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10541FA_HNDMSBPLO1.pptxPearson HND BTEC Level 5 HND Managing a Successful Business Project (MSBP) LO 1
Managing a Successful Business Project
Learning Outcomes
By the end of this module you will be able to:
Establish project aims, objectives and timeframes based on the chosen theme.
Conduct small-scale research, information gathering and data collection to generate knowledge to support your project.
Present your project and communicate appropriate recommendations based on meaningful conclusions drawn from the evidence findings and/or analysis.
Reflect on the value you have gained from conducting a project and its usefulness to support sustainable organisational performance.
LO1 : Establish project aims, objectives and timeframes based on the chosen theme.
P1 - Devise project aims and objectives for a chosen scenario.
P2 - Produce a project management plan that covers aspects of cost, scope, time, quality, communication, risk and resources.
P3 - Produce a work breakdown structure and a Gantt Chart to provide timeframes and stages for completion.
What is project management and what does it involve?
What is project management and what does it involve?
Most firms day to day operations serve customers through a network of inter connecting business processes, as business volumes change, the loading on these processes can increase or decrease (Nokes et. al. 2003) and there is often a need for some adaption in each process.
There may be a cumulative effect of many adaptions just to change of one of the processes, and as markets are subject to rapid change firms cannot afford to wait for gradual adaptions to take effect, therefore projects are required to provide a structure for making changes at a faster rate.
Nokes et al suggests that “ as markets increase and product cycles shorten the importance of projects will increase”. Projects are required to replace old and inefficient ways of doing things to methods better suited to modern market conditions.
Projects and the management of projects may be needed to tackle new problems.
Benefit of using case studies
In the aftermath of a series of acquisitions and mergers, a large financial services firm found itself attempting to operate with nearly seven hundred job titles for many similar positions due to the continued use of multiple legacy HR systems. The organization wanted to develop and implement a common set of job families and titles that could be used across the entire organization. Realizing the complexity of the task as well as a lack of internal expertise, they decided to seek external resources to carry out the work (Kaplan & Norton, 1996).
In order to begin developing a general overview of the project’s scope and cost, it is often helpful to collect information about how others have approached the same issue. This can be done through informal benchmarking efforts, consulting with colleagues who have pursued similar work, reviewing the human capital literature, or informal discussions with potential vendors.
Case Studies
It is important to identify the internal components that will contribute financial and other resources to the endeavor and sketch a high-level project timeline in order to maximize the internal understanding of the commitment that will be required (Turner, 2009).
Based on these preliminary stages of discovery, it may become apparent that the original goals of the project exceed the organization’s anticipated budget or, alternatively, they may be accomplished more readily than was initially believed. The key at this point is to develop a general and realistic consensus about the project’s scope and core parameters.
Respond to potential crisis
Simple process
Project management
Consists of the knowledge, skills, methods, techniques, and tools used to plan and manage project work.
It establishes a sound basis for effective planning, scheduling, resourcing, decision making, management, and plan revision.
Project management
Is the skills that help complete projects on schedule, within budget, and in full accordance with project specifications.
At the same time, they help achieve the other goals of the organization, such as productivity, quality, and cost-effectiveness.
The objective of project management is to ensure that projects meet agreed goals of time, cost, and scope.
American, Management Association,. Successful Project Management, edited by Management Association, American, AMACOM, 2011. ProQuest Ebook Central, .
Created from mywestford-ebooks on 2017-03-01 04:14:31.
The key stages of project management.
The advantages of using project management and why it is important.
Project management can bring many benefits to a business. Good project management should:
reduce the chance of a project failing.
ensure a minimum level of quality, and the results meet required expectations.
free up other staff members to get on with their area of work, and increase efficiency both on the project and within the business
make things simpler and easier for staff with a single point of contact running the overall project
encourage consistent communications amongst staff and suppliers
keep costs, timeframes and resources to budget
Projects benefits a business effectively managed
Competitive Advantage
Project Management and the Competitive Advantage:
Implementing project management across the organisation helps create a strategic value chain that gives companies an edge on their competitors, particularly in high-risk sectors and markets. Being able to deliver projects on time and within budget often determines whether a company will get the next job or whether its new product hits the market
Questions to be answered in the initiation phase include the following
Why this project?
Is it feasible?
Who are possible partners in this project?
What should the results be?
What are the boundaries of this project (what is outside the scope of the project)?
Deliverables to be produced
Deliverables include a market study and a detailed proposal.
Once the proposal is accepted, the team has to deliver a product specification,
Development plan and a marketing plan.
Initiation of the project and project planning phase:
Initiation phase
The initiation phase is the beginning of the project. In this phase, the idea for the project is explored and elaborated. The goal of this phase is to examine the feasibility of the project. In addition, decisions are made concerning who is to carry out the project, which party (or parties) will be involved and whether the project has an adequate base of support among those who are involved.
In this phase, the current or prospective project leader writes a proposal, which contains a description of the above-mentioned matters. Examples of this type of project proposal include business plans and grant applications. The prospective sponsors of the project evaluate the proposal and, upon approval, provide the necessary financing. The project officially begins at the time of approval.
Creating the guiding coalition
Putting together a group with enough power to lead change
Getting the group to work together as a team
Create A Guiding Coalition
GROUP ACTIVITY
Invent a Scenario of an organisation in need to change and have decided to
employ a project management team.
For example : Soapy Soap is concerned that they are losing their competitive advantage in middle east as there other laundry product manufactures are launching new products, and soapy soap hasn’t produced any new products since ‘TIDY’ laundry powder in 1956. Soapy soap complacent because their ‘Tidy’ product has been popular with housewife's and the preferred product by laundry services for generations.
Establishing a Sense of Urgency
Examining the market and competitive realities
Identifying and discussing crisis, potential crisis, or major opportunities
Kotter,J (1996)
Task
1. Why do you think they decided to bring in a professional project management team rather than use their current workforce ? Discuss
2. What are the deliverables expected by Soapy Soap Directors ? Discuss
3. Who are the Stakeholders ? Identify (how )
4. What are the Stakeholders expectations ? Discuss
5. What do you think your project management team can do for soapy soap ? Discuss
Make notes – we will return to, and extend this activity at a later date.
Project Planning Phase
Concept of Team
Advancing Human Resource Project Management
Some cases are driven by internal motivations, such as process improvement or better alignment with industry best practices;
Others may be in response to external events, such as litigation.
The initiation phase
The project partners enter a (temporary) relationship with each other. To prevent the development of false expectations concerning the results of the project, it makes sense to explicitly agree on the type of project that is being started
Stages in Team Building
Stages in Team Building
Scoping a project − defining objectives, scope, purpose and deliverables to be produced.
What defines a project scope?
The Project Scope pertains to the work necessary to deliver a product. Requirements and deliverables define the project scope, and it is critical that the stakeholder is in agreement with the information discussed in the proposed plan.
You need to be crystal clear when stating your project’s objectives. The more specific your project objectives are, the greater your chances are of achieving them. Here are some tips for developing clear objectives:
Project scope management
Scope management - Scope creep
Nokes, et al, ( 2003), warns about ‘scope creep’ and how we should be careful not to allow suggestions like “ It would be much better if …..” to change the scope of the project; for example: timing or the performance of deliverables may lead to “dire consequences”.
Even if the suggestions are good and appear reasonable: changing the scope of the project may result in changing objectives, and other things relating to the original plan may need to change; for example, resources may be incompatible with the new objectives
Developing A Vision and Strategy
Creating a vision to help direct the change effort
Developing strategies for achieving the vision
Communicating The Change Vision
Using every vehicle possible to constantly communicate the new vision and strategies
Having the guiding coalition role model the behaviour expected of employees
Empowering Broad-Based Action
Getting rid of obstacles
Changing systems or structures that undermine the change vision
Encouraging risk taking and nontraditional ideas, activities, and actions
Progress tracking using Gantt charts
Gantt charts can be used as:
Planning tool
Progress tracking tool
The plan can be updated to update the latest information which will help to give you the best current estimate time for completion.
You need to keep the original plan (time frame bar ) and update actual data on second line therefore creating a 2 bars one for the plan and one for the actual
GANTT CHART
BEING AWARE OF POTENTIAL
you will need to negotiate
Every Team Member Counts!
https://www.youtube.com/watch?v=O9_EHU5BKnQ
Important to identify the productive from the destructive ones!
Generating Short Term Wins
Planning for visible improvements in performance, or ‘wins’
Creating those wins
Visibly recognising and rewarding people who made those wins possible
Consolidating Gains and Producing More Change
Using increasing credibility to change all systems, structures, and policies that don’t fit together and don’t fir the transformation vision.
Hiring, promoting and developing people who can implement the change vision.
Reinvigorating the process with new projects, themes, and change agents.
PROJECT MANAGEMENT PLAN
Projects within Projects
Most major change initiatives are made up of a number of small projects….going through multi step process as discussed earlier.
Nearing the end of one project your team may need to start on the next project and so on…..Therefore the net effect is like wheels within wheels.
An example by Kotter (1996) is a medium - large telecommunications company:
The overall design to increase the firms competitive advantage took six years, By the third year the transformation was centered in steps 5,6 & 7 of an eight stage process and one small project was nearing the end of stage 8 and another project was to restructure the corporate staff groups was just beginning steps 1 & 2. They also had a quality program which was moving behind schedule.
Early results were visiable in first year but the biggest payoff didn’t come until the end of the overall effort (accumulation of projects coming to an end)
Identify all objectives
Time and resources are always scarce, so if you don’t specify an objective, you won’t (and shouldn’t) work to achieve it.
Be sure drivers and supporters agree on your project’s objectives. When drivers buy into your objectives, you feel confident that achieving the objectives constitutes true project success.
When supporters buy into your objectives, you have the greatest chance that people will work their hardest to achieve them.
If drivers don’t agree with your objectives, revise them until they do agree. After all, your drivers’ needs are the whole reason for your project! If supporters don’t buy into your objectives, work with them to identify their concerns and develop approaches they think can work.
Identify main aim / outcome of project
Make your objectives SMART
Specific: Define your objectives clearly, in detail, with no room for misinterpretation.
Measurable: State the measures and performance specifications you’ll use to determine whether you’ve met your objectives.
Aggressive: Set challenging objectives that encourage people to stretch beyond their comfort zones. (Achievable)
Realistic: Set objectives the project team believes it can achieve.
Time sensitive: Include the date by which you’ll achieve the objectives.
Make your objectives controllable
Make sure that you and your team believe you can influence the success of each objective. If you don’t believe you can, you may not commit 100 percent to achieving it (and most likely you won’t even try). In that case, it becomes a wish, not an objective
Steps and documentation required in the initiation phase.
Define phase - produce a project initiation document (PID) to record:
Activities directed towards agreeing what the project should attempt to achieve.
What will be involved in doing the project , and deciding if the projects is worth pursuing.
Small projects could be decided and planned in hours, day or week; however large projects may require weeks, months to create a plan for a project which is cost effective, within defined timescale, and with minimum risk.
Steps in initial phase
Identify stakeholders who need to be involved.
Clarify and quantify business benefits which should result from the project.
Identify if there are other proposed projects which may overlap to enable you to adapt currently proposed project.
Internal & External Stakeholders
Initial Phase
Carry out a feasibility study to decide best approach to use in the project.
Plan project in depth including timings, total costs, and required resources, take account of quotes from subcontractors.
Identify project risks.
Gain the approval to go ahead.
feasibility study
Example of a project initiation document
PROJECT COSTS
Risk Management Plan
Risks
Business Risks
Changes in market conditions that may alter the commercial attractiveness of the project.
Emerging project investment opportunities that may compete with this project for resources.
Constraints on business activities for legal, regulatory or environment reasons.
(for example changes in UAE licencing laws in education sector, retail etc.)
Possibility that the market was misjudged – the project might meet all its targets, but customers might not buy.
Public opinion of the firm’s brand, which may limit or enhance the range of activities that the firm wishes to undertake.
Ref: Nokes et al 2003
Project Risks
May include many technical risks.
Usage cost of the project output is too high
Performance to low.
Quality being to variable.
Business Risks
SOME OF THE RISKS ARE BEYOND THE CONTROL OF THE PROJECT MANAGER, BUT ALL CAN BE MONITORED AND THE PROJECT STREERED ROUND THEM IF THEY ARE IDENTIFIED IN TIME.
Ref: Nokes et al 2003
20% / 80%
Contingency plan
Scenario Planning
A long term version of contingency planning.
Identifying several alternative future scenarios or state of affairs which may occur.
Risk Management
Risk Management
A project risk is a crisis that has not happened yet.
Risk management is preferable to crisis management.
Risk management = Control
Crisis management = May = OUT of your control
Project risk management protects the business by taking a dispassionate view of what might go wrong and what can be done to limit the likelihood of such events.
Ref: Nokes et al 2003
Developing the project plan, including planning for timescales and time management, cost, quality, change, risk and issues
Break down the project into separate tasks.
Each task should have identifiable output and deadline.
Delegate responsibility for each task.
Ensure all tasks have SMART objectives.
Delegate responsibility for each task.
Ensure all tasks have SMART objectives
.
Example of a work breakdown structure for a construction project
PRINCE 2 can help you how ???
Using PRINCE2 provides you with greater control of resources, and the ability to manage business and project risk more effectively.
Individuals seeking leading project management skills and greater employment prospects
Project managers
Directors/executives (senior responsible owners) of projects, and organisations.
GROUP ACTIVITY
Spaghetti & Marshmallow
The sky’s the Limit
INTRODUCTION—SETTING THE STAGE The current application of The Sky’s the Limit demonstrates the critical elements and challenges associated with managing a project. This exercise will provide a common shared experience to the students while simultaneously highlighting fundamental aspects of project management.
The basic framework of the activity involves student teams designing, developing, and constructing skyscrapers composed entirely of spaghetti and miniature marshmallows within a specified time frame.
At the end of the exercise, the student groups are required to conduct a group debriefing session to reflect upon their experience. The observer of each group will provide a designated set of questions.
A debriefing session is conducted to help students understand the complexities of managing a project and to establish the framework for the material presented in lecture.
Finally, a series of tests are performed to discern the “best” skyscraper based upon predetermined criteria – We Decide together.
On average, The Sky’s the Limit activity takes approximately 50 to 60 minutes from the setup to cleanup.
Eight Stage Process of Creating Major Change
Establishing a Sense of Urgency
Creating the guiding coalition
Developing A Vision and Strategy
Communicating The Change Vision
Empowering Broad-Based Action
Generating Short Term Wins
Consolidating Gains & Producing More Change
Anchoring New Approaches In The Culture
Communication is a two-way street. You should feel as comfortable listening as talking and the other way around if appropriate. What communication skills you need changes dramatically depending on the context. Forget one size fits all. Tailor your communication to the person, the function, and the circumstance. Your own needs take a back seat to the needs of the situation in front of you. It may feel like you are a communication chameleon; you need to be deliberately different based on your audience. Learn to use those communication skills that are not currently part of your repertoire.
Communication
Kotter The Eight Stage Process
The PRINCE 2 Method
PRINCE2 (an acronym for PRojects IN Controlled Environments) is a de facto process-based method for effective project management. Used extensively by the UK Government, PRINCE2 is also widely recognised and used in the private sector, both in the UK and internationally. The PRINCE2 method is in the public domain, and offers non-proprietorial best practice guidance on project management.
Key features of PRINCE2:
Focus on business justification
Defined organisation structure for the project management team
Product-based planning approach
Emphasis on dividing the project into manageable and controllable stages
Flexibility that can be applied at a level appropriate to the project.
PRINCE2
PRINCE2 (an acronym for PRojects IN Controlled Environments) is a de facto process-based method for effective project management. Used extensively by the UK Government, PRINCE2 is also widely recognised and used in the private sector, both in the UK and internationally.
PRINCE 2
2009 PRINCE2 Major Revision
A major revision has seen the method made simpler and more easily customisable, a frequent request from users. The updated version has seven basic principles (not in the earlier versions) that contribute to project success:
Continued Business Justification
Learn From Experience
Defined Roles and Responsibilities
Manage by Stages
Manage by Exception
Focus on Products
Tailor to Suit Environment
History of PRINCE2
PRINCE has been derived from an earlier method called PROMPT II (Project Resource Organisation Management Planning Techniques). In 1989 the Central Computer and Telecommunications Agency (CCTA) adopted a version of PROMPT II as a UK Government standard for information systems (IT) project management. They gave it the name 'PRINCE', which originally stood for "PROMPT II IN the CCTA Environment". PRINCE was renamed in a Civil service competition as an acronym for "PRojects IN Controlled Environments". However, it soon became regularly applied outside the purely IT environment, both in UK government and in the private sector around the world.[3] PRINCE2 was released in 1996 as a generic project management method.[4] PRINCE2 has become increasingly popular and is now a de facto standard for project management in many UK government departments and across the United Nations system.[5] In the 2009 revision, the acronym was changed to mean 'PRojects IN a Controlled Environment'.
In July 2013, ownership of the rights to PRINCE2 was transferred from HM Cabinet Office to AXELOS Ltd, a joint venture between the Cabinet Office and Capita plc.
Since 2006, the method has been revised. It launched as "PRINCE2:2009 Refresh" in 2009. The name "PRINCE2" (instead of "PRINCE3" or similar) remains to indicate that the method remains faithful to its principles. Nevertheless, it is a fundamental revision of the method from 1996 to adapt it to the changed business environment, to make the method simpler and lighter, to address current weaknesses or misunderstandings, and to better integrate it with other AXELOS Global Best Practice methods (ITIL, P3O, P3M3, MSP, M_o_R etc.). PRINCE2 is part of a set of Best Practice products and is closely aligned with a sister product for the management of programmes
'Managing Successful Projects with PRINCE2 - 2009 Edition',[6]
'Managing Successful Programmes' 1999, fourth edition in 2011.
Both the Foundation and Practitioner Examinations are based on the 2009 revision 'Managing Successful Projects' manual
Overview of PRINCE2[edit]
For organisations
PRINCE2's formal recognition of responsibilities within a project, together with its focus on what a project is to deliver (the why, when and for whom) provides your organisation's projects with:
A common, consistent approach
A controlled and organised start, middle and end
Regular reviews of progress against plan
Assurance that the project continues to have a business justification
Contingency
Contingency Planning
To identify alternative courses of action that can be implemented to meet the needs of changing circumstances.
Can not always predict when things will go wrong, it can be anticipated that they will.
Contingency plans contain “trigger points” that indicate when preselected alternative plans (plan B) should be activated.
PRINCE2 Case Study - Pension Protection Fund
Gantt Chart for effective planning
TRACKING PROGRESS
Gantt Charts can be used for planning and progress checking.
Update by creating another bar for actual progress if
original planned date has changed
Critical Chain Approach which relies on the principle that tasks will only be completed 50% of the planned time. therefore leaving a ‘buffer’ between the end of one task and the next scheduled task.
Update task timing information within the ‘buffer’ time
frame.
Scope creep …………………….trouble
Either the suggestion is accepted and the project is committed to do things that were not in the plan, usually leading to cost and time overrun, and/or compromised technical quality; or
The suggestion is automatically rejected and the firm loses an opportunity somehow to improve the returns on its investment in the project.
This seems like a no-win situation.
The escape route is a scope management process that allows you to keep the project objectives and project plan in line;
Suggested changes can be accepted but only if the consequences for the plan are also accepted
Nokes et al.,( 2003)
The ability to say NO is an important quality
Projects tend to expand once people have become excited about them. The underlying thought is, While were at it, we might as well ????
Projects to which people keep adding objectives and projects that keep expanding are nearly certain to go off schedule, and they are unlikely to achieve their original goals.
:
CASE STUDY CSA UK
CASE STUDY
The Child Support Agency's (CSA) much-criticised computer system is again struggling this week, with staff unable to access case files because it is running so slowly.
The problems began to emerge on Monday. Callers are being advised to try again later in the week, or being promised a call back when the system is back to normal.
Engineers from HP Enterprise Services, formerly EDS, which built the CS2 system, are currently on site trying to pinpoint the cause.
"The system is not 'down' but we are unable to immediately answer case-specific queries and clients are being asked to call back," a spokesman for the Child Maintenance Enforcement Commission, which oversees the CSA, told The Register.
"Caseworkers remain available to help with general enquiries and maintenance payments have not been affected by this issue.
“http://www.theregister.co.uk/2010/09/09/csa_snafu/
CSA - UK
CS2 was built by EDS in 2003 under a PFI contract worth £456m. It has been widely seen as a disaster, with the National Audit Office and MPs joined in repeated sharp criticisms. The influential Public Accounts Committee labelled it "a turkey from day one".
In 2007 the government announced it would spend a further £300m in an attempt to improve CS2. This week's renewed failures show the system - which handles about half the CSA's case load - remains seriously flawed.
Andrew, a Reg reader who has been affected by this week's problems, said: "This is causing a lot of stress and upset for those of us who are trying to legitimately deal with the CSA and who are now 'on hold' unable to add to information to their cases.
"I'm under a lot of stress, haven't slept for days and have to keep waiting with the millstone of an incorrect calculation around my neck."
The CSA said HP Enterprise Services is working as quickly as possible to identify and fix the latest fault.
CASE STUDY
In 2004, EDS was criticized by the UK's National Audit Office for its work on IT systems for the UK's Child Support Agency (CSA), which ran seriously over budget causing problems which led to the resignation of the CSA's head, Doug Smith on 2004-11-27. The system's rollout had been two years late and following its introduction in March 2003 the CSA was obliged to write off £1 billion in claims, while £750 million in child support payments from absent parents remained uncollected.
An internal EDS memo was leaked that admitted that the CSA's system was "badly designed, badly tested and badly implemented". UK MPs described it as an "appalling waste of public money" and called for it to be scrapped.[23]
CSA New System
The new system is a break from the failures of the past, which saw children miss out on support despite hugely expensive running costs.
Innovative new features will now also include an online banking-style self-service facility, enabling parents to keep track of payments themselves.
Parents are encouraged and now fully incentivised to co-operate in the best interests of their own children.
But a vastly improved, efficient statutory service remains in place for separated families who choose to continue to rely on the state.
The government’s landmark reform of Britain’s child maintenance system has entered its final chapter. From today, new support and incentives kick in giving families a better chance to take state bureaucracy out of their family arrangements.
Today also sees a major development in government support for separated families with the launch of a new self-service facility which helps separated parents to manage their maintenance arrangements and keep track of payments.
Establish project aims, objectives and timeframes based on the chosen theme
End of Learning Outcome 1 (LO1).
Assignment brief
LO2 will start on xxxxxxxxx
