International Leadership Institute

Business Project Management

By Taye Alemu

December, 2023
ILI
 General Objectives
At the end of this training participants will
be able to :
 Understand the concepts of project
management
 Identify potential projects through feasibility
study
 Prepare project proposals for appropriate
projects
 Appraise projects using market, financial and
economic analysis techniques
 … General objectives
 Prepare project implementation plan
 Design and apply tools and methods for
successful implementation of public projects
 Design schemes to monitor and evaluate the
effectiveness of business projects
 Structure of the presentation
 Unit 1: Concepts of a Project
Management
 Unit 2: Project Identification
 Unit 3: Project Preparation
 Unit 4: Project Market, Financial and
Economic analysis
 Unit 5: Project Implementation
 Unit 6: Project Monitoring, Evaluation
and Close-out
Mode of delivery
Brainstorming

Lecture
IndividualReflection
Group discussions
 Group presentation
Mode of Evaluation
Groups assignment……………….......35%
Test/individual assignment ……....15%

Class activity ……………………….........5%

Final examination……………………....45%
 Total……………………………………......100%
 Unit One:
Concepts of Project
Management
 Session Objectives
 Describe a project and project
management
 Distinguish between a project and
regular business operation
 Appreciate the link between plan,
program and projects
 Critically understand the roles, skills,
attributes of project manager
 Describe the project life cycle
 Contents
1.Overview of a Project Management

1.1Concepts of a Project, Project management

1.2 Plan, program and project
1.3 Operations Vs Projects
1.4 Project managers
1.5 Overview of project cycle
1.1 Concepts of a Project, Project Managemenet
Brainstorming Questions (10 minutes)
 Would you mention example of a project?

What do you think are the critical factors that

determine success or failure of a project?

 Think about any project you know, List the

major observed chalenges?
What is a Project?
 What is a project?

 A project is a temporary endeavour

involving a sequence of activities and a
range of resources, which is designed to
achieve a specific and unique outcome
and operates within time, cost and
quality constraints and which is often
used to introduce change.
Project characterstics
 Temporary: projects have a limited life, but
the benefit they provide after completion may
continue to exist for several years

 Sequences of Activities: The outcome of a

project can only be achieved by the
completion of a variety of separate, but linked,
activities

 Resources: A project utilizes a variety of

resources [human, financial, material,
information, etc] to carry out the activities or
 Unique Outcome: A project brings about a
unique product or service - something that
has not existed in the organization here-to-
fore

 Purpose: the basic reason for the existence of

a project: to solve a problem, address a
need or take the advantage of opportunity.

 Introduce change: A project is often used

as an instrument for change – business
growth, change for the betterment of the
society.
Key Dimensions (Constraints) of a Project
 Cost (expenditure): the project must be completed
without exceeding the authorized expenditure
 Time: any project should be completed on time to
benefit the user before the opportunity is lost and
the project becomes outdated.

 Quality: The end result of the project must be fit for

the purpose for which it was intended. The
specification must be satisfied

 Scope- boundaries of operations determined by

external constraints and internal capacity of the
organization
 Risk : uncertainties that jeopardize project success
 …Key Dimensions
 The relationship among these factors is such
that if any one of the three factors change, at
least one other factor is likely to be affected

 These dimensions of a project are regarded as

the aspects of a project that must be kept in
an appropriate balance to achieve a
successful outcome.
 Activity 1. Group Discussion ( 5 minutes)
1. How do you think shortage of budget and completing
the project significantly bellow the expected amount
of budget affects other project constraints. Give
examples
2. How do you think delay or fast completion of a project
affects other project constraints. Give examples

3. How do you think completing the project well above

or bellow the quality specification affects other
project constraints. Give examples
4. How do you think increasing the project scope
(activities) or decreasing the project scope bellow
expectation affects other project constraints? give
1.2 Defining Project Management
 Project management is not the same as
ordinary, day-to-day operational management.
 In managing the ongoing operations, the main
concerns are stability and continuity
 The attention is to set up systems which will
produce the desired results day in, day out.
 Managers constantly look for ways to improve
operations to make them more efficient and
effective.
 There are established lines of communication and
command, leading from the factory floor to the
Managing Director
...Project Management
 In project management is the aim is to achieve a
limited set of objectives within an agreed amount of
time and an agreed budget.

 A project manager expected to see the project

throughly from start to finish

 The ultimate success or failure of the project

depends the decisions the manager take along
the way.

 Project management demands highly developed

planning skills, leadership qualities, an
understanding of the priorities and concerns of a
project team.
...Project Management
 Project management is the process of planning,
controlling and directing a project from its inception
to its completion, in a given time, at given cost, and
for a given purpose.

 Project management is the application of knowledge,

skills, tools and techniques to project activities in
order to meet project requirements .
 Project requirements: refer to the purpose of the project
such as to solve a problem or take advantage of an
opportunity.
 Knowledge: acquiring an understanding of the body of
knowledge in areas: scope, time, cost, quality, contract, and
risks.
 Skills: an ability to perform something well
 Tools and techniques: using PM tools or procedures to
Project Managers
 Project managers are important persons in a
project as they often make difference
between project success and failure.

 She/he is responsible for planning,

organizing and controlling the project.

 It is the project manager who must define the

project goals, sell the project idea to top
management, and negotiate resources for the
project.
Skills of Project Manager:
 Technical Skills  Conflict Resolution
 Leadership Skills Skills
 Motivational Skills  Interpersonal skills
 Team-Building Skills  Organizational skills
 Communication skills
 Time management
skill
 1.3 Plan, Program and Project
 Planning is defined as the process of
determining organizational goals and
the courses of actions for attaining
these goals.
 Courses of action are: Strategy, Program,
and Project
What ? goals
 When? time
 How ? Method
 The how? of the plan can be answered
through programs and projects
 Projects exist as components in broader
company plans,

 Their identification, formulation and

implementation should be linked to short,
medium and long term organizational plan.

 Sound company plans require good projects,

just as good projects require sound planning.
The two are interdependent.
Examples:
 Vision: Freeing the Ethiopian People from poverty
and seeing economically strong and prosperous
Ethiopian people
 Goal: Improving the living standard of the Ethiopian
People within ten years
 Strategy: Agricultural Development Led
Industrialization.
 Program: Resettlement /Villagisation Program

 Projects: Education projects (opening elementary and

secondary schools), Road construction project, Health
projects such as establishing clinics and hospitals,
Water and sanitation projects, Electricity, etc that are
essential for a new village.
 Project Vs program
 A program is a collection of associated
projects that are managed together to achieve
goal

 Since programs comprise multiple projects,

they are larger in scope than a single project.

 However, a project is a temporary investment

activity where resources are used to create
assets, which produce benefits over time and
has a beginning and an end with specific
objectives.
 Project Program
Narrow in scope Wide in scope; can comprise
many projects as components.

Specific and detail Comprehensive and general

Differences

More precise and accurate in Broader goal related to

its objectives and features sectoral policy

Possible to calculate the Difficult to calculate costs

costs and returns and returns
• Have purpose/ objectives
Similarities

• Require input (financial, manpower, material)

• Generate output (goods and/or services)
• Operate over space and time
1.4 Projects Vs operations
Organizations perform two types of work:
project work and operational work
 Operations are ongoing and repetitive
while projects are temporary and
unique.

 The purpose of a project is to attain its

objective and then terminate whereas
the objective of an ongoing operation is
to sustain the business.
 The Project Life Cycle
 Is a continuous process made up of
separate and complementary stages
(phases) each with its own
characteristics and each setting a ground
for the next one.
The project cycle
Identification

Evaluation Preparation

Proposal
development

Implementation Appraisal

Financing
decision