Fundamentals of Project Management

Leaving early today Fundamentals of Project Management © PM4DEV 2009 for Development Organizations A basic course on the principles, methods, practices and skills required for successful project management

Build a common understanding of the principles, practices, and methodologies of project management Share best practices related to project management Develop a community/network of project managers as a support system with on-going resources for each other

09:00 – 09:15 Introduction and Presentations 12:00 – 01:30 Break 09:15 – 10:15 PROJECT MANAGEMENT FOR DEVELOPMENT 01:30 – 03:00 PROJECT MANAGEMENT PROCESSES 10:15 – 10:45 THE DEVELOPMENT PROJECT ENVIRONMENT 03:00 – 03:15 Break 10:45 – 11:00 Break 03:15 – 05:00 PROJECT MANAGEMENT PROCESSES 11:00 – 12:00 THE PROJECT MANAGEMENT CYCLE

09:00 – 10:45 PROJECT MANAGEMENT PROCESSES 01:00 – 03:00 ROLES, RESPONSIBILITIES AND SKILLS 10:15 – 10:45 Break 03:00 – 03:15 Break 10:45 – 12:00 PROJECT MANAGEMENT PROCESSES 03:15 – 04:45 STRUCTURES FOR PROJECT MANAGEMENT 12:00 – 01:00 Break 04:45 – 05:00 CONCLUSION

Definitions Discussions and Exercises Knowledge Sharing

Name Background Experience and/or Previous Training in Project Management Expectations From this Course

What is a project? What are some definitions of a project? Examples: 1 2 3 4

A temporary process, which has a clearly defined start and end time, with a set of tasks and a budget, developed to accomplish a well-defined objective. A temporary effort of sequential activities designed to accomplish a unique purpose A group of inter-related activities, constrained by time, cost, and scope, designed to deliver a unique purpose A temporary endeavor undertaken to create a unique product or service. An undertaking that encompasses a set of tasks or activities having an identifiable starting point and well defined objectives.

What is Project Management? Give some definitions 1 2 3 4

“ Unique process consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including constraints of time, cost and resources”. ISO 10006 “ A temporary organization that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined resources” PRINCE2

“ A time and cost constrained operation to realize a set of defined deliverables up to quality standards and requirements,” ipma “ Project management is the application of knowledge, skills, tools, and techniques to a broad range of activities in order to meet the requirements of a particular project”. pmi

Coordinated and controlled activities A temporary organization A time and cost constrained operation Application of knowledge, skills, tools, and techniques

What are some of the characteristics that make development projects different from other projects? 1 2 3 4

Development projects work in difficult environments, facing ever increasing demands to do more with less. Complex environment with constant challenges and risks.

What are some of the challenges development projects face today? 1 2 3 4

Objectives not properly defined Insufficient planning and coordination of resources Poor estimation of duration and cost Incomplete, unrealistic and outdated project plans Lack of communication Inadequate definition and acceptance of roles Poor commitment to the project by the team Weak control processes Lack of risk analysis Lack of good quality controls

What has changed in the last years that caused an increase in these challenges? What new competencies and skills are required today?

A project management methodology can help development organizations meet their strategic goals by standardizing processes, reducing risks, and avoiding duplication of efforts

Which of the following is not a common cause for project failure. Objectives not properly defined Insufficient planning and coordination of resources Poor estimation of duration and budget Use of a consistent methodology

What is a challenge in development projects? Lack of accountability Limited Funds Deal with extremely complex social, economic, and political factors All of the above

Development Projects must operate in a broader environment, project managers need to consider projects within this greater context. Projects don’t exist in isolation they are influenced by two strong factors: the internal and external environment.

The internal environment includes conditions that the organization has established for the project work, including: Policies and procedures, compensation, benefits, standards, access and use of technology, norms, values, politics and the general organizational culture.

The external environment is made of the conditions that the project has little or no influence to change, including: donor and government requirements, international or local regulations, local infrastructure, limited availability of skills or a competitive labor market .

Every project is dependent upon processes, people, and tools and they determine how the work gets done. But these three essential elements are not equals. Each has its own strengths and weaknesses, and provides different values to projects. Process People Tools

Process - The policies and procedures and the roles and responsibilities required in managing development projects. Processes determine how the work needs to be accomplished. People - The skills and capabilities of the people in charge of managing the project, and whether or not they follow the processes and procedures to ensure quality of the services provided by the organization. Tools - The techniques and devices selected by the organization with the purpose to facilitate the management of the project.

A development project has to manage four basic constraints; scope , schedule , budget and quality . The success of a project depends heavily on the ability, skills and knowledge of the project manager to take into consideration these constraints and develop the plans and processes to keep them in balance.

Scope , the boundaries of the project Schedule , the time to complete the project activities Budget , the funding available to cover all expenses of the project Quality , achieving the expectations of the stakeholders

Scope , is what the project is trying to achieve, it entails all the work involved in delivering the project outcomes and the processes used to produce them. Scope is the boundary of a project, it is what the beneficiaries, and the donors expect from the project.

Schedule , is defined as the time required to complete the project. It is an approximation of the duration of all activities in the project. Schedule constraints include specific dates to deliver an activity or complete the project.

Budget , are the funds approved for the project, they include all the required expenses needed in order to deliver the project within scope and schedule. A number of constraints, financial, political, and organizational, may dictate the methods by which resources such as personnel, equipment, services and materials are acquired.

Quality , is the fourth constraint and it is defined as delivering the project outcomes according to the stated or implied needs and expectations of the project beneficiaries and the donor agency. Quality is also defined as the conformance to requirements or fitness for use.

What is project scope? The boundaries of a project The strategy for implementing a project The activities of a project The duration of a project

What are some examples of influence factors from the project external environment? Donor regulations and government requirements Policies and Procedures Norms and values of the organization Senior management requirements

What are the four project constraints? Scope, People, Schedule, Budget Quality, Schedule, People, Budget Scope, Schedule, Budget, Quality Budget, People, Schedule, Resources

In which project constraint do project beneficiaries have a significant role? Project Quality Project Budget Project Schedule Project Scope

Project Management consist of six distinct Phases ; initiation , planning , implementation , monitoring , adapting and closure .

Project phases and project effort during the project life cycle. INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

Project phases relate to each other in a linear rationale rather than a cyclical manner. INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

How do development projects get started?

Initiation Phase. This phase is where an idea or a concept is authorized and funded as a project. It includes some planning and estimating to clarify its objective and scope. The major steps during the Initiation include: Project Concept Concept Approval Project Proposal Proposal Approval Project Negotiations Project Contract INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

Concept Proposal Negotiation Contract ok? Ok?

What are the most important plans in a project?

Planning Phase. This phase includes the development of detailed plans required to manage the implementation of the project. Major steps during planning include: Project Charter Organize Project team Project Kick off Project Management Plans Project Plan Approval Communicate plans INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

Charter Kick Off Communicate ok? Team Plans

What do we need in order to implement a project?

Implementation Phase. The implementation phase includes taking all necessary actions to ensure the activities in the project plan are completed and the outputs of the plan are delivered. Steps in this phase include: Develop Project Team Assign Work Contract Management Procurement Processes Quality Assurance Communications INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

Organization Contracts QA Reports Purchase Tasks

What is Project Monitoring and Why is it Important?

Monitoring Phase. Monitoring is about measuring the progress of a project against its objectives, looking at deviations from the plan, and recommending corrective steps to put the project back on track. Steps in this phase include: Evaluate Project Reports. Quality Control Issues/Risk Monitoring Team Evaluation Variance Analysis Determine need for Changes INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

Reports Issues/Risks Variance Changes Quality Control Team

Why do we need to adapt the project?

Adapt Phase. The Adaptation phase refers to the process by which the project manager learns and adapts the methods, plans, and approaches and determines what works best for the project. Steps in this phase include: Review Performance Reports Review Change Requests Develop Proposals for Changes Approval of Proposed Changes Update Project Plans Capture Lessons Learned INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

Reports Proposal Update Lessons Ok? Changes Ok? Ok? Yes Yes No

Closing Phase. The closing phase of the project is when the project has achieved the planned objectives and all deliverables have been completed. Steps in this phase include: Project Evaluation Project Final Reports Closing Contracts Administrative Close Team Reassignments Distribute Lessons Learned INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

Evaluation Reports Admin Close Lessons Contracts Team

INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR

What are the project phases in your organization?

Which statement contains the correct order of the project phases? Initiate, plan, implement, monitor, adapt, close Plan, adapt, initiate, implement, monitor, close Plan, initiate, implement, monitor, adapt, close Initiate, plan, implement, adapt, monitor, close

In which phase are changes to the project plans approved? Planning phase Monitoring phase Initiate phase Adapt phase

Definition of Processes A process is defined as a collection of related, structured activities or tasks that produce a specific result.

Scope Management Schedule Management Budget Management Quality Management There are nine management processes that are relevant to development projects. These are designed to help manage the different elements of a project. Different projects may have different needs from each process. Team Management Stakeholder Management Information Management Risk Management Contract Management

The nine management processes occur during the entire project and each one of them requires a cyclical approach that consists of planning, doing, checking and adapting to ensure process quality.

INITIATE CLOSE PLAN IMPLEMENT ADAPT MONITOR The PM processes are organized into two groups:

Scope Management includes the processes involved in defining and controlling all the activities that make up the project and that are required to complete the project successfully.

Scope Management involves four distinct steps: Define the Scope Assign Work Verify the Scope Adapt the Scope

The Work Breakdown Structure (WBS) which is a management technique of breaking the project down into a hierarchy of work tasks which represent 100% of the work.

Schedule Management includes the development of a project schedule that contains all project activities, the project schedule is a communication tool that informs project stakeholders the status of the project and gives information as to when each activity must begin and end.

The key steps of the schedule management process are: Define the Schedule Publish the Schedule Monitor the Schedule Update the Schedule

A GANTT diagram that list all project activities from the WBS; the length and duration of each activity is represented as a bar. Additionally, the chart shows the dependencies amongst activities.

Budget Management processes are required to ensure that the project is completed within the approved budget. The project’s ability to manage the financial resources is a measure of the organization’s compliance with donor’s requirements and its efficiency.

Budget Management consist of the following steps: Defining the Budget Executing the Budget Controlling the Budget Updating the Budget

Budget Management is the activity to see if the project expenses are being executed according to the budget plan and helps identify deviations and develop corrective actions.

Quality Management is the process to ensure that the project will satisfy the needs of the beneficiaries. Quality is defined as a commitment to deliver the project outputs and meet the expectations of the beneficiaries, which means that quality is ultimately defined by the beneficiary.

There are four steps in quality management: Quality Definition Quality Assurance Quality Control Quality Improvements

The most popular tool used to determine quality assurance is the Shewhart Cycle. This cycle for quality assurance consists of four steps: Plan, Do, Check, and Act. These steps are commonly abbreviated as PDCA.

What are the four core project management processes? Scope, Schedule, Budget and Quality Schedule, Budget, Risk and Quality Risk, Schedule, Budget and Scope People, Schedule, Budget and Quality

What is a GANTT chart? A diagram that shows the roles in a project A diagram to represent the cost of each activity A diagram that list all project activities from the WBS A diagram used to monitor the project quality

What does the term scope creep means? Scope creep is delaying activities in the schedule Scope creep is to increase the funding of the project to accommodate additional activities. Scope creep is to reduce the scope of the project Scope creep is to do more than what was originally planned and budgeted for

What does WBS stands for? Work Breakdown Scope Work Baseline Schedule Work Schedule Breakdown Work Breakdown Structure

Team Management includes the processes required to make the most effective use of the people involved with the project. Team management involves the careful planning to ensure the project has the right people at the right time doing the right things.

Steps during the team management process: Team identification Team building Team evaluation Team improvement

The “project organization chart” illustrates the structure to manage the project team. The chart identifies the reporting relationships amongst the project team members and how the project integrates within the organizational structure.

Stakeholders are all the people who have an interest in the project, they are the most critical element for the success of the project. They include donors, beneficiaries, local government, partner organizations and anyone who will be impacted by the project.

There are four steps in stakeholder management process: Stakeholder Mapping Stakeholder relationship building Stakeholder evaluation Stakeholder management improvement

An important tool on identifying stakeholders is the creation of a stakeholder map that places each stakeholder on a matrix of influence and interest. Interest Influence Low Low High High Keep Engaged Keep Informed Keep Committed Keep Satisfied A C D B

Stakeholder Map Stakeholder Influence Type of Influence Interest Type of Interest Impact Donor Beneficiaries partners Local Gov. Other NGOs Others

Information Management includes the steps required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. 80% of a project managers’ time is spent communicating via reports, email, telephone, meetings or presentations.

The steps in information management include: Information Planning Information Management Information Evaluation Information Improvement

Managing information requires the same level of discipline as the management of other project processes; by adequately taking care of each one of the steps the project can have control on the outcomes of the process and be confident on the quality of the information generated.

Risk Management includes the processes concerned with identifying, analyzing, and responding to project risks. Risk in projects is defined as something that may happen and if it does, it will have an adverse impact on the project.

The four steps in risk management are: Risk Planning Risks Monitoring and Response Risk Evaluation Risk Plan Improvement

The list of project risks changes as the project matures, new risks develop, or anticipated risks disappear. As the project makes progress the probability for risks to occur changes, but the potential impact increases; this has implications on the budget and other contingency plans developed by the team.

Risk Probability Impact Risk factor Priority Risk A M (2) L(1) 2 4 Risk B L (1) H(3) 3 3 Risk C H(3) H(3) 9 1 Risk D M(2) H(3) 6 2

Contract Management includes the processes required to manage the three types of contracts: Grants, sub-grants and procurement contracts. Different projects have different needs relating to contract management.

Contract management consists of four steps: Develop the proposals Contract award Review performance Updates

Contract management involves managing the relationship with the donor, sub-grantee and/or suppliers, monitoring contract performance, ensuring reports and payments are made on time and goods and services are delivered under specifications.

What are the five supporting processes? Scope, Stakeholder, Information, Risk and Contract Team, Scope, Information, Risk and Contract Contract, Stakeholder, Budget, Risk and Scope Team, Stakeholder, Information, Risk and Contract

Who are the Project Stakeholders? Stakeholders are the group of people who work for the project Stakeholders are all the people who have an interest in the project Stakeholders are all the people who know about the project Stakeholders are all the people who contribute to the project

What is the purpose of Team Management Processes? Processes required to make the most effective use of the people involved with the project Processes for the correct allocation of team salaries Processes required to ensure that the team is doing the right job Processes required to make the most effective use of the stakeholders involved with the project

Roles of the Project Manager - There are three critical roles of the project manager: Integrator ; ensures all the project activities, strategies and approaches are an integrated effort. Communicator ; most of the work is spent here, communicating with all stakeholders and building the right support and relationships. Leader ; motivating and inspiring a team to deliver the project work by providing a vision and direction.

Integrator A role to ensure the proper integration of the project management processes and coordinate the project phases through the project management cycle.

Communicator The communication or informational role is the most critical role for the success of the project, the organization, project staff, donors, beneficiaries and key stakeholders need to make critical decisions based on the information they receive.

Leader The focus on this role is to ensure that the project team and the project stakeholders have a clear vision of the objectives of the project. A project manager does this by facilitating, coordinating and motivating the team to achieve the project goals.

What other Roles are important?

Planning , developing the project plans that will guide the actions to implement the project Organizing , coordinate the work to make optimum use of the resources. Directing , leading and motivating the team and other key stakeholders Controlling , and monitoring progress against plans, which may need modifications based on results from evaluations

The responsibility for planning involves defining what the project will accomplish, when it will be completed, how it will be implemented and monitored, and who will do it.

The responsibility of the project manager is to establish a structure that will maximize the efficiency (doing the things right) and effectiveness (doing the right things) of the project.

The responsibility of the project manager is to direct, lead and motivate the members of the project to perform in a unified, consistent and manner.

Controlling is a responsibility to ensure the actions of the project team contribute toward the project goals; the project manager must establish standards for performance, measure performance and compare it with the established standards.

What other responsibilities are needed?

There are two basic group of skills needed from project managers: Managerial skills , which deal with managing the procedures, resources and constraints of the project Interpersonal skills , which deal with managing the interpersonal relations with the team and key stakeholders

Managerial skills help in the day to day management of resources, constraints, and application of policies and procedures as well as develop ideas, solve problems creatively, negotiate and skills to interpret abstract information.

The use of good interpersonal abilities helps build trust and confidence between members of the project team and helps create good relations and a good working environment.

The level of authority provides a level of power and influence on the project and its members. There are five different types of power: Coercive power Reward power Expert power Legitimate power Referent power

Use of some form of punishment or threat to get people to do things.

Involves the use of incentives such as money, status, promotions, official recognition or special work assignments.

Use of personal expertise to influence the team to follow directions.

Based on formal authority, and uses the power vested on the project manager by the organization to make decisions and assign work to the project team.

Based on the personal charisma of the project manager; it is based on the leadership qualities of the project manager and his or her ability to build a good level of trust with the team.

What types of Power do you use?

What are the three roles of a Project Manager? Integrator, Leader, Manager Integrator, Communicator, Leader Leader, Communicator, Facilitator Communicator, Integrator, Facilitator

Which interpersonal skill are used to help and motivate the team? Leadership skills Behavioral skills Communication skills Conceptual skills

What type of power is based on the project manager's formal authority? Coercive power Referent power Legitimate power Reward power

What are the responsibilities of a project manager? Planning, Leading, Directing and Controlling Integrating, Communicating, Leading and Controlling Planning, Organizing, Directing and Controlling Planning, Organizing, Monitoring and Controlling

Which management style requires a consensus for decision making? Autocratic Paternalistic Democratic Laissez-Faire

A project organization is a structure that facilitates the coordination and implementation of project activities. Its main purpose is to create an environment that fosters interactions among the team members with a minimum amount of disruptions, overlaps and conflict.

Each project has its unique characteristics. The design of an organizational structure should consider the organizational environment, the project constraints in which it will operate, and the level of authority the project manager is given. A project structure can take on various forms with each form having its own advantages and disadvantages.

Factors in Designing a Project Structure There are two design factors that significantly influence the design of a project management structure. These are the level of specialization , and the need for coordination .

A project has three organization structures available for design: Program based , project managers have authority only within a programmatic focus area, such as health or education. Matrix based , the project manager shares responsibility with other program unit managers. Project based, project managers have total authority over project actions.

The program structure refers to a traditional structure in which program sector managers have formal authority over most resources. In a program focus organization, a project team is staffed with people from the same area. All the resources needed for the project team come from the same unit.

Advantages : 1 2 3 Disadvantages : 1 2 3

Allows program units to focus on their specific technical competencies and allow projects to be staffed with specialists from throughout the organization. It is common for people to report to one person in the functional organization, while working for one or two project managers from other units.

Project managers have a high level of authority to manage and control the project resources. With this type of structure the project manager has more control over the project and the resources needed to accomplish project objectives from within or outside the parent organization, subject only to the scope, schedule, budget, and quality constraints of the project.

What are the project structures in your organization?

What are the three basic forms of project structure design? Programmatic, Matrix, Project Functional, Matrix, Program Program, Specialization, Matrix Project, Matrix, Specialization

Which project organization structure is most advantageous to make an efficient allocation of resources? Programmatic Based Structure Collaboration Based Structure Project Based Structure Matrix Based Structure

Next Steps Implications for the organization Implications for individuals

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Fundamentals of Project Management

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