar Description automatically generated The score for Mount Everest is higher so it's the better project. 4. Financial Models ------------------- Based on the time value of principal. The budget is a key criterion. It requires: - Payback period - Net present value (firm view of what we spent) - Internal rate of return All of these models use **discounted** cash flows. (However, the 'Payback' Model normally applies un-discounted cash flows for ease of understanding) **Spend-before-returns:** You first pay out before you get back.  ### Payback Period Determines how long it takes for a projects to reach a breakeven point: Graphical user interface, text, application, email Description automatically generated - Cash flows should be discounted - Lower numbers are better à faster payback - Example: A project requires an initial investment of \$200,000 and will generate cash savings of \$75,000 each year for the next five years. What is the payback period? *Payback period: 200000/75000=2.6667 years* *Year* *Cash Flow* *Cumulative* -------- --------------- --------------- *0* *(\$200,000)* *(\$200,000)* *1* *\$75,000* *(\$125,000)* *2* *\$75,000* *(\$50,000)* *3* *\$75,000* *\$25,000* ### Net Present Value Projects the change in the firm's stock value if a project is undertaken  Graphical user interface, text, application Description automatically generated Example:  5. Profile Models ----------------- Show risk/return options for projects Graphical user interface, application Description automatically generated Example:  Green: Saturn - Risk: 10; Return: 23% Orange: Mercury - Risk: 6; Return: 16% Decision: Saturn has too high of a risk - so Mercury Keys to successful Project Portfolio Management =============================================== - **Flexible structure** and freedom of communication - **Low-cost** environmental scanning - **Time-paced** transition Problems in implementing Portfolio Management ============================================= - Conservative technical communities - Out of sync projects and portfolios - Unpromising projects - Scarce resource  W6: Project Scope Management Chart, histogram Description automatically generated Project Scope ============= **Project Management**: everything about a project - work content as well as expected outcomes **Scope Management:** function of controlling a project in terms of its goals and objectives -- consists of: 1. Conceptual development 2. Scope statement 3. Work authorization 4. Scope reporting 5. Control systems 6. Project closeout 1. Conceptual Development ------------------------- The process that addresses project objectives by finding the best ways to meet them. Key steps in information development: - Problem/Need statement - Information gathering - Constraints - Alternative analysis - Project objectives ### 1. Problem Statements Successful conceptual development requires: - Reduction of overall project complexity - Goals and objects are clearly stated - Reference points are provided - Complete understanding of the problem ### Project Charter / Statement of Work (SOW) A SOW is a detailed narrative description of work required for a project. It contains: 1. Introduction and background 2. Technical description 3. Timeline and milestones 4. Client expectations 2. Scope Statement ------------------ 1\. Establish the project goal criteria: 2\. Develop the management plan for the project 3\. Establish a work breakdown structure 4\. Create a scope baseline ### Work Breakdown Structure - Needs to be done to get understanding of projects objectives and problems - A process that sets a project's scope by breaking down it's overall mission into a cohesive set of synchronous, increasingly specific tasks. - What does WBS accomplish? - Echoes project objectives - Offers a logical structure of the project work - Established a method of control - Communicates project status - Improves communication - Demonstrates control structure Timeline Description automatically generated  **Work packages:** work units to be done --\> assigned to specific worker / where the work is done - Lowest level in WBS - Deliverable result - One owner - Miniatuure projects - Milestones - Fits organization - Trackable **Deliverables and Sub-deliverables:** logical description of different entities of work packages Graphical user interface, application Description automatically generated Make sure that there\'s no conflict of assignment Example: ###  ### Organizational Breakdown Structure (OBS) Links cost, activity and responsibility and allows: - Work definitions - Owner assignment of work packages - Budget assignment to departments ### Intersection of WBS and OBS Diagram Description automatically generated ### Cost Account Rollup using OBS  ### Responsibility Assignment Matrix A picture containing calendar Description automatically generated ### Contractual Documentation Work packages can also be assigned to contractrs Most contracts contain: - Requirements - Valid Consideration - Contracted terms Contracts range from:  3. Work authorization --------------------- The formal 'go ahead' to begin work Follows these steps of scope management: 1. scope definition 2. planning documents 3. management plans 4. contractual documents 4. Scope Reporting ------------------ Determines what types of information reported, who receives copies, when, and how information is acquired and disseminated. Typical project reports contain: 1. Cost status (financial statements) 2. Schedule status 3. Technical Performance 5. Control systems ------------------ The more precise they are the better you can control your work progress. Types of control systems: - Configuration - Design - Trend monitoring - Document - Acquisition - Specification 6. Project closeout ------------------- The job is not over until the paperwork is done... Closeout documentation is used for: - Resolve disputes - Train project managers - Facilitate auditing Closeout documentation includes: - Historical records - Post project analysis - Financial closeout W7: Project Planning: Scheduling Duration and Critical Path Planning Project Guide for simple projects ========================================== Simple projects are generally short in duration and don't require detailed planning. However, some sort of planning should be done in order to deliver them on time, on budget and in good quality. Inputs: - Project charter 'light' - Project Scope: 'Create a presentation about the process of project management of small projects' Outputs / Useful project management tools: - WBS - Action plan - To Do list Work Breakdown Structure for the 'Presentation of the Project Management Process' including owners of work packages and time (hours) ==================================================================================================================================== Diagram Description automatically generated Action Plan based on the logic of WBS ===================================== - When tasks are started and when they're completed - What do you need (time/recourses) in addition to come up with a clear plan of when you want to kick off and end. Connecting the activities in an optimal way  Project Scheduling ================== Requires us to follow some carefully laid-out steps. In order, for the schedule to take shape. **Project planning;** relating to the scheduling process, has been defined by the PMBoK (Project Management Body of Knowledge as: *The identification of the project objectives and the ordered activity necessary to complete the project including the identification of resource types and quantities required to carry out each activity or task.* Terms ----- Diagram Description automatically generated - A is a **predecessor** of B - B is a **successor** of A - A-F **Network diagram** - **Serial activities**: one follows the other - before one is finished the next one can\'t be started - B&C: **Concurrent activities** - time efficiency - The circles are the **Node** - **Path**: arrow - **Merge**: B&C going into D - **Burst activities:** A kicking off 2 activities Example -------  Diagram Description automatically generated **Critical Path:** The path through the network with the longest duration. These activities are identified as having zero float (Buffer time =0) **Forward pass:** an additive move through the network from start to finish (e.g. 5+6+13+4+2=30 weeks total duration) Rules: (Earliest Start & Earliest Finish) - ES + Duration = EF - EF of predecessor = ES of successor - Largest preceding EF at a merge point becomes ES for successor **Backward pass:** a subtractive move through the network from finish to start (finding out the buffer time per activity. Rules: (Latest Start & Latest Finish) - LF-Duration=LS - LS of successor=LF of predecessor - Smallest succeeding LS at a burst point becomes LF for predecessor **Node Descriptors -- two possible Presentations:** Table Description automatically generated Duration Estimation ------------------- It\'s better to be more pessimistic because then you can only exceed expectation, but you can\'t always be too pessimistic with time sensitive customers - depends on the situation. The Estimation for the duration is based on: - Past experience - Expert opinion - Mathematical derivation, e.g. - Most likely (m) - Most pessimistic (b) - Most optimistic (a) Reducing the Critical Path -------------------------- The earlier you can speed up, the better -- you get more flexible time towards the end of the project. Ways to reduce critical path: - Eliminate tasks on the Critical Path - Convert serial paths to parallel when possible - Overlap sequential tasks - Shorten the duration on critical path tasks - Shorten - Early tasks - Longest tasks - Easiest tasks - Tasks that cost the least to speed up ### All together Diagram Description automatically generated Gantt Charts ============ - Most common project planning tool. - Establish a time-phased network - Can be used as a tracking tool - Benefits: - Easy to create and comprehend - Identify the schedule baseline network - Allow for updating and control - Identify resource need  Controversies in the use of Networks ==================================== - Networks can be too complex - Poor network construction creates problems - Networks may be used inappropriately - When employing subcontractors - The master network must be available to them - All sub-networks must use common methods W8: Cost Estimation, Evaluation & Control Cost Management =============== **Cost management:** data collection, cost accounting and cost control **Cost accounting and cost control:** chief mechanisms for identifying and maintaining control over project costs **Cost estimation:** creating a budget baseline for the project Common Sources for project cost: Labor, Materials, Subcontractors, Equipment, Facilities, Travel Types of Costs -------------- **Direct**: e.g. wood for the house. The bigger the house the more wood you need. vs. **Indirect**: e.g. infrastructure that doesn\'t have direct effect on process **Recurring**: e.g. workers on site vs. **Nonrecurring**: e.g. putting up a crane (only happens once) **Fixed**: most of indirect costs / the same no matter how big the project gets. E.g. fees to pay to government vs. **Variable**: most of direct costs / directly proportioned to how big the project is. E.g. wages of workers **Normal**: scheduled costs vs. **Expedited:** costs through additionally assigned resources e.g. when you have to rush to finish project **Overhead Costs:** all the indirect costs that come with running a business. Cannot be linked to a specific business activity: advertising, insurance, office rental, taxes, company vehicles... Creating a Project budget ------------------------- A budget is a plan the identifies the recourses, goals and schedule that allows a firm to achieve those goals. There forms: ### 1. Top-down budgeting requires direct input from the organization's top management. This approach seeks to first ascertain the opinions and experiences of top management regarding estimated project costs. ### 2. Bottom-up budgeting begins inductively from the work breakdown structure to apply direct and indirect costs to project activities ### 3. Activity-Based Costing Projects use activities & activities use resources 1. Assign costs to activities that use resources 2. Identify cost drivers associated with this activity 3. Compute a cost rate per cost driver unit or transaction 4. Multiply the cost driver rate times the volume of cost driver units used by the project Problems with Cost Estimation ----------------------------- - Low initial estimates - Unexpected technical difficulties - Lack of definition - Specification changes / Scope changes (changing a project against it\'s scope. Needs to be decided by company management, not project management - prize adjustments are possible) - External factors (beyond our control) Budget Contingencies -------------------- The allocation of extra funds (buffer) to cover uncertainties and improve the chance of finishing on time. They are needed because: - Project scope may change - Marphy's Law (If something can go wrong, it will.) is present - Cost estimation must anticipate interaction costs - normal conditions are rarely encountered Evaluation & Control ==================== **Milestones** are events or stages of the project that represent a **significant** **accomplishment**. Show completion, can **motivate**, offer **reevaluation** points. The Project control cycle ------------------------- 1. Setting a goal (plan) 2. Measuring progress (do) 3. Comparing actual with planned (check) 4. Taking action and recycling the process (act) Scope creep -- Scope change request ----------------------------------- Tendency towards a gradual expansion of requirements during the project life cycle. Adding features and functionalities (to the project scope) without considering the impact on deadlines and costs or obtaining the client's approval. Example: - A single service to be provided becomes five services. - A product that was initially supposed to have three essential functions has now to have ten functions. Human Factors in Evaluation & Control ----------------------------------------------------------- - Optimistic progress reports: can build trust and confidence among stakeholders, clients, team members... - Inspire them to support your work, collaborate with you, provide constructive feedback. W9: Leadership and Team Building Leadership ========== The ability to inspire confidence and support among the people who are needed to achieve organizational goals. Project Management is leader intensive! Leaders vs. Managers ==================== **Managers:** have official titles in an organization, depend more on the formality **Leaders:** focus on interpersonal relationships rather than administration, connect with whoever is in your team Differences between the two: - Creation of purpose - Network development - Focus timeframe - Outcomes - Execution +-----------------------------------+-----------------------------------+ | **Leaders** | **Managers** | +===================================+===================================+ | - Do the right thing | - Do things right | | | | | - develop new processes | - maintain the status quo | | | | | - innovate | - administer | | | | | - originate | - imitate | | | | | - earn their position | - state their position | | | | | - Command respect | - Demand respect | | | | | - focus on people | - focus on systems | | | | | - inspire trust | - strive for control | | | | | - focused on potential | - focused on the bottom line | | | | | - have long-term goals | - short-term view | +-----------------------------------+-----------------------------------+ Project Manager Responsibilities -------------------------------- - Selecting a team - Developing project objectives and a plan for execution - Performing risk management activities - Cost estimating and budgeting - Scheduling - Managing resources Traits of Effective Project Leaders ----------------------------------- - Good communication - Flexibility to deal with ambiguity - Work well with project team - Skilled at various influence tactics - Leads by example - Visionary - Technically competent - Decisive - A good communicator - A good motivator - Stands up to top management - Supports team members - encourages new ideas Project Champions ----------------- fanatics in the single-minded pursuit of their pet ideas. They can be creative originators, entrepreneurs, godfathers or sponsors or project managers. How the Project Manager Leads ----------------------------- He functions as a mini-CEO and manages both 'hard' technical details and 'soft' people issues. - Acquires project resources - Communicate - Motivate and build teams PM's tasks ---------- ### Acquiring Resources Projects are under funded for a variety of reasons: - Vague goals - No sponsor - Requirements understated - Insufficient funds - Distrust between managers ### Communication It is critical for a project manager to maintain strong contact with all stakeholders. Project meetings feature task oriented and group maintenance behaviors and serve to: - update all stakeholders and participants - Increase understanding and commitment - make decisions - provide visibility ### Create Effective Project Teams - Clear sense of mission - Productive interdependency - Cohesiveness - trust - enthusiasm - result orientation Stages in development of groups =============================== 1. Forming -- members become acquainted 2. Storming -- conflict begins 3. Norming -- members reach agreement 4. Performing -- members work together 5. Adjourning -- group disbands  Reasons why teams fail: ======================= - Poorly developed or unclear goals. - Poorly defined project team roles and interdependencies. - Lack of project team motivation. - Poor communication - Turnover among project team members - Dysfunctional behaviour Time orientation on project management ====================================== Effective project teams ======================= Make the project team tangible - Publicity - Terminology & language Reward good behavior - Flexibility - Creativity - Pragmatism Develop a personal touch - Lead by example - Positive feedback for good performance - Accessibility & consistency Why teams fail ============== - poorly developed or unclear goals - poorly defined project team roles & interdependencies - lack of project team motivation - poor communication - poor leadership - turnover among project team members - dysfunctional behavior Conflict Resolution =================== Conflict is often evidence of progress! - Mediate -- defusion/confrontation - Arbitrate -- judgment - Control -- cool down period - Accept -- unmanageable - Eliminate -- transfer Creating Project Champions ========================== - identify and encourage their emergence - Encourage and reward risk takers - Remember the emotional connection - Free champions from traditional management Creating Project Managers ========================= - Match personalities with project work - Formalize commitment to project work with training programs - Develop a unique reward system - Identify a distinct career path W11: Agile and MS Project Agile ===== Waterfall vs. Agile ------------------- +-----------------------+-----------------------+-----------------------+ | | **Advantages** | **Disadvantages** | +=======================+=======================+=======================+ | **Waterfall** | \- Foundation | \- static | | | Structure | | | | | \- time consuming in | | | \- "Hybrid" models | planning and | | | | coordination | | | \- Precise definition | | | | of objectives | \- lack of | | | | adaptability | +-----------------------+-----------------------+-----------------------+ | **Agile** | \- continuously | \- "one gets lost" à | | | adapted/corrected | goal and timetable | | | | are adhered to | | | \- short intervals, | (meaningful/final | | | functional | goal) | | | intermediate products | | | | | \- need for intensive | | | \- spring to sprint: | coordination | | | small packages | | | | (market presence, | Only basic target | | | customer) | defined: product | | | | could be changed by | | | | dynamic intermediate | | | | targets | | | | | | | | \- budget planning | +-----------------------+-----------------------+-----------------------+ Gantt Charts ============ - Establish a time-phased network - Can be used as a tracking tool Benefits of Gantt charts: 1. Easy to comprehend 2. Identify the schedule baseline network 3. Allow for updating and control 4. Identify resource needs 5. Easy to create 6.  Crashing ======== The process of accelerating a project. Optimizing time-cost tradeoffs and shorten activities on critical path. Primary methods: 1. improvising existing resources' productivity 2. Changing work methods 3. Compromise quality and/or reduce project scope 4. Institute fast-tracking 5. Work overtime 6. Increasing the quantity of resources Cease crashing when: - the target completion time is reached - the crashing cost exceeds the penalty cost W12: Risk Management Project risk -- any possible event that can negatively affect the viability of a project Risk management -- the art and science of identifying, analysing and responding to risk factor throughout the life of a project and in the best interest of its objectives. Why projects fail: ================== - politic - naïve promises - naïve optimism of youth - startup mentality of fledging entrepreneurial companies - 'Marine Corps' mentality - Intense competition caused by globalization - Intense competition cause by appearance of new technologies - intense pressure caused by unexpected government regulations - unexpected and/or unplanned crises Risk vs. Amount at Stake: Challenge of risk management ====================================================== Questions that should be asked: =============================== What is likely to happen? What can be done? What are the warning signs? What are the likely outcomes? à be prepared and address risks before it all goes down Risk Impact Matrix ==================  Four stages of risk management ============================== 1. Risk identification 2. Analysis of probability and consequences 3. Risk mitigation strategies (for important risks) 4. Control and documentation Risk Identification ------------------- **Risks usually fall into one of these clusters:** - Financial - Technical - Contractual/legal - Commercial - Execution **Common types of risk:** - Absenteeism - Resignation - Staff pulled away - Time overruns - Skills unavailable - Ineffective training - Specs Incomplete - Change orders **conducting risk factor identification:** - Brainstorming meetings - Expert opinion - Past history - Multiple (or team based) assessments Risk Mitigation --------------- Strategies: - Accept - Minimize - Share - Transfer (outsourcing, buying insurance) - Contingency Reserves - Task contingency - Managerial contingency - Mentoring - cross training Control and Documentation ------------------------- Help managers classify and codify risks, responses and outcomes. Change management report system answers: What? Who? When? Why? How? W12: Project closeout / termination 4 ways of closing out a project =============================== - Extinction: closeout so the project is handed over to customer -- best way - Addition: project is added to another project - Integration: two projects forming a new project - Starvation: project lacks enough resources - no more budget, project needs to be closed, customer runs away with unfinished product Elements of Project Closeout Management ======================================= Lessons Learned Meetings ======================== **Common Errors:** - Misidentifying systematic errors - Misinterpreting lessons based on events - Failure to pass along conclusions **Meeting Guidelines:** - Establish clear rules of behavior - Describe objectively what occurred - Fix the problem, not the blame Closeout paperwork ================== - Documentation - legal - Cost - Personnel Closeout difficulties ===================== don't expect it to be easy - Project sign off can be a de-motivator - Constraints cause shortcuts on back-end - Low priority activities - Lessons learned analysis seen as bookkeeping - Unique view of projects Early Termination Decision Rules ================================ - Costs exceed business benefits - Failure to meet strategic fit criteria - Deadlines continue to be missed - Technology evolves beyond the project's scope Project Termination Issues ========================== Emotional --------- +-----------------------------------+-----------------------------------+ | **Staff** | **Client** | +===================================+===================================+ | - Fear of no future work | - Change in attitude | | | | | - Loss of interest in remaining | - Loss of interest in project | | tasks | | | | - Change in personnel dealing | | - Loss of project-derived | with project | | motivation | | | | - unavailability of key | | - Loss of team identity | personnel | | | | | - Selection of personnel to be | | | reassigned | | | | | | - Diversion of effort | | +-----------------------------------+-----------------------------------+ Intellectual ------------ +-----------------------------------+-----------------------------------+ | **Internal** | **External** | +===================================+===================================+ | - Identification of remaining | - Agreement with client on | | deliverables | remaining deliverables | | | | | - Certification needs | - Agreement with suppliers on | | | outstanding commitments | | - Identification of outstanding | | | commitments | - Communicating closure | | | | | - Control of changes to project | - Closing down facilities | | | | | - Screening of partially | - Determination of requirements | | completed tasks | for audit trail data | | | | | - Closure of work orders and | | | work packages | | | | | | - Disposal of unused material | | +-----------------------------------+-----------------------------------+ Claims and Disputes =================== For some types of projects, the termination decision itself can initiate a host of legal issues with the client. The most common types of problems revolve around outstanding or unresolved claims that the customer or any project suppliers may hold against the project organization for early termination. **Two types of claims:** - Ex-gratia claims: paying for the mistake but not admitting or fixing it - Default by the project company: obligations under the contract **Resolved by:** - Arbitration (settlement) - Binding - Non-binding - Standard litigation (lawsuits) **Protection against claims:** - Consider claims as part of the project plan - Verify stakeholders know their risks - Keep good records throughout the life cycle - Keep clear details of change orders - Archive all correspondence Final Report ============ **Elements:** - Project performance - administrative performance - organizational structure - team performance - Project management techniques - Benefits to the organization and customer Sample Exam Questions from previous years: - The total authorised budget for your software development project is \$110,000, and the management reserves are \$20,000. In your previous project, you were \$10,000 below budget. You want to measure the cost performance to see how the project is doing. In this context, cost performance is measured against which one of the following budgets amounts? A. \$80,000 B. \$90,000 C. \$110,000 D. \$130,000 E. None of the above is correct. - The following aspects are non-linear within the project life cycle: client interest -- creativity -- project stake -- resources -- uncertainty. Line \_\_\_\_\_\_\_\_\_\_\_\_\_ in Figure 1 below represents the uncertainty embedded in the project planning and execution according to Pinto a. A b. B c. C d. D e. E