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Honicker Corporation Portfolio Milestone

Kristie Lin

Colorado State University Global

PJM 500 Module 5 Portfolio Milestone

Dr. Melinda Hollingshed

3/14/21

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Honicker Corporation Portfolio Milestone

The Project Management Institute (PMI) created guidelines to help businesses understand

how to manage projects successfully. Some of these guidelines include determining a project

champion and establishing a project management office (PMO) that will manage and provide

guidance for projects. The PMO will take charge with implementing a methodology that the

organization will follow. This is so that the organization has a process that they can repeat

multiple times, and know that the outcome of the project will be successful. Having a

methodology established can also help the organization remain competitive in the marketplace.

Principle Components Discussion

There are many components to project management, but the principle components are

distinguishing between project, program, and portfolio management, project selection, the

project charter, project organization, project planning, project scheduling, project estimating,

monitoring and control, project closure, communication management, risk management, and the

role of information technology. All of these components must be constructed in order for a

project to be successful.

Project, Program, and Portfolio Management Distinction

There is a variation between project, program, and portfolio management. Projects are

temporary and will shut down once they are completed and have delivered whatever they were

chartered to do (Weaver, 2010). In contrast, programs are groups of projects that are managed

altogether, rather than individually (Weaver, 2010). Additionally portfolio management focuses

more on choosing programs that will ultimately help achieve the organization’s goals (Project

Management Institute, 2017). That is not to say that project and program management do not

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work towards meeting the organization's goals either because they do. Project and program

management are just subsets of portfolio management.

Project Selection

Selecting what projects to take on is crucial to an organization’s success. There are many

factors to consider when selecting projects. Resources, costs, time, organizational goals, benefits,

and risks of completing the project. Utilizing a project selection process or method would allow

the project management office or project manager to determine if the project is worth taking on.

Methods could include a cost-benefit analysis, a scoring model, net present value, internal rate of

return, or discounted cash flow. Different methods can be used for different types of projects. For

instance, net present value would be a better project selection method for long-term projects,

while shorter projects would benefit from the internal rate of return method (Reiter & Song,

2018).

Project Charter

Nowadays the project charter is an internal legal document that identifies managers, their

personnel, responsibilities, and the scope of the project (Kerzner, 2017). If the charter includes

the scope baseline and a management plan, it can be utilized as the project plan (Kerzner, 2017).

According to Kerzner (2017), a project charter should include the identification of the project

manager, business purpose, assumptions and constraints, summary of the conditions defining the

project, description of the project, objectives of the projects, project scope, key stakeholders and

their roles, risks, and the involvement by certain stakeholders. The project charter does not have

to be limited by just these components and depending on the complexity of the project, there

could be more additions.

Project Organization

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Project organization helps coordinate and implement project activities. There are two

types of organizational structures, and they are functional organization, projectized organization,

and matrix organization. Functional is the most common form, and is grouped by areas of

specialization such as marketing, human resources, and so on (Master of Project Academy,

2017). Team members also typically do both operational and departmental work (Master of

Project Academy, 2017). With projectized organizations, the entire company is organized by

projects, and the project managers are in charge of projects (Kerzner, 2017). When a project is

completed, the personnel either are assigned to another project or have to find a new job (Master

of Project Academy, 2017). Lastly, matrix organizations attempt to combine the strengths of

functional and projectized organizations, and team members report to both functional and project

managers (Master of Project Academy, 2017). According to Kerzner (2017), matrix

organizations are best suited for project-driven organizations.

Project Planning

Project planning is critical to the success of a project. It provides a guideline and

blueprint for everyone involved including any stakeholders, sponsors, and project managers. The

main purpose of project planning is to identify any risks that may occur, and any goals or

objectives that need to be accomplished (Alexander, 2018). Project planning is also when the

management team would plan for the amount of resources and money that would be allocated to

the project. Setting realistic expectations is also critical in this phase so that investors and

sponsors are not disappointed when their unrealistic expectations have not been met (Alexander,

2018).

Insufficient planning can lead to the failure of the project or delay the project, which

would not please investors or sponsors (Alexander, 2018). There can be several reasons for

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insufficient planning. One of the biggest reasons is having unrealistic expectations. Due to the

unrealistic expectations, project managers might have underestimated the amount of time or

money it takes to complete a phase of the project (Alexander, 2018). Without sufficient time or

resources, a project is bound to be prolonged. Other reasons for insufficient planning are

impatience and a lack of understanding. Project managers can be impatient and just gloss over

the planning phase of the project, or they simply do not understand how critical the planning

process is to the success of a project (Alexander, 2018).

With that said, the key to successfully plan for a project is communication, addressing

possible risks and obstacles, and examining costs, human resources, project scope, quality of

deliverables, and procurement (Alexander, 2018). By adequately planning out the phases of each

project, it will undoubtedly reduce and help avoid any stress in the future when everyone is

executing the project (Alexander, 2018). There will also be more efficiency with a project that

has been thoughtfully planned out compared to a project that has not been thought out at all

(Alexander, 2018).

Project Scheduling

Once the project management team identifies what has to be done and how it will be

accomplished, the next step is to determine when and who will be responsible for each task.

Before any actual scheduling occurs, the project scope and work breakdown structure must be

established. There are many work breakdown structures however, the most prominent ones are

the top-down approach and the bottom-up approach. With the top-down approach, the phases of

the entire project are broken down into smaller tasks (Makar, 2018). This approach is best

utilized when the details to the project are clear (Makar, 2018). With the bottom-up approach, the

project team would brainstorm all of the tasks that would accomplish the goal or deliverable

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(Makar, 2018). The bottom-up approach however is more time consuming but more convenient

for those with little experience with the type of project (Makar, 2018)

Project Estimating

Like all of these components to project management, the accuracy of project estimating

can make or break the success of a project. If the project management team underestimates the

time or resources it takes to complete the project, it could delay the project further. The

management team will be struggling to make up the time or gather extra resources when the

project is already underway. On the other hand, if the project management team overestimates

how much time or resources are needed, it would result in wasting valuable time and resources

which decreases the efficiency of the project.

Organizations can either use analogous, parametric, or a three-point estimate. With

analogous estimating, the project management team is reviewing and referring to previous

similar projects to estimate the cost and the duration of the current project (Goodrich, 2015). For

parametric estimating, the team identifies the cost and duration as well as the number of units

necessary to complete the project. According to Goodrich (2015), parametric estimating is the

most accurate method of estimating because it is scalable. The last method is three-point

estimating which uses a mathematical approach to determine the weighted average of optimistic,

pessimistic, and most likely estimates of each work package (Simpli Learn, 2021). The only

downside to the three-point estimation is that it does not account for complex factors, so it would

not provide an accurate estimate with more complex projects (Kerzner, 2017).

Monitoring and Control

Once the project is underway, it is very important for the project management team to

monitor the progress and control the costs. This will ensure that the project is still headed

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towards the right direction, and that it is staying on budget and on schedule. If there is any

deviation from the project scope, if the project is over or under budget, or if the project is ahead

of or behind schedule, then the project management team must make changes to account for and

address the deviation. If adjustments must be made, they should also be communicated to all

stakeholders including investors and sponsors (Soon, 2019).

Project Closure

Communication Management

Risk Management

A majority of risk management should be completed before the project even begins. The

key to decreasing the risk of failure or delay is to be proactive. There are many ways to stay

proactive in identifying and mitigating risks before the project even begins. Several methods

include the fishbone diagram, a SWOT analysis, Pareto chart, and process maps (Athuraliya,

2021). All of these methods allow organizations to identify and analyze risks, and then do one of

two things or both. The risk management team will try to mitigate the risk and in case the risk

still occurs, create a backup plan to resolve the issue (Athuraliya, 2021). It is ok to be reactive as

well because there are bound to be issues that occur, however, having a plan to resolve the issue

is key. A combination of being proactive and reactive will help the project stay on track.

Role of Information Technology

Simulation Scenario Analysis

In the Delphi Printer simulation, the tasks are clear. The senior project manager must

develop a new and innovative printer in six months. The first step of doing so is determining the

project scope, schedule, and resources needed for the project. It is important to establish a

timeline so that investors are aware of when they can expect a return on their investment. The

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senior project manager also needs to be able to allocate an adequate amount of resources. Too

little or too many resources can decrease performance and result in the project failing. Not

enough people on the project team can create burnout and frustration, while having too many

people working on the project will cost the organization more money, and it is a waste of

resources. The senior project manager also creates schedules for meetings, whether that is

one-on-one meetings or team meetings, as well as, determining how many prototypes to design.

Lessons Learned

Recommendations

Case Study Analysis

The Honicker Corporation under previous management was very conservative and did

not expand their organization into the international market. When a new management team came

aboard in 2009, the organization had acquired four companies, Alpha, Beta, Gamma, and Delta

Companies, in an attempt to venture into the international market. Honicker already had an

established enterprise project management methodology (EPM) that was successful. However,

trying to incorporate their methodology into the newly acquired four companies would prove to

be a greater challenge than they initially thought.

With all four companies, the implementation of Honicker’s EPM or a new EPM would be

a challenge because a new EPM system is a huge change for all the companies involved, and

change is never easy. Alpha already had an EPM system that they thought was better than

Honicker. Beta had barely comprehended project management, while both Gamma and Delta

Companies had no clue what project management entailed. Moreover Honicker had to deal with

the challenges of establishing an EPM that would satisfy all stakeholders, laws, and governments

from the different countries that these companies were located in.

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Honicker had initially thought that the implementation of the new EPM would take about

two months, however, they had quickly realized that it would take up to two years after the

kickoff meeting. This was due to the increased resistance from all four companies. The increased

resistance was most likely due to confusion or fear of the unknown, lack of communication, lack

of competence, and lack of trust (Rick, 2011). If Honicker wants to win the support of all four

companies, they need to understand the expectations, motivations, and needs of each company.

That starts with creating a culture within each company that fosters an open environment where

everyone involved feels comfortable in voicing their opinions. Developing a clear line of

communication that runs both ways will help build trust, decrease confusion and the fear of the

unknown.

Conclusion

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References

Alexander, M. (2018). ​Why planning is the most critical step in project management​. Tech

Republic.

https://www.techrepublic.com/article/why-planning-is-the-most-critical-step-in-project-m

anagement/#:~:text=Project%20planning%20plays%20an%20essential,agreed%20produc

t%2C%20service%20or%20result.

Athuraliya, A. (2021). ​The ultimate list of visual risk management techniques.​ Creately.

https://creately.com/blog/diagrams/risk-management-techniques/

Goodrich, B. (2015). ​Analogous estimating vs parametric estimating​. PM.

https://www.pmlearningsolutions.com/blog/analogous-estimating-vs-parametric-estimati

ng-pmp-concept-4

Kerzner, H. (2017). Project management: A systems approach to planning, scheduling, and

controlling (12th ed.). Hoboken, NJ: John Wiley & Sons.

Makar, A. (2018). ​Top-down vs. bottom-up project management strategies​. Liquid Planner.

https://www.liquidplanner.com/blog/how-long-is-that-going-to-take-top-down-vs-bottom

-up-strategies/

Master of Project Academy. (2017). Organizational structure

Project Management Institute. (2017). A guide to the project management body of knowledge

(6th ed.). Project Management Institute.

Reiter, K., & Song, P. (2018). ​Gapenski's fundamentals of healthcare finance​. Chicago, IL:

Association of University Programs in Health Administration.

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Rick, T. (2011). ​Top 12 reasons why people resist change​. Meliorate.

https://www.torbenrick.eu/blog/change-management/12-reasons-why-people-resist-chang

e/

Simpli Learn. (2021). ​6 successful project estimation techniques you must know in 2021

[updated]​. https://www.simplilearn.com/project-estimation-techniques-article

Soon, J. (2019). ​The importance of cost control in project management​. Medium.

https://medium.com/@janno.soon/the-importance-of-cost-control-in-project-management

-d7823fdec7ed

Weaver, P. (2010). Understanding programs and projects—oh, there's a difference!. Newtown

Square, PA: Project Management Institute.

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Appendix A

Project Charter Template

Stakeholders

Milestones or Gates

Project Title:

Projected Start Date:

Projected End Date:

Project Sponsor:

Project Manager:

Project Description:

Project Objectives:

Project Scope:

Name Success Criteria

1.

2.

3.

Milestone/Gate Status Deadline

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Risks, Assumptions Constraints

Benefits

1.

2.

3.

4.

KPI Baseline Goal

1.

2.

3.

4.

Project manager signature:

Project sponsor signature: