Discuss the Extent to Which You Think That Organisational Success Is the Cause or the Effect of Meet (PowerPoint)

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					     Advanced Project Management

                              Level 6




Advanced Project Management
                              Session 1

             Managing and Leading Projects




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be able to:

     Explore the various definitions and characteristics of a
      project
     Analyse the difference between leadership and management
      relating to projects
     Explore why organisations in different sectors need to
      engage in projects and consider different types of project
     Evaluate the importance and relationship of project and
      people management in achieving project goals.
     Demonstrate an understanding of external business
      environmental factors and how they may affect a project.
     Critically evaluate the concept of power and influence.
     Identify the key stakeholders for a purchasing and logistics
      project and how their power and influence change throughout
      the life of the project.



Advanced Project Management
Definitions of Project Management

 „… A set of activities with a defined start
  point and a defined end state, which
  pursues a defined goal and uses a
  defined set of resources.‟ (Slack et al)
 “... A temporary endeavour undertaken
  to create a unique product or service”.
  (US PMI)
 “... The process by which projects are
  defined, monitored, controlled &
  delivered.....desired outcome......bring
  about change” (APM)
Advanced Project Management
Definitions
 Cips Study Guide
 “a group of activities that have to be
  performed in a logical sequence to meet
  pre-set objectives outlined by client”
 Meredith & Mantel
 “a specific, finite task to be
  accomplished......project seen as a
  unit....characteristics..importance,
  performance, lifecycle,
  interdependencies, uniqueness,
  resources and conflict”
 What are key features? Group exercise
Advanced Project Management
Distinctions between Leadership
and Management
“Leadership is the lifting of a person‟s vision to
   higher sights, the raising of performance to a
   higher standard, the building of personality
   beyond its normal limitations”.
“Nothing better prepares the ground for such
   leadership than a spirit of management that
   confirms in the day-to-day practices of the
   organisation strict principles of conduct and
   responsibility, high standards of performance
   and respect for the individual and his work.”
                          Drucker; The Practice of Management




Advanced Project Management
What do Managers Do?

    Plan                        Establishing overall
    Organise                     purpose or policy
    Coordinate                  Forecasting and
    Control                      planning
    Lead                        Organising and
                                  allocating work
                                 Giving instructions
    Fayol
                                 Checking
    Is this mainly a shorter
                                  performance
     term focus?                 Coordinating the
                                  work of others
                                              Buchanan

Advanced Project Management
What do Leaders Do?
    Enable people and            Administer rewards and
     groups to achieve their       punishments
     objectives                   Provide information,
    Set and communicate           advice and expertise
     objectives                   Provide social and
    Monitor performance           emotional support
     and give feedback            Make decisions on
    Establish basic values        behalf of others
    Clarify and solve            Represent the group to
     problems for others           others
    Organise resources           Arbitrate in disputes
                                  Act as a father figure
    Longer term?                 Become a scapegoat



Advanced Project Management
Leader or Manager?

 Group exercise                     1
 What do you see as the key
  differences between
  management & leadership?
 Which skills are more important
  in project management?
 Recap Kotter p 11 – effective v
  efficient?
 Also Mintzberg p 12
Advanced Project Management
Reasons that Organisations
Undertake Projects
 Change in:
        The external environment
        Markets and customer needs
        Technology
        Products and services
        Processes
 Globalisation
 Impatient customers
 Increasing demand for unique and customised
  solutions
 Change within organisations initiated by senior
  managers
 Paired ex – list examples for each point above –
  own org. or alternative
Advanced Project Management
Hard or Soft Projects

 Hard – normally refer to tangible,
  measurable activities and processes
 Soft – human factors and processes –
  eg communication, behavioural change
  and acceptance

 Can you easily distinguish simply
  between these two aspects of project
  work
 Is Millau Bridge a hard project?

Advanced Project Management
„Hard‟ vs „Soft‟ Projects
    Product development – p8    Lyson‟s categorisation of
    Process development – eg       projects:
     BPR                          Manufacturing projects
    Re-design/modification of    Construction projects
     products and processes
    Technology development       Management projects
    Installation of new IT       Research projects
     systems example p9 –
     London Ambulance               Too simplistic?
     Service
    Site relocation/closure
    Culture change
    Introduction of a new
     organisational structure
    A new appraisal scheme

    How would you categorise
     each of these?
Advanced Project Management
Constituents of the Project
Context
 PEST/SLEPT factors                Complexity
 Porters 5 Forces                  Completeness
  analysis                          Competitiveness
 Stakeholders                      Customer focus
 Resource constraints                            Maylor
 Time constraints
 Overall strategy of
  the organisation
                 CIPS syllabus




Advanced Project Management
Common Stakeholder Expectations

     Fit for purpose
     Aesthetically pleasing
     Free from defects
     Delivered on time
     Value for money
     Reasonable running costs
     Satisfactory reliability/durability
     Supported by worthwhile guarantees
     Which stakeholders do each of above
      relate to?
Advanced Project Management
   Stakeholder Power/Interest Matrix
                        Level of interest
                   Low                   High



              Minimal effort      Keep informed
                                                          Stakeholders are
Power




                                                           likely to move
                                                               between
                                                          segments during
                                                         the life of a project

              Keep satisfied        Key players



                                Source: Mendelow, 1991
  Advanced Project Management
How do you keep
stakeholders satisfied?
 Satisfaction = perception – expectation
 Manage their expectations
 Re projects – may be necessary to “sell”
  the final outcome
 Ensure know actual requirements –
  don`t over-promise
 Keep advised of progress

 Spec exam paper – Sportsco Q 1

Advanced Project Management
                              Session 2

             Managing and Leading Projects




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be
    able to:

     Evaluate and explain the idea of the project as a
      conversion or transformation process.
     Explore the concept of variety and volume in
      defining the nature of an operation and evaluate
      its application to project management.
     Describe the role of a project selection




Advanced Project Management
 A Project is a Conversion Process


  Input
resources

 Materials
Information                      The project
Customers                                         Output
                  Input
                              (transformation   (product/   Customers
                resources
                                  process)       service)

Input trans-
  forming
 resources

 Facilities
   Staff

Advanced Project Management
Conversion Process

                 Inputs Transformed into
                         Outputs

                    Same as a process?

           What other input resources do
                    you need?
                     See p 30




Advanced Project Management
Projects as a Technology

                 Low
                              Volume            High
          High




                 Projects
                            Small
    Variety




                            batch
                                    Large
                                    batch
                                            Process
          Low




                                             plant


Advanced Project Management
The Project Model
                               Constraints:
                               •Financial
                               •Legal
                               •Ethical
                               •Environmental
                               •Logic
                               •Activation
                               •Time
                               •Quality
                               •Indirect effects



         Input:                    Project              Output:
        Want/need                                      satisfied need



                              Mechanisms:
                              •people
                              •knowledge & expertise
                              •capital
                              •tools & techniques
Advanced Project Management   •technology
 Project Constraints

Group exercise

Discuss examples and give reasons why
Maylor lists these factors - in previous slide -
as constraints in his ICOM model




Advanced Project Management
 Project Portfolio Process
 How many projects can an organisation
  handle?

 Identify projects that satisfy strategic
  needs
     They support multiple goals – feasible?
     They drive organisational improvement – why
      might these take priority?
     They enhance/enable „key areas‟ – how
      determine?




Advanced Project Management
Portfolio Process

 Prioritise candidate projects
      Limit active projects to a manageable level –
       do you always have necessary resources?
      Identify risk-intensive efforts – why?
      Balance short-, medium- and long-term
       returns – why is this important?
 Prevent projects getting in the back door
  – how/why might this happen?
                               Meredith & Mantel, 2005




Advanced Project Management
Project Selection Factors -
Issues to Consider

 Operations
       Interruptions, learning, process
 Marketing
       Customer management issues
 Financial
       Return on investment – what is acceptable?
 Personnel
       Skills and training, working conditions – what
        impact on employee motivation?
 Administrative
       Regulatory standards, „strategic fit‟ – with
        what?
                                 Meredith & Mantel, 2005
Advanced Project Management
  Strategic Success Factors
 Project mission – clearly defined and agreed
  objectives
 Top management support – top managers must get
  behind the project and make clear to all personnel at
  the outset their support
 Project action plan – showing details of the required
  steps and resource requirements in the
  implementation process
 Group ex – how would getting each of these factors
  wrong cause problems for an organisation? Can you
  think of any project failures attributable to any of these
  factors?
 Advanced Project Management         Meredith & Mantel, 2005
What Projects Have in Common

 An objective or objectives, usually defined in
  terms of quality, time and cost – the “iron
  triangle”
 Each is unique – a „one-off‟ – always?
 Of a temporary nature – what is temporary?
 A degree of complexity, stemming from multiple
  tasks and participants – often the key challenge
 A degree of uncertainty, often technical

NB. A „programme‟ implies greater longevity or
  continuity
 Spec Exam paper Q 3

Advanced Project Management
                              Session 3

                     The Project Life Cycle




Advanced Project Management
Learning Outcomes
At the end of this session candidates
   will be able to:

     Consider different approaches to the project life
      cycle
     Identify the different stages of the project life
      cycle and the key characteristics, demands and
      problems most likely to be encountered at each
      stage
     Evaluate the concept of the project life cycle as a
      management tool
     Investigate a variety of problem-solving
      approaches and the extent to which they may be
      relevant during the project life cycle

Advanced Project Management
Comparison of Characteristics of
Projects and Problems
Projects                        Problems
 A supported purpose/           Intransparency – lack of
   importance                      clarity of situation
 Specifications of              Polytely – multiple goals
   performance (form, fit,       Complexity – large
   function)                       numbers of items,
 Known solution                   interrelations and
 Stages with finite due date      decisions
 Interdependencies              Dynamism – time
 Uniqueness                       considerations
 Resource requirements
   and tradeoffs
 Stakeholder conflict
     Meredith & Mantel, 2005




Advanced Project Management
Three-stage Project Life Cycle



                              Source: Meredith
                              & Mantel, 2003,
                                   Wiley




Advanced Project Management
 Three Stage Life Cycle
 Why might work in project follow this
  guideline?
 Any examples? – construction of new
  housing estate
 Consider time/effort impact – fig 4.2 p 39
 Alternative patterns? See p 40

 Why is it important to know what is likely
  scale of progress? How identify in advance?
 Group ex – look at p 42 – relative
  importance of project objectives – agree?
 Advanced Project Management
Four-stage Project Life Cycle

                         D1: Define the project
                                       The brief

                D2: Design the project process

            Process &
               product                       The proposal/PID
            knowledge



    D4: Develop                                    D3: Deliver
    the process               The outcomes
                                                   the project

                                                    Source: Maylor
Advanced Project Management
Maylor‟s Four-phase Approach
Phase                     Key issues               Key questions
Define the project        Organisational &         What is to be done?
                          project strategy; goal   Why is it to be done?
                          definition

Design the                Modelling & planning;    How will it be done?
                          estimating; resource     Who will be involved in
project process           analysis; conflict       each part?
                          resolution; business     When can it start and
                          case                     finish?
Deliver the               Organisation; control;   How should the project
                          leadership; decision-    be managed?
project                   making; problem-
                          solving
Develop the               Assessment of            How can the process
                          process & outcomes;      be continually
process                   evaluation; changes      improved?
                          for the future

Advanced Project Management
 Developing a Project Strategy


  Getting                Moving      Bringing            Handing
  started                forward       it in              it on



                                        Doing
 Analysis             Preparation                    Handover
                                      the work
Commitment             Feasibility                    Support
                                     Making the
Consultation             trials                       Review
                                       change



                                          Source: CIPS
Advanced Project Management
4 Stage Models

 Group exercise
 Compare and contrast Maylors 4 stage
  model to Cips version on slide – also
  use Cips version p 45 – table 4.4
 Are they effectively one and the same –
  or are there genuine differences?




Advanced Project Management
Five-stage Project Life Cycle

   Stage 1
                    Define                        Weiss & Wysocki


   Stage 2
                                   Changes
                      Plan


   Stage 3                    Corrective action
                   Organise


   Stage 4                    Stage 5
                    Control                Close Out


Advanced Project Management
5 Stage Models

 See also Frigenti and Comninos model
  – p 45/6
 Tables 4.5 and 4.6 p 46 – individual
  homework exercise – critically evaluate
  these 2 models, recommending your
  preferred option for use in your
  organisation




Advanced Project Management
McKinsey‟s 7S Framework

                              Strategy



   Systems                                          Structure

                              Shared
                              purpose

                                                      Style/
      Staff                                          culture

                               Skills


Advanced Project Management         Source: McKinsey 7S framework
The 7S Project Approach
Element             Description
Strategy            High-level requirements of the project and
                    means to achieve them
Structure           Organisational arrangements that will be used
                    to carry out project
Systems             Methods for work to be designed, monitored
                    and controlled
Staff               Selection, recruitment, management and             Source:
                    leadership of those working on project           7S framework
Skills              Managerial and technical tools available to       adapted by
                    project manager and staff                           Maylor

Style/culture       Underlying way of working and inter-relating
                    within the project/organisation
Stakeholders        Individuals and groups who have an interest in
                    project process or outcome
Advanced Project Management
7 S Framework

 This is a more strategic approach to
  Project management – focuses upon
  strategic alignment and “fit”

 Considers organisations capabilities,
  capacity, priorities and strategic
  objectives.
 Does project fit or match these areas?
 Consider impact of project on other
  activities and areas of the organisation –
  resources, culture etc
Advanced Project Management
Problem Solving Techniques

    Maylor
    Thamhain & Wilemon
    Thomas-Killman Conflict Resolution
    Brainstorming
    Ishikawa Fishbone Analysis
    Cause – Effect – Cause Analysis
    Decision Trees
    Pareto Analysis
    5 Whys
    Lewins Force Field Analysis
Advanced Project Management
Systematic Problem-solving Model
           Problem
         identification
                                  Select
                                 solution
             Seek
          alternative
          definitions
                                Implement

            Select
           definition
                               Check and
                                 amend
           Evaluate
           possible
           solutions
                              Source: Adapted from Maylor
Advanced Project Management
Thamhain & Wilemon

 What are main causes of conflict in
  projects?
 Group exercise – prioritise from following;-
 Cost, Personalities, Priorities, Procedures,
  Schedules, Staffing, Technical Problems
 At what stage will some be more
  significant than others – use 4 stage
  approach – formation, early
  implementation, main programme, closing.


Advanced Project Management
Thomas-Killman Model

 5 Approaches to conflict resolution
 Avoiding – what? When use?
 Forcing – what?
 Accommodating – why?
 Compromising – isn`t this always the
  best way?
 Collaborating – how does this work?
 Is it horses for course approach?



Advanced Project Management
Brainstorming
 Purpose
       To generate a large number of ideas
       To stimulate creativity
 Technique
       The „problem‟ to be solved is described or stated
       Everyone participates, either in turn or simply by
        calling out in an orderly way
       A team member captures everything as said on
        paper/board
       No judgement or criticism of others‟ suggestions:
        the group accepts outrageous, unrelated ideas
       Ideas are developed by building on others‟ ideas
       When there are no more ideas, the exercise is
        over
      What are difficulties of using this technique in work
        environment?
Advanced Project Management
Ishikawa Fishbone Analysis
 Purpose
       To visually represent in specific categories the
        probable causes of a problem
       To help people visualise a problem and structure
        its analysis
 Process
       Identify the „problem‟ and place it in the „Effect‟
        box.
       Trace the process through all stages to identify all
        possible contributory causes. Use the
        Brainstorming technique to consider all the
        possible causes that may result in the „Effect‟.
       Group possible causes under headings (for
        example, the 4Ms: Methods, Manpower,
        Materials, Machines; or steps in the process being
        analysed).
Advanced Project Management
Example of Fishbone Diagram

        MACHINERY                        MANPOWER
                       Insufficient space
                                                             Incorrect
                       at locations
                                                             quantity
                                                             at location
    Incorrect                   Mixed or mis-             Counting
                                 placed stock
        tube                                                               EFFECT
      pattern                 Labelling on
                              lowest rack
                                              Poor quality               Error in item
                                              staff training
                                                                         stock control

          No stock                   Consecutive
           stickers                          rack
                                                                      Poor
                                       numbering
       Loose                                                       procedures
                                    Excessive
   components
                                   movements
                      Uneven
          Loose
                      tube                                     Returns
       end stops
                      lengths
         MATERIALS                           METHODS


Advanced Project Management
Cause-effect-cause Analysis
 Purpose
       To overcome stagnation in solving problems
        that are complex and difficult to structure
       To identify the root cause of a problem
 Technique
       Best results emerge when a skilled facilitator
        is available
       State the problem and identify the effects
       Explore how the effects relate to one another
       Use „why‟ and „how‟ successively to explore
        causes of the observed effects
       Form a cause-effect diagram on which action
        can be taken – see p 59/60


Advanced Project Management
Decision Trees
 Purpose
       To identify likely outcomes and probabilities
        in a problem
       To calculate the expected value of possible
        outcomes
 Technique
       Identify the scope of the decision to be taken
       Identify sub-decision points
       Identify the outcomes and probabilities
        possible from each decision point
       Calculate the expected values for specific
        routes through the tree
       May 07 Exam paper Q 5


Advanced Project Management
                              Session 4

               Contemporary Approaches to
                    Managing Projects




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be able to:
     Explain the 6Σ approach and what it seeks to achieve
     Identify the eight key processes and requirements of
      PRINCE2 and evaluate the effectiveness of this
      approach to project management
     Analyse the key requirements of Critical Chain and
      explain how projects that use CCPM can achieve
      better results than other methods
     Explain concept of theory of constraints




Advanced Project Management
Six Sigma
 A continuous improvement method – Motorola,
  1986
 Since applied and popularised by others, for
  example, GE and Honeywell
 Aim –
    To profitably improve the quality of products
     and services to the customer
       Statistically, a defect rate = 3.4 defects per
        million opportunities – 99.9997% perfect
       Is this always appropriate?
       Requires major investment in time and
        resources

Advanced Project Management
     Six Sigma
 Key characteristics:
    Focuses on the customer's critical-to-quality needs
     (CTQs) – V.O.C.- what are they? How establish?

    Concentrates on measuring product quality and
     improving process engineering

    Gives top-down, project-driven process improvement and
     cost savings

    Is a business strategy execution system and so is truly
     cross-functional

    Provides focused training with verifiable ROI

    Is business results oriented

      Has 3 key component areas – Process Improvement,
   Advanced Project Management
      Process Design (Redesign), Process Management
Process Improvement - DMAIC

                              … the project goals and
              Define          customer deliverables


                              … the process to determine
            Measure
                              current performance


                              … and determine the root causes
             Analyse          of defects


                              … the process by eliminating
             Improve
                              defects


                              … future process performance so
             Control
                              that improvements can be sustained

Advanced Project Management
Process Design (Redesign) -
DMADV
 Define – Id and set goals
 Match/measure – benchmark against
  customer needs/expectations
 Analyse – performance measurements
  & outline enhanced processes to meet
  customer needs
 Design/implement – new processes in
  detail
 Verify – controls to ensure compliance


Advanced Project Management
Process Management

 Changes how organisation is structured
  and managed
 4 Steps are ;-
 1) Understanding processes and
  customer expectations
 2) Continual measurement
 3) Analysis of data
 4) Responding to variances

 Is 6 Sigma a project management tool?
Advanced Project Management
Benefits of Six Sigma
Direct benefits               Indirect benefits
    decrease in defects         improved customer
    reduced cycle time           relations and loyalty
    lower costs to provide      team-building
     goods and services.         effective supply chain
    data-based decisions         management
    sustained gains and         increased margins
     improvements                greater market share
    better safety               world-class standard
     performance                 development of staff
    fewer customer               skills
     complaints


Advanced Project Management
Statistical Basis of Six Sigma




Advanced Project Management
Prince 2

 Originated by UK Gov in 1989 – Prince
  2 - 1996
 Designed for public sector I.T. Projects
 Now generic approach for all types of
  project
 8 stage model – see Fig 6.1 page 67
  and note the 8 inter-reacting stages plus
  external stage of Corporate
  Management –goup ex – read and
  evaluate

Advanced Project Management
PRINCE2 (Projects In Controlled
Environments)
Key processes                 Project management
    Directing the project       Project Board:
    Planning a project             Project assurance
    Starting up a project          Project support

    Initiating a project        Project manager
    Controlling a stage         Documentation:
                                    Quality log
    Managing product
                                    Issues log
     delivery
                                    Risk log
    Managing the stage
                                 Bureaucratic controls
     boundaries
                                 Emphasis on early
    Closing a project
                                  conflict resolution



Advanced Project Management
Prince 2

 Group exercise
 What are advantages and criticisms re
  this approach?
 See p 69 – agree with OGC claims?




Advanced Project Management
   Critical Chain
 Traditional project estimation techniques ineffective:
    Time and resource constraints usually violated, for
     example,
       • People have to multi-task – see p 71
       • General Uncertainties
       • Departments include safety margins
       • Parkinsons Law
       • Goldratt – pass on delays but not advances
       • „Student syndrome‟ (last minute)
    So, PMs rely on „padding‟ of schedules and budgets
     to provide slack
    Unknown nature of event interaction
    Maylor, 2003, Meredith & Mantel, 2005

  Advanced Project Management
Theory of Constraints
Approach
 Project cannot move faster than slowest process –
  “convoy effect” or “weakest link”
 Approach is to manage bottlenecks (constraints)
    Activities with several predecessors and/or
     successors
    Add „time buffers‟ at bottleneck events
       • „Safety stock‟ has equivalent in
         manufacturing
       • „Just-in-case‟ equivalent to JIT
       • Statistically-derived „path buffers‟
    Establish the critical chain for scarce
     resources
    Prioritise resources in chain events
              Meredith & Mantel, 2005 and Goldratt‟s „Theory of Constraints‟
Advanced Project Management
Constraints 2 – see p 72/73
 Main stages of the TOC approach:
    Identify the constraint (critical path/critical
     resources)

     Exploit the system constraint – ie work it to
      its maximum capacity

     Subordinate everything to the constraints

     Elevate the constraint – find additional
      resources for it

       Go back and find new constraints
       May Exam Case Study Q 1
Advanced Project Management
                              Session 5

            Exploring the Stages of a Project




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be able to:
     Identify and explain key stages in a typical project.
     Explain the tasks during project initiation and definition
     Explain what is involved in developing a project plan
      and budget and in evaluating project risk
     Explain how a project might be structured and
      resources recruited, organised and allocated
     Identify key methods of measuring and controlling
      project performance and recommend an appropriate
      approach for a project
     Explain what is involved in the closure of a project
     Explain what is involved in the review and evaluation
      of a project and the learning stemming from it



Advanced Project Management
Stages of a Typical Project

1. Initiation and definition
2. Planning
3. Organisation and implementation
4. Measurement, monitoring, control and
   improvement
5. Closure
6. Review, evaluation and learning
  Not directly comparable with earlier
   examples of life cycle models
                                   Lysons

Advanced Project Management
Stage 1 – Initiation and Definition

What’s involved              Identifying project goals
                             Listing project objectives
                             Determining preliminary resources
                             Identifying assumptions and risks




Tools &                      Financial appraisal
techniques                   Project initiation document (PID)
                             Quality Function Deployment
                             Risk analysis & risk/impact matrix
                             Suitability/feasibility/vulnerability
                             Voice of the customer


Advanced Project Management
Stage 1
 Needs to consider;-
 Project selection – “sacred cow”, operating
  necessity, competitive necessity, product
  line extension, comparative benefit – what
  do these mean?

 Numerical selection methods – unweighted
  factor (how many boxes does it tick),
  unweighted factor scoring ( what marks
  does it score in each box), weighted factor
  score (which boxes are more important)
 See P79 - discuss
Advanced Project Management
Stage 1 - continued

    Scope/outcomes – what is excluded?
    Timing
    Resources – what types?
    What R.O.I? Resources. Cashflow
    Risk Impact – how? Likelihood/impact
    V.O.C. – remember 6 sigma




Advanced Project Management
Stage 2 – Project Planning
What’s involved              Identifying activities
                             Estimating time and cost
                             Sequencing activities – why important?
                             Identifying critical activities
                             Refining the plan
                             Updating the initial risk analysis
                             Writing the project proposal
Tools and                  Project initiation document (PID)
techniques                 Work breakdown structure –
                            what/who/where/when
                           Network diagrams and CPA
                           QFD
                           Risk analysis & risk/impact matrix
                           SIPOC – see session 7

Advanced Project Management
Stage 2
 What will be involved?
 Range and scope
 Sequence – often critical – why?
 Why written plan? How used? Project
  creep
 Timing & Costs – assess spending
  against likely achievements not time
  spent on activity – why?
 Budgets – top down/bottom up?
 Use of Critical path analysis – significant
  aspect at this stage – why?
Advanced Project Management
Stage 3 – Organisation and
Implementation
What‟s involved  Determining personnel needs
                             Recruiting the project manager
                             Recruiting the project team
                             Organising the team
                             Assigning work packages


Tools and                    Network diagrams and CPA
techniques                   Seven tools of quality control
                             Problem-solving tools
                             Risk analysis & risk/impact matrix
                             Team roles (Belbin)


Advanced Project Management
Stage 3

 How project team is set up! How does
  existing organisational structure impact
  upon this?
 Group exercise - What attributes do we
  need on the team?
 Where do Belbin, Tuckman, Maylor
  models fit in this aspect of project
  management?
 Cross functional teamworking – issues,
  problems

Advanced Project Management
Stage 4 – Measurement,
Monitoring and Improvement
What‟s involved  Defining management style
                             Establishing control tools
                             Preparing status reports
                             Reviewing the project schedule
                             Issuing change orders


Tools &                      SIPOC
techniques                   Problem-solving tools
                             Seven quality tools
                             QFD




Advanced Project Management
Stage 4
 Consider both Organisation & Project
  Team Structure
 What is appropriate management style –
  vary depending on project type/nature?
 How control project? – which methods?
 Reporting process – to whom?
 Deadlines – key stages
 How/when review/evaluate progress?
 How communicate change?
 Important at this stage to refer back to
  original proposal – why?
Advanced Project Management
Stage 5 – Closure of the project

What‟s involved  Obtaining client acceptance
                           Installing deliverables
                           Documenting the project
                           Issuing the final report




Tools and                  SIPOC
techniques                 Seven quality tools




Advanced Project Management
Stage 5

    Have we met project aim?
    V.O.C.
    Implement project – do it! Does it work?
    Why record the process used?
    Learning is crucial – can be more
     important than project itself? Why?
    Report – to who?
    Finality
    Team feedback
    Closure
Advanced Project Management
Stage 6 – Review, Evaluation
and Learning
What‟s involved  Conducting a project audit
                           Learning lessons (from successes
                            and failures)
                           Communicating the review,
                            evaluation and learning



Tools and                  SIPOC
techniques                 Seven quality tools (including cost
                            of quality)
                           Project review




Advanced Project Management
Stage 6

 Audit process – did we achieve
  success?
 Who audits? Internal? External?
 Audit only at end of project?
 Is on-going audit preferable? Why?
 What are problems/drawbacks re
  auditing?
 Learning – Kolbs learning cycle

 Spec exam paper Q 4
Advanced Project Management
                              Session 6

      Tools & Techniques for Data Collection,
          Analysis and Decision Making




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be
    able to:
 Utilise a range of tools and techniques to
    assist in data collection, analysis and
    decision-making:
 Appraise appropriateness, selection and
    implementation of the tools and
    techniques available to the project team




Advanced Project Management
Project Management Tools
    Seven tools of quality control
    Financial appraisal
    Voice of the customer
    Quality function deployment
    Project initiation document (PID)
    „Moments of truth‟
    Risk analysis and assessment (risk mitigation)
    Risk/Impact matrix
    Suitability/feasibility/vulnerability




Advanced Project Management
Evaluating PM Tools and
Techniques
 Appropriateness
       Show that you can pick the right tool for the
        task
 Selection
       Show that you are aware of the limitations,
        as well as its capabilities
 Implementation
       Show that you can use the tools correctly




Advanced Project Management
Ishikawa 7 Tools of QC
 Flowcharts – graphical depiction of process
 Check sheets – simple log of occurrences of
  specific event/problem
 Pareto
 Fishbone diagram
 Histogram – bar chart – shows data in grouped
  frequency distribution
 Scatter diagram – eg correlation between
  advertising spend and sales
 Statistical Process Control charts – control limits
  re acceptable performance/tolerances


Advanced Project Management
Risk Assessment
 What is the situation to be assessed?
 What can go wrong? (What are the hazards?)
 What is the probability that each hazard will
  occur?
 What are the consequences if it does go wrong?
 What is the uncertainty of our risk assessment?
 Summary – probability, impact and uncertainty
 Recommendations




Advanced Project Management
„Risk‟ vs „Uncertainty‟
 Risk – When the decision maker knows
  the probability of each and every state of
  nature and thus each and every
  outcome. An expected value of each
  alternative action can be determined
 Uncertainty – When a decision maker
  has information that is not complete and
  therefore cannot determine the expected
  value of each alternative
                              Meredith & Mantel, 2005




Advanced Project Management
Financial Appraisal

 Payback period – time to recover initial investment
     through estimated cash inflows from the project
 Average rate of return (ARR) – average annual
     profit ÷ average investment
 Discounted cash flow (DCF) – present value
     method
 Internal rate of return (IRR) – rate of return that
     equates present value of cash inflows and outflows
 Profitability index – NPV of all future expected
     cash flows ÷ initial cash investments



Advanced Project Management
Quality Function Deployment

 QFD = VOC
 Final design/outcome = customers
  needs
 See p 109/110 for worked example




Advanced Project Management
  Service Quality
‘Moment(s) of truth’              Dimensions of service
 An interaction with a              quality
   customer                        Access
 SAS in 1980s:                    Communication
     Average passenger was        Competence
       in contact with five SAS    Courtesy
       staff per trip
                                   Credibility
     Five million passenger
       journeys a year             Reliability
     25m opportunities a          Responsiveness
       year to satisfy or          Security
       dissatisfy customers        Understanding
                                   Tangibles
                                     Parusuruman, Zeithaml &
                                                       Berry


 Advanced Project Management
Risk/impact Matrix

                     Low
                              Impact   High
              High
Probability




                                              Tolerance
                                              threshold
                                              (depends on
                                              organisation)
              Low




Advanced Project Management
                              Session 7

           Systems and Processes in Project
                    Management




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be able to:

     Demonstrate the approach of systems thinking and
      process focus using process mapping techniques and
      procedures
     Explain end-to-end processes
     Construct a flow chart for a process
     Explain the interfaces and swim lanes
     Explain the workings of critical chains software and its
      impact on projects
     Appraise appropriateness, selection and
      implementation of the systems and process
      techniques available to the project team

Advanced Project Management
SIPOC Mapping




Suppliers           Inputs    Process   Outputs   Customers




Advanced Project Management
Flow-charting Processes
 Purpose
       To describe the „flow‟ of a process
 Process
       Identify the process to be charted. It should have
        defined inputs and outputs and an „owner‟.
       Define the start and end of the process with a
        circle or oval.
       Identify the major steps and represent each with a
        rectangle. Start the description of each step using
        a verb (doing word), for example, measure
        diameter, collect from stores.
       Show decisions as a diamond with no more than
        two outcomes (for example, „yes‟ and „no‟)
       Represent the flow through the process with lines,
        using arrows where necessary for clarification, for
        example, up-arrow where flow returns to a
        previous step.


Advanced Project Management
Work Breakdown Structure

 Lists tasks to be completed – assigns
  responsibility for each task
 Can`t eat an elephant
 Supported by Linear responsibility chart
  – who “owns” task and where co-
  operation between depts or individuals
  is required
 Gantt Charts – measures actual and
  planned progress – quickly highlights
  overruns – resource planner – even out
  demand for resources
Advanced Project Management
Interfaces and Swim Lanes

 Activities organised into channels –
  each one representing the
  responsibilities of individual, dept or
  organisation
 Highlight processing gaps and
  inefficiencies
 Focus attention on high-risk areas
  where work is transferred between
  groups – the interface
 See p 135

Advanced Project Management
Critical Path Analysis
 Use Profex p 114 – 118
 Worked example
 Crashing the project

 Pert – use of estimates of likely duration of
  activity, optimistic estimate and pessimistic
  estimate to calculate mean time and standard
  deviation re activity.
 Then use of probability statistics to estimate
  likelihood of over-runs
 Gert – uses concept that some activities may fail
  & need repeating – use of statistics to estimate
  likely occurrence and costs of such events
Advanced Project Management
                              Session 8

     Techniques for Purchasing and Logistics
                    Projects




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be
    able to:

     Identify a range of purchasing and logistics
      projects
     Identify characteristics that differentiate these
      projects from projects in other functional areas
     Apply and appraise the usefulness of standard
      project management tools and techniques for
      purchasing and logistics projects
     Apply computerised project management
      systems for purchasing and logistics projects


Advanced Project Management
Examples of P and S
Projects
 Group exercise – what projects are
  currently running in your org purchasing
  function?
 What is your involvement?
 What are key objectives?
 What are main difficulties and
  constraints?




Advanced Project Management
Characteristics of P and S
projects
    Specific
    Time Constrained
    Limited Resources
    Cost Reduction
    Product performance
    Overcoming reluctance to change by internal
     stakeholders
    Including int. Stakeholders in project – getting
     their commitment
    Accessing variety of data – internal & external
    Securing significant “added value” for org.
    Develop good external relationships with
     suppliers
Advanced Project Management
Managing P and S Projects
 Group exercise
 Applying concepts and models – which
  of those examined so far do you use in
  your organisation?

 Applying tools and techniques – which
  work best in your org?

 Applying software – which do you use?
  How effective is it? What are
  advantages? See next slide
Advanced Project Management
Software Systems
Provide support in:           Evaluation criteria
 Tracking contracts           The nature of the
 Tracking                      products
   responsibilities            Ownership of the
 Tracking activities           code
 Communicating                Stability of
 Integrating                   requirements
 E-tendering                  Software
                                maintenance and
                                development




Advanced Project Management
Software Systems

 Group exercise
 What are main benefits in using
  software packages for running projects?
 What are the disadvantages?




Advanced Project Management
                              Session 9

           Key Factors in Successful Project
                    Management




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be able to:

     Evaluate the elements of the „iron triangle‟ and their
      interdependency
     Contrast the „iron triangle‟ approach with the contingency and
      critical chains („crashing‟) approaches
     Analyse and identify process-based factors in the success
      and failure of purchasing and logistics projects
     Explain the requirements of effective project leadership
     Appraise the qualities and characteristics of a successful
      project manager
     Analyse and explain the characteristics and importance of
      teamwork in a project
     Analyse the extent to which people management and
      leadership issues contribute to success and failure in
      projects


Advanced Project Management
The „Iron Triangle‟

                              Quality


                                        Constituents of objectives:
                                        •Purpose
                                        •End result
                                        •Success criteria




Cost                                       Time


Advanced Project Management
Iron Triangle

 Standard idea
 Simple concept
 Relatively simple factors to measure
 Relevant for all projects – at least in part
 Need to clarify objectives of each clearly
  at outset
 Fundamental to negotiations
 However – remember targets will
  probably change during project lifetime

Advanced Project Management
    Contingent Approaches - no
             one “best way” – “it depends”

 Developed during the 1990s to overcome
  weaknesses in the previous „one best way‟
  approach
 Loose framework of approaches – use
  most suitable for the circumstances
 Emphasise and cater for:
    Strategic context of projects with their
     wide range of stakeholders
    Developments in technology
    New management methods, for
     example, virtual teams
    Development of more capable PM
     software
Advanced Project Management
Contingency approach 2
  Project managers integrate:
     Resources
     Knowledge
     Processes

  Means using one approach (or more)
   appropriate to the circumstances
   (contingencies)




Advanced Project Management
„Crashing‟ Project Float

 „Crashing‟ is the process of reducing
  time spans on critical path activities so
  that the project is completed in less time
 Usually involves greater cost:
       Overtime working
       Allocating additional resources
       Subcontracting
 Effect:
                       Cost




Advanced Project Management     Time
Responsibilities of a Project
Manager
 Responsibility to the parent organisation
 Responsibility to the client
 Responsibility to the team members
 “Above all, the PM must never allow
  senior management to be surprised” –
       Being prepared to give „bad news‟
                              Meredith & Mantel, 2005




Advanced Project Management
Key Activities of Project Managers

 Shaping goals and objectives – project
  goal inevitably changes
 Obtaining resources – easy?
 Building roles and structures for their
  team – “followers make their leader”
 Establishing good communications
 Seeing the whole picture –strategic
  vision
 Moving things forwards (especially in
  difficult circumstances) - driver

Advanced Project Management
Role and Skills of the Project
Manager
 Background and experience relevant to needs of
  project
 Leadership and strategic expertise for the „big
  picture‟
 Technical expertise for sound decisions –
  always?
 Interpersonal competence and people skills to
  champion, communicate, facilitate, motivate, and
  so on
 Proven managerial ability for getting things done
                                  Weiss & Wysocki




Advanced Project Management
Skills

 “He who has not walked the road, does
  not know the potholes” – Confuscius
 Group exercise
 Agree with Confuscius?
 What other skills does project manager
  need?




Advanced Project Management
Factors Affecting the Project
Manager‟s Role and Style
    Nature of the task
    Organisational structure
    Organisational culture
    Individual motivations of the team
     members

           Style: Cooperation ↔ Coercion

                                           Maylor



Advanced Project Management
Four Roles for Project Managers

 Leadership – the vision and style
 Motivation – managing expectations and
     rewards
 Team building – skills mix and cooperation
     between members
 Communication – different aspects and
     different stakeholders




Advanced Project Management
Project Teams
    Personality theories, for example, Belbin based on:
         Intelligence (high/low)
         Dominance (high/low)
         Extraversion/introversion
         Stability/anxiety
    Team activities
       Content – what the team does
       Process – how the group works
          • Task processes
          • Maintenance processes
    Team dynamics
         Forming
         Storming
         Norming
         Performing
         Mourning


Advanced Project Management
Project Teams

 Teams make projects succeed – agree?

    Who is in team?
    Temporary?
    Cross functional
    Conditional
    Crisis?
    Virtual teams? – core – peripheral team
     members

Advanced Project Management
Belbin‟s Team Roles
Implementor               Organising; practical     Inflexible

Coordinator               Welcoming; strong         Ordinary intellect or
                          sense of objectives       creativity
Shaper                    Drive                     Prone to impatience
                                                    and provocation
Plant                     Genius                    Up in the clouds

Resource                  Knows „a man who          Soon loses interest
                          can‟
investigator
Monitor evaluator         Judgement; critical       Unimaginative; not
                          reasoning                 inspirational
Teamworker                Promotes team spirit      Indecisive

Completer/                Perfectionist             Tends to worry about
                                                    nothing
Finisher
Specialist                Technically specialised   Uninterested outside
                                                    own area

Advanced Project Management
Dimensions of Project Success
 Efficiency – meeting the budget and
     schedule
 Customer impact/satisfaction –
     complex to define and evaluate – what is their
     perception of success/failure? Does it match
     yours?
 Business/direct success – delivering a
     result for the business
 Future potential – again, somewhat difficult
     and nebulous to ascertain
                                 Meredith & Mendel, 2005

      See also work of Westerveld – Profex p180 para 1.10
Advanced Project Management
Critical Success Factors in Projects

 Clearly defined goals        Control mechanisms
 Competent project            Feedback
  manager                       capabilities
 Top management               Responsiveness to
  support                       clients
 Competent project            Troubleshooting
  team members                  mechanisms
 Sufficient resources         Project staff
  allocated                     continuity
 Adequate                     See p 158 – slight
  communications                variance
                                   Pinto & Slevin (1987) in
                              Slack, Chambers & Johnston

Advanced Project Management
Critical Success Factors

    Westerveld
    Leadership & Team
    Policy & Strategy
    Stakeholder management
    Resources
    Contracting
    Project management itself – scheduling,
     budgeting etc

 P180 para 1.11
Advanced Project Management
Ten Ways Projects may Fail
1. Failure to appreciate the        6. Reliance on due-date and
   impact of a multi-project            wasting of any safety
   environment on single                included in the project
   project success                  7. Wasting of resources
2. Irrational promises made             through sub-optimal
   due to a failure to take into        utilisation
   account the variable             8. Wasting of the „best‟
   nature of task                       resources through over-
   performance                          use, multi-tasking and
3. Irrational promises made             burn-out
   due to a failure to take into    9. Delivering original scope
   account the statistical              when conditions/needs
   nature of project networks           change OR accepting
4. Insufficient identification of       changes to scope without
   dependencies                         sufficient impact analysis
5. Focus on, and active             10. Multi-tasking
   management of, only a
   portion of what should be        Group ex – what others can
   the full project                    you add?


Advanced Project Management
Project Failure

 Consider Greer – p 159 table 11.4
 Do you agree with these?
 Are they more logical than those
  selected on previous page?




Advanced Project Management
                          Session 10

   Project Management and Strategic Practice




Advanced Project Management
Learning Outcomes
At the end of this session candidates will be able to:

     Critically evaluate the key characteristics of the various forms
      of organisation structure and culture and their consequences
      for project management
     Explain the key factors for consideration in choosing the best
      organisational structure for a project
     Critically evaluate the use and value to organisations of
      project management maturity models
     Evaluate the relationship between the business excellence
      model and the project management excellence model
     Understand and explain what is meant by knowledge
      management and organisational learning
     Demonstrate the strategic benefits and advantages gained
      through knowledge management and organisational learning
     Appraise the impact of a organisational learning on the
      management of projects in purchasing and logistics


Advanced Project Management
The Functional Structure                                 The
                                                        project
Advantages                    Disadvantages
 The owning division          It may engender a
  should have the                „silo‟ mentality. Other
  relevant expertise             specialists may not
 Specialists can share          be consulted
  their knowledge and          Routine work may
  overtime expertise             take precedence
  accumulates                    over the project
 It provides a clear          Motivation may
  sense of ownership             suffer if the project is
  and ensures                    perceived as a
  continuity                     professional
                                 diversion

Advanced Project Management
                                                             Project A
The Project Structure                                        Project B

                                                             Project C
Advantages                    Disadvantages
 Manager has full               It is suitable only for
  authority over the              larger projects as it is
  project with senior             expensive to resource
  management backing             Isolationism can
 Grouping necessary              develop leading to an
  resources in the project        „us‟ and „them‟ culture
  ensures rapid decision         Team members may
  making                          lack technical expertise
 Relevant expertise is           or understanding of
  drawn from other parts          user needs
  of the organisation
 The project team has a
  strong sense of identity
  and common purpose


Advanced Project Management
The Matrix Structure
                                                               The project


Advantages                      Disadvantages
 An individual project          Decision-making power
   manager takes                   may still reside outside
   responsibility, usually         the project team
   with strong senior            Members are likely to
   management support              be working only part-
 Relevant resources are           time on the project and
   allocated as required,          have at least two
   giving flexibility as well      managers, which may
   as expertise                    cause anxiety
                                 There may be a high
                                   level of competition and
                                   in-fighting for resources


Advanced Project Management
What is Organisational Culture?

    „The deeper level of basic assumptions
     and beliefs that are shared by members
         of an organisation, that operate
       unconsciously and define in a basic
           taken-for-granted fashion an
        organisation‟s view of itself and its
                   environment‟
                      E. Schein (quoted in Johnson & Scholes)




Advanced Project Management
A Typology of Culture
Type of culture               Representation

Power                         A web – spider – power from the
                              centre
Role                          A Greek temple – columns –
                              highly defined structure – large,
                              hierarchical orgs
Task                          A net or matrix – suit
                              project/problem solving teams –
                              power from knowledge
People                        A cluster – members superior to
                              the org.
                              Source: Handy, Understanding
                                      Organisations

Advanced Project Management
Culture and Management Approaches
Characteristic of culture     Impact on management style


Anglo-Saxon cultures          Delegation a preferred managerial style


Highly centralised            It is PM‟s responsibility to seek out
authority                     information                                   Adapted
                                                                             from
International culture         PM cannot count on being voluntarily         Meredith &
                              informed of problems by subordinates        Mantel, 2005

Highly structured social      Participative management is difficult to
classes                       practise; there is an assumption that the
                              more educated, higher-class manager‟s
                              authority will be denigrated by using a
                              participative style
Highly structured social      The less direct managerial communication
system                        tends to be


Advanced Project Management
Culture

 Group exercise
 Why is it important for a project manager
  to be aware of cultural issues within an
  organisation?




Advanced Project Management
Organisational Readiness
    The organisation places a high value on serving
     customers
    The commitment of senior managers is long-lasting
    Key staff departments are positive about the prospect of
     change
    The organisation has the human resources needed
    The organisation had the financial resources needed
    The organisation as a whole recognises the need for
     fundamental change
    The organisation has none of the complacency and
     arrogance that often follows a sustained period of
     success
    The organisation is free of the scepticism, mistrust and
     ambivalence that often follows a period of change
    The organisation‟s experience with TQM has created an
     environment that is receptive to change
                                            Hammer & Stanton


Advanced Project Management
Project Management Maturity
Matrix                                                                     World-class

                                                                           Wannabes

                                                                           Improvers
                                                                           Flat-liners



Flat-liners          Little or no progress in project performance
                     Mistakes repeated; performance stays flat
Improvers            Some improvement
                     Performance improves slightly over time
Wannabes             Follow every initiative going in order to catch the
                     leaders

World-class          Set ever-increasing standards of performance
performers




Advanced Project Management
Project Excellence
 Project excellence comprises cross-functional
  processes, project decision making, and team
  organisation that enable firms to bring high-
  quality products to market rapidly. Project
  excellence builds on functional excellence (that
  is, when a function has the necessary resources,
  along with standards, procedures, and tools, to
  be effective and efficient). Four major elements
  are required to deliver projects effectively. These
  elements include the people and processes
  involved in development: project governance, a
  defined development process, project core
  teams, and the project decision process are the
  four elements.


Advanced Project Management
Advanced Project Management
 Project Excellence Model®
       Organisational areas                       Results areas

                 Policy &                    Appreciation
                 strategy                      Client


                                             Appreciation
                                             Project team
              Environment
                                                                       Source:
Leadership                      Project      Appreciation   Project   Westerveld
and teams                     management       Users        results

                 Means
                                             Appreciation
                                             Ind. parties


                                             Appreciation
               Contracting
                                             Contractors

                                  Feedback
Advanced Project Management
EFQM Business Excellence Model
                Enablers                             Results

                    People                      People
                  Management                  Satisfaction
                     ( 9% )                      ( 9% )




                    Policy &                   Customer        Business
   Leadership                     Processes
                    Strategy                  Satisfaction      Results
     (10%)                          (14%)
                     ( 8% )                     ( 20% )          (15%)




                                               Impact on
                   Resources
                                                Society
                     ( 9% )
                                                 ( 6% )


    Advanced Project Management
Knowledge Creation and Management


               Socialisation            Externalisation
                                          Articulating tacit
             Sharing experiences
                                        knowledge explicitly



              Internalisation            Combination
                                            Building a
              Learning by doing
                                        „knowledge system‟

                    Tacit                    Explicit
                  knowledge                 knowledge
                                   To
Advanced Project Management
A Learning Organisation is …

  “… Capable of benefiting from the variety
    of knowledge, experience and skills of
      individuals through a culture which
     encourages mutual questioning and
    challenge around a shared purpose or
                     vision.”
                               Johnson & Scholes




Advanced Project Management
Characteristics of a Learning
Organisation
 Existence of conflicting ideas and views
 Tolerance of failure
 Acceptance of ambiguity and uncertainty
  with their attendant risks
 Surfacing of assumptions and explicit
  debate widely within the organisation
 Tolerance of a diversity of views
 Tolerance of „organisational slack‟



Advanced Project Management
Using Learning and Discovery
 Start with a „loose‟ project approach built
  on many assumptions which are known
 Accept the risks associated with the
  uncertainties
 Track and review assumptions on a
  regular basis
 Modify the assumptions and activities in
  the light of experience
 Gradually learn what works and what
  doesn‟t


Advanced Project Management

				
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Description: Discuss the Extent to Which You Think That Organisational Success Is the Cause or the Effect of Meeting Employee Needs and Expectations. document sample