PROJECT MANAGEMENT

A QUICK GUIDE
 Foreword

Over the past five years, there has been a significant increas e in applying
project management methodology within the Tasmanian State Government.
This approach has been based on the Government’s Project Management
Guidelines.

Project Management: A Quick Guide has been developed to meet the need for
an overview of project management. It aims to provide project participants
with an easy-to-read introduction to the Tasmanian Government’s project
management methodology.

I would like to thank all those who have assisted with the preparation of this
booklet, in particular the Project Services’ team members, and recommend its
use as a guide for all project participants.

Linda Hornsey
Secretary
Department of Premier and Cabinet

Acknowledgements

Thanks to the following people for their contributions:

Project Management and Information Resources Project Reference Group
In preparing this booklet, a number of sources have been drawn on, including:
Australian Bureau of Statistics – booklet and course reference material
Project Management Guidelines Version 4.0 – November 2000
Department of Premier and Cabinet
John Smyrk – Sigma Management Science Pty Ltd
Project Management web sites

2
 Introduction

Projects – we all get caught up in them in some form or another: as a Project

Team member, Project Manager, Project Sponsor, Steering Committee member,
or as a beneficiary. You may not even be involved in a project … yet!

Project Management: A Quick Guide has been produced to provide you with
some plain English, basic information about project management in the
following way:

Contents page

The Basics ………………………………………… 4

The Essentials ……………………………………. 5
Project Sizing ……………………………………. 13
Life of a Project …………………………………. 14
Summary ………………………………………… 17
Tips from Project Managers …………………… 18
Resources, Support & Advice…………………… 19

This booklet introduces project management terminology and gives you an

overview of the phases in the life of a project and the major project management
plans for each phase. It also introduces the key elements that a Project Manager
needs to consider no matter what the complexity or size of the project.

There are some useful tips from practising Tasmanian State Service Project
Managers, and a list of resources available on the Project Management website at:

http://www.projectmanagement.tas.gov.au

3
 What is a Project?

A project brings about change and involves a group of inter-related

activities that are planned and then executed in a certain sequence to
create a unique product or service within a specific time frame.

Project Management is a formalised and structured method of managing change.

Some even view it as a creative problem solving process. No matter how you
approach it, the focus of project management is to develop specifically defined
products (outputs) so that the planned benefits (outcomes) are achieved. The
outputs are to be produced:

By a certain time
To a defined quality
With a given level of resources

Effective project management is essential for the success of a project.

“The nice thing about not planning is that failure comes as a

complete surprise and is not preceded by a period of activity.”
(John Preston, Boston University)

Why Do Projects Need to be Managed?

The value of good project management is that you have standard processes in
place to deal with all possibilities.

Using sound project management techniques and processes will increase the
likelihood that your project will be completed on time, within budget, and to an
acceptable level of quality.

Carefully consider all aspects of how to manage a project, and

build the right processes for your project.

4 The Basics
 What Are the Characteristics of a Project?

A significant project in the Tasmanian State Government is usually characterised

as having:

Definable, measurable project outcomes that relate to the organisation’s

goals
Project outputs (required for the attainment of the project outcomes)
produced by a project team(s)
A start date and an end date
A balance between time, cost and quality
A governance structure
Well defined multidisciplinary project team(s)
Involvement of stakeholders/other organisations
Criteria to measure project performance

What Are the Key Elements?

As a Project Manager, you will need to consider the following elements,

regardless of the size or complexity of the project:

Planning and scoping

Governance
Organisational change management
Stakeholder management
Risk management
Issues management
Resource management
Quality management
Status reporting
Evaluation
Closure

Now read on and learn more about the key elements of project management.

The Essentials 5
 “If You Fail to Plan, You Plan to Fail.”
Planning & Scoping

The importance of the planning stage of the project cannot be over-estimated.

No matter how small the project, a clear definition and statement of the areas
of impact and boundaries of the project needs to be established.

Do not under-estimate the amount of time and effort involved

in the planning phase of your project.

The scope of the project is more than the work involved. It includes:

Outcomes (long term benefits)

Customers (those who use the outputs)
Outputs (services and/or products generated by the project)
Work (activities and tasks to produce the outputs)
Resources (human and financial - to get the work done)

So how do you ensure that the scope remains manageable a nd all of your work
will produce the required outcomes? The Input-Transform-Outcome (ITO)
model is an effective tool for scoping a project.

6 The Essentials
 The ITO Model

Figure 1: John Smyrk’s Input-Transform-Outcome (ITO) Model diagram.

When initially defining a project, each component of the model is

considered from right to left. The implementation of the project
takes place from left to right.

This method of defining and scoping a project will instil a greater confidence
that the work to be done will lead to the achievement of the originally intended
outcome.

Who is Responsible for What?

Governance

Realisation of the project outcomes requires planning and management. The

management structure is known as the Governance for the project. This structure
identifies the specific players, their roles and responsibilities, a nd the way in
which they interact for the life of the project.

The Essentials 7
 How Do You Smooth Out the Bumps?
Organisational Change Management

Resistance to change is normal and it is important to make the transition to

the new working environment as smooth as possible for ever yone concerned.
When planning the project activities, help make it a positive experience by
considering how the change will affect things such as:

Organisational culture Employee motivation/incentives

Physical working environment Policies & procedures
Organisational structure Workflow & processes
Job design and responsibilities Human resource management
Skills & knowledge of employees

Organisational Change Management within a project is about

communicating the extent of the change to all involved and
developing an approach for managing the change.

Who Needs to be Involved?

Stakeholder Management

You need the right people involved to have a better chance of a successful
project. Stakeholders are the people or organisations that have an interest in
the project processes, outputs or outcomes, and will be a ke y component to the
project’s success. Get them involved in the project as early a s possible; meet
and talk with them regularly, keep them informed, identify the nature of their
interests, develop a stakeholder register, and plan for how their involvement
will be managed on an ongoing basis.

8 The Essentials
 It is a Risky Business!
Risk Management

In successful projects, potential problems are minimised. This is the art of risk
management, which concerns identifying, analysing, and planning a response to
potential threats to the project. A useful tool is a risk register, and for this you
will need to know:

What are the risks - risk identification

The extent and likelihood of them happening - risk quantification
What you would do to prevent them happening - risk response development
What you would do to recover if they did happen - risk response control

Concerns … What Are You Doing About Them?

Issues Management

Throughout the life of a project, issues and concerns will arise and need to be
managed. Establish a monitoring and review process, because if the issues are
not addressed, they may threaten the success of the project.

Depending on the size of the project, a useful tool for this process is an issues
register. It contains the following details:

A description of the issue

When the issue was raised/noted
Current status
Description of any action to be taken, by whom, and by when

The Essentials 9
 It Takes More Than Money and People.
Resource Management

Resource Management is more than obtaining dollars and people to do

the work. It is about planning for managing the people, fi nances, and
the physical and information resources required to perform the project
activities. For example:

Managing what the people in your team need to do

How and when they do the tasks
Providing suitable accommodation for the project team
Producing the outputs
Managing information on a website
Working to an agreed budget
Setting up agreements with contractors and making sure that they
deliver

No matter the size or complexity of the project, it is

vital to manage your resources.

10 The Essentials
 Are You Doing a Good Job?
Quality Management

It can be difficult defining what is a ‘good’ or quality job in relation to a project.

Generally, quality describes a product or service that satisfies the customer’s
requirements.

It is important to agree on the level of quality the customer expects, as this may
have a flow-on effect on the project budget. In addition, there is also a variable
level of quality or discipline that is applied to the project management processes.

Quality Management in a project reduces the risk of project failure.

Some of the things to consider in relation to Quality Management within a project

include:

Using valid methodologies and standards

Managing change
Adhering to review and acceptance procedures
Resolving emerging issues
Monitoring progress
Engaging project staff with the appropriate skills
Maintaining appropriate documentation and record keeping
Delivering an output that meets the agreed customers requirements
Completing the project within budget and on time

Remember, it is cheaper to get it ‘right’ the first time.

The Essentials 11
 How is it Going So Far?
Status Reporting

The people responsible for the success of the project are going to want to
know what progress has been made. Status reports should be provided on a
regular basis and include progress details about:

Milestones - what outputs have been delivered, e.g. first draft of

document developed.
Budget - how much money has been spent from the budget; does it
deviate from the original estimate?
Issues - areas of concern that may threaten the successful completion of
the project, such as tasks not completed by the assigned time (slippage),
or not enough people to do the required work.
Risks - such as the issues that have escalated and are now a threat to
the project.

Have You Made the Grade?

Evaluation

There comes a time in all projects when you need to evaluate the success
of the project. No matter the size or complexity of the project, a
measurement of success against well-defined criteria is necessary. An
evaluation process will assist you in determining:

Whether the project is on time, on track and on budget (i.e. under

control)
The level of adherence to documented plans, methodologies and
standards
Useability of outputs
The achievement of outcomes

12 The Essentials
 Tying Up the Loose Ends.
Closure

Eventually, the work will be complete and you will need to plan for the closing of
the project. How formal the closure process will need to be is determined by the
nature and size of the project. Essentially, successful project closure involves:

Hand-over of project outputs to the Project Business Owner (customer)

Review of project outputs and outcomes against the Project Business Plan
or agreed project plan
Completion or re-assignment of outstanding tasks
Finalisation of project records
Staffing issues e.g. redeploying team members, taking of outstanding leave
Confirmation that the benefits of the project have been achieved
‘Tying up the loose ends’

Why is it Important to Determine Project Size?

Project Sizing

Projects vary in size and complexity and it is not appropriate for all projects to carry
out all project management activities to the same level of detail or discipline.

In short, the size of the project will determine how formally the project will need to be
managed.

More More information

information about about the keythe
determining elements
size of can
yourbeproject
found can
in the
be Pro-
ject Management Guidelines at:
found in the Project Management Fact Sheet: Project Sizing.
To help you assess the size of your project, go to the Project Management
website andhttp://www.go.tas.gov.au/projman/pmg
use the interactive Project Sizing Calculat4sum.htm
or, available at:

http://www.projectmanagement.tas.gov.au

Project Sizing 13
 Life of a Project

Projects do have a life, and this picture represents the life cycle of a
project.

Figure 2: Life of a Project

Figure 2 also shows which major project management plans are required
at each phase. For example, a Project Proposal is used in the ‘initial’
phase of a project, whereas the Project Business Plan is used t hroughout
the ‘manage’ and ‘finalise’ phases of the project.

This model represents an over-simplification of most projects,

but is included to make sense of what can be a quite messy and
non-linear process in reality.

14 Life of a Project
 Whose Idea Was This?
Initiate

Project initiatives may originate in a number of ways. For example, they may be from:

Government policy
An Agency's corporate and business unit planning processes (which in
turn is driven by Government policy)
Changes in Government policy
Other external factors, such as customer servi ce requirements
A good idea!

Most projects are usually justified in terms of corporate objectives and should be
closely aligned to them. This relationship is confirmed through the initial scoping
and planning documents, which include the Project Proposal/Brief, the Feasibility
Report, and/or the Project Business Case.

If the project is not approved, it will not continue on to the other

phases.

How Do I Get Going?

Set Up

Once a project is approved and funded, there is an initial Set Up period involving
the appointment of the Project Manager and team and the organisation of the
resources required to produce the outputs. This period must be allowed for in any
initial planning.

Life of a Project 15
 How Do I Keep It Going?
Manage

This stage is considered the most productive and hectic stage of any project,
requiring ongoing management to ensure the production of the project outputs.
It is concerned with:

Managing people Keeping stakeholders involved

Productivity and quality Contingencies
Meeting deadlines Managing risks and issues
Prioritising Unexpected problems
Managing budgets Doing the work !
Maintaining enthusiasm

While all of this is happening, the business unit(s) is preparing to make the
changes necessary to use and manage the outputs.

Going, Going … Gone!

Finalise

Finalising a project involves the handover of the project outputs to the Project
Business Owner (customer) to use and generate the project outcomes.

After the project’s success has been evaluated, the Steering Committee formally
closes the project and the celebrations can begin.

This is the phase that involves moving from the project (transformational)
activities to the ongoing business operational (transactional) activities.

16 Life of a Project
 How Does All This Go Together?

To help you put all of this together, the table below broadly summarises where
each of these key elements sit within the phases in the Life of a Project.

As you work through the project, use it as a checklist to make sure that the key
elements are all being considered.

Stages in the Life of a Project

Key Element Initiate Set Up Manage Finalise

Planning & Scoping

Governance
Organisational Change Management
Stakeholder Management
Risk Management
Issues Management
Resource Management
Quality Management
Status Reporting
Evaluation
Closure

Once a project is approved and funded, there is an initial Set Up

period. This period must be allowed for in any initial planning.

Summary 17
 What Do Project Managers Have To Say?

Here are some useful tips and comments made by practising

Tasmanian State Service Project Managers:

Scoping activities precede any other project management activities.

For scoping to occur adequately, there needs to be a full analysis
of stakeholders and all stakeholders must be adequately involved.
With projects that are initiated by edict, active stakeholder
involvement is still necessary (though there is a need to facilitate
an appreciation of constraints).
Express the scope in ways that people understand and appreciate.
Make sure the important stakeholders sign off the scope of the
project.
Be aware of related projects, developments and standards early.
Carefully define what is inside and outside the scope.
Beware of scope creep.
Change initiatives do not necessarily have to be translated into
single projects. They may be achieved through a series of
interlinked projects.
Ensure that project activities align with the scope. Be aware that
some people may be operating with differing agendas that may not
be formally defined in the scope.
Continually monitor the scope and project actions in relation to it.
There may be a need to redefine the scope or bring the project back
on track.

“If you have ever crossed a busy street, then you know what
project management can be like - uncertain and hazardous.”
Rainbow Signs Inc.

18 Tips from Project Managers

 What Is Available?

Resources
Project Management Guidelines
Templates, including:
⇒ Project Proposal
⇒ Project Business Case
⇒ Project Business Plan
⇒ Project Execution Plan
⇒ Outcome Realisation Plan
⇒ Project Status Report
Knowledge Base
Fact Sheets, including:
⇒ Project Management
⇒ Project Sizing
⇒ Developing a Communication
Strategy
Guide to Education & Training
Opportunities
Glossary
Interactive Tools, including:
⇒ Project Sizing Calculator

Support & Advice

Project Management Helpdesk Project Zone Newsletters

(PMInfo@dpac.tas.gov.au)
Project Advisory Services
Project Review Services
Information Sessions
Documentation Review
List Server
Website Feedback Form
Upcoming Workshops and Forums
Project Services Information Flyer
Individual help and advice

For more information, please contact Project Services:

Web Address: http://www.projectmanagement.tas.gov.au

Telephone: Manager, Project Services, eServices Group - (03) 6233 4163

Address: Level 8, 144 - 148 Macquarie Street, Hobart, 7000

Resources, Support & Advice 19

PROJECT MANAGEMENT

A QUICK GUIDE

eServices Group

Department of Premier and Cabinet, Tasmania

http://www.go.tas.gov.au

January 2002