Advanced Project Management-Ppts

Advanced Project Management
Level 6
Session 1
Managing and Leading Projects
Learning Outcomes
At the end of this session candidates will be able to:
Explore the various definitions and characteristics of a project Analyse the difference between leadership and management relating to projects Explore why organisations in different sectors need to engage in projects and consider different types of project Evaluate the importance and relationship of project and people management in achieving project goals. Demonstrate an understanding of external business environmental factors and how they may affect a project. Critically evaluate the concept of power and influence. Identify the key stakeholders for a purchasing and logistics project and how their power and influence change throughout the life of the project.
Definitions of Project Management

A set of activities with a defined start point and a defined end state, which pursues a defined goal and uses a defined set of resources. (Slack et al) ... A temporary endeavour undertaken to create a unique product or service. (US PMI) ... The process by which projects are defined, monitored, controlled & delivered.....desired outcome......bring about change (APM)
Definitions
Cips Study Guide a group of activities that have to be performed in a logical sequence to meet pre-set objectives outlined by client Meredith & Mantel a specific, finite task to be accomplished......project seen as a unit....characteristics..importance, performance, lifecycle, interdependencies, uniqueness, resources and conflict What are key features? Group exercise
Distinctions between Leadership and Management

Leadership is the lifting of a persons vision to higher sights, the raising of performance to a higher standard, the building of personality beyond its normal limitations. Nothing better prepares the ground for such leadership than a spirit of management that confirms in the day-to-day practices of the organisation strict principles of conduct and responsibility, high standards of performance and respect for the individual and his work.
Drucker; The Practice of Management
What do Managers Do?

Plan Organise Coordinate Control Lead

Fayol Is this mainly a shorter term focus?
Establishing overall purpose or policy Forecasting and planning Organising and allocating work Giving instructions Checking performance Coordinating the work of others
Buchanan
What do Leaders Do?

Enable people and groups to achieve their objectives Set and communicate objectives Monitor performance and give feedback Establish basic values Clarify and solve problems for others Organise resources Longer term? Administer rewards and punishments Provide information, advice and expertise Provide social and emotional support Make decisions on behalf of others Represent the group to others Arbitrate in disputes Act as a father figure Become a scapegoat
Leader or Manager?
Group exercise What do you see as the key differences between management & leadership? Which skills are more important in project management? Recap Kotter p 11 effective v efficient? Also Mintzberg p 12
Reasons that Organisations Undertake Projects

Change in:
The external environment Markets and customer needs Technology Products and services Processes
Globalisation Impatient customers Increasing demand for unique and customised solutions Change within organisations initiated by senior managers Paired ex list examples for each point above own org. or alternative
Hard or Soft Projects

Hard normally refer to tangible, measurable activities and processes Soft human factors and processes eg communication, behavioural change and acceptance
Can you easily distinguish simply between these two aspects of project work Is Millau Bridge a hard project?
Hard vs Soft Projects

Product development p8 Process development eg BPR Re-design/modification of products and processes Technology development Installation of new IT systems example p9 London Ambulance Service Site relocation/closure Culture change Introduction of a new organisational structure A new appraisal scheme How would you categorise each of these? Lysons categorisation of projects: Manufacturing projects Construction projects Management projects Research projects Too simplistic?
Constituents of the Project Context

PEST/SLEPT factors Porters 5 Forces analysis Stakeholders Resource constraints Time constraints Overall strategy of the organisation
CIPS syllabus
Complexity Completeness Competitiveness Customer focus

Maylor
Common Stakeholder Expectations

Fit for purpose Aesthetically pleasing Free from defects Delivered on time Value for money Reasonable running costs Satisfactory reliability/durability Supported by worthwhile guarantees Which stakeholders do each of above relate to?
Stakeholder Power/Interest Matrix

Level of interest
Low High
Power
Minimal effort
Keep informed
Stakeholders are likely to move between segments during the life of a project
Keep satisfied
Key players
Source: Mendelow, 1991

How do you keep stakeholders satisfied?

Satisfaction = perception expectation Manage their expectations Re projects may be necessary to sell the final outcome Ensure know actual requirements don`t over-promise Keep advised of progress
Spec exam paper Sportsco Q 1
Session 2
Managing and Leading Projects
Learning Outcomes
Evaluate and explain the idea of the project as a conversion or transformation process. Explore the concept of variety and volume in defining the nature of an operation and evaluate its application to project management. Describe the role of a project selection
A Project is a Conversion Process
Input resources
Materials Information Customers
Input resources
The project (transformation process)
Output (product/ service)
Customers
Input transforming resources

Facilities Staff
Conversion Process
Inputs Transformed into Outputs Same as a process? What other input resources do you need? See p 30
Projects as a Technology
Low High
Volume
High
Projects
Small batch Large batch Process plant
Low
Variety
The Project Model

Constraints:
Financial Legal Ethical Environmental Logic Activation Time Quality Indirect effects
Input:
Want/need
Project
Output:
satisfied need
Mechanisms:
people knowledge & expertise capital tools & techniques technology
Project Constraints
Group exercise
Discuss examples and give reasons why Maylor lists these factors - in previous slide as constraints in his ICOM model
Project Portfolio Process

How many projects can an organisation handle? Identify projects that satisfy strategic needs
They support multiple goals feasible? They drive organisational improvement why might these take priority? They enhance/enable key areas how determine?
Portfolio Process
Prioritise candidate projects
Limit active projects to a manageable level do you always have necessary resources? Identify risk-intensive efforts why? Balance short-, medium- and long-term returns why is this important?
Prevent projects getting in the back door how/why might this happen?
Meredith & Mantel, 2005
Project Selection Factors Issues to Consider
Operations
Interruptions, learning, process
Marketing
Customer management issues
Financial
Return on investment what is acceptable?
Personnel
Skills and training, working conditions what impact on employee motivation?
Administrative
Regulatory standards, strategic fit with what?
Strategic Success Factors

Project mission clearly defined and agreed objectives
Top management support top managers must get behind the project and make clear to all personnel at the outset their support
Project action plan showing details of the required steps and resource requirements in the implementation process Group ex how would getting each of these factors wrong cause problems for an organisation? Can you think of any project failures attributable to any of these factors?
What Projects Have in Common

An objective or objectives, usually defined in terms of quality, time and cost the iron triangle Each is unique a one-off always? Of a temporary nature what is temporary? A degree of complexity, stemming from multiple tasks and participants often the key challenge A degree of uncertainty, often technical
NB. A programme implies greater longevity or continuity Spec Exam paper Q 3

Session 3
The Project Life Cycle
Learning Outcomes
Consider different approaches to the project life cycle Identify the different stages of the project life cycle and the key characteristics, demands and problems most likely to be encountered at each stage Evaluate the concept of the project life cycle as a management tool Investigate a variety of problem-solving approaches and the extent to which they may be relevant during the project life cycle
Comparison of Characteristics of Projects and Problems

Projects A supported purpose/ importance Specifications of performance (form, fit, function) Known solution Stages with finite due date Interdependencies Uniqueness Resource requirements and tradeoffs Stakeholder conflict Meredith & Mantel, 2005 Problems Intransparency lack of clarity of situation Polytely multiple goals Complexity large numbers of items, interrelations and decisions Dynamism time considerations
Three-stage Project Life Cycle
Source: Meredith & Mantel, 2003, Wiley
Three Stage Life Cycle

Why might work in project follow this guideline? Any examples? construction of new housing estate Consider time/effort impact fig 4.2 p 39 Alternative patterns? See p 40 Why is it important to know what is likely scale of progress? How identify in advance? Group ex look at p 42 relative importance of project objectives agree?
Four-stage Project Life Cycle

D1: Define the project
The brief
D2: Design the project process

Process & product knowledge The proposal/PID
D4: Develop the process
The outcomes
D3: Deliver the project

Source: Maylor
Maylors Four-phase Approach

Phase
Define the project Design the project process
Key issues
Organisational & project strategy; goal definition Modelling & planning; estimating; resource analysis; conflict resolution; business case Organisation; control; leadership; decisionmaking; problemsolving Assessment of process & outcomes; evaluation; changes for the future
Key questions
What is to be done? Why is it to be done? How will it be done? Who will be involved in each part? When can it start and finish? How should the project be managed?
Deliver the project Develop the process
How can the process be continually improved?
Developing a Project Strategy
Getting started
Moving forward
Bringing it in
Handing it on
Analysis Commitment Consultation
Preparation Feasibility trials
Doing the work Making the change
Handover Support Review
Source: CIPS
4 Stage Models
Group exercise Compare and contrast Maylors 4 stage model to Cips version on slide also use Cips version p 45 table 4.4 Are they effectively one and the same or are there genuine differences?
Five-stage Project Life Cycle

Stage 1
Define
Stage 2
Weiss & Wysocki
Plan
Stage 3
Changes
Corrective action
Organise
Stage 4 Stage 5
Control
Close Out
5 Stage Models
See also Frigenti and Comninos model p 45/6 Tables 4.5 and 4.6 p 46 individual homework exercise critically evaluate these 2 models, recommending your preferred option for use in your organisation
McKinseys 7S Framework
Strategy
Systems Shared purpose
Structure
Staff Skills
Style/ culture
Source: McKinsey 7S framework
The 7S Project Approach

Element
Strategy Structure Systems Staff Skills Style/culture Stakeholders
Description
High-level requirements of the project and means to achieve them Organisational arrangements that will be used to carry out project Methods for work to be designed, monitored and controlled Selection, recruitment, management and leadership of those working on project Managerial and technical tools available to project manager and staff Underlying way of working and inter-relating within the project/organisation Individuals and groups who have an interest in project process or outcome
Source: 7S framework adapted by Maylor
7 S Framework
This is a more strategic approach to Project management focuses upon strategic alignment and fit Considers organisations capabilities, capacity, priorities and strategic objectives. Does project fit or match these areas? Consider impact of project on other activities and areas of the organisation resources, culture etc
Problem Solving Techniques

Maylor Thamhain & Wilemon Thomas-Killman Conflict Resolution Brainstorming Ishikawa Fishbone Analysis Cause Effect Cause Analysis Decision Trees Pareto Analysis 5 Whys Lewins Force Field Analysis
Systematic Problem-solving Model

Problem identification Select solution Seek alternative definitions Implement Select definition Check and amend Evaluate possible solutions
Source: Adapted from Maylor
Thamhain & Wilemon

What are main causes of conflict in projects? Group exercise prioritise from following; Cost, Personalities, Priorities, Procedures, Schedules, Staffing, Technical Problems At what stage will some be more significant than others use 4 stage approach formation, early implementation, main programme, closing.
Thomas-Killman Model
5 Approaches to conflict resolution Avoiding what? When use? Forcing what? Accommodating why? Compromising isn`t this always the best way? Collaborating how does this work? Is it horses for course approach?
Brainstorming
Purpose
To generate a large number of ideas To stimulate creativity
Technique
The problem to be solved is described or stated Everyone participates, either in turn or simply by calling out in an orderly way A team member captures everything as said on paper/board No judgement or criticism of others suggestions: the group accepts outrageous, unrelated ideas Ideas are developed by building on others ideas When there are no more ideas, the exercise is over What are difficulties of using this technique in work environment?
Ishikawa Fishbone Analysis

Purpose
To visually represent in specific categories the probable causes of a problem To help people visualise a problem and structure its analysis
Process
Identify the problem and place it in the Effect box. Trace the process through all stages to identify all possible contributory causes. Use the Brainstorming technique to consider all the possible causes that may result in the Effect. Group possible causes under headings (for example, the 4Ms: Methods, Manpower, Materials, Machines; or steps in the process being analysed).
Example of Fishbone Diagram

MACHINERY MANPOWER
Insufficient space at locations Incorrect tube pattern Mixed or misplaced stock Labelling on lowest rack
Incorrect quantity at location Counting
Poor quality staff training
EFFECT Error in item stock control
No stock stickers Loose components Loose end stops Uneven tube lengths
Consecutive rack numbering Excessive movements
Poor procedures
Returns
MATERIALS
METHODS
Cause-effect-cause Analysis
Purpose
To overcome stagnation in solving problems that are complex and difficult to structure To identify the root cause of a problem
Technique
Best results emerge when a skilled facilitator is available State the problem and identify the effects Explore how the effects relate to one another Use why and how successively to explore causes of the observed effects Form a cause-effect diagram on which action can be taken see p 59/60
Decision Trees
Purpose
To identify likely outcomes and probabilities in a problem To calculate the expected value of possible outcomes
Technique
Identify the scope of the decision to be taken Identify sub-decision points Identify the outcomes and probabilities possible from each decision point Calculate the expected values for specific routes through the tree May 07 Exam paper Q 5
Session 4
Contemporary Approaches to Managing Projects
Learning Outcomes
Explain the 6 approach and what it seeks to achieve Identify the eight key processes and requirements of PRINCE2 and evaluate the effectiveness of this approach to project management Analyse the key requirements of Critical Chain and explain how projects that use CCPM can achieve better results than other methods Explain concept of theory of constraints
Six Sigma
A continuous improvement method Motorola, 1986 Since applied and popularised by others, for example, GE and Honeywell Aim To profitably improve the quality of products and services to the customer Statistically, a defect rate = 3.4 defects per million opportunities 99.9997% perfect Is this always appropriate? Requires major investment in time and resources
Six Sigma
Key characteristics: Focuses on the customer's critical-to-quality needs (CTQs) V.O.C.- what are they? How establish? Concentrates on measuring product quality and improving process engineering
Gives top-down, project-driven process improvement and cost savings

Is a business strategy execution system and so is truly cross-functional Provides focused training with verifiable ROI Is business results oriented Advanced Has Project 3 key component areas Process Improvement, Management Process Design (Redesign), Process Management
Process Improvement - DMAIC

Define
the project goals and customer deliverables the process to determine current performance
Measure
Analyse
and determine the root causes of defects

the process by eliminating defects
Improve
Control
future process performance so that improvements can be sustained
Process Design (Redesign) DMADV

Define Id and set goals Match/measure benchmark against customer needs/expectations Analyse performance measurements & outline enhanced processes to meet customer needs Design/implement new processes in detail Verify controls to ensure compliance
Process Management
Changes how organisation is structured and managed 4 Steps are ; 1) Understanding processes and customer expectations 2) Continual measurement 3) Analysis of data 4) Responding to variances
Is 6 Sigma a project management tool?
Benefits of Six Sigma

Direct benefits
decrease in defects reduced cycle time lower costs to provide goods and services. data-based decisions sustained gains and improvements better safety performance fewer customer complaints
Indirect benefits
improved customer relations and loyalty team-building effective supply chain management increased margins greater market share world-class standard development of staff skills
Statistical Basis of Six Sigma
Prince 2
Originated by UK Gov in 1989 Prince 2 - 1996 Designed for public sector I.T. Projects Now generic approach for all types of project 8 stage model see Fig 6.1 page 67 and note the 8 inter-reacting stages plus external stage of Corporate Management goup ex read and evaluate
PRINCE2 (Projects In Controlled Environments)

Key processes
Directing the project Planning a project Starting up a project Initiating a project Controlling a stage Managing product delivery Managing the stage boundaries Closing a project
Project management
Project Board:
Project assurance Project support
Project manager Documentation:

Quality log Issues log Risk log
Bureaucratic controls Emphasis on early conflict resolution
Prince 2
Group exercise What are advantages and criticisms re this approach? See p 69 agree with OGC claims?
Critical Chain
Traditional project estimation techniques ineffective: Time and resource constraints usually violated, for example, People have to multi-task see p 71 General Uncertainties Departments include safety margins Parkinsons Law Goldratt pass on delays but not advances Student syndrome (last minute) So, PMs rely on padding of schedules and budgets to provide slack Unknown nature of event interaction Maylor, 2003, Meredith & Mantel, 2005
Theory of Constraints Approach

Project cannot move faster than slowest process convoy effect or weakest link Approach is to manage bottlenecks (constraints) Activities with several predecessors and/or successors Add time buffers at bottleneck events Safety stock has equivalent in manufacturing Just-in-case equivalent to JIT Statistically-derived path buffers Establish the critical chain for scarce resources Prioritise resources in chain events
Meredith & Mantel, 2005 and Goldratts Theory of Constraints
Constraints 2 see p 72/73

Main stages of the TOC approach: Identify the constraint (critical path/critical resources) Exploit the system constraint ie work it to its maximum capacity
Subordinate everything to the constraints

Elevate the constraint find additional resources for it Go back and find new constraints May Exam Case Study Q 1 Advanced Project Management
Session 5
Exploring the Stages of a Project
Learning Outcomes
Identify and explain key stages in a typical project. Explain the tasks during project initiation and definition Explain what is involved in developing a project plan and budget and in evaluating project risk Explain how a project might be structured and resources recruited, organised and allocated Identify key methods of measuring and controlling project performance and recommend an appropriate approach for a project Explain what is involved in the closure of a project Explain what is involved in the review and evaluation of a project and the learning stemming from it
Stages of a Typical Project

1. 2. 3. 4. Initiation and definition Planning Organisation and implementation Measurement, monitoring, control and improvement 5. Closure 6. Review, evaluation and learning Not directly comparable with earlier examples of life cycle models
Lysons
Stage 1 Initiation and Definition

Whats involved Identifying project goals Listing project objectives Determining preliminary resources Identifying assumptions and risks
Tools & techniques
Financial appraisal Project initiation document (PID) Quality Function Deployment Risk analysis & risk/impact matrix Suitability/feasibility/vulnerability Voice of the customer
Stage 1
Needs to consider; Project selection sacred cow, operating necessity, competitive necessity, product line extension, comparative benefit what do these mean? Numerical selection methods unweighted factor (how many boxes does it tick), unweighted factor scoring ( what marks does it score in each box), weighted factor score (which boxes are more important) See P79 - discuss
Stage 1 - continued
Scope/outcomes what is excluded? Timing Resources what types? What R.O.I? Resources. Cashflow Risk Impact how? Likelihood/impact V.O.C. remember 6 sigma
Stage 2 Project Planning

Whats involved Identifying activities Estimating time and cost Sequencing activities why important? Identifying critical activities Refining the plan Updating the initial risk analysis Writing the project proposal
Tools and techniques
Project initiation document (PID) Work breakdown structure what/who/where/when Network diagrams and CPA QFD Risk analysis & risk/impact matrix SIPOC see session 7
Stage 2
What will be involved? Range and scope Sequence often critical why? Why written plan? How used? Project creep Timing & Costs assess spending against likely achievements not time spent on activity why? Budgets top down/bottom up? Use of Critical path analysis significant aspect at this stage why?
Stage 3 Organisation and Implementation

Whats involved Determining personnel needs
Recruiting the project manager Recruiting the project team Organising the team Assigning work packages
Network diagrams and CPA Seven tools of quality control Problem-solving tools Risk analysis & risk/impact matrix Team roles (Belbin)
Stage 3
How project team is set up! How does existing organisational structure impact upon this? Group exercise - What attributes do we need on the team? Where do Belbin, Tuckman, Maylor models fit in this aspect of project management? Cross functional teamworking issues, problems
Stage 4 Measurement, Monitoring and Improvement

Whats involved Defining management style
Establishing control tools Preparing status reports Reviewing the project schedule Issuing change orders
Tools & techniques
SIPOC Problem-solving tools Seven quality tools QFD
Stage 4
Consider both Organisation & Project Team Structure What is appropriate management style vary depending on project type/nature? How control project? which methods? Reporting process to whom? Deadlines key stages How/when review/evaluate progress? How communicate change? Important at this stage to refer back to original proposal why?
Stage 5 Closure of the project

Whats involved Obtaining client acceptance
Installing deliverables Documenting the project Issuing the final report
SIPOC Seven quality tools
Stage 5

Have we met project aim? V.O.C. Implement project do it! Does it work? Why record the process used? Learning is crucial can be more important than project itself? Why? Report to who? Finality Team feedback Closure
Stage 6 Review, Evaluation and Learning

Whats involved Conducting a project audit
Learning lessons (from successes and failures) Communicating the review, evaluation and learning
SIPOC Seven quality tools (including cost of quality) Project review
Stage 6
Audit process did we achieve success? Who audits? Internal? External? Audit only at end of project? Is on-going audit preferable? Why? What are problems/drawbacks re auditing? Learning Kolbs learning cycle
Spec exam paper Q 4
Session 6
Tools & Techniques for Data Collection, Analysis and Decision Making
Learning Outcomes
At the end of this session candidates will be able to: Utilise a range of tools and techniques to assist in data collection, analysis and decision-making: Appraise appropriateness, selection and implementation of the tools and techniques available to the project team
Project Management Tools

Seven tools of quality control Financial appraisal Voice of the customer Quality function deployment Project initiation document (PID) Moments of truth Risk analysis and assessment (risk mitigation) Risk/Impact matrix Suitability/feasibility/vulnerability
Evaluating PM Tools and Techniques

Appropriateness
Show that you can pick the right tool for the task
Selection
Show that you are aware of the limitations, as well as its capabilities
Implementation
Show that you can use the tools correctly
Ishikawa 7 Tools of QC
Flowcharts graphical depiction of process Check sheets simple log of occurrences of specific event/problem Pareto Fishbone diagram Histogram bar chart shows data in grouped frequency distribution Scatter diagram eg correlation between advertising spend and sales Statistical Process Control charts control limits re acceptable performance/tolerances
Risk Assessment
What is the situation to be assessed? What can go wrong? (What are the hazards?) What is the probability that each hazard will occur? What are the consequences if it does go wrong? What is the uncertainty of our risk assessment? Summary probability, impact and uncertainty Recommendations
Risk vs Uncertainty
Risk When the decision maker knows the probability of each and every state of nature and thus each and every outcome. An expected value of each alternative action can be determined Uncertainty When a decision maker has information that is not complete and therefore cannot determine the expected value of each alternative
Financial Appraisal
Payback period time to recover initial investment
through estimated cash inflows from the project
Average rate of return (ARR) average annual

profit average investment
Discounted cash flow (DCF) present value

method
Internal rate of return (IRR) rate of return that

equates present value of cash inflows and outflows
Profitability index NPV of all future expected

cash flows initial cash investments
Quality Function Deployment

QFD = VOC Final design/outcome = customers needs See p 109/110 for worked example
Service Quality
Moment(s) of truth An interaction with a customer SAS in 1980s: Average passenger was in contact with five SAS staff per trip Five million passenger journeys a year 25m opportunities a year to satisfy or dissatisfy customers
Dimensions of service quality Access Communication Competence Courtesy Credibility Reliability Responsiveness Security Understanding Tangibles
Parusuruman, Zeithaml & Berry
Risk/impact Matrix
Low High
Impact
High
Probability
Tolerance threshold (depends on organisation)
Low
Session 7
Systems and Processes in Project Management
Learning Outcomes
Demonstrate the approach of systems thinking and process focus using process mapping techniques and procedures Explain end-to-end processes Construct a flow chart for a process Explain the interfaces and swim lanes Explain the workings of critical chains software and its impact on projects Appraise appropriateness, selection and implementation of the systems and process techniques available to the project team
SIPOC Mapping
Suppliers
Inputs
Process
Outputs
Customers
Flow-charting Processes
Purpose
To describe the flow of a process
Process
Identify the process to be charted. It should have defined inputs and outputs and an owner. Define the start and end of the process with a circle or oval. Identify the major steps and represent each with a rectangle. Start the description of each step using a verb (doing word), for example, measure diameter, collect from stores. Show decisions as a diamond with no more than two outcomes (for example, yes and no) Represent the flow through the process with lines, using arrows where necessary for clarification, for example, up-arrow where flow returns to a previous step.
Work Breakdown Structure

Lists tasks to be completed assigns responsibility for each task Can`t eat an elephant Supported by Linear responsibility chart who owns task and where cooperation between depts or individuals is required Gantt Charts measures actual and planned progress quickly highlights overruns resource planner even out demand for resources
Interfaces and Swim Lanes

Activities organised into channels each one representing the responsibilities of individual, dept or organisation Highlight processing gaps and inefficiencies Focus attention on high-risk areas where work is transferred between groups the interface See p 135
Critical Path Analysis

Use Profex p 114 118 Worked example Crashing the project Pert use of estimates of likely duration of activity, optimistic estimate and pessimistic estimate to calculate mean time and standard deviation re activity. Then use of probability statistics to estimate likelihood of over-runs Gert uses concept that some activities may fail & need repeating use of statistics to estimate likely occurrence and costs of such events
Session 8
Techniques for Purchasing and Logistics Projects
Learning Outcomes
Identify a range of purchasing and logistics projects Identify characteristics that differentiate these projects from projects in other functional areas Apply and appraise the usefulness of standard project management tools and techniques for purchasing and logistics projects Apply computerised project management systems for purchasing and logistics projects
Examples of P and S Projects

Group exercise what projects are currently running in your org purchasing function? What is your involvement? What are key objectives? What are main difficulties and constraints?
Characteristics of P and S projects

Specific Time Constrained Limited Resources Cost Reduction Product performance Overcoming reluctance to change by internal stakeholders Including int. Stakeholders in project getting their commitment Accessing variety of data internal & external Securing significant added value for org. Develop good external relationships with suppliers
Managing P and S Projects

Group exercise Applying concepts and models which of those examined so far do you use in your organisation? Applying tools and techniques which work best in your org? Applying software which do you use? How effective is it? What are advantages? See next slide
Software Systems
Provide support in: Tracking contracts Tracking responsibilities Tracking activities Communicating Integrating E-tendering Evaluation criteria The nature of the products Ownership of the code Stability of requirements Software maintenance and development
Software Systems
Group exercise What are main benefits in using software packages for running projects? What are the disadvantages?
Session 9
Key Factors in Successful Project Management
Learning Outcomes
Evaluate the elements of the iron triangle and their interdependency Contrast the iron triangle approach with the contingency and critical chains (crashing) approaches Analyse and identify process-based factors in the success and failure of purchasing and logistics projects Explain the requirements of effective project leadership Appraise the qualities and characteristics of a successful project manager Analyse and explain the characteristics and importance of teamwork in a project Analyse the extent to which people management and leadership issues contribute to success and failure in projects
The Iron Triangle

Quality
Constituents of objectives: Purpose End result Success criteria
Cost
Time
Iron Triangle
Standard idea Simple concept Relatively simple factors to measure Relevant for all projects at least in part Need to clarify objectives of each clearly at outset Fundamental to negotiations However remember targets will probably change during project lifetime
Contingent Approaches - no
one best way it depends
Developed during the 1990s to overcome weaknesses in the previous one best way approach Loose framework of approaches use most suitable for the circumstances Emphasise and cater for: Strategic context of projects with their wide range of stakeholders Developments in technology New management methods, for example, virtual teams Development of more capable PM software
Contingency approach 2
Project managers integrate: Resources Knowledge Processes Means using one approach (or more) appropriate to the circumstances (contingencies)
Crashing Project Float

Crashing is the process of reducing time spans on critical path activities so that the project is completed in less time Usually involves greater cost:
Overtime working Allocating additional resources Subcontracting
Cost
Effect:
Time
Responsibilities of a Project Manager

Responsibility to the parent organisation
Responsibility to the client Responsibility to the team members Above all, the PM must never allow senior management to be surprised
Being prepared to give bad news
Key Activities of Project Managers

Shaping goals and objectives project goal inevitably changes Obtaining resources easy? Building roles and structures for their team followers make their leader Establishing good communications Seeing the whole picture strategic vision Moving things forwards (especially in difficult circumstances) - driver
Role and Skills of the Project Manager

Background and experience relevant to needs of project Leadership and strategic expertise for the big picture Technical expertise for sound decisions always? Interpersonal competence and people skills to champion, communicate, facilitate, motivate, and so on Proven managerial ability for getting things done Weiss & Wysocki
Skills
He who has not walked the road, does not know the potholes Confuscius Group exercise Agree with Confuscius? What other skills does project manager need?
Factors Affecting the Project Managers Role and Style

Nature of the task Organisational structure Organisational culture Individual motivations of the team members
Style: Cooperation Coercion
Maylor
Four Roles for Project Managers

Leadership the vision and style Motivation managing expectations and
rewards
Team building skills mix and cooperation

between members
Communication different aspects and

different stakeholders
Project Teams
Personality theories, for example, Belbin based on:
Intelligence (high/low) Dominance (high/low) Extraversion/introversion Stability/anxiety
Team activities
Content what the team does Process how the group works Task processes Maintenance processes
Team dynamics
Forming Storming Norming Performing Mourning
Project Teams
Teams make projects succeed agree?
Who is in team? Temporary? Cross functional Conditional Crisis? Virtual teams? core peripheral team members
Belbins Team Roles

Implementor
Coordinator Shaper Plant Resource investigator Monitor evaluator Teamworker Completer/ Finisher Specialist
Organising; practical
Welcoming; strong sense of objectives Drive Genius Knows a man who can Judgement; critical reasoning Promotes team spirit Perfectionist
Inflexible
Ordinary intellect or creativity Prone to impatience and provocation Up in the clouds Soon loses interest
Unimaginative; not inspirational Indecisive Tends to worry about nothing Uninterested outside own area
Technically specialised
Dimensions of Project Success

Efficiency meeting the budget and
schedule
Customer impact/satisfaction
complex to define and evaluate what is their perception of success/failure? Does it match yours?
Business/direct success delivering a

result for the business
Future potential again, somewhat difficult

and nebulous to ascertain
Meredith & Mendel, 2005 See also work of Westerveld Profex p180 para 1.10
Critical Success Factors in Projects

Clearly defined goals Competent project manager Top management support Competent project team members Sufficient resources allocated Adequate communications Control mechanisms Feedback capabilities Responsiveness to clients Troubleshooting mechanisms Project staff continuity See p 158 slight variance
Pinto & Slevin (1987) in Slack, Chambers & Johnston
Critical Success Factors

Westerveld Leadership & Team Policy & Strategy Stakeholder management Resources Contracting Project management itself scheduling, budgeting etc
P180 para 1.11

Ten Ways Projects may Fail

1. Failure to appreciate the impact of a multi-project environment on single project success 2. Irrational promises made due to a failure to take into account the variable nature of task performance 3. Irrational promises made due to a failure to take into account the statistical nature of project networks 4. Insufficient identification of dependencies 5. Focus on, and active management of, only a portion of what should be the full project 6. Reliance on due-date and wasting of any safety included in the project 7. Wasting of resources through sub-optimal utilisation 8. Wasting of the best resources through overuse, multi-tasking and burn-out 9. Delivering original scope when conditions/needs change OR accepting changes to scope without sufficient impact analysis 10. Multi-tasking Group ex what others can you add?
Project Failure
Consider Greer p 159 table 11.4 Do you agree with these? Are they more logical than those selected on previous page?
Session 10
Project Management and Strategic Practice
Learning Outcomes
Critically evaluate the key characteristics of the various forms of organisation structure and culture and their consequences for project management Explain the key factors for consideration in choosing the best organisational structure for a project Critically evaluate the use and value to organisations of project management maturity models Evaluate the relationship between the business excellence model and the project management excellence model Understand and explain what is meant by knowledge management and organisational learning Demonstrate the strategic benefits and advantages gained through knowledge management and organisational learning Appraise the impact of a organisational learning on the management of projects in purchasing and logistics
The Functional Structure

The project
Advantages The owning division should have the relevant expertise Specialists can share their knowledge and overtime expertise accumulates It provides a clear sense of ownership and ensures continuity
Disadvantages It may engender a silo mentality. Other specialists may not be consulted Routine work may take precedence over the project Motivation may suffer if the project is perceived as a professional diversion
The Project Structure

Advantages Manager has full authority over the project with senior management backing Grouping necessary resources in the project ensures rapid decision making Relevant expertise is drawn from other parts of the organisation The project team has a strong sense of identity and common purpose
Disadvantages
Project A Project B Project C
It is suitable only for larger projects as it is expensive to resource Isolationism can develop leading to an us and them culture Team members may lack technical expertise or understanding of user needs
The Matrix Structure

The project
Advantages An individual project manager takes responsibility, usually with strong senior management support Relevant resources are allocated as required, giving flexibility as well as expertise
Disadvantages Decision-making power may still reside outside the project team Members are likely to be working only parttime on the project and have at least two managers, which may cause anxiety There may be a high level of competition and in-fighting for resources
What is Organisational Culture?

The deeper level of basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisations view of itself and its environment
E. Schein (quoted in Johnson & Scholes)
A Typology of Culture
Type of culture Power Role Representation A web spider power from the centre A Greek temple columns highly defined structure large, hierarchical orgs A net or matrix suit project/problem solving teams power from knowledge A cluster members superior to the org.
Source: Handy, Understanding Organisations
Task
People
Culture and Management Approaches

Characteristic of culture Impact on management style
Anglo-Saxon cultures Highly centralised authority International culture
Delegation a preferred managerial style It is PMs responsibility to seek out information PM cannot count on being voluntarily informed of problems by subordinates Participative management is difficult to practise; there is an assumption that the more educated, higher-class managers authority will be denigrated by using a participative style The less direct managerial communication tends to be
Adapted from Meredith & Mantel, 2005
Highly structured social classes
Highly structured social system
Culture
Group exercise Why is it important for a project manager to be aware of cultural issues within an organisation?
Organisational Readiness
The organisation places a high value on serving customers The commitment of senior managers is long-lasting Key staff departments are positive about the prospect of change The organisation has the human resources needed The organisation had the financial resources needed The organisation as a whole recognises the need for fundamental change The organisation has none of the complacency and arrogance that often follows a sustained period of success The organisation is free of the scepticism, mistrust and ambivalence that often follows a period of change The organisations experience with TQM has created an environment that is receptive to change
Hammer & Stanton
Project Management Maturity Matrix
World-class Wannabes Improvers Flat-liners
Flat-liners Improvers Wannabes
Little or no progress in project performance Mistakes repeated; performance stays flat Some improvement Performance improves slightly over time Follow every initiative going in order to catch the leaders Set ever-increasing standards of performance
World-class performers
Project Excellence
Project excellence comprises cross-functional processes, project decision making, and team organisation that enable firms to bring highquality products to market rapidly. Project excellence builds on functional excellence (that is, when a function has the necessary resources, along with standards, procedures, and tools, to be effective and efficient). Four major elements are required to deliver projects effectively. These elements include the people and processes involved in development: project governance, a defined development process, project core teams, and the project decision process are the four elements.
Project Excellence Model

Organisational areas
Policy & strategy
Results areas
Appreciation Client Appreciation Project team
Environment Leadership and teams Means Project management Appreciation Users Appreciation Ind. parties Appreciation Contractors Feedback
Project results
Source: Westerveld
Contracting
EFQM Business Excellence Model

Enablers
People Management ( 9% )
Results
People Satisfaction ( 9% )
Leadership (10%)
Policy & Strategy ( 8% )
Processes (14%)
Customer Satisfaction ( 20% )
Business Results (15%)
Resources ( 9% )
Impact on Society ( 6% )
Knowledge Creation and Management
Socialisation
Sharing experiences
Externalisation
Articulating tacit knowledge explicitly
Internalisation
Learning by doing
Combination
Building a knowledge system
Tacit knowledge
To
Explicit knowledge
A Learning Organisation is
Capable of benefiting from the variety of knowledge, experience and skills of individuals through a culture which encourages mutual questioning and challenge around a shared purpose or vision.
Johnson & Scholes
Characteristics of a Learning Organisation

Existence of conflicting ideas and views Tolerance of failure Acceptance of ambiguity and uncertainty with their attendant risks Surfacing of assumptions and explicit debate widely within the organisation Tolerance of a diversity of views Tolerance of organisational slack
Using Learning and Discovery

Start with a loose project approach built on many assumptions which are known Accept the risks associated with the uncertainties Track and review assumptions on a regular basis Modify the assumptions and activities in the light of experience Gradually learn what works and what doesnt

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Advanced Project Management