Project Management

Principles & Practices

WEEK 3

Ayesha Zareef-Senior Lecturer; Department of Management Studies, Bahria University, Islamabad Campus 1
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Review
Discussion over key-terms
Process groups and knowledge areas
Functional organization: Govt.
Projectized : Ship building companies
Matrix: Bahria town, bahria university, Telenor, jazz etc
◦ Weak
◦ Balanced
◦ Strong
Project managers power and authority defines
whether it is strong matrix, weak or balanced
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Poorly Managed Projects…

Poorly managed projects or the absence of project management
often results in:

✓Missed requirements ✓Uncontrolled expansion

✓Missed deadlines ✓Loss of reputation
✓Cost Overruns ✓Unsatisfied Stakeholders
✓Poor Quality ✓Failure in achieving the objectives
for which project was undertaken
✓Rework
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Poorly Managed Projects…

Unsatisfied stakeholders in project management
can have various reasons, and addressing their
concerns is crucial for project success.
❖ Lack of Clear Communication ❖ Budget Overruns
❖ Cultural or Organizational Differences
❖ Scope Creep
❖ Unresolved Issues
❖ Missed Deadlines
❖ Lack of Accountability
❖ Poor Quality Deliverables
❖ Inadequate Risk Management
❖ Insufficient Stakeholder Engagement
❖ Changes in Stakeholder Priorities
❖ Unclear Requirements
❖ Cultural and Political Factors
 Main Function of a Project Manager
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❖Identify stakeholders & Leadership (decision makers: Client, Parent organization, Project
Team, Publics)
❖Define scope of project
❖Evaluate project requirements
❖Develop detailed task list (work breakdown structures)
❖Develop initial project management flow chart
❖Estimate schedule requirements
❖Identify cost estimation and budget
❖Identify required resources and evaluate risks
 ❖Focus of Project Team
❖Completion of Work Packages within Constraints
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❖Focus Of Sponsor
❖To protect the project from changes and loss of resources
We have:
❖7 constraints
❖10 project plans
❖3 baselines

PROJECT
 Organizational Process Assets

Organizational Process Assets contains the information about project of your

organization.
• Organizational Process Assets would include anything the organization has acquired that you can use in the
management of the project. They include formal and informal plans, policies, procedures, and guidelines. These
are very important for the planning stage, irrespective of the nature of the project. Whether your project is
long-term or short-term, OPAs are a must.

For Example; How are projects performed/initiated/deliver a project?

➢ They include formal and informal plans, policies, standards, guidelines, instructions, frameworks,
procedures to follow, templates to follows library or knowledge storage base that is why
it is known as an asset

Lesson Knowledge
Process Policies Procedures
learned Repositories
 Organizational Process Assets
Common OPAs:
❖Financial control procedures
❖Standardized guidelines ❖Assets of the organization
❖Work breakdown structure ❖Lessons learnt database
templates ❖Data of previous projects
❖Risk templates ❖Any standards, guidelines, good
❖Project closure guidelines practices developed
❖Change control procedures
 Enterprise Environment Factor (EEF)

Enterprise Environment Factors (EEFs) include all policies, practices,

procedures, and legislation that exist both inside and outside of the
organization that will impact the way you manage a project.

❖Political ❖Technological
❖Economic ❖Legal
❖Social ❖Environmental Etc.
 Context for Project Initiation
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Organizational leaders initiate projects in response to factors acting

upon their organization

There are four fundamental categories for these factors:

1. Meet regulatory, legal, or social requirement
2. Satisfy stakeholder requests or needs
3. Create, improve, or fix products, processes, or services; and
4. Implement or change business or technological strategies
 Factors that leads to creation of a Project
Context for Project Initiation
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 Project Components
❖Projects
12 comprise several key components that, when effectively managed, result
in their successful completion.
❖The various components interrelate to one another during the management of a
project.
 Pre-project Activities
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• Projects are initiated to realize opportunities aligned with an organization’s

strategic goals. Prior to initiating a project, there are few important activities
that project manager does.

• Business Case
• Benefit Management Plan
 Business case

❖Project usually begin with the development of a business case for the
project.
❖A business case is a document that provides the reasoning why a
project should be initiated.
❖Describes the boundaries to the project in sufficient detail such that
the decision makers can determine that the expected business value
and benefits exceed the cost of performing project.
❖Justifies the investment in the project

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 Benefit Management Plan
A benefits management plan describes how and when the benefits of the project will be
delivered and how they will be measured. The benefits management plan may include the
following:

Target benefits. The expected tangible and intangible business value to be gained by the
implementation of the product, service, or result.
Strategic alignment. How the project benefits support and align with the organization’s
business strategies.
Time frame for realizing benefits. Benefits by phase: short term, long term, and ongoing.
Benefits owner. The accountable person or group that monitors, records, and reports
realized benefits throughout the time frame established in the plan.
Metrics. The direct and indirect measurements used to show the benefits realized.
Risks. Risks associated with achieving target benefits
Project benefits Management plan
(Benefit Realization)
Sometimes, the benefits realization is a separate document
rather than being included as part of the business case.
A template for a benefits realization plan might include the
following:
◦ A description of the benefits
◦ Identification of each benefit as tangible or intangible
◦ Identification of the beneficiary of each benefit
◦ How the benefits will be realized
◦ How the benefits will be measured
◦ The realization date for each benefit

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Economic measures for project selection

❖Net present value (NPV),

❖Return on investment (ROI),
❖Internal rate of return (IRR),
❖Payback period (PBP), and
❖Benefit-cost ratio (BCR)

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A project phase is a collection of logically related project activities that
culminates in the completion of one or more deliverables. The phases in a
life cycle can be described by a variety of attributes. Attributes may be
measurable and unique to a specific phase. Attributes may include but are
not limited to:

◦ Name (e.g., Phase A, Phase B, Phase 1, Phase 2, proposal

phase),
◦ Number (e.g., three phases in the project, five phases in the
project),
◦ Duration (e.g., 1 week, 1 month, 1 quarter)
◦ Resource requirements (e.g., people, buildings, equipment),
◦ Entrance criteria for a project to move into that phase (e.g.,
specified approvals documented, specified documents
completed), and
◦ Exit criteria for a project to complete a phase (e.g.,
documented approvals, completed documents, completed
deliverables).
Phase Gate
A phase gate (or review) is held at the end of a phase. The project’s performance and progress
are compared to project and business documents including but not limited to:
Project business case,
Project charter,
Project management plan, and
Benefits management plan.
A decision (e.g., go/no-go decision) is made as a result of this comparison to:
Continue to the next phase,
Continue to the next phase with modification,
End the project,
Remain in the phase, or
Repeat the phase or elements of it.
Depending on the organization, industry, or type of work, phase gates may be referred to by
other terms, such as phase review, stage gate, kill point, and phase entrance or phase exit.
 Project Management Processes
The project life cycle is managed by executing a series of project management
activities known as project management processes. There are 49 processes;
however, the selection of processes used for any given project depends on the
organization and the project—more than likely, all processes will not be used.
The outputs can be deliverables or outcomes.
Outcomes are the end result of a process.
Project management processes apply globally across industries. Project
management processes are logically linked by the outputs they produce. Processes
may contain overlapping activities that occur throughout the project. The output
of one process generally results in either:
An input to another process, or
A deliverable of the project or project phase.
Development and maintenance of the project benefits
management plan is an iterative activity. This document
complements the business case, project charter, and
project management plan. The project manager works
with the sponsor to ensure that the project charter,
project management plan, and the benefits management
plan remain in alignment throughout the life cycle of the
project. See Business Analysis for Practitioners: A Practice Guide [3], The Standard for Program Management [4], and The Standard
for Portfolio Management [5]
The success of the project is measured
against the project objectives and success
criteria. In many cases, the success of the
product, service, or result is not known
until sometime after the project is
complete
 PROJECT SUCCESS MEASURES
One of the most common challenges in project management is determining whether or
not a project is successful.
Traditionally, the project management metrics of time, cost, scope, and quality have been
the most important factors in defining the success of a project.
Project stakeholders may have different ideas as to what the successful completion of a
project will look like and which factors are the most important.
It is critical to clearly document the project objectives and to select objectives that are
measurable. Three questions that the key stakeholders and the project manager should
answer are:
What does success look like for this project?
How will success be measured?
What factors may impact success?
The answer to these questions should be documented and agreed upon by the key
stakeholders and the project manager.
 Initiating

Select PM

Understand business case & benefits MP (i.e. understand the reason the project is being done & what benefits organization expects from the
project)

Uncover initial requirements, assumptions, risks, constraints & agreements

Determine company culture & existing system

Collect processes, procedures & historical info

Assess project & product feasibility within the given constraints

Divide large projects into phases/smaller projects

Create measureable objectives and success criteria

Develop project charter

Identify SHs & determine their expectations, interests, influence & impact

Request changes

Develop assumption log

Develop SH register
Initiation
These processes define a new project or a new phase of an existing project by
obtaining authorization to start the project or phase.
This Process Group aims to align stakeholder expectations and the project purpose,
inform stakeholders of the scope and objectives, and discuss how their participation
in the project and its associated phases can help ensure their expectations are met.
The initial scope is defined and initial financial resources are committed.
Stakeholders who will interact and influence the overall outcome of the project are
identified.
The project manager is appointed if not already assigned. This information is
captured in the project charter and stakeholder register.
When the project charter is approved, the project is officially authorized, and the
project manager is authorized to apply organizational resources to the project
activities
Projects are often divided into phases.
When this is done, information from processes in the Initiating Process Group is
reexamined to determine if the information is still valid.
Revisiting the Initiating processes at the start of each phase helps keep the project
focused on the business need that the project was undertaken to address.
The project charter, business documents, and success criteria are verified. The
influence drivers, expectations, and objectives of the project stakeholders are
reviewed.
Strategy Artifacts
Strategy Artifacts
❖Documents that are created prior or at the start of the project.
❖Strategy artifacts address strategies, business or high level information about
the project.
❖Do not normally change but reviewed throughout the project
⃝Business case
⃝Project benefits Management plan
⃝Business model canvas
⃝Project brief
⃝Project charter
⃝Project vision statement
⃝Roadmap
Business Case
Project usually begin with the development of a business
case for the project.
A business case is a document that provides the reasoning
why a project should be initiated.
Describes the boundaries to the project in sufficient detail
such that the decision makers can determine that the
expected business value and benefits exceed the cost of
performing project.
Justifies the investment in the project.
 Components of Business Case
❖The business need: This identifies the gap that currently exists and the need for the investment.
❖The opportunity options: This identifies how the project is linked to strategic business objectives.
❖The benefit realization plan: This identifies the value/benefits (rather than products or
deliverables) that can be obtained whether they are cost savings, additional profits, or opportunities.
❖Assumptions made: This identifies all of the assumptions that are made to justify the project.
❖High-level objectives: This identifies the high-level or strategic objectives for the project.
❖Recommendation for evaluation: This identifies what techniques should be used for evaluation
such as a benefit-to-cost ratio. Cash flow considerations, strategic options, opportunity costs, return
on investment, net present value, and risks.
❖Project metrics: This identifies the financial and nonfinancial metrics that will be used to track the
performance of the project.
 Components of Business Case
❖Exit strategies: This identifies the cancellation criteria to be used to cancel the project if
necessary.
❖Project risks: This helps the decision makers evaluate the project by listing briefly the business,
legal, technical, and other risks of the project.
❖Project complexity: This identifies how complex the project might be, perhaps even from the risk
perspective. If the organization can manage the complexity, and if it can be done with existing
technology.
❖Resource needed: This identifies the human and nonhuman resources needed.
❖Timing: This identifies the major milestones for the project.
❖Alternative analysis: you provide more than one option for sake of debate during approval.
❖Legal requirements: This identifies and legal requirements that must be followed.
Benefits Realization
Sometimes, the benefits realization is a separate document rather than being
included as part of the business case.
A template for a benefits realization plan might include the following:
◦ A description of the benefits
◦ Identification of each benefit as tangible or intangible
◦ Identification of the recipient of each benefit
◦ How the benefits will be realized
◦ How the benefits will be measured
◦ The realization date for each benefit
◦ The handover activities to another group that may be responsible for converting the
projects deliverables into benefits realization.

Benefit Realization Plan.docx

 Business model canvas
This artifact is a one-page visual summary that describe the value proposition,
infrastructure, customer and finances, that consists of nine building blocks, which
are:
1.Customer Segments: The different groups of customers that the company serves or
intends to serve.
2.Value Proposition: The unique value that the company offers to its customers and how it
differentiates itself from competitors.
3.Channels: The ways in which the company delivers its value proposition to its customers.
4.Customer Relationships: The types of relationships that the company has with its
customers.
5.Revenue Streams: The sources of revenue for the company, including the pricing model
and revenue streams from different customer segments.
6.Key Resources: The resources that are necessary to create and deliver the value
proposition, such as people, technology, and physical assets.
 Business model canvas
7. Key Activities: The activities that are necessary to create and deliver the value
proposition, such as product development, marketing, and sales.
8. Key Partnerships: The partnerships and collaborations that the company relies on to
create and deliver the value proposition.
9. Cost Structure: The costs that are associated with creating and delivering the value
proposition, including fixed and variable costs.
 Project Brief
A project brief provide a high level overview of the goal, deliverables, and processes
for the project
 Project vision statement
VISION STAEMENTS
TAGLINES

“Be what’s
next”
Project five to 10 years into the future.
Dream big, and focus on success.
Use the present tense.
Use clear, concise, jargon-free language.
Infuse it with passion, and make it inspiring.
Align it with your business values and goals.
Create a plan to communicate your vision statement to your employees.
Prepare to commit time and resources to the vision you establish.
Road Map
This document provides a high level timeline that depicts milestones, Significant
events, reviews and decision points.

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