UNIT 3: MANAGEMENT OF PROJECTS

Learning Outcome 1: Understand the principles of

project management

1. Principles of project management

a) Definition and role of project management
b) The variable nature of projects from the small/relatively straightforward to the
extremely large and highly complex
c) Main principles including the project lifecycle and its key stages, key goals and
outcomes, the significance of project planning
d) The team and project stakeholders
e) Potential funding and finance for project management
f) Key project management approaches including traditional approaches, agile
approaches, critical chain, event chain and process-driven approaches including
PRINCE2

2. Viability of projects, including criteria for success/failure

a) The need to confirm and agree measures of success before the project is started and
activities are assigned
b) Recognizing that project success is closely linked to opportunity and risk and that
success criteria can change with time
c) Measuring success in terms of key deliverables: scope, quality, relevance and in
terms of internal processes (time, cost and efficiency)
d) Wideman’s Key Success Indicators (KSI)
e) Recognizing that failing to achieve certain objectives does not necessarily mean
the project was a failure
3. Principles behind project management systems and processes
a) Budget management systems
b) Methods of monitoring income, expenditure and cash flow
c) Risk management methodologies
d) Contingency planning approaches and processes
e) Processes for monitoring quality
f) Methods of monitoring project timescales and tracking progress
g) Systems for measuring and reviewing performance
h) Tools for managing the project management process including fishbone diagrams,
critical path analysis flow diagrams and Gantt charts
i) Software applications which facilitate project management systems and processes
4. Terminating projects and conducting post-project appraisals
 a) Recognizing when project termination takes place (project termination as the final
stage of the project lifecycle, starting when the project work has been completed
and accepted by the customer)
b) Why actions relating to terminating the project should be identified and included in
the next project’s starting out plan
c) Key elements involved in terminating projects and conducting post-project
appraisals
d) How post-project appraisals may benefit future projects

1. Principles of Project Management

a) Definition and Role of Project Management
Project management is the discipline of planning, executing, and overseeing a project to achieve
specific goals within defined constraints, such as time, cost, and resources. The role of project
management is to ensure that projects are completed successfully, meeting the objectives and
delivering value. This involves coordinating a team, managing stakeholders, and mitigating risks
throughout the project lifecycle.
b) The Variable Nature of Projects
Projects can vary significantly in scale and complexity. They can range from small,
straightforward tasks, such as organizing an event, to highly complex endeavors like constructing
a skyscraper or developing a software system. Each type of project presents unique challenges
that require tailored management strategies.
i. Size

 Small Projects: Usually involve a limited number of tasks and stakeholders. They often have
shorter timelines and lower budgets. Examples include organizing a community event or
developing a simple website.

 Large Projects: These projects have more extensive requirements, involving multiple teams and
longer timelines. They might include constructing a building or launching a new product line.

ii. Complexity

 Relatively Straightforward Projects: Characterized by clear objectives and predictable

outcomes. The processes and risks are well understood. Examples include updating software or
implementing a new marketing strategy.

 Highly Complex Projects: These involve numerous interdependent tasks, uncertain outcomes,
and higher risks. They often require advanced project management techniques and may include
large infrastructure projects or multinational initiatives.

iii. Scope
  Narrow Scope: Projects with specific, well-defined deliverables and objectives. They are easier
to manage and evaluate, such as a small research study.

 Broad Scope: Projects that encompass multiple areas and stakeholders, often with evolving
objectives. An example would be a governmental program aimed at economic development.

iv. Stakeholder Engagement

 Limited Stakeholders: Fewer individuals or groups involved, leading to faster decision-making

processes.

 Multiple Stakeholders: Involves various groups with different interests, making communication
and consensus more challenging.

v. Resource Allocation

 Minimal Resources: Small projects often require fewer resources, making them easier to
manage and less risky.

 Significant Resources: Large and complex projects require extensive resources, including
manpower, technology, and finances, adding layers of management and coordination.

c) Main principles including the project lifecycle and its key stages, key goals and
outcomes, the significance of project planning

 Project Lifecycle: Encompasses initiation, planning, execution, monitoring, and closure

phases.
 Key Goals and Outcomes: Focus on delivering specific outputs, achieving stakeholder
satisfaction, and ensuring project viability.
 Significance of Project Planning: Detailed planning helps in resource allocation, risk
management, and setting clear objectives.
1. Project Lifecycle

The project lifecycle encompasses the stages a project goes through from initiation to completion. It
typically includes the following key stages:

 Initiation: Defining the project at a high level, identifying stakeholders, and obtaining approval
to proceed. Key activities include developing a project charter and conducting feasibility studies.

 Planning: Detailing how the project will be executed, monitored, and closed. This stage involves
setting objectives, defining scope, creating a work breakdown structure, estimating resources
and timelines, and risk management planning.

 Execution: Implementing the project plan by coordinating people and resources, as well as
managing stakeholder expectations. This phase focuses on delivering the project outputs.
  Monitoring and Controlling: Tracking progress and performance against the project plan. This
includes measuring project metrics, managing changes, and ensuring that project goals are met.

 Closure: Finalizing all project activities, completing deliverables, and obtaining formal
acceptance from stakeholders. This stage also involves conducting a post-project review and
documenting lessons learned.

d) The Team and Project Stakeholders

The success of a project heavily relies on the collaboration between the project team and
stakeholders. Project stakeholders include anyone affected by the project, such as clients, team
members, sponsors, and regulatory bodies. Effective communication and stakeholder
engagement are crucial for project success.
e) Potential Funding and Finance for Project Management
Funding sources for projects can include internal budgets, loans, grants, and investments from
stakeholders. Understanding the financial aspects and securing appropriate funding is vital for
sustaining project operations and achieving objectives.
f. Key project management approaches including traditional approaches, agile
approaches, critical chain, event chain and process-driven approaches including
PRINCE2
Key Project Management Approaches
Project management methodologies guide teams in planning, executing, and finalizing projects
effectively. Here are the key approaches, including traditional, agile, critical chain, event chain,
and process-driven methodologies like PRINCE2.
1. Traditional Approaches
 Waterfall Methodology: This linear and sequential approach is characterized by distinct
phases: conception, initiation, planning, execution, and closure. Each phase must be
completed before the next begins, making it suitable for projects with well-defined
requirements.
 Characteristics:
o Clear project scope and objectives.
o Extensive documentation.
o Predictable timelines and costs.
2. Agile Approaches
 Agile Methodology: This iterative approach focuses on flexibility and customer
collaboration. Projects are divided into small, manageable units called sprints, allowing
for rapid adjustments based on feedback.
  Key Frameworks:
o Scrum: A framework that organizes work into time-boxed iterations, enhancing
team accountability and communication.
o Kanban: A visual management tool that helps teams manage workflow by
limiting work in progress and optimizing efficiency.
 Characteristics:
o Strong emphasis on customer involvement.
o Adaptability to changing requirements.
o Continuous improvement through regular feedback loops.
3. Critical Chain
 Critical Chain Project Management (CCPM): This method focuses on managing the
uncertainties of project timelines by adding buffers to tasks. It prioritizes resource
availability and minimizes multitasking.
 Characteristics:
o Emphasis on resource optimization.
o Identification of the critical path and buffer management to protect project
timelines.
o Focus on task dependencies and constraints.
4. Event Chain
 Event Chain Methodology: This approach highlights the impact of unexpected events
on project schedules. It uses event chain diagrams to visualize how events can affect
project timelines.
 Characteristics:
o Focus on risk management and contingency planning.
o Use of simulations to predict project outcomes based on potential events.
o Helps in understanding the relationships between tasks and events.
5. Process-Driven Approaches (e.g., PRINCE2)
 PRINCE2 (Projects IN Controlled Environments): A structured project management
method emphasizing organization and control throughout the project lifecycle. It is
widely used in government and private sectors.
 Key Features:
 o Defined roles and responsibilities.
o Focus on delivering products that meet specified quality criteria.
o Regular reviews and updates to ensure alignment with project goals.
 Characteristics:
o Emphasis on business justification and stakeholder engagement.
o Adaptability to various project types and sizes.
o Comprehensive documentation and processes.

2. Viability of projects, including criteria for

success/failure
a) The need to confirm and agree measures of success before the project is started and
activities are assigned

b) Recognizing that project success is closely linked to opportunity and risk and that success
criteria can change with time
c) Measuring success in terms of key deliverables: scope, quality, relevance and in terms of
internal processes (time, cost and efficiency)

Measuring Success in Project Management

Measuring success in project management involves evaluating both key deliverables and internal
processes. This comprehensive approach ensures that projects not only meet their objectives but
also operate efficiently. Here’s how success can be measured across these dimensions:

1. Key Deliverables

i. Scope

 Definition: The scope defines the boundaries of the project, including what is
included and excluded.
 Measurement:
o Objectives Met: Evaluate whether all project objectives and deliverables
have been achieved as outlined in the project scope.
o Change Requests: Track the number and impact of change requests on
the original scope. Minimal changes indicate good initial scope
management.
 o Stakeholder Satisfaction: Collect feedback from stakeholders on
whether their needs and expectations were met within the defined scope.

ii. Quality

 Definition: Quality refers to the degree to which the project deliverables meet the
required standards and stakeholder expectations.
 Measurement:
o Quality Standards: Assess whether deliverables comply with established quality
standards and specifications.
o Defect Rates: Monitor the number of defects or issues reported post-delivery.
Lower defect rates indicate higher quality.
o Customer Feedback: Gather qualitative feedback from users or stakeholders
regarding their satisfaction with the deliverables.

iii. Relevance

 Definition: Relevance measures how well the project outcomes align with organizational
goals and stakeholder needs.
 Measurement:
o Alignment with Strategic Goals: Evaluate how well the project contributes to
broader organizational objectives.
o Market Demand: Assess whether the project outcomes meet current market
needs or trends.
o Stakeholder Value: Measure the perceived value of the deliverables to
stakeholders to ensure continued relevance.

2. Internal Processes

i) Time

 Definition: Time measures the duration taken to complete the project and its phases.
 Measurement:
o Schedule Adherence: Compare actual completion dates against planned
timelines. Projects completed on time indicate effective time management.
o Milestone Tracking: Monitor the achievement of key milestones to gauge
progress throughout the project lifecycle.
o Cycle Time: Analyze the time taken to complete specific tasks or deliverables,
identifying areas for improvement.

ii) Cost

 Definition: Cost measures the financial resources expended on the project.

 Measurement:
o Budget Adherence: Compare actual project costs against the initial budget.
Projects completed within budget are considered successful.
 o Cost Variance: Calculate the difference between planned and actual costs to
identify cost overruns or savings.
o Return on Investment (ROI): Assess the financial return generated by the
project relative to its cost, providing insight into overall value.

iii) Efficiency

 Definition: Efficiency evaluates how well resources are utilized to achieve project
outcomes.
 Measurement:
o Resource Utilization: Analyze the extent to which resources (human, financial,
technical) are effectively used throughout the project.
o Productivity Metrics: Measure the output relative to input, such as tasks
completed per team member or cost per deliverable.
o Process Improvement: Identify and implement best practices or lessons learned
to enhance efficiency in future projects.

d) Wideman’s Key Success Indicators (KSI)

Wideman's Key Success Indicators (KSI) provide a framework for measuring

project success beyond traditional metrics. These indicators help project managers
assess performance and align projects with organizational goals. Here are the key
success indicators as defined by Wideman:

Wideman's Key Success Indicators (KSI)

i. Project Success Criteria:

o Scope: Have all project deliverables been completed as defined in the
scope statement?
o Quality: Do the deliverables meet the required quality standards and
stakeholder expectations?
o Time: Was the project completed on schedule?
o Cost: Did the project stay within budget?

ii. Stakeholder Satisfaction:

o User Acceptance: Are the end-users satisfied with the project outcomes?
o Stakeholder Engagement: Have stakeholders been actively involved
throughout the project, and do they feel their needs have been addressed?

iii. Business Value:

o Return on Investment (ROI): What financial return has the project
generated compared to its costs?
 o Alignment with Strategic Goals: How well does the project contribute to
the organization's strategic objectives?

iv. Process Improvement:

o Lessons Learned: Has the project team documented lessons learned and
best practices for future projects?
o Continuous Improvement: Are there processes in place for ongoing
evaluation and enhancement of project management practices?

v. Team Performance:
o Collaboration: How well did the team work together to achieve project
objectives?
o Skill Development: Were team members able to develop their skills and
competencies through the project?

vi. Risk Management:

o Risk Identification and Mitigation: Were potential risks identified and
effectively managed throughout the project?
o Adaptability: How well did the project team adapt to changes and
unexpected challenges?

e) Recognizing that failing to achieve certain objectives does not necessarily mean the
project was a failure

Understanding Project Success and Failure

In project management, it's essential to recognize that failing to achieve certain

objectives does not automatically equate to the project being a failure. Several
factors can influence this perception, and a nuanced understanding of project
success can provide valuable insights.
i. Partial Success

 Meeting Key Deliverables: A project may not achieve every objective but can still
deliver key outcomes that align with strategic goals. For instance, if a project successfully
launches a product but misses some minor features, it can still be considered successful if
it meets customer needs and generates revenue.
 Stakeholder Satisfaction: If stakeholders are satisfied with the overall process and end
results, the project can be deemed successful, even if some specific targets were not met.

ii. Learning and Growth

 Lessons Learned: Projects often yield valuable insights and lessons, even when not all
objectives are achieved. These lessons can inform future projects and lead to improved
practices.
  Team Development: A project may provide team members with opportunities to develop
skills and experience, contributing to their personal and professional growth, which can
be viewed as a success.

iii. Contextual Factors

 Changing Circumstances: External factors, such as market changes, budget constraints,

or shifting organizational priorities, can impact project outcomes. A project may not meet
all its objectives due to these factors, but it can still deliver value.
 Adaptability: Projects that adapt to new information or changing conditions can still
provide significant benefits, even if they deviate from the original plan.

iv. Value Realization

 Long-Term Impact: Some projects may not achieve immediate objectives but can have
long-term benefits that justify their execution. For example, an initial investment in a
research project might not yield immediate results but could lead to significant
advancements in the future.
 Alignment with Strategic Goals: If a project aligns well with the organization's strategic
objectives and contributes to its mission, it can be considered a success, regardless of
specific shortcomings.