CMI 513 Project Management PDF

Level 5 Managing Projects to Achieve Results Learning Outcome 1.1 Analyse the role of projects in delivering organisational strategy What is a project? Here are several definitions of a project. As you read them, consider how they fit into your understanding. ‘A plan, a scheme, a plann...

Level 5 Managing Projects to Achieve Results Learning Outcome 1.1 Analyse the role of projects in delivering organisational strategy What is a project? Here are several definitions of a project. As you read them, consider how they fit into your understanding. ‘A plan, a scheme, a planned undertaking, a long-term task a course of action’ Concise Oxford Dictionary ‘A set of co-ordinated activities, with a specific start and finish, pursuing a specific goal with constraints on time, cost and resources.’ ISO 8402 ‘A management environment that is created for the purpose of delivering one or more business products according to a specified business case’ PRINCE2 What is a project? ‘A unique piece of work that has defined start and end date with a deliverable’ KW Hamilton The essence of the definition is that projects are entities of themselves, commissioned to achieve specific outcomes or results which set them apart from the day-to-day routine. That is not to say, however, that project management techniques cannot be used in delivering day-to- day work. Indeed, several simple methods can be used to plan and manage discrete pieces of work. For example, many people find using work breakdown structures and budget control charts to manage day- to-day activities helpful. Projects versus BAU (Business as Usual) The distinction between project management and business as usual (BAU) is fundamental. Project management involves planning, executing and overseeing temporary endeavours with specific goals, defined timelines and allocated resources. Each project aims to create a unique product, service or result, often leading to significant organisational change or innovation. Examples include developing new software, launching marketing campaigns, or constructing facilities. In contrast, BAU refers to routine, ongoing activities that ensure day-to- day operations. These repetitive and continuous tasks include customer service, maintenance, accounting, and HR management. Unlike projects, BAU activities do not have a defined end date and focus on maintaining efficiency and effectiveness in existing processes. Projects versus BAU (Business as Usual) The key difference lies in their objectives and nature. Projects are finite and aim for specific, transformative outcomes, while BAU maintains regular operations. Project management requires methodologies and tools to handle challenges like risk management and timeline planning. BAU, however, emphasises steady performance and process optimisation. Understanding this distinction is crucial for balancing innovation and operational stability within an organisation. Delivering organisational strategy Many successful organisations use project management to facilitate strategic change, driving significant business improvements alongside business as usual (BAU). This ensures that daily operations continue smoothly while strategic initiatives are pursued. Project management is a structured method for achieving specific goals and implementing changes aligned with the organisation's broader strategic aims. Change projects typically stem from the organisation's mission and vision, defining its purpose and long-term aspirations. These guide developing Strategic Breakthrough Objectives and annual goals propelling the organisation towards its vision. From these objectives, annual improvement priorities are derived, outlining projects and initiatives for the year. This ensures that the organisation remains agile and responsive to market conditions and growth opportunities. Delivering organisational strategy. Here is a diagram showing a typical approach to delivering strategy. By integrating project management with BAU, you can maintain operational stability while pursuing innovative projects that enhance performance and competitive advantage. This balanced approach focuses on immediate operational needs and long-term strategic goals, ensuring sustained success and continuous improvement. Delivering organisational strategy. Achieving competitive advantage Project management can help organisations achieve a competitive advantage. It ensures initiatives are completed efficiently, on time, and within budget, enhancing overall performance. It supports innovation by developing new products, services and processes, keeping the organisation ahead in the market. It can make the most of resources, reduce waste, and maximise productivity, leading to cost savings and improved profitability. It can also enhance risk management by identifying potential issues early and implementing mitigation strategies, minimising disruptions. Finally, project management can improve customer satisfaction by consistently delivering high-quality results and building a solid reputation and customer loyalty. These factors contribute to a sustainable competitive advantage. Supporting innovation Project management is central to innovation within organisations. It provides a structured framework for developing, executing, and realising innovative ideas. Project management encourages a systematic approach to exploring and transforming creative concepts into practical solutions. It enhances collaboration among diverse teams, encouraging creativity and cross- functional synergy, which are essential for developing unique solutions. Also, careful planning, resource allocation, and risk management ensure innovative projects are completed on time and within budget. Finally, ongoing monitoring and evaluation enable organisations to learn from each project, refining their approach and encouraging continuous improvement and sustained innovation. Supporting decision making Project management can significantly support decision-making in organisations. It provides a structured framework for planning, delivering, and monitoring projects, facilitating informed decisions. Project management ensures comprehensive data collection and analysis, offering insights that inform strategic choices. It includes risk assessment and mitigation, allowing proactive decisions to address potential issues. It promotes stakeholder transparency and communication, enabling informed discussions and collaborative decisions. Tools like Gantt charts and dashboards provide clear visual representations of project status, aiding quick understanding and action. Project management enhances decision-making through accurate data, risk identification, stakeholder communication and visual tools. Enabling change Project management is beneficial in enabling change within organisations, providing a structured approach to implementing new initiatives. Project management involves detailed planning, defining clear objectives, timelines, and resources, and addressing all change aspects. It enables communication and stakeholder engagement, ensuring key stakeholders' buy-in and support. It also includes risk management to identify and mitigate potential issues, ensuring smoother transitions. Finally, continuous monitoring and evaluation enable organisations to track progress, measure success, and make necessary adjustments, ensuring effective and sustained change. Helpful checklists CMI have provided some useful materials in Management Direct. Here are some links to them, although you should also spend time researching them yourself. >>> Implementing strategy > Performing a SWOT Analysis > SWOT Analysis (Model) > Carrying out a PEST Analysis > PEST Analysis (Model) > Stakeholder analysis and management > Successful Project Requirements > Agile Project Management > Project Life Cycle