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Resource 11.TRAINING MODULE IN PROJECT MANAGEMENT (Created by the Institute for Development Management, Botswana for the NGO Institute, STF. (Some materials in this module have been extracted from “A Guide to Project Management Body of Knowledge, 3rd. edition, 2004)

What is a project?

“A temporary endeavor undertaken to create a unique product or service.”

The Three P’s

Working definition of project management

Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.(Guide to the Project Management Body of Knowledge Project Management Institute 2004)

Project Management in Your Organization

• What are the current methods of project management in your organization?

• What project management issues is your organization facing?

Important Characteristics of Real Life Projects

Program- operates over the long-term, and is designed to use the organization’s resources to impact a specific subject area that is part of an organization’s mission to improve public health.

Project- has a beginning and end, defined resources, and creates a unique product or service.

Process- part of the ongoing operations of the organization; may be introduced

or changed over time, but once established, an organizational process operates on a continuous basis without a specified end.

• Accomplish with shared resources often only available on part-time basis• Require cross-functional team work• Involve uncertainty and are subject to change during execution• Subject to specific deadlines and time and resource constraints• Project manager often lacks functional authority over team members

Proven Benefits of Project Management

Provides clear roles, responsibilities, activities and schedules for team efforts Includes a method for considering the consequences of decreasing or increasing funds,

resources, time, or quality Specifies a detailed plan of how to achieve our objectives Assists in the realistic assignments of tasks and responsibilities to team members

according to the skills and resources available Gives structure to communicating the progress of projects Allows teams to identify potential problems and take preventive action early Keeps management officers and project stakeholders well-informed and supportive Helps manage pressure for expanding the scope of projects without proper decision

criteria and analysis of changes

Diverse Skills Needed for Project Management

• Planning skills—the ability to plan the use or organizational resources of time, personnel, budget, facilities, equipment, and supplies to achieve organizational objectives

• Technical skills—the specific professional technical skills needed for a project.

• People skills—the ability to manage and motivate people who will implement the project activities, communicate effectively with stakeholders, and resolve conflicts and interpersonal problems.

What skills make the best project managers so good?

1. Communication: listening, persuading, negotiating2. Organizational: planning, goal-setting, analyzing3. Team building: empathy, motivation, team spirit4. Leadership: sets example, energetic, vision, delegates, positive attitude5. Coping: flexibility, creativity, patience, persistence6. Technical: experience, project knowledge

Project Management Method

Step 1: Select project Define project scope: Selecting Priority Projects

• Where do we begin?• Project selection can be a difficult process, especially when there are a large number of

potential projects competing for scarce dollars.• Some selection methods are highly intuitive; some very political.• Others try to add rigor through more scientific selection processes.

Two rules to follow:

1. Make selection process transparent (who is involved, process used)

2. Make criteria used to evaluate projects explicit (spend time defining your criteria clearly)

Selection Criteria Matrix: Un-weighted Criteria

Project Agreement

Our Winner!!

What: A written description that clearly communicates what the project is (and is not)

When: Ideally, at the beginning of a project. Also useful to develop one for a project already started. Update it as needed.

Why:• Establish agreement between project team members and stakeholders about what the

project is (and is not)• Build team member commitment – team should write the charter together• Foundation for project planning• Helps in managing expectations• Communicate project to others

Project Stakeholders

1. Within the team• Project manager• Team members

2. Within the organization• Internal customers• Project sponsor• Senior managers• Functional managers

3. Outside the organization• External customers• Collaborating organizations• Affected organizations• Vendors

The Rule of Unmanaged Expectations

Stakeholder Acceptance and Success

Remember our working definition of project management…

… the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations.”

Q x A = S

Quality x Acceptance = Success

Project Agreement Development Meeting

Acceptance of the project results by stakeholders1-10

What youthink is good (technically)1-10

Success of the project effort

1-100

• Allow 2 ½ hours to half day, depending on complexity or project• Recognize that the process and team involvement is as important as document• Ensure participation by all team members• Use group techniques such as brainstorming and consensus• Do not let the project manager dominate the meeting

Project Deliverables

• Define the measurable, tangible items that must be produced to complete the project

• When all deliverables are completed the project is complete

• Usually subject to approval or project manager, sponsor, or customer

Project Quality:

Critical Success Factors

• Factors critical to the success of the project• Outcomes or quality requirements• If not achieved, will jeopardize success• Internal and external factors

– Stakeholder interests– Technical requirements

• Helps team focus efforts on most important aspects of project

Project Assumptions

• Factors the team considers to be true, certain, and necessary for a successful project• Should be documented and validated that they are true• Create a risk to project if they are not true

The Triple Constraint

What do project managers really manage?

Managing the Triple Constraint: Set Priorities

• Need to discuss with customer and sponsor near startup and agree on priority order.• May change over time, but a change is a significant event!

Quality/Scope how good?

Cost how much?

Time how fast?

Change Management

• Request for changes to project elements or scope need to be analyzed and approved• Impact of changes on project need to be documented • Changes that impact project need to be negotiated (they may require more budget, time)• Approved changes need to be recorded• Tools: Change Request Form Change Log

Step 2: Define project activities

Work Breakdown Structure

• Based on project scope, objectives, and/or deliverables

• Organizes and defines work to be done

• Divides work into logical, manageable segments• May be organized

– By phase of the project– By component

• Objective is to identify all project tasks that must be completed with action verbs

Work Breakdown Structure Work Breakdown Structure Graphical FormatGraphical Format

1. Establish Youth Advisory Board

1. Establish Youth Advisory Board

ActivitiesActivities

1.1 Meet youth organization stakeholders

1.2 Write policy memo

1.3 Select youth board members

1.4 Hold first board meeting

1.1 Meet youth organization stakeholders

1.2 Write policy memo

1.3 Select youth board members

1.4 Hold first board meeting

2.1 Select team2.2 Audit youth

media strategies2.3 Write-up 2 year

media plan2.4 Obtain

management approval of plan

2.1 Select team2.2 Audit youth

media strategies2.3 Write-up 2 year

media plan2.4 Obtain

management approval of plan

3.1 Select magazine team

3.2 Bid contract3.3 Develop

samples3.4 Select design3.5 Develop

content plan3.6 Develop

distribution plan

3.1 Select magazine team

3.2 Bid contract3.3 Develop

samples3.4 Select design3.5 Develop

content plan3.6 Develop

distribution plan

TasksTasks

Conduct a one-year HIV/AIDS awareness and prevention media campaign targeted toward youth ages 12-16.

Conduct a one-year HIV/AIDS awareness and prevention media campaign targeted toward youth ages 12-16.

Project Description

Project Project DescriptionDescription

1. Develop Media Plan

1. Develop Media Plan

2. Launch Tabloid Youth Magazine

2. Launch Tabloid Youth Magazine

DeliverablesDeliverablesDeliverables Youth Advisory Board

Youth Advisory Board

Youth Media Campaign

Youth Media Campaign

Determine Time for Each Determine Time for Each TaskTask

1. Establish Youth Advisory Board

1. Establish Youth Advisory Board

ActivitiesActivities

1.1 Meet youth organization stakeholders (5 days)

1.2 Write policy memo (1 day)1.3 Select youth board members

(5 days)1.4 Hold first board meeting (5

days)

1.1 Meet youth organization stakeholders (5 days)

1.2 Write policy memo (1 day)1.3 Select youth board members

(5 days)1.4 Hold first board meeting (5

days)

TasksTasks

Work Breakdown Structure

• Level of WBS detail depends on audience and the scale of intervention

• Larger intervention = more complex WBS

• Eliminate any tasks not absolutely necessary• Foundation for schedule and staff responsibility assignments

A simple exampleA simple example

……

Clean room(30 minutes)

Compose menu (45 minutes)

Begin party!(0 minutes)

Set up tables and chairs

(30 min)

Buy food & beverage (90 min)

Make food (90 min)

Start Project(0 minutes)

Mix beverages

(30 min)

Let’s have a party!Let’s have a party!

Step 3: Determine task dependencies and critical pathA simple example:

Network Diagram

• Start by writing each task from the WBS on a sheet of paper

• Create a network diagram that shows how the activities can be implemented step-by-step

Clean room

Start Project

Compose menu

Buy food & beverage

Mix beverages

Make food

Begin party!

Network DiagramNetwork Diagram

Set up tables and chairs

Critical Path Analysis

• Critical path = the longest path from the beginning of the network to the end.

– If the activities on the critical path are delayed, the project is delayed– Critical path activities represent the activities that the project manager has to

oversee the closest. – Slack or Float = those where there is extra time built into the schedule

Ways to Reduce Project Duration

• Do activities at the same time instead of in sequence• Overlap activities (start the next activity before proceeding one is fully finished)• Reduce project scope• Change technical approach• Add additional resources to ‘crash’ project activities (make them move faster)

Criteria to ‘Crash’ Activities

¤ Activities on the critical path!• Less expensive to crash• Less likely to have negative impact on quality• Earlier vs. later in the project• Longer vs. shorter duration• Bottleneck activities• Labor intensive – low skill• Under management control

Step 4: Develop schedule

Built upon the previous tools…

• Work breakdown structure• Network analysis• Critical path

Why is it so important?

Gantt Chart

Use the Gantt Chart to…

• Communicate project plan easily to a variety of audiences

• Update project progress efficiently

• Monitor task implementation and make adjustments

• Monitor the critical path!

Project Schedule: Gantt Chart

Reporting Progress: Milestone Chart

Step 5: Assign Staff Responsibilities

• Critical for ensuring success; must be clear to everyone

• One staff person (only) responsible for ensuring a task is completed

• Three categories of responsibilities:

• Responsible – lead staff person• Participant – other staff participating• Approval – staff who must approve final product or action (only if

needed)

Assign Responsibilities

Step 6: Develop project budget

Developing Program Budgets

• What needs to be done? (easy to know with a good work breakdown structure)

• Who should do it? (project team member, outside contractor, other?)

• What physical resources do they need to do it?

• How much will it cost?

Decide on how much, how many, & why?

Personnel: professional, administrative, support staff

Facilities: office space, clinics, special requirements

Equipment: computers, copiers, fax machines, medical equipment, vehicles

Supplies: vaccines, medical supplies, office supplies, petrol

Contracts: special services, maintenance, other

Travel: who, where, how, length of stay, how many times

Calculate the financial resources needed

Physical Resources Financial Resources

1. Personnel >>>> Salaries, fringe benefits, etc.2. Facilities >>>> Rent, mortgage, utilities, etc.3. Equipment >>>> Rental, purchase, maintenance4. Supplies >>>> Estimate unit cost5. Contracts >>>> Estimate annual cost6. Travel >>>> Transportation, lodging, meals, per diem, etc.

How to Present a Budget

• May need a variety of formats

• Level of detail depends on audience

• When presenting for funding approval include:

– Budget Summary– Detailed Budgets by Program Intervention– Budget Justification

Summary Budget Variance Analysis Quarter 1/Year 1

Budget Item Planned Budget

Actual Expenditures

BudgetVariance(Actual – Planned)

Personnel      

Equipment      

Supplies      

Facilities      

Contracts      

Travel      

Other      

Total      

How to manage risk…How to manage risk…

IdentifyQuantifyPrioritizeDevelop risk reduction strategies

Risk Management

You have planned your project down to the last detail….what could possibly go wrong???

Quite a lot!

Areas of Risk

• Schedule (unrealistic)• Resources (not available when needed; under qualified people)• Budget (when resources are uncertain)• Scope (technical requirements and changes)• External Events (policy changes, crises)

Uncertainty = Risk

Step 7: Risk Management Plan

1. Review project plan with team and identify risks that could impact project in these areas:

– What could cause delays to the schedule?– What might threaten the quality of the project’s end product?– What factors or events might increase costs beyond the budget?– What is risk of people or resources not being available when needed?

2. Evaluate the probable causes of each risk

3. Evaluate the importance of each risk by asking:

– What is the probability that this risk will occur?– What would be the impact if the risk should occur?– How much control do we have over this risk?

4. For risks with high risk index, create management plan that includes:

– Preventive plan to prevent the risk from occurring– Contingency plan to define what we will do if the risk occurs– Trigger point for contingency plan– Assign a risk manager for each risk

Risk Management Plan

• Enter risk scenario (how an event could jeopardize project outcome)

• Rate probability, impact, and degree of control using rating scale of:

1 = Low2 = Medium3 = High

Probability * ImpactControl

Risk Index =

• Compute risk index using formula:

• If possible, enter financial impact.• Determine actions to take:

– Ignore (do nothing)– Eliminate (sidestep)– Manage

• For managed risks, indicate mitigations and contingencies and assign risk manager.• Log actions taken as they occur.

Create plan to communicate with stakeholders

Communication Plan

• Keep stakeholders up to date on project progress• Need to write it down in a formal plan and follow it• Helps entire team communicate effectively about project• Important to define responsibilities • Maintain delivery schedule once it is established

Keep Communication Simple

“The Two-Floor Rule”• Every stakeholder should receive information at just the right level of detail for

them.• High-level managers won’t want to see all the details of the project.• Your team members need to see a great deal more.• If your level of reporting is appropriate, and one of your stakeholders steps into

the elevator and asks about the status of the project, you should be able to brief him or her by the time the elevator stops two floors away.

Communication Requirements

Project sponsor and customers are fully aware of state of project All other stakeholders who need to be informed of project progress are receiving

adequate information Team members are fully aware of state of project, including any revisions or changes Team members understand their specific assignments and how they fit into the overall

project Project team meets on regular basis to discuss accomplishments, status, share new

information, and plan near term activities

Communication Plan

Stakeholder Important issues for this stakeholder

Types of communication we will use with them

How often we will communicate

Person responsible

Chief Financial Officer

Project is completed on budget

Budget variance report; milestone chart

Monthly  

Track and manage the project

Execute and control

Execution and control happen at the same time.Purposes of project control:

– Finding and resolving problems before they have a negative impact– Tracking costs and resources– Generating revised plans– Maintaining team member commitment

Project Control

Day-to-day effort to keep project work on track and according to plan

• Control based on completed work (not completed % of work)• Control data must be built into work process—only data needed!• Control data must go to person who does the work• Control of a complex process through breaking down levels of control• Control system must focus on response, otherwise it is ineffective

Control vs. People

• Projects are managed through people• Control applied to project plan, not to people• People require participative management and use of soft skills

Project Management Project Management Life CycleLife Cycle

TimeTime

Level of Level of ActivityActivity

(1) Initiating

(3) Executing

(4) Controlling

(2) Planning

(5) Closing

Result Role of effective communication in facilitating project results

Three Kinds of Project Reviews

• Project status reviews

• Project design reviews

• Project process reviews

Three basic questions:1. What is the actual status of the project?

1. If a difference between actual and planned exists, what caused it?

1. What should be done about it?

Open Task Reports

• Use subset of project plan listed tasks that were required for the period• Add tasks for next period (time between project meetings)• Using open task report, get status of every task that should have been completed since

last meeting• Use entire team to identify issues and make plan to resolve them– write it down!

Open Task Reports

Project period:

Tasks Due Person Plan start Plan finish Status/Actions

Budget Variance: A Critical Project Control Tool

• Develop a system of budget monitoring and reporting (monthly and/or quarterly)

• Include schedule and responsibility for budget reporting tasks in Gantt Chart

• Control budget variances (planned vs. actual expenditures) on a regular basis

Project Budget Variance AnalysisTime Period: ________________________

Budget Item Planned Budget

Actual Expenditures

BudgetVariance(Actual – Planned)

Total      

Project Design Reviews

• Applies only to projects in which a new product or process is being designed

– Does it meet agreed upon specifications?– Is it customer or user friendly?– Can we produce/maintain it?– Are product specifications still appropriate?– Does it meet the needs?

• Focus is on how the team is doing the project work

– What part of our work process is going well?– Does everyone have what they need?– Are we working well as a team?– Are stakeholders involved and satisfied?– What do we want to improve?

Project meetings should…

Be structured to increase team cohesion Keep the team fully informed of new developments about sources external to team Ensure the team works together to decide necessary changes Help the entire team share responsibility for meeting all of the project objectives Be evaluated periodically by participants to make sure they are effective and meeting

the project needs

Change Management

• Request for changes to project elements or scope need to be analyzed and approved• Impact of changes on project need to be documented • Changes that impact project need to be negotiated (they may require more budget, time)• Approved changes need to be recorded• Tools: Change Request Form Change Log

Principles of Effective Project Control Always have an updated plan Hold regular project control meetings Have team members regularly report progress Ensure team members are accountable to each other Correct small deviations as they occur Focus on team problem-solving

Types of Projects Difficult to Control

• Large projects with complex communications• Geographically dispersed projects• Projects requiring high technical standards• Long duration projects with personnel turnover• Projects with multiple subcontractors

Five Essential Elements

• Function to be controlled• Control standard • Control authority • Control mechanism

• Variance indication

Effective Control Processes

• Relevant• Efficient• Simple• Timely

Close-out and post-project review

Post-project Review

• Critical process for learning from organizational experience

• Important to document knowledge gained for others who come later

• Important time for self-reflection and analysis after the project

Close-out Activities

1. Project review and feedback from customers and sponsors2. Team analysis of project process and ideas for improvements3. Create final close-out report