Final Report - Shameer - July 20

Report on

Business Analysis of Social Service Organization

Arience Strategies,

Bangalore.

Prepared By:

C M SHAMEER

Registration No:

14010121101

Under the Guidance of

Dr Dolphy M Abraham Program Director – Doctoral Program,

Alliance University

In partial fulfilment of the Course-Industry Internship Programme (IIP) in the

Semester II of the

Master of Business Administration (Batch of 2014)

Bangalore

Master of Business Administration

Industry Internship Programme (IIP)

Declaration

This is to declare that the report entitled “Business Analysis of Social Service

Organization” has been made for the partial fulfilment of the Course: Industry Internship

Programme (IIP) in Semester II (Batch: July 2014-2016) by me at Arience Strategies,

Bangalore under the guidance of Dr Dolphy M. Abraham, Program Director – Doctoral

Program.

I confirm that this report truly represents my work undertaken as a part of my Industry

Internship Programme (IIP). This work is not a replication of work done previously by any

other person. I also confirm that the content of the report and the views contained therein have

been discussed and deliberated with the Faculty Guide.

Signature of the Student :

Name of the Student (In Capital Letters) : SHAMEER C M

Registration No : 14010121101

Master of Business Administration

Certificate

This is to certify that Mr C M SHAMEER Registration no: 14010121101 has completed the

Report entitled “Business Analysis of Social Service Organization” in “Arience Strategies,”

Bangalore under my guidance for the partial fulfilment of the Course: Industry Internship

programme (IIP) in Semester II of the Master of Business Administration.

Signature of Faculty Guide:

Name of the Faculty Guide: Dr Dolphy M. Abraham,

Program Director – Doctoral Program,

Alliance University,

Bangalore.

ACKNOWLEDGEMENT

First and foremost I would like to thank the Almighty God, my family members and

my friends for encouraging me to do this project work.

I express my sincere thanks and heartfelt gratitude to Mr Pramod Kumar, Managing

Director of Arience Strategies for allowing me to do my internship in Arience Strategies,

Bangalore. Mr Pramod Kumar made my internship very interesting with inspiration,

enthusiasm and his great efforts to explain things clear and simple. Throughout the intern

period, he provided me encouragement, sound advice, good teaching, company and lot of good

ideas. It was a great learning experience and he had helped me a lot in enhancing my

knowledge about the Project Management-Business Analysis. I find no words to express my

deep rooted thanks for his valuable guidance.

I express my profound gratitude to Dr Dolphy M. Abraham, Program Director –

Doctoral Program, Alliance University, for allowing me to work under his guidance. He has

provided valuable inputs to build my internship and has also been a constant support.

I thank Arience Strategies, Bangalore for granting me permission to do my project

work in its premises. I would also like to convey my sincere gratitude to all the staff, friends

and well-wishers who extended their fullest co-operation with regard to my project.

Finally, I thank Alliance School of Business for providing me an opportunity to face

the reality in the corporate world and I would like to thank all the ones that helped to bring out

this project work a great success.

C M SHAMEER

LIST OF CONTENTS

S.NO CHAPTER PAGE

No.

1 Executive Summary 1

2 Introduction 3

2.1 Introduction to Management Consultancy

Industry

4

2.1.1 Global scenario of Management Consultancy 7

2.1.2 Indian Scenario of Management Consultancy 8

2.1.3 Industry structure of Management

Consultancy in India

11

2.1.4 Porter’s Five Force Model 12

2.2 Company Overview 15

2.2.1 Philosophy and Vision 15

2.2.2 Organisation Structure of the Company 16

2.2.3 Operations of the Company 16

2.2.4 SWOT Analysis 17

3 Project Profile 19

3.1 Objectives 20

3.2 Methodology 20

3.3 Introduction to Project Management 21

3.4 Project Charter 24

3.4.1 Background / Justification 25

3.4.2 Goals

25

3.4.3 Objective 25

3.4.4 Scope

25

3.4.5 Major Deliverables 25

3.4.6 Stakeholders 25

3.4.7 Project Constraints 25

3.4.8 Project Milestones 26

4 Observations and Analysis 27

5 Findings 32

5.1 Organization Structure 33

5.2 Cost Structure 34

6 Recommendations 36

7 Conclusion 40

7.1 Learning Outcome 41

8 References 42

LIST OF FIGURES

Figure

No

Description Page No.

2.1 Organization Structure of Arience 16

3.1 Project Management Process 22

5.1 Organization Structure of Social Service

Organization

33

5.2 Cause and Effect Analysis 34

LIST OF TABLES

Table

No.

Description Page

No.

4.1 Expenses of the Social Service Organisation 28

4.2 Income details of the Social Service Organisation 29

4.3 Deficit of the Organisation per year 29

4.4 Breakup of ₹ 42,00,000 for different programs 30

5.1 Cost structure of the social service organisation 34

LIST OF GRAPHS

Graph No Description Page

4.1 Expenses of the social service organization 16

4.2 Deficit of the organization per year 22

4.3 Breakup of ₹ 42, 00,000 for different programs 34

5.2 Cause and Effect analysis 34

1

CHAPTER 1

EXECUTIVE SUMMARY

2

EXECUTIVE SUMMARY

Arience Strategies is a management consulting company which aims at achieving

excellence with convergence of different global standards and methodologies. Arience has

a team of highly experienced professionals which helps in providing consulting services,

project management support services, education and training services to diverse industry

sectors. Arience Strategies is a commercial consulting company which provides expertise,

support and project teams to the Arience Foundation in carrying out various social projects.

Arience Foundation undertakes various non- profit projects which are sponsored by

Arience Strategies. These projects help the MSME enterprises, rural cooperatives and

various social sectors in carrying out their businesses and solving their business problems.

It involves rigorous study of these social projects and deployment of global operating

standards in the fields of application.

Current scenario shows how such organizations are unable to perform to maximum

capability due to lack of cost planning, or lack of well-defined organization structure etc.

This report shows how the Project Management and business analysis was done for

respective Social Service Organization by providing them Organization Structure and Cost

Structure.

3

CHAPTER 2

INTRODUCTION

4

2.1 Introduction to Management Consultancy Industry

Management consultancy is the practice of helping organization to improve their

performance operating primarily through the analysis of existing organizational problems

and the development of plans for improvement.

Management consultancy often brings their own proprietary knowledge /

methodologies / framework to guide the identification of problems and to serve as the basis

for recommendation for more effective and efficient ways of performing work task. As a

result of their exposure to and relationships with numerous organizations, consulting firms

are also said to be aware of industry "best practices", although the specific nature of

situations under consideration may limit the transferability of such practices from one

organization to another.

Management Consultancy firm helps a company to identify future goals, current

skills and fault lines by using their best practices, branding and strategies, marketing

decisions, motivation and incentives , as well as technology adaptation, production line

efficiency and profitable accounting.

Assignments for management consultant:

1. Review an organisation's corporate objectives and strategy

2. Review an organisation's structure and staffing

3. Apprising, selecting, and determining the remuneration structure for executives

4. Preparing and implementing development programme

5. Improving revenue and profitability

6. Increase cost effectiveness

7. Introduce new or better management techniques such as information technology,

personnel incentives, asset management, and re-engineering.

8. Planning and controlling the execution of projects which are outside the normal

experience of the organisation's staff

5

Management consultant firm must have below characteristics:

1. Passion for acquiring knowledge and technical competence

2. Willingness to change and adapt new ideas

3. Recognize present paradigm and shift to new paradigm

4. Passion for give more than 100% all the time

5. High developed, motivated and intellect

6. Genuine concern and compassion for others

7. Vision

8. Courage

9. Sincerity

10. Ethics

Industry Trends:

1. Consulting Firms Accept Assignments with Contingency Fees

2. Accounting Firms Taking Large Market Share of Consulting Contracts

3. Many Industry Sectors Seek Consulting and Outsourcing Income, Competing with

Pure Consultancies

4. Major Corporations and Organizations Develop Internal Consultants and Seek

Outside Clients

5. Corporate Clients Want Solid Returns on IT Investments

6. Federal Government Consulting Is Curtailed in Some Agencies as Part of Budget

Austerity and Defence Cutbacks

7. Consultancies Position Themselves to Serve Global Markets and Multinational

Corporations

8. Off shoring to India Drives Changes in Global Consulting

9. BPO and KPO: White-Collar and Professional Tasks are off shored to a Growing

Extent.

10. New MBA’S desire consulting and accounting jobs.

6

Major Roles and responsibilities in Management consultant firm:

1. Analyst:

1.1 Collect data for company overview- interviews , surveys, market reports

1.2 Analytical Modelling- analysts do most of excel heavy lifting, models vary

from market segmentation to cost reduction.

2. Senior Analyst:

2.1 Client interaction

2.2 Develop complex models

3. Consultant:

3.1 Consultants own a work stream (work module) in the project

3.2 Analysis structure

3.3 Creating the sections client presentation documents

3.4 Interacting with the client on a day to day basis on their level

3.5 Managing upwards to engagement managers and the senior team members in

the firm

4. Engagement firms:

4.1 Client Work: Engagement managers own the overall responsibility of the

project management, management of junior team, analysts and consultants.

The senior team depends on them to get the work done according to quality

the standards of the firm and in a timely fashion. They interact heavily with

the client as the project leads

4.2 Marketing: Engagement managers market firm’s services to new/existing

clients, develop white papers about industries.

4.3 People Development: They participate in recruiting, screening candidates and

campus presentations, informal meeting with candidates, interviewing.

5. Principal:

5.1 Client work: Principals oversee client assignments part time or full time on

larger projects. They deal with senior executives with clients, usually at Vice

president or C-level.

5.2 Marketing: Principal usually are aligned to several key clients and develop a

market position. They forge a niche and want to be known in the firm and in

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the marketplace with that niche. They demonstrate thought leadership to build

firm’s offerings

5.3 Sales: Principal is often leads to write and coordinate proposals and participate

in sell meetings. They are in active contact with their set of key clients to

generate new leads. In some firms, they have sales targets

5.4 People Development: They are active in all aspects of recruiting and may lead

overall recruiting efforts.

2.1.1 Global scenario of Management Consultancy:

Global consulting industry revenue is about $449 billion in 2015 according to

Plunkett research estimates. This represents reasonable growth from $415 billion in 2014.

Growth in global trade has rebounded from the very low level of the recession. This fuelled

demand for consulting of all kinds including management, human resource and technology.

The growing globalization of business and industry in general led inevitably to the

globalization of the leading consulting companies. Major consultancies operate offices in

the most important business centres in Europe and Asia-Pacific as well as in North and

South America. Africa is the next consulting frontier, as rapid economic growth has been

enjoyed by a handful of African nations in spite of problems ranging from lack of

infrastructure to social turmoil and terrorism. Many consultancies operate worldwide and

have multi-ethnic, multilingual employee bases. In particular, major consulting firms have

opened large numbers of offices in Brazil, India and China in recent years.

India’s largest outsourced business and technology consulting firms were

complaining that clients were delaying or cancelling projects as 2009 began. However, in

recent years, corporate profits in general grew dramatically, meaning that executives are

now more willing to authorize new consulting projects as long as they see the potential for

a good return on the cost.

Firms with multi-cultural staffing capability and offers in strategic cities worldwide

will benefit in particular. Recent growth of developing nation economy gave huge

opportunities to the consulting firm’s special in the countries South Korea, china, Indonesia

8

and India both in government and private sectors contracts in industries range from

transport to health care.

Top 10 Consultancy Companies are:

1. Bain & Company

2. McKinsey & Company

3. The Boston Consulting Group

4. PWC Network (Formerly Booz & Company)

5. Deloitte Consulting LLP

6. PwC (Price Water House Cooper) LLP (Consulting Practise)

7. The Brattle Group

8. Oliver Wyman

9. The Cambridge Group

10. Accenture.

2.1.2 Indian Scenario of Management Consultancy:

India has been globally recognized for its fast paced development. The service

sector has been growing at a fast pace with a compound annual growth rate (CAGR) at 8.5

per cent for period 2000-01 to 2013-14 and it contribute around 57 per cent to the gross

domestic product.

In parallel, it leads to increasing demand for consultancy services, both for domestic

and foreign firms, a study by ASSCOHAM the consulting sector in India to grow at an

Compound Annual Growth Rate (CAGR) of 30 per cent.

The Indian consultancy industry reportedly stands at Rs. 13,000 Cr for the year

2008, by the year 2010 it was Rs. 17,000 cr. In the year 2013, the Management consultancy

industry crossed Rs. 22,000 cr. Indian consultancy industry has largest concentration in

Delhi and Mumbai followed by Kolkata and Chennai. As per ASSCHOM former president

Venugopal Dhoot, the US, UK, Japan, China, Saudi Arabia are competence with the India

Consultancy Firms.

9

Indian Consultancy Companies have strong capabilities of strong knowledge

human resource and strong economy such as India economy shown growth in areas of

automobile, power, aviation, infrastructure, service in every sector very Management

consultancy can grow, due to strong presence of IT sector make India consultancy services

as keep favourite place for consultancy service for Multi nation companies.

Latest Trends in Consultancy Industry in INDIA:

1. Fast Growth

The consulting industry is trying its best to accommodate the demand and big

consulting companies are merging the small consultancy companies.

2. One Stop for all solution:

Like any other industry, the consultancy industry made one stop for all solutions.

Knowledge management tools, practises, databases and internet make it possible

for consultancy to draw up knowledge of every type of solution to every problem.

3. Shortage of people:

Shortage of human resource became the greatest threat to the consultancy firms as

small consultancy firm’s unable to get well qualified people for their offers and for

big consultancy company’s attrition, high salary became problem. Some of

companies made an integrated MBA with colleges towards specific need of

consultants.

4. Nature of projects: Moving towards high end strategy consulting

Management consulting in India has traditionally about capital funding and market

size. Due to increase in competition due to globalization, many Indian companies

are using management consulting are using in their high end strategies which

includes reduce cost; implement new market strategies, relationship with

customers.

5. Public Sector:

Management consulting has entered into public sector as central and state

governments have identified the importance of management consulting. The

governments has realized the importance of data and analytical driven approach to

solve complex problems and farming policies at the macroeconomic level. For

10

example Gujarat government gave work of market assessment of the Rs. 78,000

crore Gujarat International Finance Tec-City (GIFT) to a top tier management

consulting.

Major challenges faced by Management consultancy firms in India:

1. Data:

Getting accurate and adequate data is a major issue in India. If we go by the inputs,

market assessment, feasibility or sizing assignments are very few and far between in

developed economies whereas India is replete with such projects. One should not be

surprise by the fact that Indian-based KPOs and analytics firms do an excellent job

crunching numbers for their foreign clients but struggle while coming up with such

insights for Indian clients and most of the blame lies with quality of data. The need for

3-4 types of ID proofs in India is another proof that data is not “proven” yet. So you

may have a hard time drawing meaningful insights out of them.

2. Experience:

With major consulting firms having less than two decades of presence in India and the

country witnessing major changes in the intervening period, one may still be some

distance away from being “too-old” to “know it all” as far as Indian landscape is

concerned. Similarly for the clients, one of the major reasons for their apprehensions

or expectations is their limited experience of engaging with the consultants.

3. Relation between firm and customer:

One of the major roadblocks is the inability of the prospective interviewees to

differentiate industry standards or information from strategic and confidential

information. But things may change if you have close contact that connects you with

the right person. It could also boil down to consultant’s capability.

4. Clients Requirements:

Indian clients are excepting far from what they want and what they offer, this leads to

major problem to the firms. Multi-tasking expertise are not available right now.

11

5. Competition:

In India, health competition is not healthy among small players they competition with

each other in terms of price wars not in terms of quality of service.

Other challenges:

1. Lack of proper management.

2. Inability to get new clients

3. Over promising results.

4. Lack of communication skills

5. Diversity

6. Different priority from place to place.

2.1.3 Industry structure of Management Consultancy in India:

The management consulting services across all industries and sectors, this leads to

create the industry into segmentation wise with each layer catering to a distinct set of needs

1. Global management consulting firms:

They have an edge over low –cost domestic players due to their experience and

knowledge investments. Their experience talent and deep relationship with clients

make them ideal for high-level strategy projects that require macroeconomic or global

perspectives. Majority of domestic businesses (especially SMEs) cannot afford their

services, leaving ample room for domestic players to bridge the supply gap, with a

much more viable value proposition in terms of service and fees. With near saturation

and declining profit margins at the bottom of the management consulting pyramid,

Indian consulting firms are moving up the value chain towards high-end technology

consulting. However, winning credibility as a management consulting firm is a huge

challenge. Indian IT firms realize these limitations and as a result, are now spending

increasingly on innovation and R&D.

2. Niche Management Consulting Firms:

They focus on particular Functions or set of industries. At smaller management

consulting firms, clients get a senior professional for the full duration of the project,

12

while a big-brand global firm typically offers blended packages with senior consultants

working part-time on strategy and junior associates overseeing execution. Rising talent

levels, flexible business models and competitive billing rates have helped these firms

to pit themselves against established players. With their hands-on experience with the

smaller domestic clients, they can spot emerging trends faster – making them best

positioned for projects that involve both strategizing and long-term execution.

3. Operational Consulting Firms:

These firms are both divisions of global firms or individual firms tackling operational

problems. These firms deal with projects that are more inward-looking for the clients

and include cost structuring, organizational change, supply-chain innovation.

2.1.4 Porter’s five force model:

Bargaining power of suppliers:

This is one of the major parts of the management consulting industry. These

consultancies are built upon the competence of their consultants.

It is important to have the knowledge of the company and the way they work as well

as the local knowledge and competence required at the subsidiary level.

However, it is not always available and the firm needs to find ways to recruit the top

talents and make themselves into an attractive employer.

It is crucial for a new company that enters the market to build its image not just for the

potential clients but also for potential employees. Being at job fairs, announcing

positions and marketing themselves in different ways will help them be more visible

and hopefully build an image that will attract competent people to their business.

This can also entail higher start-up costs since marketing can cost a lot and since there

is a lack of consultants their bargaining power for salary will be higher and probably

cost more for the company to hire people.

Another point to that is worth considering when entering a new market is if the country

or area can supply such competence. Some areas of the world do not have the literacy

rate or higher education that is required in order to bring people to the competence level

13

that management consultancies demand. This would be one of the crucial areas to focus

on since this is what builds the company.

Threat of new entrants:

The importance is to make sure that your company has an existing client relationship

and image within that market.

As one barrier, it might create greater cost to enter the market.

As a management consultancy, it is important to keep up with the trends and desires

from companies. Seeing where the problems seem to lie and where companies are

willing to spend their money.

Keeping to the same tactic might cause difficulties for the company in the future if

others come with better services and solutions.

Bargaining power of buyers:

Consultancies build their customer base upon relationships and referrals from satisfied

clients. It is important to foster a good image so that the clients feel confident in that

they know what they get. There should be substance behind the image.

However, since services are consumed at the same time as you pay for it, it is not easy

to examine the quality before the buy. That is why referrals and satisfied customers,

who can spread the word about the company, are essential and lead to ways of gaining

more business, either from existing clients or through new clients.

One big difference that exists between some manufacturing firms and consultancies is

the quantity of customers available.

If it is a new company, it is crucial to have some ties to the market from existing clients

who are able to improve the company’s image on that market. Therefore, it is important

to analyse the potential clients in the market.

There will always be different trends showing what area will be slightly more

prosperous to look into. For example, Corporate Social Responsibility has been a hot

topic and area to work in, however, as all companies see it as a basic part to have in

their business, it has become institutionalized and companies know how to deal with

this area.

14

Fostering and caring for the clients relationship makes sure that the company will have

a stable growth. Never be satisfied with the clients you have, always see potential for

more.

Consultancies are much affected by the economic development in the country or area.

If the companies do not have money to pay for their services, they won’t hire the

consultancies and therefore there will be less business for them. In bad times, it is good

to have stable and long term relationships with certain clients to ensure perseverance.

This leads us into ensuring perseverance in the face of substitutes.

Threat of substitutes:

It is important to be more specialized focused, but broad enough to cover areas that can

potentially foster business for the consultancy.

Having the right competence and knowledge to enable the consultancy to be a little

broader but at the same time very specific can give it room to move out of their usual

business when there are recessions.

Consultancies need to be up to date and always be a step ahead of companies so that

they do not lose their purpose for these companies.

Rivalry among existing players:

The consultancies fringe in on each other’s areas of expertise but not enough to seem

like a serious threat to their specific area.

If the economic development is slow, then there might be some tension between the

different consultancies. The different consultancies have to fight to recruit the right

talent to their business

15

2.2 Company Overview

Arience Strategies is a management company with a vision of achieving excellence

with convergence of various global standards and methodologies. With a team of highly

experienced professionals, Arience is providing consulting service, education & training

services, project management support services to diverse industry sectors.

Arience helps organizations to align their day to day operations with strategic

objective by streamlining management process, optimize team productivity and by

effectively applications of tools &techniques.

Arience Strategies started their operations from 01 September, 2009.

Arience Strategies has Arience Foundation which takes two programs.

1. Arience Research

It is management maturity enhancement program for non-profit organization to:

Lead Change and Inspire innovation

Manage complex, Multi-cultural global projects

Building an integrated management approach

Achieving excellence in project delivery

Enhancing productivity and Profitability

2. Arience Mentor

It is an initiative for individuals who are affected by economic situations

Personal counselling and guidance

Professionals mentoring and coaching

Continuous improvement and growth

2.2.1 Philosophy and Vision

Vision: Achieving excellence with convergence of various global standards and

methodologies.

16

Philosophy: Utilize globally accepted methodologies, tools & techniques for providing

value to our stakeholders.

2.2.2 Organization Structure of the Company

Fig 2.1: Organization Structure of Arience

2.2.3 Operations of the Company

Project Management Services

Build an integrated project and program management methodology

Setting up PMO (PM Office) / PMCoE (PM Centre of Excellence)

PM Process Maturity Assessment & Improvement

Enhance PM productivity and profitability

Business Analysis and Requirement Engineering process implementation

Agile and Scrum adoption in projects

17

Project Management Technology Consulting

Project Management software deployment

PM process implementation on software tool

Requirement Management tools implementation

Competency Enhancement Services

Specialized training includes:

Project Management/Program Management

Risk Management

Business Analysis

Project planning & Monitoring with Microsoft Project

Professionals mentoring, counselling and coaching

Agile and Scrum methodology

Certifications Programs:

PMI-PMP/CAPM Certification

IREB-CPRE Certification Workshop

SCRUM Master Certification Workshop

2.2.4. SWOT Analysis:

Strengths:

1. Strong Management

2. Size Advantage

3. Economics of Scale

4. Unique Products

5. Brand Name

6. Quick Response

7. Quality process

Weakness:

1. Out-dated Technology

2. High Staff Turnover

3. No market presence

4. Less Cash Flow

5. Lack of marketing expertise

18

Opportunities:

1. Emerging Markets

2. Innovation

3. New services

4. New Products

5. New Markets

Threats:

1. Volatile Currencies

2. Bad Economy

3. Government Regulations

4. Political Risk

5. Technology change

6. Price wars

19

CHAPTER 3

PROJECT PROFILE

20

PROJECT PROFILE

3.1 Objectives

To understand the roles and responsibilities of the personnel in the Social Service

Organization for providing them with the suitable Organization Structure.

To understand all the cost related activities of Social Service Organization for

providing them with the Cost Structure.

3.2 Methodology

The objectives of this project are to provide the Organization Structure and Cost Structure

to the Social Service Organization.

Primary Sources of the data are

The primary data was collected with direct interactions with the various personals

of the organization.

1. Employees of the Social Service Organization.

2. Parents of the children with special needs.

3. Employees of Arience Strategies.

4. Top Management of Arience Strategies.

5. Top Management of Social Service Organization.

6. Website of Arience Research Foundation

7. Partners of the Social Service Organization.

8. Donors of the Social Service Organization.

Secondary Sources of the data are

1. Website of Social Service organization

2. Website of Arience Strategies

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3.3 Introduction to Project Management

Project Management is the application of knowledge, skills, tools, and techniques to

project activities to meet the project requirements. Project Management is accomplished

through the appropriate application and integration of the 47 logically grouped project

management processes, which are categorised into five process groups.

The five process groups are:

Initiating,

Planning,

Executing,

Monitoring and Controlling, and

Closing

Managing a project typically includes, but not limited to

Identifying requirements;

Addressing the various needs, concerns and expectations of the stakeholders in

planning and executing the project;

Setting up, maintaining, and carrying out communications among stakeholders

that are active, effective, and collaborative in nature;

Managing Stakeholders towards meeting project requirements and creating

Project deliverables;

Balancing the competing project constraints, which include:

Scope,

Quality,

Schedule,

Budget,

Resources, and

Risks

The specific project characteristics and circumstances can influence the

constraints on which the project management team needs to focus. The Project

team needs to be able to assess the situation, balance the demands, and maintain

22

proactive communication with stakeholders in order to deliver a successful

project.

Due to the potential for change, the development of the project management plan

is an iterative activity and is progressively elaborated throughout the project’s

life cycle. Progressive elaboration involves continuously improving and detailing

a plan as more detailed and specific information and more accurate estimates

become available. Progressive elaboration allows a project management team to

define work and manage it to a greater level of detail as the project evolves.

A guide to the Project Management Body of Knowledge (PMBOK Guide) was first

published by the Project Management Institute (PMI) as a white paper in 1987 in an attempt

to provide a standardized project management practices as a document. The PMBOK guide

organizes its contents by processes as it views work as series of overlapping processes

For any process, three parts are necessary-

Input

Tools and Technique

Output

There are altogether 47 processes in the PMBOK guide, categorized in five groups.

Figure 3.1 – Project Management Processes

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3.3.1 Initiating Process

Defines the nature and scope of the project

Understanding the Business environment

Analysing various needs in terms of measurable goals

Reviewing of current operations

Financial Analysis and

Stakeholder Analysis

Developing the Project Charter

3.3.2 Planning

Describing the process like flow chart

To plan time, cost and resources, to estimate the work needed, and to effectively

manage risk

In NPD, conceptual design is also involved

Work Breakdown Structure

Deliverable oriented decomposition of project into smaller components

Organize plans, workloads and management of teams

3.3.3 Execution

Project Plan Execution – implementing the course of action

Quality Assurance – regular checks to verify that the project is aligned with the

quality standards

Team Development – developing an efficient team with necessary skills

Information distribution(in timely manner)

Solicitation - Choosing the potential sellers and maintaining relationships with

them.

3.3.4 Controlling

To identify variances from the project plan

Scope

Scope Verification

Scope change control

Time (Schedule control)

Cost

Quality

Performance Reporting

Risk Monitoring and Control

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3.3.5 Closing

Contract closeout

Completion and settlement of the contracts

Administrative closeout

Formalizing the project completion

Project evaluation

Documenting lessons learnt for future use

3.4 Project Charter

As the main outcome of the Initiation phase of the project, developing the project

charter becomes the immediate document which supports that a project exists and gives

the authority to the project manager in guiding the project in right directions.

The Project Charter outlines the purpose, objectives, and scope of the project with the

focus on requirements of Stakeholders with relevance to project management global

standards.

The purpose of a Project Charter is:

To provide an understanding of the project and connecting the processes with the Project

Management Institute (PMI) standards

To establish early on in the project the general scope

The elements included in the project charter are as follows:

Project goals and objectives

Project Deliverables

Project constraints

Project Assumptions

Project Milestones

Project References

25

3.4.1 Background / Justification

As an intern in Arience Strategies, based on the client requirement - Cost

Structure and Organization Structure are to be provided.

3.4.2 Goals

To understand the roles and responsibilities of the personnel in the Social Service

Organization for providing them with the suitable Organization Structure.

To understand all the cost related activities of Social Service Organization for

providing them with the Cost Structure.

3.4.3 Objective

To provide Organization Structure and Cost Structure to the Social Service

Organization within two and half months with two interns.

3.4.4 Scope

To provide Organization Structure and Cost Structure with necessary

recommendations and their impact on the respective Organization

3.4.5 Major Deliverables

1. Project Charter

2. Organization Structure

3. Cost Structure

3.4.6 Stakeholders

1. Employees of the Social Service Organization.

2. Parents of the children with special needs.

3. Employees of Arience Strategies.

4. Top Management of Arience Strategies.

5. Top Management of Social Service Organization.

6. Partners of the Social Service Organization.

7. Donors of the Social Service Organization.

3.4.7 Project Constraints

The constraints of the Project are

1. Limited Time

2. Limited Budget

3. Two Interns

26

3.4.8 Project Milestones

1. Meeting Clients – D + 1 week

2. Conducting interviews with the parents of the children with special needs – D + 2

weeks

3. Providing daily reports- from April 26th 2015 to July 11th 2015

4. Organization Structure – D + 6 weeks

5. Cost Structure – D + 7 weeks

Note: D refers to Today’s Date i.e. May 10th 2015

27

CHAPTER – 4

OBSERVATION AND ANALYSIS

28

4.1 Observations & Analysis

TABLE 4.1: EXPENSES OF THE SOCIAL SERVICE ORGANIZATION

GRAPH 4.1: EXPENSES OF THE SOCIAL SERVICE ORGANIZATION

4,80,000

19,20,000

10,80,000

22,80,000

1,50,000 1,50,000 3,00,000

1,44,000

-

5,00,000

10,00,000

15,00,000

20,00,000

25,00,000

CO

ST IN

CU

RR

ED P

ER Y

EAR

PARAMETERS

Expenses of the Organization

29

TABLE 4.2: INCOME DETAILS OF THE SOCIAL SERVICE ORGANIZATION

Table 4.3: DEFICIT OF THE ORGANIZATION PER YEAR

30

GRAPH 4.2: DEFICIT OF THE ORGANIZATION PER YEAR

TABLE 4.4: BREAKUP OF ₹ 42, 00,000 FOR DIFFERENT PROGRAMS

65,04,000

25,65,000

39,39,000

-

10,00,000

20,00,000

30,00,000

40,00,000

50,00,000

60,00,000

70,00,000

Total Expense Total Income DEFICIT

Am

ou

nt

Parameter

DEFICIT OF THE ORGANIZATION PER YEAR

31

GRAPH 4.3: BREAKUP OF ₹ 42, 00,000 FOR DIFFERENT PROGRAMS

8,64,000 8,64,000

11,04,000

3,12,000 3,12,000

7,44,000

-

2,00,000

4,00,000

6,00,000

8,00,000

10,00,000

12,00,000

0

10

20

30

40

50

60

70

80

School setupacademy

Extra curricularprograms

Earlyintervention

program

Special youngchildren

program 1

Special youngchildren

program -2

One on OneProgram

Break up of ₹ 4200000 for different programs

No. of Children Expenses incurred per year

32

CHAPTER 5

FINDINGS

33

5.1 Organization Structure

Fig 5.1: ORGANIZATION STRUCTURE OF SOCIAL SERVICE ORGANIZATION

34

The social service organization currently is working in an unstructured manner. As

per the discussions held with the organization’s members, it has been found that the various

roles and responsibilities are not clearly defined; also the business functions are practiced

in an informal manner. Various personnel’s have common functions to perform that lead

to confusion on who has to perform what functions.

FIG 5.2: CAUSE AND EFFECT ANALYSIS

5.2 Cost Structure

Table 5.1: Cost Structure of the Social Service Organization

35

The Total Expenditure of the respective Social Service Organization is

₹ 65, 04,000.

The Total Income of the respective Social Service Organization is ₹ 25, 65,000.

Therefore, the difference between the total income and total expenditure is ₹ 39, 39,000 in

negative which is very clear that the respective Social Service Organization is in DEFICIT of

₹ 39, 39,000.

36

CHAPTER 6

RECOMMENDATIONS

37

6.1 RECOMMENDATIONS

1. Recruit people who are loyal and have zest to work for the cause are to be recruited.

2. Properly define the organization structure and distribute the roles and

responsibilities across various levels so that there is no confusion by adding new

posts.

3. Properly define the Cost Structure and try to decrease the costs to maximum extent

in various levels of the activities or programs.

4. As there is a fixed location for different programs at Malleshwaram, it can be used

for organizing workshops, trainings, etc.

5. So that additional costs incurred for organizing workshops, trainings, etc. at

different locations can be reduced.

6. A sum of ₹ 5, 42,000/- is required to meet the ongoing activities every month.

7. So, fundraising activity must be effectively implemented to meet the ongoing

activities.

8. Conduct Fundraising campaigns.

9. Tie up with Corporates – which is beneficiary not only to the Social Service

Organizations but also to the Corporates. i.e., NGO – Corporate Partnerships.

10. It is often thought that NGOs would benefit more from such partnerships, but there

are positive incentives that could or should concern the private sector as well,

especially when focusing on the long-term benefits partnerships may afford.

11. “The world has spent many years debating what business can offer the NGOs, but

what NGOs can offer the corporate world is a recent trend.”

12. Because, Company reputation is becoming more and more important to both

investors and consumers. “A company’s impact on its stakeholders is an emerging

benchmark of corporate performance since stakeholders are beginning to ask what

companies can do for society, not what society can do for companies.” – Image

and Credibility.

13. In the public eye, NGOs are more trustworthy than corporations in terms of

benefiting society. So, a company that partners with an NGO can hope to be seen

as trustworthy and be more credible in its attempts at CSR through this association.

38

14. All these clearly mention that Corporates may strive for partnership with NGOs.

15. So, an effective Fund raising campaign definitely helps Social Service Organization

by which if any corporate agrees to tie up and donate funds from the salaries of

their employees every month, then the cost of fund raising mechanism and the

cost of deducting amount from accounts of the employees is zero at any point

of time.

16. As this respective organization is a certified trust which provides 80G certification

that helps in tax exemption, employees might feel free to donate.

17. A diversified fund-raising programme can be implemented. An interesting

thumb-rule - closer the donor, smaller the amount. A person walking on the street

in your town may provide only small change that he currently has in his pocket.

But a more 'distant' person or organization may provide more funding.

18. Step out of the 'charity' angle. Develop clear professionalism among the staff

members. Always be willing to provide info on the NGO's goals and objectives, as

well as programmes. Get third party organizations to write about the programme

and projects. Keep good relations with the media, and cultivate spokespersons

among the staff members.

19. All staff members of an NGO should spend part of their time in fund raising - each

catering to different aspects of the process - writing proposals, finding and

networking with donors, negotiating, writing reports etc.

20. Creating NGO Networks, NGO service centres, information kiosks etc. help in

pooling and developing the knowledge and skills needed for this purpose.

39

CHAPTER 7

CONCLUSION

40

CONCLUSION

The entire report summarizes on how the Organization Structure and Cost Structure

was done for a social service organization. It explains how various information was

gathered to understand the organization structure and the business processes undertaken by

the social service organization. Through interviews conducted, an understanding of the

project requirements obtained to create a project charter wherein the project scope,

objectives, deliverables were clearly defined. An understanding of the PMI standards for

project management was obtained and implemented. The recommendations were listed for

the respective Social Service Organization to overcome its BUDGET DEFICIT. The

impact / benefits of those recommendations on the organization are as follows:

Achieve sustainability

Overcome deficits

Increase effectiveness of the service offered

Never run out of money to meet ongoing activities

41

7.1 LEARNING OUTCOME

The following are the different learnings that has happened to me during my internship.

They are

1. Handling clients - a challenging task which was done successfully

2. Collecting requirements for the project

3. Matching the collected requirements with the core objectives of the project

4. Satisfying Stakeholders

5. Identifying Stakeholders based on the Project

6. Preparation of Organization Structure

7. Preparation of Cost Structure

8. Project Management Concepts

9. Clear understanding capability of the objectives of the project

10. Developing Project Charter

42

REFERENCES

1. Project Management Institute, Project Management Body of Knowledge, Fifth

Edition.

2. http://ariencestrategies.net/

3. www.arience.com

4. http://repository.upenn.edu/cgi/viewcontent.cgi?article=1022&context=curej