Effective Project Management Processes (PROJ6000)

Benefits to an Organisation

Effective Project Management Processes

Benefits to an Organisation

Amanda MacKinnell

Good afternoon, my name is Amanda MacKinnell and as part of Module 5 I am presenting my assignment of Effective Project management processes, focusing on the benefits that these bring to an organisation.1

Introduction

The need for Project management processesRisks and Risk ManagementTechniques for Controls and Reporting

OverviewProject Management calls for:Establishing the need & bringing together people to deliver the projectIdentifying the requirementsPlanning the project, including Scope, Charter, WBSManaging changes to scopeControlling the work undertaking so that it completed on schedule and within budget.

As an overview, and as we are instructed by a number of learned persons (and my references are cited at the end of this project) effective project management calls for

Without these, a project is likely to run off track, causing significant over-runs in cost, ill-feeling in the organisation and waste. No organisation wishes to see a negative return in a project, and so effective techniques and appropriate use of controlling processes should be adopted by a project management to ensure a successful outcome for all involved.3

Process groups & Best Practice Changing from Planning mode - > ControllingSolid planning leading to smooth, light touch controllingConcept of PM techniques as being supportive, steering them away from risks.

These process techniques becomes especially important once a project moves out of the planning and implementation phase into the development and execution of the project. This is where the risks are likely too make themselves felt, and as the rubber hits the road challenges will arise. These will cause issues in even the best run of projects but it is how they are controlled from the outset that will reduce their impact.

It should be noted that it will cost increasingly more to redress issues, the longer they are allowed to influence the project, leading to wastage and increased costs negative for any organisation.

Importantly for a project manager, who should set the tone and context for a project, as well as admit the organisational culture to shape many of the routines (as appropriate for the country the project is being conducted in for a start noting this is a study of global project management) . The emotionally intelligent Project Manager will recognise that solid planning and the effective use of controls will allow for a light touch on the steering wheel, allowing for employees to feel empowered and be more willing to report honestly on progress, issues and hazards which can then be incorporated into the projects change management processes and reporting.

Allowing workers to see these project management techniques as supportive and defensive, rather being punitive eg. Encouraging the number of Hazard Identification submissions and innovative approaches through monetary or other rewards in one project, the Job Sponsor and I presented embroidered jackets to a team of three drivers who had evolved a new system of lights for the trucks to indicate what ore they were carrying and which road pattern they were following. This system would allow for drivers, particularly at night, to indicate to each other what route they would be using, allowing for forward planning for other equipment as well as monitoring by the shift boss to ensure no high-gold loads went astray!By encouraging the reporting of risks, the workers felt that they were encouraged to use safe systems of work, and the reportables for the project dropped significantly. This was of great benefit to the organisation as it reduced waste through lost ore dumping, prevented damage through collision and encouraged the identification of other opportunities for improvement. 4

Risk Management Too frequently done perfunctorily or without consideration to future issues.Consequences of not addressing RiskSpiralling costsWaste of resourcesLost Time InjuriesHR Issues includingUnion Action

There are many approaches to risk management, some are perfunctory, with the identification of even the most trivial of risks being considered earth-shattering. The ISO standard and PMBOK present risk as being an occurrence which will have an impact on the projects objectives. The important thing for us to note is that this does not limit risks to being strictly negative and we will touch on that more shortly, but allows for risks and incidents to be treated as opportunities if an organisations culture can understand why such an approach has merit and value.

There are significant consequences to not addressing risk. I am an advocate of identifying risks by use of the Delphi model with a numerical overlay as shown in order to map it more closely against the issue as it is identified and included in a projects Risk Register.

The Delphi model allows for clear identification of which projects should be treated and to what degree, and this can be further measured against elements of the project eg. HR, damage to equipment, Environment Costs and Schedule this is shown when we get to reporting.

The consequences of not treating risks, include spiralling costs as delays occur, as resources are wasted due to spoilage, incorrect delivery or exposure to the elements, Lost time injuries occur especially when personnel are tired, disregard safety practices or use unsuitable equipment. This can also lead to HR issues, nasty when unions get involved and strikes occur, but unhappy workers will often vote with their feet and leave causing further delays, or it becomes harder and harder to source personnel for an unhappy project, demanding higher rates of pay, increasing a projects cost, and damaging the organisations reputation. All circumstances that a socially responsible organisation would wish to avoid.5

Methods of treating and mitigating Risk Project ControlsPositive versus Negative RiskScheduling & the Telescopic approachSecondary and Passing risks.

To discuss the Methods of treating and mitigating Risk, I draw upon a graphic, so loved by Wysocki for explaining how a projects progress is moving, particularly appropriate for the health of a project! There are a number of methods of treating and mitigating the projects risks, and these should be included in part of the projects controlling documents. I am a particular fan of the Delphi approach comparing likelihood and frequency, and this can be reflected across the WBS and the projects schedule.

It is important to note, as we advised by Sanghera and PMBOK, that not all risks present negative issues to a project, but in fact represent improvement opportunities when identified and handled in a robust manner. This process of mitigating against risk, to gain positive benefit can be observed if a supplier no longer can source sufficient stocks of an item, but can offer a higher quality product in lieu at the same rate. Using the established change management procedures to evaluate the proposed change, consideration by the Change Control board and thorough documentation in the Change register can contribute positively to the ongoing health of the project It also empowers stakeholders to make such decisions, and turns what could be a problem into a value add to the project if handled effectively.Additionally, it should be noted that risks vary in how the affect the progress of a project, especially the more complex and long running types. The change in seasons, political and social events (eg. The caretaker mode prior to an election can halt decision making) can all influence how a project progresses. These can be mitigated against in the schedule, with certain sign-offs being brought forward once it is apparent an election is likely to be called. Care should be taken that these treatments do not cause the secondary risks highlighted by Sanghera and PMBOK, and other risks may be treated best by passing them to other companies better placed to absorb or combat that risk. 6

Tools & TechniquesFormal & Informal strategiesTimeliness of reporting Developing Credible, weighted information to shape reports and dashboards

Project Overall StatusProject Health AssessmentCurrentPreviousTrendFinancialScheduleQualityHREnvironmentIssuesStatusExplanationPoor weather has hampered drilling and exploratory workPV slippageSlippage due to WXWork remains incompleteNil LTINo incidents reportedUpcoming election could lead to Hr issues with unions on site

The tools and techniques we are taught by PMBOK, Sanghera and Wysocki for managing the project include PERT charts, gathering hard data especially in the financial side, Risk and Issue registers, including daily Job Hazard assessments being completed by workers these may act as an early warning flag to a larger issue brewing.

Maintaining a weather eye on the daily briefs and status reports against the forecasts and also the: progress of stories on the Scrum boards. It is essential to be part of the projects culture, and be present to observe the day-to-day conduct of the work and the teams appetite to undertake their assigned activities.

Collecting both the formal and informal data allows for the compilation of reporting again, I prefer a grapghical representation as it can be clearly understood by most sectors. 7

SummaryThe Steering rather than Controlling approachRisks used for identification of positive opportunitiesMaintaining and communicating a clear picture of the projects status

So, to summarise: A well planned project allows the Project manager to take a steering approach rather than that of direct controlling, right down to the last detail. This relies upon a rust in the framework that has been established, and careful adherence to best practice approach, allowing of course for the organic needs of the project. Care should be taken that the project itself does not take charge, but is still being driven along the path of safe progression by the project team.

A principle I firmly believe in, and is reinforced by the collegiate voice of the referenced authors , is that the identification of risks and associated controls can be used to achieve positive results in a project, when they are identified and treated in a timely manner. Turning what could be a show-stopping problem into an opportunity to improve the project and its outcomes is a rewarding experience for all involved.

Finally, drawing on the projects controls, and utilising the measurements against the WBS, project plan and Costs allows for the development of a clear and accurate picture of the projects status. These metrics can be used to inform the stakeholder community, pitched at the correct level, in the easy to understand graphical representation that Wysocki in particular endorses. Keeping people, especially stakeholders informed, is a large part of ensuring your projects satisfactory outcomes and being invited back to do this all again!

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ReferencesProject Management Institute. (2013).A guide to the project management body of knowledge(PMBOK Guide)(5thed.).NewtownSquare, PA: Author [Vital Source e-reader].Sanghera, P. (2010).PMP in depth: Project management professional study guide for the PMP exam(2nded.). Boston, MA: Course Technology [Vital Source e-reader].Wysocki, R. K. (2012).Effective Project Management: Traditional, Agile, Extreme(6thed.). Indianapolis, IN: Wiley

The references consulted for this presentation specifically include..9

Speaker Contact InformationAmanda [email protected]+61(0)438878742

And finally, this is my contact information, many thanks for your time, if you have any questions, I would be delighted to have you contact me.10