There are four stages and eight R’s, which prompt us to plan and review systematically throughout the project process: 101 CU IDOL SELF LEARNING MATERIAL (SLM)
Whereas other models tend to focus on project implementation from the start, the Systems Model is used to pin down ‘open’ projects as you go along. For this reason it can be used at the front end of other planning tools to help feed into them. It also helps to save precious time and resources – the focus on the logic and rationale, especially in terms of stakeholder needs, ensures the project is aligned before time and resources are committed. Or it ensures the resources are properly allocated to address the need. The strength of the Systems Model is in its adaptability as a thinking tool to all types and sizes of project. It is as easily applied to initiating a community regeneration project as it is to writing a fundraising article by providing an integrated and flexible approach to your whole workload. 102 CU IDOL SELF LEARNING MATERIAL (SLM)
6.4 WORK PACKAGES Work packages are a planning tool for making decisions and detailing the major steps in a research proposal. Providing a precise description of the work to be carried out, what happens when, who does what and the duration of tasks during your project. Objectives Manage the project in a fair and transparent manner, ensuring that the project deliverables are met in an integrated and timely fashion within the agreed budget Manage the proper implementation of Work Plan, achievement of objectives, deliverables and milestones & facilitation of results dissemination Enable coherence between work packages and ensure effective communication Monitoring and ensuring on-time delivery of scientific and financial reports & effective communication Main Research Aim 103 Ob 1 Ob 2 Ob 3 WP 1 WP 2 WP 3 WP 4 T1.1 T2.1 T2.2 T2.3 T1.2 T3.1 T3.2 T4.1 T4.2 Deliverable 1 CU IDOL SELF LEARNING MATERIAL (SLM)
Deliverable 2 Deliverable 3 WP1: Title of the Work Package (duration of WP) Give a brief introduction and detail the aim of the work package / how it links with the main objectives. T1.1 – Task title – detail the specific activities that will take place to achieve the objectives of the work package T1.2 Include support from collaborators or visits to collaborators. Is there any risk in this WP? Deliverable of WP 1 – what will be the outcome? Milestone of WP 1 – what’s the significant marker? What should a work package include? • Title – a brief informative title. • Objective of the specific work package and how it links to the overall project objectives. • Tasks: description of the different tasks that you will perform and how to do that. • The outcome of the research - what will happen when this work package is finished? • Deliverables for the specific work package. • Milestones for the specific work package. • Collaborators involved or visits / secondments planned. • Specific resources required. • What risks need to be considered (can be included in a separate Risk section or within each work package) and what risk mitigation have you built in? • Timing (linked to Gantt chart). How many work packages to have? The number and structure of work packages will be project dependant and based on the size, duration and complexity of the research project. PI, 104 CU IDOL SELF LEARNING MATERIAL (SLM)
What should a work package include? • Title – a brief informative title. • Objective of the specific work package and how it links to the overall project objectives. • Tasks: description of the different tasks that you will perform and how to do that. • The outcome of the research - what will happen when this work package is finished? • Deliverables for the specific work package. • Milestones for the specific work package. • Collaborators involved or visits / secondments planned. • Specific resources required. What risks need to be considered (can be included in a separate Risk section or within each work package) and what risk mitigation have you built in? • Timing (linked to Gantt chart). How many work packages to have? The number and structure of work packages will be project dependant and based on the size, duration and complexity of the research project. PI, Visualisation of the Work Packages in a Gantt Chart You should aim to include a timeline or a Gantt chart in your research proposal. This will combine your work packages, deliverables and milestones so the whole proposal can be visualised. The timeline should span the total duration of the project and can include: Work packages and tasks Deliverables Milestones Dissemination prospects (conferences, papers, outreach activities) Visits to collaborators Work at other institutions Training you proposed to undertake 105 CU IDOL SELF LEARNING MATERIAL (SLM)
A timeline or Gantt chart can be designed or built in numerous ways, below is one example. WP 1T1.1T1.2WP 2T2.1T2.2T2.3WP 3T3.1T3.2WP 4T4.1T4.2DeliverablesD1D2D3MilestonesM1M2M3M4M5M6ConferencesC1C2C3Year 1Year 2Year 3 However you build your timeline, use the same denomination as in your research proposal (Work package 1 – WP1, Tasks - 1.1, 1.2, Deliverable – D1, and so on). If space allows include the titles of the work packages and tasks to aid continuity. Make your research proposal easy to follow You know your research inside out and others don’t. Fellowship applications will go through different stages of review and assessment. Successful proposals need to be clear, credible and understandable to a broad range of readers (experts, peer reviewers, funders) with different backgrounds and areas of expertise. Work packages can help articulate a research proposal, making it easier to follow. This is key to help readers visualise your research. Emphasising the aims of specific aspects of research proposal, the importance / novelty / value of the specific aspects of the research proposal hence show casing how ambitious the proposal is. Checklist • ▪ Does each work package have a clear title? • ▪ Are tasks well defined? • ▪ Have you written I/my throughout the work package? (instead of ‘We’) • Do all work packages have deliverables and a timeline? • Have you included risk and risk mitigation? • Is it clear how the work packages connect? • Is it clear how the work packages are related to the main research aim and the research objectives? • Have you kept the denomination between work package and the timeline the same? 106 CU IDOL SELF LEARNING MATERIAL (SLM)
6.5 WORK PACKAGES IN ERP In order to achieve success in a software project, it is important to define and analyse the most critical processes within the project. If organizations had unlimited resources, each process within the project could have equal attention for resources and management focus. But in practice, the time and resources of project managers are always limited. Therefore, it is important to pinpoint those activities that warrant the most attention. Work package “is a specification of the work that must be accomplished to complete a work task. A work package should have a unique name and identifier, preconditions for initiating the work, staffing requirements, other needed resources, work products to be generated, estimated duration, risk factors, predecessor and successor work tasks, any considerations for the work, and the completion criteria for the work package – including quality criteria for the work products to be generated\". A work product is “any tangible item produced during the process of developing or modifying software”. – A work activity is a \"a collection of work tasks spanning a fixed duration within the schedule of a software project. Work activities may contain other work activities, as in a work breakdown structure. Typical work activities include project planning, requirements specification, software design, implementation, and testing\". – A work task is ”the smallest unit of work subject to management accountability. A work task must be small enough to allow adequate planning and control of a software project, but large enough to avoid micro- management. The specification of work to be accomplished in completing a work task should be documented in a work package. Related work tasks should be grouped to form supporting processes and work activities”. WBS Activities and Potential Challenges They have been derived from the ASAP project methodology, literature review on project methodologies and SAP implementation experience. Certain activities that are already embedded as sub-tasks in ASAP project activities are illustrated as First Level activities for transparency and more effective planning. Such activities are System Architecture Design, Define Authorizations, Data Conversion, Data Migration Program Development, System Testing, Training, and User Acceptance Testing. First Level activities will be the focus of this 107 CU IDOL SELF LEARNING MATERIAL (SLM)
section as well as the potential challenges that could emerge during the execution of each activity. Project Preparation This activity has been defined in section 4 of this paper. Some of the challenges that may present themselves in project management and control, which is part of project preparation, are: lack of agreement on project goals, lack of senior management involvement, and a lack of effective project management methodology System Architecture Design The essence of this activity is to agree on and define the environment upon which the ERP application will be installed. At this stage, the environments in which the application will be configured, quality assured and operate in a live situation are also critical considerations. Furthermore, even though the project team is not responsible for the technical infrastructure, it is essential that it is flagged in the WBS as a dependency. Potential challenges in this activity are: unavailability of technical infrastructure, technology complexity failure in attempt to link legacy applications, minimal understanding of architecture requirements and design. Business Blueprint Some of the likely potential challenges during the execution of this activity are: minimal understanding of business processes, business requirements to customize the ERP application beyond its standard functionality, lack of business process reengineering, employee resistance to change, use of inexperienced consultants, and minimal understanding of the ERP application functionality. 108 CU IDOL SELF LEARNING MATERIAL (SLM)
Further challenges are being unable to comply with the standard which ERP software supports, and a lack of integration between enterprise-wide systems. Configuration and Development This activity is equivalent to the Realisation part of the ASAP methodology. It involves configuring the ERP application based on the business blueprint. It is essential the application is configured using to the standard functionality in the system. Other activities under the umbrella of this main activity are the development of reports, interfaces and additional programs. Some of the likely challenges in this activity are: unclear and misunderstanding of changes in requirements, lack of an effective methodology, and poor estimation and failure to perform the activities needed. Customization is usually associated with increased IS costs, longer implementation time, and the inability to benefit from vendor software maintenance, and upgrades. Another key challenge is a lack of understanding of the ERP application by the consultants. Additionally, lack of resources represents a major concern in ERP implementation. Define Authorizations The purpose of this activity is to define the roles of the respective ERP application users once the application has gone live. These roles will be used to define access rights for each of the users. This way, unauthorized users will not be allowed access to information in the ERP application that is not within their jurisdiction. The main challenge in this activity is incorrect definition of roles and authorizations. Data Conversion This activity involves converting the format of the data in the legacy system to suit the data format of the ERP system. This process also entails cleansing the data in the legacy system. This means that the users will filter through the data in their old system, and eradicate any discrepancies. A fundamental requirement for the effectiveness of ERP system is the availability and timeliness of accurate data. They further advise that the management of data entering the system is a critical issue throughout system implementation. Data-related challenges include finding the proper data to load into the system and converting disparate data structures into a single, consistent format before system use. Data Migration Program Development 109 CU IDOL SELF LEARNING MATERIAL (SLM)
The Data Migration Program Development activity involves coding the program that will transfer the data from the legacy system to the ERP application. Potential challenges that could be presented during the execution of this activity are: lack of coding skills, and improperly defined data. System Testing System Testing entails the consultants that implemented the ERP application ensuring that the system works end-to-end. The entire system is tested, process by process across all functions of the system. The type of challenges that may be faced during system testing are: discovering that a substantial amount of the configured functionality does not meet business requirements, allowing scope creep due to sudden changes, the tendency to carry on testing beyond its specified, and lack of understanding of the ERP application. Training Training involves imparting knowledge of the implemented solution to the users before the system goes into live operation. This activity entails defining business processes for the respective roles and defining business scenarios to suit these processes. These scenarios enable the users to understand the system functionality better. Insufficient training of end users could be a potential challenge during the Training exercise. Other potential challenges are: lack of user commitment and ineffective communication with users, and conflicts between user departments. User Acceptance Testing (UAT) This activity involves the users whom will utilize the ERP application in a live environment, ensuring that all the business requirements are met in the system and are functional. The users define business scenarios for testing. Potential challenges in UAT are: 110 lack of user training, CU IDOL SELF LEARNING MATERIAL (SLM)
lack of understanding of the business processes and requirements, and resistance to change. Cutover This activity means going live by migrating from the legacy system to the ERP application. This application becomes operational in a live environment. It involves migrating live data from the legacy system to the new system. Typical challenges that may be presented whilst executing this activity are: unavailability of a complete set of data for migration, failure of data migration program, unavailability of operational environment for data to be migrated into, and lack of business readiness 6.6 CASE STUDIES AND SCENARIOS In this case study, the work breakdown structure is classified as a waterfall methodology where it is more rigid whereas eXtreme programming (XP) would be considered under the agile approach. The work breakdown structure (WBS) is a hierarchical structure that outlines tasks needed to deliver the product or service. This traditional project management tool can provide many key benefits for Sabre because they have recently relied on a large modelling software package to help their company make flight schedules more profitable. When the WBS is used accurately, However, the WBS is difficult to manage due to the rigidity of the model as each phase has specific deliverables and review processes and a schedule can be set with deadlines for each. For example, XP requires the act of including small teams, applying the use of simple codes, reviewing the code frequently which will allow it to be tested and will only require working on XP for 4 hours per week. Therefore, it is best that Sabre shouldn’t use work breakdown structure when working on their latest project but can consider to use the work breakdown structure in the future. Sabre has already adopted XP into their business and has claimed that XP has dramatically improved the quality and productivity of its 300 developers. Releases are another important aspect which work breakdown structure cannot apply because releases can only be tested 111 CU IDOL SELF LEARNING MATERIAL (SLM)
using XP approach which will allow developers to test, prioritize the application’s most important features. Kent Beck, the project leader will find using the WBS to make complex projects more manageable as it is designed to help break down projects into manageable chunks that can be effectively estimated and supervised. By creating a WBS include several benefits. For example it can help assist with accurate project company, helps with assigning responsibilities, shows the control points, project milestones, and allows for more accurate estimation of the triple constraint (cost, risk, and time) therefore helping to explain the project scope to stakeholders. Work breakdown structure can be used in XP because XP is more focus to planning in building work breakdown structure. WBS levels higher than in traditional management. 6.7 SUMMARY Project Managers depend on tools and techniques that are effective enough not only for drawing up the best possible initial plan but also capable of projecting instantaneously the impact of deviations so as to initiate necessary corrective measures. Network diagram indicate a logical priority. What that means is that the direction of the arrow is displaying the unique sequence that needs to be followed for the proper execution of activities. CPM is an essential tool that is thoroughly used by project managers. This is because this tool can monitor and assess the progress of the project in real-time. A Gantt chart is a visual representation of all the tasks related to your project scheduled overtime. They are used to plan projects of all sizes and shapes. The Project Evaluation and Review Technique, more commonly known as PERT is a form of Network Diagram PM tool that is also used to figure out the critical path of the project. WBS is an amazing tool in the project management paradigm. It shows a hierarchical breakdown of work activities that are used to define the scope of the project. 112 CU IDOL SELF LEARNING MATERIAL (SLM)
Project documentation is created to eliminate any confusion about the project and also prevent any conflict between the stakeholders on the status of the project. KEPNER TREGOE model is a comprehensive systematic step-by-step approach to problem solving and decision-making. Kepner-Tregoe is especially useful when you’re dealing with a complex stable project system. PRINCE 2 model consists of eight processes, which detail what must be done to bring about a particular outcome including; making decisions, gathering information and identifying results. The term ‘Log Frames’ is a shortened version of Logical Frameworks. It was developed as a tool for strategic planning and adopted by the United States Agency for International Development (USAID) in 1969. The term ‘Log Frames’ is a shortened version of Logical Frameworks. It was developed as a tool for strategic planning and adopted by the United States Agency for International Development (USAID) in 1969. Work packages are a planning tool for making decisions and detailing the major steps in a research proposal. Work package “is a specification of the work that must be accomplished to complete a work task. 6.8 KEYWORDS Project Management Tools-Project management tools assist an individual or team in organizing and managing their projects and tasks effectively. The term usually refers to project management software you can purchase online or even use for free. Decision making- Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. PERT- A PERT chart is a project management tool that provides a graphical representation of a project's timeline. The Program Evaluation Review Technique (PERT) breaks down the individual tasks of a project for analysis. 113 CU IDOL SELF LEARNING MATERIAL (SLM)
GANTT- A Gantt chart is a type of bar chart that shows all the tasks constituting a project. Tasks are listed vertically, with the horizontal axis marking time. The lengths of task bars are to scale with tasks’ durations. Critical Path Method- The Critical path method is used to estimate the shortest length of time needed to complete a project and to determine the amount of float for activities that are not part of the critical path. Work Breakdown Structure-A Work breakdown structure is a comprehensive, hierarchical model of the deliverables constituting the scope of a project. It details everything a project team is supposed to deliver and achieve. A work breakdown structure categorizes all project elements, or work packages, into a set of groups and may be used to form cost estimates. Work Package-The work packages of a project are its lowest-level deliverables. They are detailed in a work breakdown structure dictionary. Kepner-Tregoe- Kepner Tregoe is used for decision making. It is a structured methodology for gathering information and prioritizing and evaluating it. ... It is a step-by-step approach for systematically solving problems, making decisions, and analyzing potential risks. PRINCE 2-PRINCE2 is an acronym for projects in controlled environments, version 2. It is a project management methodology that emphasizes business justifications for projects. PRINCE2 management is based on clear organization of project roles and responsibilities and managing when necessary rather than by obligation. Log Frames-A Log frame is another name for Logical Framework, a planning tool consisting of a matrix which provides an overview of a project’s goal, activities and anticipated results. It provides a structure to help specify the components of a project and its activities and for relating them to one another. Systems Model-The Systems Model clearly emphasises defined success criteria linked to both the output and the purpose, with a consistent focus on reviewing and monitoring along the way. Migration-migration is the shifting of data or software from one system to another. Depending on the project, an IT migration could involve one or more kinds 114 CU IDOL SELF LEARNING MATERIAL (SLM)
of movement: Data migration, application migration, operating system migration, and cloud migration. ERP-project-based ERP is a relatively new approach to enterprise software that utilizes project management practices and features. 6.9 LEARNING ACTIVITY 1. Give an example of work package. ___________________________________________________________________________ _______________________________________________________________________ 2. What is Kepner-Tregoe method of problem solving? _________________________________________________________________________ _________________________________________________________________________ 6.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What are the key features of PRINCE 2? 2. How do you complete a log frame? 3. What is system model and its types? 4. Note on work packages 5. Note on system models Long Questions 1. Name the various Project Management tools and discuss them briefly. 2. What do you understand by Critical Path Method? Discuss briefly. 3. Explain Kepner-Tregoe Model briefly 4. How does PRINCE 2 handle business cases? 5. Discuss the E=MC systems model briefly. 115 CU IDOL SELF LEARNING MATERIAL (SLM)
B. Multiple Choice Questions 1. While assessing your project processes, you have identified some uncontrolled process variations. Which of the following would be the appropriate chart you may use for this purpose? a. Control chart b. Pareto diagram c. PERT chart d. Critical path 2. The entire process of a project is made up of a number of sub processes known as a. Work Breakdown Structure b. Work key structure c. Technical resources d. None of these 3. A horizontal bar chart which shows project tasks against a calendar are called a. GANTT chart b. PERT chart c. Milestone d. Goal 4. The estimate of shortest possible time under ideal conditions is called 116 a. optimum time estimate b. optimistic time estimate c. pessimistic time estimate d. average time estimate CU IDOL SELF LEARNING MATERIAL (SLM)
5. Which of the following is true for every activity in a network? a. total float can exceed free float b. float can never be negative c. float can never be positive d. interference float can never be neutral Answers 1 – a, 2 – a, 3 – a, 4 – a, 5 - a 6.11 REFERENCES Reference Books Homyak, M. (1970). Kepner-Tregoe plus networks: improved problem solving? Project Management Quarterly, 1(2), 7–8. Hybertson, D. 2009. Model-Oriented Systems Engineering Science: A Unifying Framework for Traditional and Complex Systems. Boca Raton, FL, USA: Auerbach/CRC Press. Website: Managing Successful Projects with PRINCE2® 6th Edition. Book By AXELOS. Amazon. 2019. \"A Guide to the Project Management Body of Knowledge (PMBOK® Guide)–Sixth Edition\" Accessed February 21, 2019. https://www.amazon.com/Project-Management-Knowledge- PMBOK%C2%AE-Sixth/dp/1628251840 http://pdf.usaid.gov/pdf_docs/pnaec576.pdf 117 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 7-STRUCTURE & RESPONSIBILITIES STRUCTURE 7.0 Learning Objective 7.1 Introduction 7.2 Summary 7.3 Keywords 7.4 Learning Activity 7.5 Questions 7.6 References 7.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Understand Project Organization structures, their definition, needs and use. Understand the concepts of Unity of Command and Spans of Control. Understand what Project Governance is, its principles and models. Understand the criticality of Project Governance for the success of a project. Understand the roles and responsibilities of a project manager Understand RACI Matrix and analysis Understand how to maximize RACI 7.1 INTRODUCTION A project organization is a structure that facilitates the coordination and implementation of project activities. Its main reason 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 and the design of an organizational structure should consider the organizational environment, the project characteristics in which it will 118 CU IDOL SELF LEARNING MATERIAL (SLM)
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. One of the main objectives of the structure is to reduce uncertainty and confusion that typically occurs at the project initiation phase. The structure defines the relationships among members of the project management and the relationships with the external environment. The structure defines the authority by means of a graphical illustration called an organization chart. A properly designed project organization chart is essential to project success. An organization chart shows where each person is placed in the project structure. An organization chart is drawn in pyramid form where individuals located closer to the top of the pyramid have more authority and responsibility than members located toward the bottom. It is the relative locations of the individuals on the organization chart that specifies the working relationships, and the lines connecting the boxes designate formal supervision and lines of communication between the individuals. 7.1.1 Project Organization Structures Generally we can define project organizational structures as organizational forms, based on temporary teams that are created to perform particular tasks and disappear after achieving the established goals. Whereas simple projects may require a limited number of steps and specializations, complex projects may be composed of plentiful of steps and require diverse and different specializations. As the project increases in size and design more units and specializations are added to the organizational structure contributing to both more vertical and horizontal organizational differentiation. Thus, when designing a project organizational structure the following questions must be answered: How many different specializations are included in the design of the project? How are the interrelatedness between the different elements of the project and between the different specializations? How many different activities are to be managed? When considering project organizational structures, there have traditionally been two main approaches. The first one considers projects as a sub-set or branch of organizations, while the second one consider them as a concept completely disconnected from them. In the context of complex organizations, for example, projects have been treated as temporary or additional burdens on the organizations, outside their regular operations in order to distinguish them from the hierarchical, functional organization that operates on an assumption of continuity or even growth. Based on contingency theory and following a similar approach, projects are considered as particular kinds of organizations, having a specific structure depending upon 119 CU IDOL SELF LEARNING MATERIAL (SLM)
external and internal factors. In setting up an organizational structure for a project there are many important aspects to consider, i.e., physical constraints of the project, market conditions, the time needed for conducting procurement, etc. All of these factors will shape the context in which decisions are made, the form of the organizational structure, the ability of project managers to make decisions and, first and foremost, the future of the project. The design of an organizational structure for a project may be a challenging task. Many questions arise at this early design stage. What decisions are made upfront at the start of the design phase, how the organizational structure develops over time, how is the structure modified in response to a changing environment, how are the project organisation and the project routines adapted to changing circumstances, how is the structure interpreted and adapted by project managers, how the type of project affects the project organisational structure and vice versa. Careful thought needs to be given to the design of these project organizational structures in terms of coordination, communication, and control. Organizational arrangements create physical and operational boundaries for decision-making, they can also reduce or increase complexity through the choices made in defining relationships, allocating responsibilities, authority, and tasks. The distribution of roles and responsibilities within the project organizational structure needs also to balance technical, social, cultural, and administrative issues. The organizational structure of projects has been addressed only rather reluctantly. 7.1.2 Unity of command, spans of control and other aspects The unity of command principle helps preserve the concept of a continuous line of authority. It states that every employee should receive orders from only one superior. Without unity of command, conflicting demands and priorities from multiple managers can create problems. Because managers have limited time and knowledge, they may delegate some of their responsibilities to other employees. Delegation is the assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions. Delegation is an important part of a manager’s job, as it can ensure that the right people are part of the decision-making process. In addition, information technology has provided employees with immediate access to information instead of waiting to hear from someone higher up in the chain of command. Span of Control 120 CU IDOL SELF LEARNING MATERIAL (SLM)
How many employees can a manager efficiently and effectively manage? This question of span of control is important because, to a large degree, it determines the number of levels and managers an organization needs. All things being equal, the wider or larger the span, the more efficient the organization. An example can show why. Assume that we have two organizations, both of which have 64 employees. AsExhibit below shows, if one organization has a uniform span of four and the other a span of eight, the wider span will have one fewer level and approximately 12 fewer managers. If the average manager made $50 000 a year, the organization with the wider span would save more than $600 000 a year in management salaries alone. Obviously, wider spans are more efficient in terms of cost. However, at some point, wider spans reduce effectiveness. When the span becomes too large, employee performance can suffer because managers may no longer have the time to provide the necessary leadership and support. The top performing manufacturing plants have up to 40 production workers per supervisor.6 In a large call centre, that number can be as high as 50 customer service representatives per supervisor. Today’s View the contemporary view of span of control recognizes that many factorsinfluence the appropriate number of employees a manager can efficiently and effectively manage. These factors include the skills and abilities of the manager and the employees, and the characteristics of the work being done. For example, the more training and experience employees have, the less direct supervision they need. Therefore, managers with well-trained and experienced employees can function quite well with a wider span. Other contingency variables that determine the appropriate span include similarity of employee tasks, the complexity of those tasks, the physical proximity of subordinates, the degree to which standardized procedures are in place, the sophistication of the organization’s information system, Contrasting Spans of Control 121 CU IDOL SELF LEARNING MATERIAL (SLM)
7.1.3 Project Governance Project governance can be defined as an organization’s overall process for sharing decision rights about projects and monitoring the performance of project interventions. All development organizations have some form of project governance. Those with effective governance have actively designed a set of project governance mechanisms (committees, budgeting processes, approvals, etc.) that encourage behavior consistent with the organization's mission, strategy, values, norms, and culture. The objective of project governance is to establish clear levels or authority and decision making including the planning, influencing and conducting of the policy and affairs of the project. It involves the people, policies and processes that provide the framework within which project managers make decisions and take actions to optimize outcomes related to their areas of responsibility. This is achieved by defining and identifying the roles, responsibilities and accountability of all people involved in a project, including their interaction and level of coordination with internal and external dependencies. The organization’s management team is responsible for setting up and supporting the governance structure before the project initiates its activities to ensure that all key decisions are made at the right time. The management team defines the project governance in a document that outlays the roles and responsibilities for decision making in the project team and stakeholders; this may include the creation of a project committee and its high level operating rules. A good project governance document helps projects by defining the procedures to follow escalation of issues, defines the decision making structure, roles and 122 CU IDOL SELF LEARNING MATERIAL (SLM)
responsibilities of each key stakeholder about the different processes in the project from communications to budget change authorizations. Some development organizations may choose the have a standing project governance committee that oversees all projects and defines the decision making structure for each project. In this case the committee may include decisions about project proposal approvals and supervision of the organizations’ project portfolio in general, including the selection or appointment of project managers. The purpose of project governance is to provide a decision-making framework that is logical, robust and repeatable to govern any type of project or program, and independent of the underlying usage of project methodology. In this way, an organization will have a structured approach for conducting both its business as usual activities and its business change, or project-activities. Project governance will formalise the ‘what if’ scenarios in case of issue management (like budget restrictions, unforeseen project events, scope creep, ...) and decision management. It will resolve the uncertainties of ‘who can decide what’ in a temporary environment, and it should clarify the roles of all defined and designated stakeholders. Principles 123 Good project governance is supported by a set of guiding principles: CU IDOL SELF LEARNING MATERIAL (SLM)
Principle 1: Assure single point of accountability for the project success Every project needs a clear leadership to assure success. The concept of a single point of accountability is the first principle of effective project governance. However, it is not enough to nominate someone to be accountable – the right person must be made accountable and endorsed/empowered by the senior management to hold sufficient authority within the organisation. Principle 2: Separate project ownership from stakeholder(s) It is imperative that the project lead defines a stakeholder map of all its stakeholders and a project specific governance structure for a formal decision process along the project lifecycle. The only proven mechanism to ensure that projects meet customer and stakeholder needs, while optimising value for money, is to allocate the project ownership to a specialist party, that otherwise would not be a stakeholder to the project. This is principle No. 2 of project governance. The Project Owner is engaged under clear terms which outline the organisations’ key result areas and the organisations’ view of the key project stakeholders. Often, organisations establish a Governance of Projects Committee, which identifies the existence of projects and appoints project owners as early as possible in a project's life, establishes Project Councils which form the basis of customer and stakeholder engagement, establishes the key result areas for a project consistent with the organisations’ values, and oversees the performance of projects. These parameters are commonly detailed in a Project Governance Plan which remains in place for the life of the project (and is distinct from a Project Management Plan which is more detailed and only comes into existence during the development of the project). Projects may have many stakeholders and an effective project governance framework must address their needs. The next principle deals with the manner in which this should occur: Principle 3: Ensure separation of stakeholder management and project decision making activities. The decision-making effectiveness of a committee can be thought of as being inversely proportional to its size. Not only can large committees fail to make timely decisions, those who do are often ill-considered because of the particular group dynamics at play. 124 CU IDOL SELF LEARNING MATERIAL (SLM)
There is no question that activities, project decision making and stakeholder management, are essential to the success of the project. The issue is that they are two separate activities and need to be treated as such. This is the third principle of effective project governance. If this separation can be achieved, it will avoid clogging the decision-making forum with numerous stakeholders by constraining its membership to only those select stakeholders absolutely central to its success. There is always the concern that this solution will lead to a further problem if disgruntled stakeholders do not consider their needs are being met. Whatever stakeholder management mechanism that is put in place must adequately address the needs of all project stakeholders. It will need to capture their input and views and address their concerns to their satisfaction. This can be achieved in part by chairing of any key stakeholder groups by the chair of the Project Board. This ensures that stakeholders have the project owner to champion their issues and concerns within the Project Board. Principle 4: Ensure separation of project governance and organizational governance structure Project governance structures are established precisely because it is recognized that organizational structures do not provide the necessary framework to deliver a project. Projects require flexibility and speed of decision making and the hierarchical mechanisms associated with traditional organization charts do not enable this. Project governance structures overcome this by drawing the key decision makers out of the organization structure and placing them in a forum thereby avoiding the serial decision-making process associated with hierarchies. Consequently, the project governance framework established for a project should remain separate from the organization structure. It is recognized that the organization has valid requirements in terms of reporting and stakeholder involvement. However dedicated reporting mechanisms established by the project can address the former and the project governance framework must itself address the latter. What should be avoided is the situation where the decisions of the steering committee or project board are required to be ratified by one or more persons in the organization outside of that project decision making forum; either include these individuals as members of the project decision making body or fully empower the current steering committee/project board. The steering committee/project board is responsible for approving, reviewing progress, and delivering the project outcomes, and its 125 CU IDOL SELF LEARNING MATERIAL (SLM)
intended benefits, therefore, they must have capacity to make decisions, which may commit resources and funding outside the original plan. This is the final principle of effective project governance. Why Is Project Governance Critical to the Success of a Project? Establishing good project governance is not a simple task. Significant investment needs to be made when embarking on a new project. It is often challenging to quantify what the benefits are when it comes to investing in the creation of the project governance framework. The following are four key benefits of project governance: Single point of accountability; Outlines roles, responsibility and relationships among project stakeholders; Issue management and resolution; and Information dissemination and transparent communication. Project governance provides a single point of accountability. This mandates clarity and fosters consistency of decision making for the lifecycle of the project. By appointing one focal point of accountability, the individual's primary focus will be on delivering on the project's objectives and will be not be deterred for the duration of the project. This does not mean that there will be “one throat to choke,” but one person will be responsible for the direction and focus of the project and having multiple individuals accountable will not blur this. In addition, project governance defines and clearly articulates structured roles, responsibilities and accountabilities within the project, which also facilitates decision making. This is critical when the project manager has a deviation in scope, budget, time, resources, or quality, or when a risk has presented itself. Project governance defines whom these issues impact and how to deal with the impact. The governance framework will provide ’guidelines’ on how to deal with issues on the project. Not only does it define to whom the issues impact, but also it details mechanisms for how to deal with the issues. It ensures that the appropriate review on the issues is done and who are the key points of contact for addressing and approving any deviations in the project requirements. Project governance provides direction and defines decision-making procedures 126 CU IDOL SELF LEARNING MATERIAL (SLM)
and metrics for validating impacts to the project. It also enables the project team to deliver on requirements and creates a forum for issue resolution to occur in a timely manner. Finally, project governance provides a vehicle for information gathering and reporting to all stakeholders. This framework ensures that the communication plan is well defined, updated and executed. It also facilitates consistent, standardized and transparent reporting. This promotes nibble status updates on productivity as well as communicates and addresses stakeholder expectations. 7.1.4 PM Roles and Responsibilities Matrix The following position descriptions cover the gamut of project-management- Related jobs in an organization that is committed to managing by projects, from executive staff members on the enterprise and organizational levels, to specialty staff. The positions in your own company probably represent a subset of those described here, since few companies have fully implemented and committed to enterprise project management on an enterprise scale of this magnitude. Lest you think these are unrealistic organizational positions, we note numerous organizations have dedicated resources much like our descriptions. Specifically, a fully mature Enterprise Project Office in fi elds such as construction, federal governments, and certain industry groups represent examples of such matured, projectized organizations. Chief Project Officer Other titles that may be descriptive of this role: Director of Project Management; Director of Programs and Strategy; Director of Enterprise Project Management; Director of Project Portfolio Management Role Overview Reports to a senior C-level executive, preferably the CEO. Provides leadership, direction, and oversight of all corporate programs and projects under development and execution. This role also provides executive oversight for all divisional projects and maintains responsibility for data integration and reporting for all projects and programs within the organization. Oversees development and management of the Strategic Project Office and plays a key facilitative role in project portfolio management. May include the role of Portfolio Manager. Responsibilities for the Chief Project Officer parallel that of a Chief Financial Officer as the offi ce of the CPO provides corporate status, reporting, analysis of all programs/projects with analysis of corresponding impacts to budget, delivery timetables, and resources. 127 CU IDOL SELF LEARNING MATERIAL (SLM)
Suggested Duties and Responsibilities Promotes the development and diffusion of project management culture throughout the enterprise. Maintains effective communication with senior management, making them aware of critical issues confronting corporate programs/projects and of the action plans for addressing those issues. In conjunction with corporate leadership, develops and manages the enterprise project portfolio management process, integrates the corporate project decision-making with corporate strategy, and facilitates on-going enterprise program/project portfolio decision making. Identifies needed corporate process improvements and works with business partners to effectively drive change throughout the organization. Facilitates program/project reviews of critical/key enterprise programs and projects. Direction and oversight of all corporate systems for project planning, implementation and monitoring, ensuring that all projects have clear goals, objectives and timelines with measurable milestones consistent with corporate strategy and goals. With the director of divisional project offices, organizes the project office structure to effectively achieve divisional and departmental project objectives. With the director of the divisional project offices, oversees major periodic divisional portfolio meetings, driving results and resolving key project and program issues. With the divisional Project Office Director, oversees preparation of key management communications such as project steering committee presentations, status reports, budget reports, etc. With the divisional Project Office Director, oversees relationships between project personnel and functional managers. With the Enterprise Project Office Director, oversees education and mentoring for staff and management regarding project management. Oversees and participates in the project portfolio management process, ensuring that the technical objectives of projects are integrated with commercial requirements. 128 CU IDOL SELF LEARNING MATERIAL (SLM)
Oversees the integration of project processes with other functional areas such as manufacturing, marketing, and finance in order to ensure the success of corporate strategies, products and initiatives. Maintains an understanding of contemporary project management techniques and industry practices, as they impact corporate objectives. Ultimate responsibility for enterprise project problem/issue identification and resolution. Suggested Knowledge, Skills and Abilities Ability to analyze and synthesize information in a concise manner and to make recommendations on strategies to resolve policy and political issues. Demonstrated ability to use professional management and/or technical concepts to solve complex problems and oversee key projects in creative and effective ways is required. Strong knowledge of finance and accounting. Strong partnering skills. Ability to understand and deal with political issues in a highly matrixed environment. Excellent communication skills (oral and written). Strong organization skills and the ability to manage multiple priorities. Strong project management ability. Strong leadership ability. Strong negotiation skills. Skills to interact with clients and business partners effectively (especially if programs/projects are developed for external client use). Strong skills in conflict resolution and problem solving. Results orientation. Strong analytical and interpersonal skills. Project Portfolio Manager 129 Other titles that may be descriptive of this role: Director of Strategic Project CU IDOL SELF LEARNING MATERIAL (SLM)
Management, a Director of Enterprise Project Management, Chief Project Offi cer Role Overview The Project Portfolio Manager’s responsibility is ideally enterprise wide. This role has become much more common as companies seek to align projects and strategies. This position manages the corporate or divisional project portfolio by managing the process for identifying, selecting, and prioritizing projects that support corporate business strategy. This is done using a facilitative process where the Portfolio Manager (or PO Director) facilitates decisions with the leadership team by providing data, inputs, analysis and facilitative assistance so the executives reach prioritization conclusions and ultimately “own” the organizational projects. This position reports to an upper-level executive; in a small company, it may report to the CEO. The responsibilities described below may also reside with a CPO or Director of Enterprise Project Management; on a divisional level, they may be rolled into the Project Office Director position. Suggested Duties and Responsibilities With a team of project stakeholders from all levels of the organization (C-level at the enterprise level; senior managers at the divisional level), responsible for developing formal criteria for identifying, evaluating, prioritizing, selecting and approving the set of projects that form the corporate (or division) project portfolio. (This process should be generally consistent throughout the organization, integrated at the CPO level. In other words, the CPO should form the corporate process, integrating corporate strategy, then corporate strategy should fl ow down to the divisional level; while portfolio decisions by the division management should first account for delivering projects against corporate strategies, then balance specific divisional strategies into the workload.) With an executive committee, administers and facilitates the portfolio management process, including oversight of documentation and periodic reviews. With senior executives from the finance function, works to establish a system for quantifying project benefits so that project approval decisions can be made objectively. (This should be developed within the offi ce of the CPO then fl owed 130 CU IDOL SELF LEARNING MATERIAL (SLM)
down to the divisions who may choose to tailor the process to meet their specific needs.) Assist Project Office Director in identifying project interrelationships that will affect priority and resource allocation decisions. With functional managers and Project Managers, oversees the process for collecting the project data on which portfolio decisions are based. Monitors projects in the portfolio (such as milestones, schedule performance, resource constraints, etc.) and updates executives on progress in the portfolio. With functional and Project Managers, analyzes the impact to the existing portfolio of changes in existing projects, or the addition of new projects outside of the portfolio process cycle, and identifies strategies (resource allocation, project sequencing) for accomplishing all the desired projects. Oversees the distribution of project portfolio information to executive management, directors, and other key personnel. With the Project Office Director and Project Managers, works to translate portfolio decisions into appropriate planning and execution of projects. Suggested Knowledge, Skills and Abilities Strategic business knowledge; a long-term focus; ability to make recommendations regarding complex strategic decisions. High-level organization, communication, and facilitation skills; credibility with executive management. Willing to assume responsibility and ownership for making critical decisions or recommendations related to approving, rejecting, and discontinuing projects. Negotiation and conflict resolution skills; ability to create an open environment where conflicts as to project priorities and funding decisions can be aired and resolved in an objective manner. High-level understanding of technical concepts as related to the industry and products/services of the company. 131 CU IDOL SELF LEARNING MATERIAL (SLM)
Ability to instill trust, motivate, and work with other people. Finance, accounting and budgeting knowledge. Ability to create and deliver executive-level summary reports and presentations. Other key roles are: Project Manager, Program Manager, Business Analyst, Systems Analyst and executives. 7.1.5 RACI Charting and Analysis Defining and assigning roles and responsibilities is essential to the success of any project or program. As important as it is to clarify project objectives, leaders have to clarify who is responsible for each project activity. Without clearly defined roles, team members may assume others are performing necessary tasks and as a result, miss deliverables and cause schedule delays. Or, team members may fail to include other people or parties on key decisions which can cause internal conflict or result in project results that fall below expectations. Therefore, it is a vital function of the leader to ensure people know what is expected of them through every phase of the project or program. An effective technique leaders can use to define roles and clarify specific responsibilities is a responsibility assignment matrix. A responsibility assignment matrix is a grid that visually displays the project resources assigned to each activity and what the role of each team member is in relation to that activity. The most popular responsibility assignment matrix is the RACI (pronounced ray-see), which is acronym for 4 possible roles of a team member: Responsible, Accountable, Consulted, Informed. Many organizations already use some variant of the RACI approach to facilitate disciplined and operational excellence within a firm’s leadership group or within individual project teams. The RACI also provides the basis for communication plans, stakeholder management, and change management plans the team will need to make the telework implementation a success. Before diving into the definitions of RACI and how to construct the matrix, it’s important to remember that the RACI is supposed to be a living document. Leaders should revisit the RACI from time to time and make necessary modifications or updates. Definitions 132 CU IDOL SELF LEARNING MATERIAL (SLM)
Although some organizations may deviate slightly, the generally accepted RACI role definitions are: Responsible (R) Team members designated as Responsible, execute the identified task. This person or group of resources assist the person accountable to achieve the desired outcome. In short, those Responsible do the work. They are also responsible for the quality and timing of the specific task and for understanding inputs/outputs and hand-off responsibilities of the activity. This level of responsibility can be shared among two or more people or may reside with one person. The degree and level of responsibility is determined by the person accountable or the owner of the function. Note that the person(s) responsible are not the final arbiter of decisions that affect those accountable for cross-functional decisions. In other words, those accountable (discussed in the next section) may retain decision-making authority for certain cross-functional issues that are beyond the scope of those performing the work. Also, the person(s) responsible are not a consultant or overseer; responsible parties always have direct involvement with the work. They have \"skin in the game.\" Accountable (A) Accountable individuals are ultimately accountable for delivering the product, program, task or service on time and to an agreed-level of quality. He or she must sign off or approve when the task, objective or decision is complete. Therefore, he or she should be the ultimate decision-maker. Typically, only one Accountable person is assigned a process, task, or activity (usually better to list an individual’s name versus a department or organization). The value in establishing one person as Accountable is to clearly highlight where the buck stops. Think about it another way—if everybody owns a task or program then nobody really does. It can diffuse ownership and accountability. Consulted (C) Large, complex initiatives, such as implementing a telework arrangement, require input from many sources. More often than not, the person or people assigned to execute a task will need counsel, advice, or feedback from subject matter experts, executives, or peers within the organization. Leaders may want to consult and bring these experts or stakeholders into the process before a final decision or action is taken. Consulted individuals or parties need to be 133 CU IDOL SELF LEARNING MATERIAL (SLM)
consulted on an activity or task before it can be completed. Typically, those consulted are directly impacted the outcome of the activity or the decision associated with the task. Although there is no limit to the number of individuals or parties to consult with, it is a two- way communication and major issues or concerns raised by those consulted have to be taken into account or addressed before moving ahead. Consulted parties should provide input and help those Accountable and/or Responsible to understand the full ramifications of their actions and decisions. Note that Consulted parties cannot override the decisions of the Accountable individuals; they only help decision-makers make the best possible choices. Informed (I) Lastly, those that need to be informed of a decision or the progress of the activity should be identified. Unlike those Consulted, it is strictly one-way communication with those Informed. Informed parties don’t directly contribute to decisions. However, there can be multiple parties or individuals Informed and “I’s” can form a community of people represented by a person in a Consulted role. Creating the Matrix The RACI matrix is relatively easy to construct. Simply, it is a two-dimensional table with participants listed across the top and the activities or tasks listed down the horizontal side of the table. In the table itself are the RACI designations. 134 CU IDOL SELF LEARNING MATERIAL (SLM)
When listing the tasks or activities, avoid trivial or generic activities, e.g., \"attend meetings.\" Each activity or decision should begin with a good action verb, such as Evaluate, Create, Record, Schedule, Write, Operate, Plan, Update, Monitor, Prepare, Collect, Develop, Inspect, Train, or Authorize. When the action verb implies a judgment or decision (e.g., evaluate, monitor, inspect, review), add a phrase to indicate the primary outcome. For example: “Analyze space utilization data,” or “Evaluate service providers to determine best solution.” Activities or decisions should be short, concise, and apply to a role or need, not to a specific person (keeping in mind that roles can be individuals, groups, or entire departments). RACI Analysis Once the RACI is complete, leaders should analyze the matrix to ensure completeness and resolve any discrepancies before issues arise. We refer to this as vertical and horizontal analysis. Vertical analysis infers that leaders will review the matrix by role, looking down the columns and what each person or team is assigned to. The horizontal analysis requires leaders to look across the rows at each of the individual tasks or activities. 135 CU IDOL SELF LEARNING MATERIAL (SLM)
Here’s what to look for: Vertical Analysis: Too many R's: If an individual or team is listed on many tasks as Responsible, can they handle the workload? Remember that being responsible in RACI terms means that they are doing the work. Perhaps it may be better to break the tasks into smaller, more manageable deliverables for others to perform or offload the tasks onto someone else. No spaces in columns: If the individual(s) plays a part in every task or activity (even if it is as Consulted party), ask if they need to be involved in so many activities? Are they a \"gatekeeper\" that could bog down progress? Can Consulted individuals be reduced to Informed, or left to the individual's discretion when something needs particular attention? Not every role needs to have an assignment on every task. Not any R's, A's, or C’s: If an identified role is only informed, should they be eliminated from the matrix? Have processes changed to a point where other resources should be reutilized? Too many A's: Does a proper \"segregation of duties\" exist? Should other groups/people be accountable for some of these activities to ensure checks and balances and accurate decision making throughout the process? Is this a \"bottleneck\" in the process - will everyone be waiting for decisions or direction? Horizontal Analysis: 136 CU IDOL SELF LEARNING MATERIAL (SLM)
No R's: If a task has no one listed as Responsible, who is getting the job done? This may indicate that everyone sees themselves as an approver, or someone that can add their two cents or be informed but no one sees their role as taking the initiative. Too many R's: This is the reverse of the problem above. With too many people labeled as doing the work, are there too many hands involved? With so many people assigned to getting a specific activity done, will it create more confusion or conflict? No A's: There must be someone Accountable for every task. No exceptions. Accountability should be pushed down to the most appropriate level. More than one A: One person, and only one person, should be Accountable to avoid confusion. Every person with an \"A\" will have a different view of how it is or should be done. Too many C's: Remember that if someone is consulted, the task is conditional based on the Consulted party’s input. Consulting too many individuals or groups may slow the activity down. Do all the identified groups or people really need to be consulted? Are there justifiable benefits in consulting this many? Too many I's: Do all the identified roles need to be routinely informed or only in exceptional circumstances? Every box filled in: If every box for a given task is filled in it could indicate too many people may be involved. Additional Tips & Recommendations to Maximize RACI The RACI is not meant to be a solitary effort. It’s best done in an open, team environment and leaders are encouraged to use the tool to build teamwork. Participation will ensure the matrix is adopted and maintained. 100% accuracy is usually not essential. Over time the RACI may be refined and adjusted as necessary. Don’t get hung up looking for perfection. A perfect tool is still useless if it’s never used. Place Accountability (A) and Responsibility (R) at the lowest possible level. Minimize the number of Consulted (C) parties and groups/people Informed (I). It is a common mistake for RACI builders to list many groups in the Consulted category. Ensure that everyone listed in the RACI is really necessary. 137 CU IDOL SELF LEARNING MATERIAL (SLM)
All roles and responsibilities must be documented, communicated, and ownership achieved. RACI cannot substitute for well-defined process or thorough planning. The RACI is a tool – one tool among many to ensure the success of a project or initiative. It is meant to be used within the context of the project lifecycle. Use the RACI as the basis for developing more detailed planning. The golden rule of the RACI - there should be only one “A.” We’ve intentionally reiterated this point since it is so often missed. It’s a common mistake and easily avoidable with a little horizontal analysis. 7.2 SUMMARY We can define project organizational structures as organizational forms, based on temporary teams that are created to perform particular tasks and disappear after achieving the established goals. Organizational arrangements create physical and operational boundaries for decision- making, they can also reduce or increase complexity through the choices made in defining relationships, allocating responsibilities, authority, and tasks. The unity of command principle helps preserve the concept of a continuous line of authority. It states that every employee should receive orders from only one superior. Delegation is the assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions. Span of control is important because, to a large degree, it determines the number of levels and managers an organization needs. All things being equal, the wider or larger the span, the more efficient the organization. Project governance can be defined as an organization’s overall process for sharing decision rights about projects and monitoring the performance of project interventions. All development organizations have some form of project governance. Project governance will formalise the ‘what if’ scenarios in case of issue management (like budget restrictions, unforeseen project events, scope creep, ...) and decision management. It will resolve the uncertainties of ‘who can decide what’ in a temporary environment, and it should clarify the roles of all defined and designated stakeholders. 138 CU IDOL SELF LEARNING MATERIAL (SLM)
Finally, project governance provides a vehicle for information gathering and reporting to all stakeholders. This framework ensures that the communication plan is well defined, updated and executed. It also facilitates consistent, standardized and transparent reporting. This promotes nibble status updates on productivity as well as communicates and addresses stakeholder expectations. An effective technique leaders can use to define roles and clarify specific responsibilities is a responsibility assignment matrix. A responsibility assignment matrix is a grid that visually displays the project resources assigned to each activity and what the role of each team member is in relation to that activity. The most popular responsibility assignment matrix is the RACI (pronounced ray-see), which is acronym for 4 possible roles of a team member: Responsible, Accountable, Consulted, Informed. Once the RACI is complete, leaders should analyze the matrix to ensure completeness and resolve any discrepancies before issues arise. We refer to this as vertical and horizontal analysis. 7.3 KEYWORDS Project organization-A project organization is a structure that facilitates the coordination and implementation of project activities. ... The structure defines the relationships among members of the project management and the relationships with the external environment. project governance- Project governance is the infrastructure dealing with responsibility and accountability that surrounds your project. It is the framework for making decisions regarding the project. ... It gives a structure of oversight to the entire project. organization structures- Organizational structure is a way or method by which. organizational activities are divided, organized and coordinated. The organizations created the structures to coordinate the. activities of work factors and control the member performance. Organizational structure is shown in organizational chart. RACI- A RASCI chart is created during project initiation to identify those who are: responsible for project activities, accountable for ensuring that work is done, signing 139 CU IDOL SELF LEARNING MATERIAL (SLM)
off on the work, consulted in relation to work activities, and informed about the status of the work. The acronym may be simplified as RACI. RACI matrix- A responsibility assignment matrix, also known as RACI matrix or linear responsibility chart, describes the participation by various roles in completing tasks or deliverables for a project or business process. unity of command-Unity of Command is one of the Henri Fayol's 14 principles of Management. This principle states that there must be only one superior to a subordinate. ... If an employee or subordinate has to work under the influence of many bosses or superiors, then it creates a confusing situation, dilemma and disorder. span of control- Span of control, also called span of management, is the term used in business management, particularly human resource management. The term refers to the number of subordinates or direct reports a supervisor is responsible for. delegation- Delegation is the assignment of authority to another person to carry out specific activities. It is the process of distributing and entrusting work to another person. 7.4 LEARNING ACTIVITY 1. What is the RACI Matrix? ___________________________________________________________________________ ___________________________________________________________________________ 2. How does organizational structure affect projects? ___________________________________________________________________________ ___________________________________________________________________________ 7.5 UNIT END QUESTIONS A. Descriptive Questions Short Questions 140 1. What are the pillars of good project governance? 2. What is a RACI matrix used for? 3. How is a RACI Analysis done? CU IDOL SELF LEARNING MATERIAL (SLM)
4. Note on unity of command 5. Note on PM roles & responsibilities Matrix Long Questions 1. How many different specializations can be included in Project Design? 2. Discuss Unity of command and the role of delegation. 3. Explain Span of Control. 4. What do you understand by Project Governance? Discuss briefly. 5. What are the factors to be considered while preparing a RACI matrix? B. Multiple Choice Questions 1. A project organization is a structure that facilitates the coordination and implementation of project activities. a. True b. False 2. The _________ principle helps preserve the concept of a continuous line of authority. a. Unity of direction b. Span of control c. Unity of command d. All of these 3. _____________ determines the number of levels and managers an organization needs. a. Unity of direction b. Span of control c. Unity of command d. All of these 141 CU IDOL SELF LEARNING MATERIAL (SLM)
4. _________ can be defined as an organization’s overall process for sharing decision rights about projects and monitoring the performance of project interventions. a. Project governance b. Corporate governance c. CSR d. None of these 5. The _________ also provides the basis for communication plans, stakeholder management, and change management plans the team will need to make the telework implementation a success. a. CPM b. PERT c. RACI d. None of these Answers 1 – a, 2 – c, 3 – b, 4 – a, 5 - c 7.6 REFERENCES Pm4dev (2016). Project Management Organisational Structures. Project Management for Development Organizations. Mishra, R. and Soota, T. Modern project management [online]. New Delhi: New Age International (P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505. Cook, D. L., Adams, J. R., & Hannah, H. D. (1976). The basic project management reference library. Project Management Quarterly, O‘Brien, CPM in Construction Management 142 CU IDOL SELF LEARNING MATERIAL (SLM)
No Excuses: A Business Process Approach to Managing Operational Risk. Dennis I. Dickstein, Robert H. Flast. John Wiley & Sons, 2009. Morris PWG, Hough GH The anatomy of major projects., Wiley (1987). Kadefors A Institutions in building projects: implications for flexibility and change. Scandinavian Journal of Management, 11 (4) (1995), pp. 395-408. Maylor H, Brady T, Cooke-Davies T, Hodgson D From projectification to programmification. International Journal of Project Management, 24 (2006), pp. 663- 764. Maylor H, Brady T, Cooke-Davies T, Hodgson D From projectification to programmification. International Journal of Project Management, 24 (2006), pp. 663- 764 Hodgson DE Project teams: the legacy of bureaucratic control in the post-bureaucratic organization. Organization, 11 (1) (2004), pp. 81-100 Kerzner HR Project management: a systems approach to planning, scheduling, and controlling., John Wiley & Sons (2017) 143 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 8- PROJECT SCHEDULING STRUCTURE 8.0. Learning Objective 8.1. Introduction 8.2. Project Planning & Scheduling 8.3. Project Management Methods 8.4. Project Scheduling Techniques 8.5. GANTT Charts & Network Diagrams 8.6. PERT Techniques & Quiz 8.7. Summary 8.8. Keyword 8.9. Learning Activity 8.10. Unit End Questions 8.11. References 8.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Understand details about Project Planning Understand different types of Project Plans Understand project planning methodologies such as: Agile, Scrum, Waterfall etc. Understand the intricacies of Project Scheduling Understand scheduling methods briefly, such as: CPM, PERT, GANTT etc 8.1 INTRODUCTION Fundamentally, 'Project planning' is all about choosing and designing effective policies and methodologies to attain project objectives. While 'Project scheduling' is a procedure of 144 CU IDOL SELF LEARNING MATERIAL (SLM)
assigning tasks to get them completed by allocating appropriate resources within an estimated budget and time-frame. The basis of project planning is the entire project. Unlikely, project scheduling focuses only on the project-related tasks, the project start/end dates and project dependencies. Thus, a ‘project plan’ is a comprehensive document that contains the project aims, scope, costing, risks, and schedule. And a project schedule includes the estimated dates and sequential project tasks to be executed. ‘Project planning and scheduling’ go hand-in-hand and are essentials of project management. In a nutshell, ‘Project planning’ is an elaborative process that includes all details of the project, from its inception to completion. And ‘Project schedule’ is the tracker that monitors the sequences and tenure of project-related tasks. A project schedule notifies/alerts the project team on any delays or if the project is not incorrect direction. It is a live document, requires periodic updating and recording. The tools and techniques deployed for project planning are ‘Task Breakdown Structure’, ‘Scope of Work’ and ‘Critical Path Method’ abbreviated as ‘TBS’, ‘SOP’ and ‘CPM’ respectively. While, project schedule uses software tools and methods such as ‘PERT’ (Program Evaluation Review Technique), Gantt charts, Pareto charts, and other networking illustrations. A project is incomplete and cannot be a success without a well-developed project-plan and precise project-schedule. We need to use scheduling techniques in a project to align all its aspects so as to work corresponding to each other. A schedule should be proportionate with the time set for the project and all its resources should be used in an optimum manner. Given the variable nature of the project and its scope, it is hard to plan it, but we are expected to do it because it is we who will be held responsible. A schedule consists of all the activities included in the implementation and execution of a project within the pre-determined time frame of the project. A project schedule helps in prioritizing work involved in a project and finish it off in an orderly manner. It also helps in appointing the right person for the job and in the proper allocation of the available resources. 145 CU IDOL SELF LEARNING MATERIAL (SLM)
Time management and adjustments with the scope of a project is only possible if there is a proper schedule prepared for the project being worked upon. 8.2 PROJECT PLANNING AND SCHEDULING Every project, from conception to completion, passes through various phases of a life cycle synonym to life cycle of living being. There is no universal consensus on the number of phases in a project cycle. An understanding of the life cycle is important to successful completion of the project as it facilitates to understand the logical sequence of events in the continuum of progress from start to finish. Typical project consists of four phases- Conceptualization, Planning, Execution and Termination. Each phase is marked by one or more deliverables such as Concept note, Feasibility report, Implementation Plan, HRD plan, Resource allocation plan, Evaluation report etc. Project Planning Before commencement of any project, the first thing that we need to do is project planning. Any reasonable project manager certainly understands importance of planning a project well. Carefully planned project takes into account necessary aspects of a project (e.g. tasks, milestone, schedule, risks, communication, quality, etc.) and provide a plan which project team can refer during execution. In this phase the project structure is planned based on project appraisal and approvals. Detailed plans for activity, finance, and resources are developed and integrated to the quality parameters. In the process major tasks need to be performed in this phase are: Identification of activities and their sequencing Time frame for execution Estimation and budgeting Staffing A Detailed Project Report (DPR) specifying various aspects of the project is finalized to facilitate execution in this phase. 146 CU IDOL SELF LEARNING MATERIAL (SLM)
Why do we need project planning? You see, careful & detailed planning help us to reduces risk and in turn uncertainty in any given project. In meticulously planned project, project planner attempts to make a provision for potential occurrences of uncertainties in advance. It is true that project plan in advance, cannot take care of all unforeseen events, risks, and deviations nevertheless; we still, are in a better position than having no planning. Why? –We know what needs to be done, we can organize our work and also, with well-planned project we can better equip ourselves to respond aptly to potential risks, slippages, etc. Hence the bottom line is, we are able to save on time, on resources and as a result we can save on cost too. Elements of project plan Any project is expected to provide its stakeholders with certain outcome, which is commonly termed as project deliverables. These project deliverables depends on the scope of the project. Analogically, defining a project scope is like drawing a map. In the map, the 147 CU IDOL SELF LEARNING MATERIAL (SLM)
boundaries are drawn to indicate stretch/extent of a given territory; similarly project scope outlines the extent of project deliverables. Essentially, project scope is the definition of what the project is expected to achieve and specify the budget of both time and cost that needs to be provisioned to create the project deliverables before the project gets closed. For the best result, one needs to take care of clearly carving out project definition & the budgetary requirements. More detailing & precision during project planning definitely help the team organize their work efficiently & deliver the project more effectively. Without a project scope, project execution can go haywire. Project Deliverables To define project scope, one needs to refer project requirements. The project planner needs to list down project deliverable items unambiguously stating whether they are ‘In Scope’ or ‘Not in Scope’. So, project scope is about outlining the project deliverables. Based on project scope, project planner(s) create(s) work break down structure (WBS). Work Breakdown Structure (WBS) The WBS is a breakdown/ decomposition of project work into distinct work items at higher level. These work items are aligned with the project objective and can help the project team to create expected deliverables. Generally the project team can refer to this work item hierarchy to decide whether any given task is included in WBS or not. Delivery Schedule Planning Once project scope is determined and work breakdown structure (WBS) is created, the next step is to create delivery timeline. For each of the deliverable work item identified in the work breakdown structure (WBS), project planner needs to identify list of activities need to perform. Activities/Tasks Activities as mentioned above, become a basis for estimation, scheduling, execution, and monitoring and controlling of the project work. For each of these activities he/she needs to figure out 148 CU IDOL SELF LEARNING MATERIAL (SLM)
How long will it take to complete each activity (days, weeks)? What kind of resource(s) –required for its completion (skill set, experience, etc.)? Based on the estimate of efforts required to carry out each activity, one can sum up to get duration required for each deliverable. Thus working backward, project delivery timeline can be tweaked further to provide better estimates. Milestones A milestone marks a significant event in the project. Generally, project sponsors would refer to list of milestones to trace project delivery in respect of timeline & cost overrun. Project Resources Planning It is the people who make the project work hence it is critical to plan for project team. But project resource is not just about the people to be involved in the project, rather materials, equipment required for successful completion of the project. Having mentioned this, generally resource planning tends to revolve about people/staffing management. Human Resource Plan This plan tries to answer following questions but rather precise details: 1. What kinds of people are required to complete the project –necessary qty, competencies? 2. What should they do –roles & responsibilities? 3. Whom will they report to? Thus human resource plan identifies and document the staffing requirements –skillset, roles, responsibilities and also establish the reporting structure of the project resources. It also provides the staffing plan which specifies timeline of acquisition & release of staff. The staffing plan in last decade has become quite important for services based companies where these companies struggle with the pool of resource in terms of their availability, utilization; especially of the scarce resource having special knowledge/skill sets. 149 CU IDOL SELF LEARNING MATERIAL (SLM)
To arrive at human resource plan, project planner need to refer organization structure &figure out necessary changes and compliances required for project requirement. Companies may have following organization structure: 1. Hierarchical Organization 2. Matrix Based Organization 3. Flat organization Project Cost Planning Cost planning exercise helps to baseline the overall project budget in terms of money so that project sponsors & project steering committee can agree on project delivery schedules well as the payment schedule. It tries to identify cost elements to be consumed during the project lifecycles such as Monetary resources requirement (people, machinery, material, equipment, space, etc.) Provisions for risk management (people, machinery, material, equipment, space, etc.) Quite commonly, cost planning is observed to be an iterative process wherein project planner update the cost of project based on information updates available with him/her. As you would have seen, in initial phase, the ROM estimates are within a broad range of ±50%of the proposed estimate and as project progresses, the estimate may get updated to the tune of ±20%or less. Project Quality Planning There are various known approaches to ensure project quality –some of these are Six Sigma(6 σ) Cost of Quality (CoQ) Total Quality Management(TQM) Failure Mode and Effect Analysis (FMEA) International Organization for Standardization 9001, etc. All of these approaches essentially align with principles of project management such as careful planning in advance save a lot later, hence this section becomes necessary. 150 CU IDOL SELF LEARNING MATERIAL (SLM)
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