Managing Project Teams PDF

IT2030 Managing Project Teams (Lin & Huang, 2020) …………...………….……. while achieving its objectives. Project managers make sure that projects are given sufficient resources while managing relationsh...

IT2030 Managing Project Teams (Lin & Huang, 2020) …………...………….……. while achieving its objectives. Project managers make sure that projects are given sufficient resources while managing relationships with contributors A Project Team is an organized group of people who are involved in and stakeholders. The characteristics that a project manager is should have performing shared/individual tasks of the project as well as achieving typically include: shared/individual goals and objectives for the purpose of accomplishing the Activity and Resource Planning: A project manager is project and producing its results. The team consists of the full-time and part- responsible for formulating a plan to meet the objectives of the time human resources supposed to collaboratively work on producing the project while adhering to an approved budget and timeline. This deliverables and moving the project towards successful completion. The blueprint will guide the entire project from ideation to fruition and will construction process of the project team is generally divided into four include the scope of the project, resources necessary to complete phases: it, anticipated time and financial requirements, strategy for Formation Phase: It is the early phase of the organization. The communication among relevant stakeholders, plan for execution team members from all directions come to the team with different and documentation, and proposal for follow-up and maintenance. If kinds of ideas, some emotional, some too impatient to wait, some the project has not yet gained approval, this plan will serve as a hesitate. It is necessary for a project manager to organize the team critical part of the pitch to key decision-makers. as soon as possible under such a psychological diversification and Leading: An essential part of any project manager’s role is to encourage everyone to be settled down in mentality as soon as assemble and lead the project team. This requires excellent possible. communication, people, and leadership skills, as well as a keen eye Puzzle Phase: When the team is set up, and the work is arranged, for others’ strengths and weaknesses. Once the team has been the emotions of the team members will be confused, and some may created, the project manager assigns tasks, sets deadlines , complain about the new work being inconsistent with their provides necessary resources, and meets regularly with the expectations, some may cause a fluctuation of their mind because members. An ability to speak openly and frequently with all of the promotion is unsuccessful. In all the situations, the project stakeholders is critical. The project manager should be able to manager needs to coordinate the various conflicts within the team inspire his team members to devote themselves fully to the project and properly figure out how to solve the problem properly. work. Normal Phase: When the puzzle phase is diverted, the team may Communication Skills: The project manager should be a capable enter its normal phase. At this point, every member of the team has person to coordinate work and communicate with each other, and defined their own tasks and responsibilities, understood the he/she must be able to effectively contact all the stakeholders and resources that each one has at its disposal. During the normal organizations involved in the project. The project manager must phase, the interrelationship among members of the team has been keep abreast of the actual progress of the project and communicate improved. The entire team is in a normal working condition under and report to the owners and superiors timely and regularly. The the encouragement and guidance of the project manager. project manager must pay special attention to the views of the Efficiency Phase: The whole team is in the phase of being able to owner and the superior for adjusting the implementation of the exert maximum efficiency. The team members are work together to project according to these opinions timely. achieve mutual cooperation, mutual trust, and mutual Execution: The project manager will participate in and supervis e understanding. the successful execution of each stage of the project. Again, this requires frequent, open communication with the project team The Role of the Project Manager……………………………………………… members and stakeholders. Time Management: Staying on schedule is crucial to the The Project Manager plays a primary role in the project and is responsible successful completion of any project. Time management is, for its successful completion. The manager’s job is to ensure that the project therefore, one of the key responsibilities of a project manager. proceeds within the specified time frame and under the established budget When derailments arise, project managers are responsible for 03 Handout 1 *Property of STI  [email protected] Page 1 of 3  IT2030 resolving them and communicating effectively with team members that all relevant actions are approved and signed off on and that and other stakeholders to ensure the project gets back on track. these documents are archived for future reference. Project managers should be experts at risk management and Maintenance: Just because a project has been completed doesn’t contingency planning so they can continue moving forward even mean the work ends. There needs to be a plan for ongoing when roadblocks occur. maintenance and troubleshooting. That’s where a project manager Budget Handling: Good project managers know how to keep a comes in: He or she will devise methods for properly supporting the project within its set budget. Project managers are tasked with final deliverable going forward, even if he or she is not directly devising a budget for a project and then sticking to it as closely as overseeing the day-to-day operations of the initiative. possible. If certain pieces of the project end up costing more than Ensuring Customer Satisfaction: In the end, a project is only a anticipated, project managers will be responsible for moderating the success if the customer is happy. One of the key responsibilities of expenses and re-allocating funds when necessary. every project manager is to minimize uncertainty, avoid any Ability to Work under Pressure: When the progress of the project unwanted surprises, and involve their clients in the project as much is lagging, and the cost is exceeded, or the project does not meet as is reasonably possible. Good project managers know how to the expectation of the owners, the project manager should have the maintain effective communication and keep the company’s clients ability to bear and successfully relieve the pressure. The ability to up-to-date. deal with changes in circumstances during the implementation of the project takes the initiative to take responsibility in the event of Project Management Process Groups (Schwalbe, 2019) ………………… negligence during the implementation of the project so as not to hurt their subordinates in the event. The project manager should be a The guidance in applying applicable project management knowledge and positive optimist, mentally healthy, and full of a sense of humor. skills to the project is done using the project management processes, that Problem Solving: Project managers should also have a strong consist of five (5) process groups: ability to solve problems. They should be able to find out the Initiating Process: The process of initiating helps to set the vision problems in advance rather than passively in a later encounter of what is to be accomplished. This is where the project is formally because solving problems later often requires more time and effort. authorized by the sponsor, initial scope defined, and stakeholders Project managers should be able to deal with problems on time- identified. Stakeholder identification is crucial here because correct based on the use of communication channels and encourage team identification of stakeholders can literally make or break the project. members to work on their own schedule, reporting and asking the This process group is performed so that projects and programs are project manager for assistance only on those key issues. not only sanctioned by a sponsoring entity but also so that projects Quick Reaction Ability: The project environment is full of are aligned with the strategic objectives of the organization. uncertainty, of which the only certainty is its uncertainty. The project Planning Process: After initiating, the project is planned to an manager must have prompt response capability, and make appropriate level of detail. A crucial element of planning is corresponding decisions promptly in case of complex project establishing the total scope of the project. The main purpose is to changes, so as to reduce losses of the project and guide the project plan time, cost, and resources adequately to estimate the work smoothly out of the crisis. So, the project manager must be familiar needed and to manage risk effectively during project execution. A with every detail of the project so that the right decision can be significant concept in planning is that the team is able to think the made instantaneously as the project environment changes. whole project through in advance. So, they not only create a variet y Documentation: A project manager must come up with effect ive of plans but also consider all the things that might go wrong (risks) ways to measure and analyze the progress of the project to ensure and how they might respond to them. Outputs of the planning it is developing as planned. Some common strategies for process group include completing the project scope statement, the documenting a project include data collection and verbal and written work breakdown structure (WBS), the project schedule, and many status reports. Further, it is a project manager’s job to make sure other items. 03 Handout 1 *Property of STI  [email protected] Page 2 of 3  IT2030 Executing Process: Naturally, the next thing to do after planning Project manager role (n.d.). Citing sources. Retrieved on February 2021 from https://www.wrike.com/ is to execute, to do the work. The executing process group takes Project team (2021). Citing sources. Retrieved on February 16, 2021 from the actions necessary to complete the work described in the https://mymanagementguide.com/ planning activities. The main outcome of this process group is Schw albe, K., (2019). Information technology project management (5th ed.). Cengage delivering the actual work of the project. For example, if an IT Learning Asia Pte Ltd project involves providing new hardware, software, and training, the executing processes would include leading the project team and other stakeholders to purchase the hardware, develop and test the software, and deliver and participate in the training. Monitoring and Controlling Process: This is where you get back on track, where you compare a plan to an actual action, measure variance, and take corrective action. Monitoring and controlling processes measure progress toward the project objectives, monitor deviation from the plan, and take corrective action to match progress with the plan. The ideal outcome of the monitoring and controlling process group is to complete a project successfully by delivering the agreed-upon project scope within time, cost, and quality constraints. Monitoring and controlling processes overlap all of the other project management process groups because changes can occur at any time. Closing Process: From its name, it should be pretty obvious what happens here. Not only do you formally close the project, but you also get sign-off and acceptance from the customer. During the closing processes, the project team works to gain acceptance of the end products, services, or results and bring the phase or project to an orderly end. Key outcomes of this process group are formal acceptance of the work and the creation of closing documents, such as a final project report and lessons-learned report. ___________________________________________________________ References: Ensuring customer satisfaction (n.d.). Citing sources. Retrieved on February 16, 2021 from https://activecollab.com/ Lin, S., & Huang, D. (2020). Project management under the internet era: How to respond to challenging changes in the digital era. Springer. Process groups. (n.d.). Citing sources. Retrieved on February 16, 2021 from https://www.projectsmart.co.uk/ Project management institute. (2017). A guide to project management body of knowledge (6th ed.). Project Management Institute, Inc. Process management process groups. (2017). Citing sources. Retrieved on February 16, 2021 from https://projectmanagementacademy.net/ Project manager (2021). Citing sources. Retrieved on February 2021 from https://www.villanovau.com/ 03 Handout 1 *Property of STI  [email protected] Page 3 of 3  IT2030 Project Communications Management (Schwalbe, 2019) communications is to ensure the optimal flow of information throughout the entire project life cycle. The main outputs of Project Communications Management includes the processes necessary monitoring communications are work performance information, to ensure that the information needs of the project and its stakeholders are change requests, project management plan updates, and project met through the development of artifacts and implementation of activities document updates. designed to achieve effective information exchange. Project communications management consists of two parts: the first part is Enhancing Team Communication (Schwalbe, 2019) developing a strategy to ensure communication is effective for stakeholders; the second part is carrying out the activities necessary to implement the There are various methods for improving project communications: communication strategy. (Project Management Institute, 2017) Developing Better Communication Skills: Some people seem to be born with great communication skills. Others seem to have a The goal of project communications management is to ensure timely and knack for picking up technical skills. It is rare to find someone with appropriate generation, collection, dissemination, storage, and disposition a natural ability for both. Both types of skills, however, can be of project information. There are three main processes in project developed. Communication skills training usually includes role- communications management: playing activities in which participants learn concepts such as Planning Communications Management – It involves building rapport. Training sessions also give participants a chance determining the information and communications needs of the to develop specific skills in small groups. Sessions that focus on stakeholders. It is the process of developing an appropriate presentation skills typically use video to record the participants’ approach and plan for project communications activities based on presentations. Most people are surprised to see some of their the information needs of each stakeholder or group, available mannerisms and enjoy the challenge of improving their skills. A organizational assets, and the needs of the project. The key benefit minimal investment in communication and presentation training can of this process is a documented approach to effectively and have a tremendous payback to individuals, their projects, and their efficiently engage stakeholders by presenting relevant information organizations. in a timely manner. The outputs of this process include a Running Effective Meetings: A well-run meeting can be a vehicle communications management plan, project management plan for fostering team building and reinforcing expectations, roles, updates, and project document updates. relationships, and commitment to the project. Many people Managing Communications – It is the process of ensuring timely complain about the time they waste in unnecessary or poorly and appropriate collection, creation, distribution, storage, retrieval, planned and poorly executed meetings. The following guidelines management, monitoring, and the ultimate disposition of project can help improve time spent at meetings: information. The key benefit of this process is that it enables an o Determine if the meeting can be avoided: Do not have a efficient and effective information flow between the project team meeting if there is a better way to achieve the objective at and the stakeholders. The main outputs of this process are project hand. Instead, an e-mail or phone call describing the communications, project management plan updates, project situation and justifying the request is a faster, more documents updates, and organizational process assets updates. effective approach than having a meeting. Monitoring Communications – It is the process of ensuring the o Define the purpose and intended outcome of the information needs of the project and its stakeholders are met. The meeting: Be specific about what should happen as a result key benefit of this process is the optimal information flow and the of the meeting. Make the purpose of a meeting very clear stakeholder engagement plan. It determines if the planned to all meeting planners and participants. communications artifacts and activities have had the desired effect o Determine who should attend the meeting: Many of increasing or maintaining stakeholders’ support for the project’s meetings are most effective with the minimum number of deliverables and expected outcomes. The main goal of monitoring participants possible, especially if decisions must be made. 04 Handout 1 *Property of STI  [email protected] Page 1 of 4  IT2030 Other meetings require many attendees. It is important to maintaining a clear and friendly tone. If three questions determine who should attend a meeting based on its need to be answered, number them as questions 1, 2, and purpose and intended outcome. 3 and put each on a separate line. o Provide an agenda to participants before the meeting: o Limit the number and size of e-mail attachments: If you Meetings are most effective when the participants come can include a link to an online version of a document prepared. Insisting on an agenda forces meeting instead of attaching a file, do so. organizers to plan the meeting and gives potential o Delete e-mail that you don’t need to save: Do not even participants the chance to decide whether they need to open an e-mail that you know is not important, such as attend. spam. Use the e-mail blocking feature of the software, if o Prepare handouts and visual aids ahead of time: By available, to block unwanted junk mail. creating handouts and visual aids, you must organize o Make sure to have virus protection: Be sure that the thoughts and ideas. This usually helps the entire meeting virus protection is up to date. Never open e-mail run more effectively. attachments if you do not trust the source. o Run the meeting professionally: Introduce people, o Respond to e-mail quickly: It will take you longer to open restate the purpose of the meeting, and state any ground and read the e-mail again later. In addition, if you send an rules that attendees should follow. Have someone facilitate e-mail that does not require a response, make that clear as the meeting to make sure that important items are well. discussed, watch the time, encourage participation, o File message appropriately: Create folders with summarize key issues, and clarify decisions and action meaningful names to file the e-mail messages you want to items. keep. File them as soon as possible. o Set the ground rules for the meeting: State upfront how Using Templates for Project Communications: Many intelligent the meeting will be run. Don’t assume that all meetings are people have a hard time writing a performance report or preparing run in the same way. Do what works best in each specific a 10-minute technical presentation for a customer review. Some case. people in these situations are too embarrassed to ask for help. To o Build relationships: Depending on the culture of the make it easier to prepare project communications, project organization and project, it may help to build relationships managers need to provide examples and templates for common by making meetings fun experiences. project communications such as project descriptions, project Using Various Technologies Effectively: Even if people do know charters, monthly performance reports, and issue logs. Good when to use e-mail or other tools for project communications, they documentation from past projects can be an ample source of also need to know how to use the tools. The following guidelines examples. Samples and templates of both written and oral reports can help you use e-mail as a more effective communication tool: are particularly helpful for people who have never had to write o Be sure to send e-mail to the right people: Do not project documents or give project presentations. Below is a sample automatically “reply to all” on an e-mail, for example, if it is template for a brief project description: not necessary. o Use meaningful subject lines in e-mails: It is to make sure readers can quickly see what information the message contains. If the entire message can fit in the subject line, put it there. Also, do not continue replying to an e-mail thread when the subject has changed without changing the subject line. o The body of the e-mail should be as clear and concise as possible: Use as few words as possible while 04 Handout 1 *Property of STI  [email protected] Page 2 of 4  IT2030 messages or e-mail. Many students text or tweet their friends to plan social activities or discuss academic topics. These same technologies can enhance project communications. Many project management software products also provide the following tools to enhance communications: Portfolio Management: By providing a centralized and consolidated view of programs and projects, the user can evaluate and prioritize activities across the organization. Portfolio management is the selection, prioritization, and control of an organization’s programs and projects, in line with its strategic objectives and capacity to deliver. The goal is to balance the implementation of change initiatives and the maintenance of business--as--usual while optimizing return on investment. This feature makes it possible to maximize productivity, minimize costs, and keep activities aligned with strategic objectives. Resource Management: Maximizing human resources is often the Figure 1 key to minimizing project costs. Resource management is acquiring, allocating, and managing the resources, such as Figure 1 shows a sample template for a brief project description. This form individuals and their skills, finances, technology, materials, could be used to show a snapshot of an entire project on one page. For machinery, and natural resources required for a project. Resource example, top managers might require that all project managers provide a management ensures that internal and external resources are used brief project description as part of a quarterly management review meeting. effectively on time and to budget. This feature enables the user to A project description should include the project objective, scope, maximize resource use across the organization to help plan and assumptions, cost information, and schedule information. This template manage the workforce effectively. suggests including information from the project’s Gantt chart to highlight key Project Collaboration: Sharing project information is often a deliverables and other milestones. haphazard endeavor. Project collaboration enables an organization to share knowledge immediately and consistently to improve Using Software to Enhance Project Communications (Schwalbe, 2019) communications and decision making, eliminate redundancies, and take advantage of best practices for project management. Project Several products are available to assist individual consumers and collaboration is a method by which teams and team leaders plan, organizations with communications. Many products were developed or coordinate, control, and monitor the project they are working on. enhanced in recent years to address the issue of providing fast, convenient, This collaborative process works across departmental, corporate consistent, and up-to-date project information. Many organizations use and national boundaries and helps especially with projects as they SharePoint or similar products for document management and storage and grow in complexity. tools like Skype for video conferencing. Screen sharing software like Zoom can also improve communications. Webcasts are now a common tool for presenting video, graphics, sound, voice, and participant feedback live over the Web. Podcasts and YouTube videos have also become popular tools for providing various types of audio and video information, from exercise instructions to class lectures. Most working adults and students have cell phones that they use to take and send pictures or send and receive text 04 Handout 1 *Property of STI  [email protected] Page 3 of 4  IT2030 References: Lin, S., & Huang, D. (2020). Project management under the internet era: How to respond to challenging changes in the digital era. Springer. Portfolio management. (2020). Citing sources. Retrieved on March 8, 2021, from https://www.apm.org.uk/ Project collaboration. (2021). Citing sources. Retrieved on March 8, 2021, from https://www.projectmanager.com/ Project management institute. (2017). A guide to project management body of knowledge (6th ed.). Project Management Institute, Inc. Resource management. (2020). Citing sources. Retrieved on March 8, 2021, from https://www.apm.org.uk/ Schwalbe, K., (2019). Information technology project management (5th ed.). Cengage Learning Asia Pte Ltd 04 Handout 1 *Property of STI  [email protected] Page 4 of 4  IT2112 What is Project Stakeholder Management? decisions and activities. The key benefit of this process is that it Project Stakeholder Management includes the processes required to allows the project manager to increase support and minimize identify the people, groups, or organizations that could impact or be impacted resistance from stakeholders. This process is performed throughout by the project, to analyze stakeholder expectations and their impact on the the project. Managing stakeholder engagement involves activities project, and to develop appropriate management strategies for effectively such as: engaging stakeholders in project decisions and execution. The processes o engaging stakeholders at appropriate project stages to support the work of the project team to analyze stakeholder expectations, obtain, confirm, or maintain their continued commitment to assess the degree to which they impact or are impacted by the project, and the success of the project; develop strategies to effectively engage stakeholders in support of project o addressing any risks or potential concerns related to decisions and the planning and execution of the work of the project. The four stakeholder management and anticipating future issues that processes in project stakeholder management include the following: may be raised by stakeholders; and Identifying Stakeholders – It involves identifying everyone involved o clarifying and resolving issues that have been identified. in the project or affected by it and determining the best ways to The outputs of this process are change requests, project manage relationships with them. It is the process of analyzing and management plan updates, and project documents updates. documenting relevant information regarding stakeholder’s interests, Monitoring Stakeholder Engagement – It involves monitoring involvement, interdependencies, influence, and potential impact on stakeholder relationships and adjusting plans and strategies for project success. The key benefit of this process is that it enables the engaging stakeholders as needed. You cannot control stakeholders, project team to identify the appropriate focus for engagement of but you can monitor their level of engagement. Engagement involves each stakeholder or group of stakeholders. This process frequently a dialogue in which people seek understanding and solutions to occurs for the first time in a project either prior to or at the same time issues of mutual concern. The key benefit of this process is that it the project charter is developed and approved. It is repeated as maintains or increases the efficiency and effectiveness of necessary, but should be performed at the start of each phase and stakeholder engagement activities as the project evolves and its when a significant change in the project or the organization occurs. environment changes. This process is performed throughout the The main output of this process is a stakeholder register. project. Outputs of this process are work performance information, Planning Stakeholder Engagement – It involves determining change requests, project management plan updates, and project strategies to effectively engage stakeholders in project decisions documents updates. and activities based on their needs, interests, and potential impact. The key benefit is that it provides an actionable plan to interact Internal and External Stakeholders effectively with stakeholders. The project manager and team should There are two main types of stakeholders in project management: develop a stakeholder engagement plan to make sure that good Internal Stakeholders: An internal stakeholder is someone whose decisions are made throughout the life of the project. This plan may interest in the project is directly related to being a part of the be formal or informal, based on the needs of the project. This organization that is managing that project. Internal stakeholders process is performed periodically throughout the project as needed. could be anyone within the organization. Most commonly, they are Because a stakeholder management plan often includes sensitive the eventual users of the project, but they could also be the heads information, it should not be part of the official project documents, of marketing, IT or human resources, other employees, trade unions which are normally available for all stakeholders to review. In many and so on. All have a stake in the project and all can affect it, directly cases, only project managers and a few other team members should or by influence. These individuals or organizations are involved in prepare the stakeholder management plan. the project from within the organization. Internal stakeholders are Managing Stakeholder Engagement – It involves communicating people whose interest in a company comes through a direct and working with project stakeholders to satisfy their needs and relationship, such as employment, ownership, or investment. They expectations, resolving issues, and fostering engagement in project include (but are not limited to): 03 Handout 1 *Property of STI  [email protected] Page 1 of 3  IT2112 o The project manager has the responsibility of project o Developing in-depth plans and major milestones that must planning, procuring, and executing the project; be approved by top management during the planning and o The project team who works on the project to ensure its design phases of the project; execution; and o Developing a status reporting methodology to be distributed o The sponsor who has the authority to assign resources and on a scheduled basis; and enforce decisions regarding the project and provide the o Keeping them informed of project risks and potential financial resources for the completion of the project. impacts at all times. External Stakeholders: External stakeholders are those who aren’t The Project Team: The project team is made up of those people directly related to the organization, but they’re impacted by the dedicated to the project or borrowed on a part-time basis. As a project to some extent. They are perhaps the stakeholder groups project manager, you need to provide leadership, direction, and most readily recognized. Examples of external stakeholders are above all, support to team members as they go about accomplishing customers, suppliers, creditors, the local community, society, and their tasks. Working closely with the team to solve problems can help the government. you learn from the team and build rapport. Showing your support for o Customers want the project to produce quality products at the project team and for each member will help you get their support reasonable prices. and cooperation. Managing project team members requires o Shareholders have an interest in project operations since interpersonal skills. Here are some suggestions that can help: they are counting on the project to remain profitable. Involve team members in project planning, arrange to meet privately o Creditors that supply financial capital, raw materials, and and informally with each team member at several points in the services to the project want to be paid on time and in full. project, be available to hear team members’ concerns at any time, o Suppliers are persons or establishments that provide any encourage team members to pitch in and help others when needed, type of supply essential to the completion of the project, and complete a project performance review for team members. such as equipment, goods, or services needed for the The Manager: Typically the boss decides what the assignment is execution and success of the project. and who can work with the project manager on projects. Keeping your manager informed will help ensure that you get the necessary Project Stakeholder Relationships resources to complete your project. If things go wrong on a project, Key stakeholders can make or break the success of a project. Even if all the it is nice to have an understanding and supportive boss to go to bat deliverables are met and the objectives are satisfied, the key stakeholders’ for you if necessary. By supporting your manager, you will find your happiness is important. Let’s take a look at these stakeholders and their manager will support you more often. relationships to the project manager. Peers: Peers are people who are at the same level in the Top Management: Top management may include the president of organization as you and may or may not be on the project team. the company, vice-presidents, directors, division managers, the These people will also have a vested interest in the product. corporate operating committee, and others. These people direct the However, they will have neither the leadership responsibilities nor strategy and development of the organization. On the plus side, you the accountability for the success or failure of the project that you are likely to have top management support, which means it will be have. Your relationship with peers can be impeded by: inadequate easier to recruit the best staff to carry out the project and acquire control over peers, personality conflicts or technical conflicts, needed material and resources. Also, visibility can enhance a project conflicting instructions from your manager and your peer’s manager, manager’s professional standing in the company. On the minus side, and sabotage. Peer support is essential. Because most of us serve failure can be quite dramatic and visible to all, and if the project is our self-interest first, use some investigating, selling, influencing, large and expensive (most are), the cost of failure will be more and politicking skills here. To ensure you have cooperation and substantial than for a smaller, less visible project. Some suggestions support from your peers: Get the support of your project sponsor or in dealing with top management are: top management to empower you as the project manager with as 03 Handout 1 *Property of STI  [email protected] Page 2 of 3  IT2112 much authority as possible. It’s important that the sponsor makes it Relationship Building Tips clear to the other team members that their cooperation on project Begin the process of building strong relationships with each one using the activities is expected, be explicit in asking for full support from your following method: peers. Analyze stakeholders: Conduct a stakeholder analysis or an Resource Managers: Because project managers are in the position assessment of a project’s key participants and how the project will of borrowing resources, other managers control their resources. So affect their problems and needs. Identify their individual their relationships with people are especially important. If their characteristics and interests. Find out what motivates them, as well relationship is good, they may be able to consistently acquire the as what provokes them. Define roles and level of participation, and best staff and the best equipment for their projects. If relationships determine if there are conflicts of interest among groups of aren’t good, they may find themselves not able to get good people stakeholders. or equipment needed for the project. Assess influence: Measure the degree to which stakeholders can Internal Customers: Internal customers are individuals within the influence the project. The more influential a stakeholder is, the more organization who are customers for projects that meet the needs of a project manager will need their support. Think about the question, internal demands. The customer holds the power to accept or reject “What’s in it for them?” when considering stakeholders. Knowing your work. Early in the relationship, the project manager will need to what each stakeholder needs or wants from the project will enable negotiate, clarify, and document project specifications and the project manager to gauge his or her level of support. And deliverables. After the project begins, the project manager must stay remember to balance support against influence. Is it more important tuned in to the customer’s concerns and issues and keep the to have strong support from a stakeholder with little influence or customer informed. To meet the needs of the customer, client, or lukewarm support from one with a high level of influence? owner, be sure to do the following: Learn the client organization’s Define “success”: Every stakeholder may have a different idea of buzzwords, culture, and business, clarify all project requirements what project success looks like. Discovering this at the end of the and specifications in a written agreement, specify a change project is a formula for failure. Gather definitions upfront and include procedure, and establish the project manager as the focal point of them in the objectives to help ensure that all stakeholders will be communications in the project organization. supportive of the final outcomes. Contractors, Subcontractors, and Suppliers: There are times Keep stakeholders’ involved and informed: Don’t just report to when organizations don’t have the expertise or resources available stakeholders. Ask for their input. Get to know them better by in-house, and work is farmed out to contractors or subcontractors. scheduling time for coffee, lunch, or quick meetings. Measure each This can be a construction management foreman, network stakeholder’s capacity to participate and honor time constraints. consultant, electrician, carpenter, architect, or anyone who is not an Send regular status updates. Daily may be too much; monthly is not employee. Managing contractors or suppliers requires many of the enough. One update per week is usually about right. Hold project skills needed to manage full-time project team members. Many meetings as required, but don’t let too much time pass between projects depend on goods provided by outside suppliers. Examples meetings. Regular communication is always appreciated – and may are construction projects where lumber, nails, bricks, and mortar even soften the blow when you have bad news to share. come from outside suppliers. If the supplied goods are delivered late ___________________________________________________________ or are in short supply or of poor quality or if the price is greater than References: Internal and external stakeholders (n.d.). Citing sources. Retrieved on September 22, 2021, originally quoted, the project may suffer. Depending on the project, from https://www.pmi.org/ managing contractor and supplier relationships can consume more Project stakeholder relationships (n.d.). Citing sources. Retrieved on September 22, 2021, than half of the project manager’s time. It is not purely intuitive; it from https://opentextbc.ca/ involves a sophisticated skill set that includes managing conflicts, Schwalbe, K., (2019). Information technology project management (5th ed.). Cengage Learning Asia Pte Ltd negotiating, and other interpersonal skills. 03 Handout 1 *Property of STI  [email protected] Page 3 of 3  IT2112 Managing Project Procurement Project Procurement Management Process Procurement means acquiring goods and services from an outside source. Project Procurement Management includes the processes required to The term procurement is widely used in government; many private acquire goods and services for a project from outside the performing companies use the terms purchasing and outsourcing. Deciding whether to organization. Organizations can be either the buyer or the seller of products outsource, what to outsource, and how to outsource are important topics for or services under a contract or other agreement. There are three main many organizations throughout the world. Organizations are turning to processes in project procurement management: outsourcing to accomplish the following: Planning Procurement Management – It involves determining Access Skills and Technologies: Organizations can gain access what to procure and when and how to do it. In procurement planning, to specific skills and technologies when they are required by using one must decide what to outsource, determine the type of contract, outside resources. A shortage of qualified personnel is the main and describe the work for potential sellers. Sellers are providers, reason that companies outsource IT services. A project may require contractors, or suppliers who provide goods and services to other experts in a particular field for several months, or it might require organizations. The key benefit of this process is that it determines specific technologies from an outside source. Planning for this whether to acquire goods and services from outside the project and, procurement ensures that the needed skills and technologies will be if so, what to acquire as well as how and when to acquire it. This available for the project. process is performed once or at predefined points in the project. Reduce both Fixed and Recurrent Costs: Outsourcing suppliers Participants in the procurement process may include personnel from often can use economies of scale that may not be available to the the purchasing or procurement department as well as personnel client alone, especially for hardware and software. It can also be less from the buying organization’s legal department. Outputs of this expensive to outsource some labor costs to other organizations in process include a procurement management plan, procurement the same country or offshore. Companies can use outsourcing to strategy, bid documents, procurement statement of work, source reduce labor costs on projects by avoiding the costs of hiring, firing, selection criteria, independent cost estimates, change request, and reassigning people to projects or paying their salaries when they project documents updates, and organizational process assets are between projects. updates. Inputs needed for planning procurements include the Allow the Client Organization to Focus on its Core Business: project charter, business documents, the project management plan, Most organizations are not in business to provide IT services, yet and organizational process assets. many have spent valuable time and resources on IT functions when Conducting Procurements – It involves obtaining seller responses, they should have focused on core competencies such as marketing, selecting sellers, and awarding contracts. The key benefit of this customer service, and new product design. By outsourcing many IT process is that it selects a qualified seller and implements the legal functions, employees can focus on jobs that are critical to the agreement for delivery. The end results of the process are the success of the organization. established agreements including formal contracts. This process is Provide Flexibility: Outsourcing to provide extra staff during performed periodically throughout the project as needed. Outputs periods of peak workloads can be much more economical than trying include selected sellers, agreements, change requests, and updates to staff entire projects with internal resources. Many companies cite to the project management plan, project documents, and better flexibility in staffing as a key reason for outsourcing. Some organizational process assets. A bidders’ conference, also called companies say they could not produce several of their products fast a supplier conference or pre-bid conference, is a meeting with enough without outsourcing. prospective sellers prior to the preparation of their proposals or bids. Increase Accountability: A well-written contract can clarify These conferences help ensure that everyone has a clear, common responsibilities and sharpen focus on key deliverables of a project. understanding of the buyer’s desired products or services. Once Because contracts are legally binding, there is more accountability buyers receive proposals or bids, they can select a supplier or for delivering the work as stated in the contract. decide to cancel the procurement. Selecting suppliers or sellers, 04 Handout 1 *Property of STI  [email protected] Page 1 of 3  IT2112 often called source selection, involves evaluating proposals or bids seeking the procurement team’s help to fulfill an existing need. It from sellers, choosing the best one, negotiating the contract, and comprises key information that is required to procure the right goods, awarding the contract. services, or works. It is important that all the stakeholders be Controlling Procurements – It involves managing relationships consulted at this stage to prevent issues later on in the procurement with sellers, monitoring contract performance, making changes as process. appropriate, and closing out contracts. The key benefit of this Consider a List of Suppliers – This stage involves sourcing process is that it ensures that both the seller’s and buyer’s suppliers and determining their ability to provide the best quality and performance meet the project’s requirements according to the terms value for goods or services. While this stage seems straightforward, of the legal agreement. This process is performed throughout the it is vital to find reputable vendors with which whom you can develop project as needed. Controlling procurements includes the a long-term bilateral partnership. Best practice in this area is known application of the appropriate project management processes to the as strategic procurement, which is a less responsive procurement contractual relationship(s) and the integration of the outputs from approach as the preferred supplier for most key purchase these processes into the overall management of the project. The requirements will already be in place. The objective of this process main outputs of this process include closed procurements, work is to evaluate relevant suppliers. Evaluation metrics include pricing, performance information, procurement documentation updates, quality of service, industrial reputation and recognitions, warranty change requests, project management plan updates, project and guarantee provisions, and customer service. Generally, ideal documents updates, and organizational process assets. Controlling traits for a reputable supplier are accountability, production capacity, procurements has a financial management component that involves strong ethics, and free-flowing communication. monitoring payments to the seller. This ensures that payment terms Negotiate Contract Terms with Selected Suppliers: After defined within the contract are met, and that compensation is linked selecting a supplier to fulfill the requirements of an organization, the to the seller’s progress as defined in the contract. Controlling contract process begins. This stage is crucial in reaching a price procurement also involves closing procurements, which is that’s fair for both parties and is an opportunity to build any additional sometimes referred to as contract closure. Contract closure involves payment term features that you want to take advantage of into the the completion and settlement of contracts and resolution of any contract. This process involves assessing critical factors like pricing open items. Tools to assist in contract closure include procurement structure, the scope of work, terms and conditions, timelines of audits, negotiated settlements, and a record management system. delivery, etc. Before entering negotiations, analyze any previous contracts to identify opportunities that will enable you to streamline Steps in Procurement Process costs and save money. If your previous agreements were expensive or had unrealistic terms, use this knowledge to iron out the finer Proper procurement procedure consists of seven main procurement process details of prospective deals in the future. Detailed analysis and steps: negotiation of contracts give insights into more cost savings Identify Goods or Services Needed: The procurement process opportunities, including dynamic discounting. starts with the need to obtain goods or services from an outsourced Finalize the Purchase Order: Once a contract is submitted to a company. These goods or services can be internal (meaning any supplier and both parties are happy with the small print, the next step materials required to run the business) or external (materials that the is to start preparing, finalizing, and sending purchase orders. A business will eventually sell). This stage, therefore, involves purchase order is a document that outlines a description of the assessing the needs of each department and setting a budget. This goods or service, total costs, quantity, and approval of workflow. provides visibility into the spend areas and categories to identify When a purchase order is approved, it signals to the relevant finance areas for cost savings through spend analysis. This might involve a team to release the details to the supplier, affording them access to purchase requisition in most businesses. A purchase requisition is the critical information they need, such as a reference number, a written or electronic document raised by internal users/customers payment terms agreement, or any other essential information they 04 Handout 1 *Property of STI  [email protected] Page 2 of 3  IT2112 require. This document shows a further agreement between the two parties. Whereas a contract, agrees to the whole collaboration, purchase orders tend to contractually agree to individual jobs. A purchase order is typically sent via email. Receive Invoice and Process Payment: Once a supplier receives a purchase order, the purchase order sender will receive an invoice from them stating the agreed price and instructions on how to pay. This should contain details of the order on the invoice. It’s worth noting that this part of the procurement process is now often done automatically through invoice automation. Invoice automation is the electronic process of scheduling invoices in advance, to be issued automatically at a specified date and time. Depending on what’s outlined in the contract, the invoice will include details of the period allowed to make the payment. Many businesses offer a thirty- day credit notice, which gives you leeway to make the payment if you cannot fulfill it at the time of the order. However, payment terms will always depend on the specific contractual agreement, as well as the strength of the relationship between both parties. Delivery and Audit: Again, depending on what terms you’ve agreed in your contract, your delivery will arrive soon after your purchase order has been sent in. At this stage of the process, it’s common for businesses to make a record of when the order arrived as well as double-checking the order contents. That way, you can keep track of whether your supplier is sticking to their agreed delivery times. If something is missing, this is the opportunity to contact the supplier and rectify the problem to reduce potential downtime. Maintain Accurate Record of Invoices: Both the companies, the buyer and seller, maintain their records for their auditing and taxation processes. The entire process should be under continual review in order to improve as well as settle any disputes that might have arisen. Reevaluation makes the procurement process more efficient and prevents the recurrence of disputes. ___________________________________________________________ References: Project Management Institute (2017). A guide to the project management body of knowledge (6th ed.). Project Management Institute, Inc. Schwalbe, K., (2019). Information technology project management (5th ed.). Cengage Learning Asia Pte Ltd Steps in procurement process (2021). Citing sources. Retrieved on October 18, 2021, from https://taulia.com/ 04 Handout 1 *Property of STI  [email protected] Page 3 of 3