BSBSLS501

khadkaymaharaj_7

BSBPMG522_CACLearnerGuide.pdf

Home >Business & Finance homework help >Management homework help >BSBSLS501

BSBPMG522

Undertake project work Learner Guide

P a g e | 1

Table of Contents

Unit of Competency .......................................................................................................................... 5

Application ........................................................................................................................................... 5

Performance Criteria ............................................................................................................................ 6

Foundation Skills .................................................................................................................................. 8

Assessment Requirements ................................................................................................................... 9

1. Define project ............................................................................................................................. 12

1.1 – Access project scope and other relevant documentation ............................................................ 13

Project management.......................................................................................................................... 13

Accessing scope ................................................................................................................................. 14

Project management framework ....................................................................................................... 15

Activity 1A .......................................................................................................................................... 16

1.2 – Define project stakeholders .......................................................................................................... 17

Who are stakeholders? ...................................................................................................................... 17

Activity 1B .......................................................................................................................................... 19

1.3 – Seek clarification from delegating authority of issues related to project and project parameters

............................................................................................................................................................... 20

Seeking clarification of issues ............................................................................................................ 20

Activity 1C .......................................................................................................................................... 22

1.4 – Identify limits of own responsibility and reporting requirements ................................................ 23

Identifying limits of own responsibility .............................................................................................. 23

Escalation ........................................................................................................................................... 24

Activity 1D .......................................................................................................................................... 25

1.5 – Clarify relationship of project to other projects and to the organisation's objectives ................. 26

Relationship between projects .......................................................................................................... 26

Broader organisation strategies and goals ........................................................................................ 27

Relationship between the project and broader organisational strategies and goals ........................ 28

Activity 1E........................................................................................................................................... 29

1.6 – Determine and access available resources to undertake project ................................................. 30

Resources ........................................................................................................................................... 30

Activity 1F ........................................................................................................................................... 33

P a g e | 2

2. Develop project plan ................................................................................................................... 34

2.1 – Develop project plan in line with the project parameters ............................................................ 35

Developing a project plan .................................................................................................................. 35

What are project deliverables? .......................................................................................................... 37

Estimating the duration and effort of your project ........................................................................... 37

Sequence and dependencies of tasks ................................................................................................ 38

Legal obligations ................................................................................................................................ 39

Activity 2A .......................................................................................................................................... 41

2.2 – Identify and access appropriate project management tools ........................................................ 42

Project management tools ................................................................................................................. 42

Activity 2B .......................................................................................................................................... 46

2.3 – Formulate risk management plan for project, including Work Health and Safety (WHS) ............ 47

Effective risk management ................................................................................................................ 47

Risk management plan ....................................................................................................................... 48

Activity 2C .......................................................................................................................................... 50

2.4 – Develop and approve project budget ........................................................................................... 51

What is a project budget? .................................................................................................................. 51

Developing a project budget .............................................................................................................. 53

Top-down approach ........................................................................................................................... 54

Bottom-up approach .......................................................................................................................... 54

Activity 2D .......................................................................................................................................... 56

2.5 – Consult team members and take their views into account in planning the project..................... 57

Consulting with team members ......................................................................................................... 57

Activity 2E........................................................................................................................................... 59

2.6 – Finalise project plan and gain necessary approvals to commence project according to

documented plan ................................................................................................................................... 60

Finalise project plan and gain approvals ............................................................................................ 60

Project management plan approval .................................................................................................. 61

Activity 2F ........................................................................................................................................... 62

3. Administer and monitor project ................................................................................................... 63

3.1 – Take action to ensure project team members are clear about their responsibilities and the

project requirements ............................................................................................................................. 64

Reporting lines ................................................................................................................................... 64

Subordinates ...................................................................................................................................... 65

P a g e | 3

Task descriptions ................................................................................................................................ 66

Team culture values ........................................................................................................................... 66

Activity 3A .......................................................................................................................................... 68

3.2 – Provide support for project team members, especially with regard to specific needs, to ensure

that the quality of the expected outcomes of the project and documented timelines are met .......... 69

Supporting team members ................................................................................................................ 69

Identifying strengths and weaknesses and monitoring progress ...................................................... 69

Training needs .................................................................................................................................... 70

Resolving conflict ............................................................................................................................... 71

Activity 3B .......................................................................................................................................... 74

3.3 – Establish and maintain required recordkeeping systems throughout the project ....................... 75

Recordkeeping systems ..................................................................................................................... 75

Recordkeeping tasks .......................................................................................................................... 77

Maintaining, disposing and updating requirements .......................................................................... 78

Maintain and update records ............................................................................................................ 78

Activity 3C .......................................................................................................................................... 80

3.4 – Implement and monitor plans for managing project finances, resources and quality ................. 81

Managing project finances ................................................................................................................. 81

Cost-estimating methods ................................................................................................................... 83

Resource levelling .............................................................................................................................. 84

Managing project quality ................................................................................................................... 85

Activity 3D .......................................................................................................................................... 87

3.4 – Implement and monitor plans for managing project finances, resources and quality ................. 88

Complete and forward project reports .............................................................................................. 88

Preparing and producing reports ....................................................................................................... 89

Writing reports ................................................................................................................................... 91

Activity 3E........................................................................................................................................... 92

3.6 – Undertake risk management as required to ensure project outcomes are met .......................... 93

Risk management ............................................................................................................................... 93

Activity 3F ........................................................................................................................................... 94

3.7 – Achieve project deliverables ......................................................................................................... 95

Achieving project deliverables ........................................................................................................... 95

Activity 3G .......................................................................................................................................... 96

4. Finalise project ............................................................................................................................ 97

P a g e | 4

4.1 – Complete financial recordkeeping associated with project and check for accuracy .................... 98

Project finalisation activities .............................................................................................................. 98

Legal requirements ............................................................................................................................ 98

Financial obligations .......................................................................................................................... 99

Activity 4A ........................................................................................................................................ 101

4.2 – Ensure transition of staff involved in project to new roles or reassignment to previous roles . 102

Change management ....................................................................................................................... 102

Staff transitioning............................................................................................................................. 103

Activity 4B ........................................................................................................................................ 104

4.3 – Complete project documentation and obtain necessary sign-offs for concluding project ........ 105

Completing documentation ............................................................................................................. 105

Activity 4C ........................................................................................................................................ 107

5. Review project .......................................................................................................................... 108

5.1 – Review project outcomes and processes against the project scope and plan ........................... 109

Reviewing project outcomes............................................................................................................ 109

Outcomes evaluation ....................................................................................................................... 110

Post-implementation review ........................................................................................................... 111

Activity 5A ........................................................................................................................................ 112

5.2 – Involve team members in the project review ............................................................................. 113

Involving team members ................................................................................................................. 113

Measuring outcomes ....................................................................................................................... 114

Continuous improvement ................................................................................................................ 115

Activity 5B ........................................................................................................................................ 116

5.3 – Document lessons learned from the project and report within the organisation ..................... 117

Lessons learned ................................................................................................................................ 117

Input into future projects ................................................................................................................ 118

Activity 5C ........................................................................................................................................ 119

Summative Assessments ...................................................................................................................... 120

References ........................................................................................................................................... 121

P a g e | 5

Unit of Competency

Application This unit describes the skills and knowledge required to undertake a straightforward project or a section

of a larger project. It covers developing a project plan, administering and monitoring the project,

finalising the project and reviewing the project to identify lessons learned for application to future

projects.

This unit applies to individuals who play a significant role in ensuring a project meets timelines, quality

standards, budgetary limits and other requirements set for the project.

The unit does not apply to specialist project managers. For specialist project managers, the other units

of competency in the project management field (BSBPMG) will be applicable.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Unit Sector Management and Leadership – Project Management

P a g e | 6

Performance Criteria

Element Elements describe the essential outcomes.

Performance Criteria Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Define project 1.1 Access project scope and other relevant documentation

1.2 Define project stakeholders 1.3 Seek clarification from delegating authority of issues related

to project and project parameters 1.4 Identify limits of own responsibility and reporting

requirements 1.5 Clarify relationship of project to other projects and to the

organisation's objectives 1.6 Determine and access available resources to undertake

project

2. Develop project plan 2.1 Develop project plan in line with the project parameters 2.2 Identify and access appropriate project management tools 2.3 Formulate risk management plan for project, including Work

Health and Safety (WHS) 2.4 Develop and approve project budget 2.5 Consult team members and take their views into account in

planning the project 2.6 Finalise project plan and gain necessary approvals to

commence project according to documented plan

3. Administer and monitor project

3.1 Take action to ensure project team members are clear about their responsibilities and the project requirements

3.2 Provide support for project team members, especially with regard to specific needs, to ensure that the quality of the expected outcomes of the project and documented time lines are met

3.3 Establish and maintain required recordkeeping systems throughout the project

3.4 Implement and monitor plans for managing project finances, resources and quality

3.5 Complete and forward project reports as required to stakeholders

3.6 Undertake risk management as required to ensure project outcomes are met

3.7 Achieve project deliverables

P a g e | 7

Element Elements describe the essential outcomes.

Performance Criteria Performance criteria describe the performance needed to demonstrate achievement of the element.

4. Finalise project 4.1 Complete financial recordkeeping associated with project

and check for accuracy 4.2 Ensure transition of staff involved in project to new roles or

reassignment to previous roles 4.3 Complete project documentation and obtain necessary sign-

offs for concluding project

5. Review project 5.1 Review project outcomes and processes against the project scope and plan

5.2 Involve team members in the project review 5.3 Document lessons learned from the project and report

within the organisation

P a g e | 8

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Reading

 Organises, evaluates and critiques ideas and information from a range of complex texts

Writing

 Develops plans, reports and recommendations using vocabulary, structure and

conventions appropriate to text

 Establishes and maintains records according to organisational requirements

Numeracy

 Uses formal and some informal, oral and written mathematical language and

representation to prepare and communicate budgetary and financial information

Oral communication

 Participates in verbal discussions using clear language and appropriate features to

present or seek information

 Using listening and questioning skills to seek information and confirm understanding

Navigate the world of work

 Recognises and responds to organisational and legislative/regulatory requirements

Interact with others

 Selects and uses appropriate communication protocols and practices to ensure shared

understanding of project roles and expectations

 Uses collaborative techniques to engage stakeholders in consultations and negotiations

Get the work done

 Develops and implements plans to manage projects that involve diverse stakeholders

with potentially competing demands

 Systematically gathers and analyses all relevant information and evaluates options to

make informed decisions

 Evaluates outcomes of decisions to identify opportunities for improvement

 Uses digital technologies and applications to access, organise and share information

P a g e | 9

Assessment Requirements

Performance Evidence Evidence of the ability to:

 Define the parameters of the project including:

o project scope

o project stakeholders, including own responsibilities

o relationship of project to organisational objectives and other projects

o reporting requirements

o resource requirements

 Use project management tools to develop and implement a project plan including:

o deliverables

o work breakdown

o budget and allocation of resources

o timelines

o risk management

o recordkeeping and reporting

 Consult and communicate with relevant stakeholders to generate input and

engagement in planning, implementing and reviewing the project

 Provide support to team members to enable them to achieve deliverables and to

transition them as appropriate at completion of the project

 Finalise the project including documentation, sign-offs and reporting

 Review and document the project outcomes.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

P a g e | 10

Knowledge Evidence To complete the unit requirements safely and effectively, the individual must:

 Give examples of project management tools and how they contribute to a project

 Outline types of documents and other sources of information commonly used in

defining the parameters of a project

 Explain processes for identifying and managing risk in a project

 Outline the organisation's mission, goals, objectives and operations and how the project

relates to them

 Explain the organisation's procedures and processes that are relevant to managing a

project including:

o lines of authority and approvals

o quality assurance

o human resources

o budgets and finance

o recordkeeping

o reporting

 Outline the legislative and regulatory context of the organisation in relation to project

work, including work health and safety (WHS) requirements.

Assessment Conditions Assessment must be conducted in a safe environment where evidence gathered demonstrates

consistent performance of typical activities experienced in the management and leadership – project

management field of work and include access to:

 Relevant legislation, regulations, standards and codes

 Relevant workplace documentation and resources

 Case studies and, where possible, real situations

 Interaction with others.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

P a g e | 11

Companion volumes available from the IBSA website: http://www.ibsa.org.au/companion_volumes -

https://vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

P a g e | 12

1. Define project

1.1. Access project scope and other relevant documentation

1.2. Define project stakeholders

1.3. Seek clarification from delegating authority of issues related to project and project parameters

1.4. Identify limits of own responsibility and reporting requirements

1.5. Clarify relationship of project to other projects and to the organisation's objectives

1.6. Determine and access available resources to undertake project

P a g e | 13

1.1 – Access project scope and other relevant documentation

By the end of this chapter the learner should be able to:

 Access documentation such as project scope, concept proposal, information on prior

projects, etc.

 Understand the purpose of project initiation documentation.

Project management

Project management was first introduced in the 1950s when large organisations with a number of

different departments and business activities realised that they needed structured and formal

management plans to co-ordinate their various projects. Projects vary in size and duration, but all go

through the same processes from the conception to the completion.

Before you can even think about making a general plan for a project, essential information is required to

determine the nature of the project. A project initiation document (PID) is the foundation of the project;

it sets out what the project is about, why it is being undertaken, and what will be delivered, by when, by

which methods, and by whom. It is the premise of the project that is agreed by the project manager and

the client/sponsor/steering committee.

Careful consideration and time should be taken when compiling the PID as it will save time and

resources later in the project. The PID should be sufficiently detailed and relevant to your project, not

just a generic box ticking exercise, to ensure that all relevant stakeholders understand what the project

is about.

The purpose of a project initiation document is to provide the following information:

 Why the project is being undertaken

 What will be delivered

 Who will be responsible for relevant aspects

 How the project will be delivered

 When the project will be delivered

 The risks, constraints and potential issues

 Estimated cost of the project.

The PID would take shape from the business plan. A project management team is not usually the author

of the business plan as companies often bring in project managers to bring to life their goals in a more

cohesive and expert manner than they could manage to achieve themselves. The business plan may be

the first piece of information the project management team will look at.

P a g e | 14

Accessing scope

You should find out where information on the scope of a project can be found in your organisation. This

is because a scope will be needed to guide you during the project. A scope statement is a written

document that sets out the limits of the project to which all that are involved agree, prior to the project

beginning.

The scope would include:

 Justification – why the project is necessary and valid

 Deliverables/objectives – what the project will produce

 Acceptance criteria – conditions to which the project and all those involved must

adhere for the completion of the project

 Project exclusions – what the project will not do or produce

 Constraints – any envisaged issues that may hinder the project

 Assumptions – how anomalies within the life of the project will be addressed.

Sponsors

These are the people or companies that start a project and are typically said to 'own' it. The sponsor can

be an individual (manager/supervisor) or a group (team/partnership).

They have an active interest in the inception of a project and may require reports to update them on its

progress. For a project to proceed, you often need authorisation from sponsors.

Suppliers

These stakeholders have an interest in your project

being successful so they have a continued relationship

with your organisation – for example, selling them

materials and other services that help them complete

future projects.

Team members

These are the people responsible for carrying out a project to completion and are employed to do so.

Naturally, they have an interest in the completion and success of a project, as it will ensure their

continued employment and see an increased income for themselves.

Users

Like clients, users will be interested in using your product or service. They also want to buy it at the best

price and quality available. They will also be concerned with what you can offer them that other similar

services/products cannot.

You will need to identify stakeholders that relate to your project and rank them in terms of importance.

While you will need to consider all of their interests, you must prioritise those which will have the

greatest impact on the success of your project. Be aware that the importance of stakeholders can differ

between projects, so you will need to analyse each stakeholder with regards to the impact your project

will have on them.

P a g e | 19

Activity 1B

P a g e | 20

1.3 – Seek clarification from delegating authority of issues related to project and project parameters

By the end of this chapter the learner should be able to:

 Identify delegated authorities

 Know who to approach about different issues relating to the project and its parameters

Seeking clarification of issues

Good decision making is paramount to a successful project and processes and procedures should be in

place to make rational and considered decisions promptly. The three constraints to any project are

time, scope and cost; any variations to the values of these constraints that were stipulated at the

beginning of the project will affect its overall success. Decisions made, therefore, need to be swift,

involving as few steps and authorities as possible, and about the project objectives.

Delegated authorities

Throughout the life of your project many decisions will have to be made about endless issues, some of

which may have been planned for and some may not. Before the project begins, it is important to

identify the delegated authorities within your project that will have decision-making capabilities on

different areas within the project so that every member of the team is clear on how and who will be

making critical decisions so that they can be made as quickly and effectively as possible.

Types of decisions include:

 Client liaison – these decisions may take the most time

to make because the client has the most personal

interest in the project. Problems that may be

encountered include:

o indecisiveness

o hidden agenda

o fear of making a decision

 Financial expenditure – this is possibly the easiest way of coming to a decision as the

constraints are simple; does it comply with budgetary requirements? All project

activities and resources will have been allocated a budget prior to the beginning of the

project, and these budgets will have been assigned to designated personnel to manage.

There may even be hierarchies of authorities within each budget area and if so it is

important to ensure a clear escalation path is in place

P a g e | 21

 Process decisions – project management is essentially about making the right decisions

throughout the life of the project. It is the project manager’s role to ensure decision-

making processes are in place and that all involved are aware of the processes. Process

decisions include risk analysis and management strategies so that potential issues that

will require a decision to be made have already been identified and pre-determined

solutions highlighted prior to the problem being encountered. For all decision-making

processes the following should already be identified:

o the information required to make the decision

o a time frame in which the decision must be made

o persons required to be involved in and/or make the decision

o other actions needed to ratify the decision

 Purchasing/procurement – procurement is about purchasing or acquiring the best

possible resources required for the project at the best possible price. Budgets will be

allocated for all procurement activities, and spending and the procurement team have

to source vendors and resources that meet:

o Project objectives

o Stakeholder expectations

o Budgetary requirements

o Specific supplier selection criteria

 Stakeholder engagement – if a decision has to be made that affects the stakeholders of

your project they may be asked to help in the decision process. Because the term

stakeholders refers to a wide-reaching and diverse group of people, only the relevant

types of stakeholders’ engagement may be required. For example, if a decision

regarding the location of a new supermarket in a specific town needed to be made, it

would be prudent to engage the views of the local community it would serve, likewise

if the project needed to invest in new technology or equipment, it would be wise to

obtain the views from the employees who would be operating it. Stakeholders do not

necessarily make the decisions, but they are instrumental to the decision-making

process.

Different decisions will require different delegated authorities according to their needs.

P a g e | 22

Activity 1C

P a g e | 23

1.4 – Identify limits of own responsibility and reporting requirements

By the end of this chapter the learner should be able to:

 Understand the limit of own role

 Know who to go to about different issues

 Understand escalation procedures

Identifying limits of own responsibility

Every project and organisation has a hierarchy structure with specific authorities bestowed upon each

rank or level of seniority. There will be a limit to your own responsibilities and times where you will

need to report an event or issue to someone in a higher position or delegated authority.

Delegated authority means that activities may:

 Be conducted routinely or as changing circumstances dictate

 Be done independently within broad guidance

 Involve consultation with other project members, teams and internal stakeholders

 Involve taking a lead role in a team where required

 Involve the selection, use and supervision of appropriate communication-management

methods and tools

 Take into account internal organisational change and external environmental change.

Responsibilities

Certain roles have associated responsibilities – these can vary in importance, but it is vital that these are

taken seriously and carried out.

Responsibilities may include:

 Ensuring safety in the workplace

 Working to deadlines

 Working to budget

 Managing a team

 Acting out contingencies

 Customer service

 Punctuality

P a g e | 24

 Workplace behaviour

 Decision making.

Assigned responsibilities are created so that all the required tasks in a project are covered – if you fail to

carry out your responsibilities, it can lead to the whole project falling apart, as others are relying on you.

You will need to use teamwork and communication skills to acquire and disseminate relevant project

information, as well as articulating specific responsibilities.

Escalation

Sometimes situations occur that are beyond the control and expertise of the delegated authority which

gives rise to escalating the issue to the next appropriate level. As with all other procedures within your

project governance plan, the escalation management procedure should be completely unambiguous so

as to avoid any disasters in what is quite possibly an already challenging situation.

Sometimes people panic and escalate matters before they have completed all actions that may resolve

the issue and negated the need to escalate.

The following might be considered as pre-escalation guidance:

 Have all channels to resolve the matter been considered and implemented but failed to

achieve a resolution?

 Is the matter something with which the delegated authority would be expected to deal

alone?

 Is the delegated authority qualified to resolve the issue or is specialist knowledge from

other authorities or stakeholders required?

 Can assistance be obtained directly, without having to go through escalation

procedures?

 Is escalation the only way to avoid delay which would seriously compromise project

objectives and/or deliverables?

P a g e | 25

Activity 1D

P a g e | 26

1.5 – Clarify relationship of project to other projects and to the organisation's objectives

By the end of this chapter the learner should be able to:

 Clarifying deliverables with the people working on those tasks

 Identify inter-project dependencies

 Identify organisation’s objectives

 Identify the link between the organisation’s objectives and the project deliverables.

Relationship between projects

Organisations can have multiple projects on the go. You can show the relationship between multiple

projects using inter-project dependencies in Microsoft Project.

‘When you link one project to another by creating dependencies between tasks in those projects, you

aren't necessarily combining two projects into one. You are facilitating the management of two

separate projects.

For example, your corporation's manufacturing environment may dictate that a process in one project

depends on the scheduling of a process step from another project, such as the attachment of wings for

an aeroplane being dependent upon a separate process in another facility that builds the wings.

Perhaps other tasks in the other projects are also beyond your control’.

Source: https://support.office.com/en-gb/article/Goal-Create-relationships-between-projects-

d1c54e93-7a35-41b4-bad2-d71ecefc7991

You will need to show that a step in your project relies on another project having completed a

deliverable. You can do this by setting up inter-project dependencies to record and track related

projects.

For more information on using Microsoft Office Project to link different projects together, please go to

the following link.

Source: https://support.office.com/en-gb/article/Create-and-manage-inter-project-dependencies-

2312f1a0-e7c1-4421-8015-10c95a931857?ui=en-US&rs=en-GB&ad=GB

If your organisation does not use Microsoft Office Project or a similar type of system where you can

track and monitor project progress, you could achieve clarification through researching the different

related projects and clarifying deliverables with the people working on those tasks. You might be able to

use a calendar or set reminders of targets and due dates which you are relying on.

https://support.office.com/en-gb/article/Goal-Create-relationships-between-projects-d1c54e93-7a35-41b4-bad2-d71ecefc7991

https://support.office.com/en-gb/article/Create-and-manage-inter-project-dependencies-2312f1a0-e7c1-4421-8015-10c95a931857?ui=en-US&rs=en-GB&ad=GB

P a g e | 27

Broader organisation strategies and goals

Project objectives should relate directly to the broader organisational strategies and goals as the project

is intended to enhance the business in these areas and this forms part of the justification of the project.

The project may not relate to all of the strategic goals, particularly if it is a small, niche project, but it

must relate to at least one.

Broader organisational strategies and goals may include:

 Market focus – the area of the market your organisation serves. It could be that your

organisation wants to increase its share in the market or expand into a different market

and the project is a vehicle to start or complete this expansion

 Organisational mission statement – the mission statement is a broad definition of the

purpose of the organisation and its over-riding vision and/or goals. It is designed to

unite and motivate stakeholders towards a common goal and usually sets out the

company’s values and beliefs. It contains:

o the target market of the organisation

o the geographical limits of the organisation

o how the organisation intends to survive, grow and prosper

o the organisation’s philosophy

o the desired image of the organisation

 Strategy plans – the strategic plan is the medium to long term and overall objectives of

an organisation, often correlating with the mission statement but an extended version.

That said, it is not a detailed or lengthy document, rather it serves as a framework for

more detailed business plans and projects. It gives direction and thought to the future

of the organisation that would be lost without it. Many businesses either fail or tread

water without strategic planning as they exist in the here and now without any thought

for future existence. Strategy plans should be reviewed regularly and modified to

reflect changes within the organisation. A strategy plan should:

o set out goals for the medium term (two to four years)

o be completed by the organisation’s director or owner

o contain strategic goals and not

focus on day to day issues

o be realistic, balanced and critical

o be regularly reviewed

o documented

P a g e | 28

 Values and ethics – the values and ethics of an organisation underpin the way in which

it conducts its business, the expectations of the behaviour of employees and other

representatives, and its mission statement and strategic goals, in non-monetary terms.

It is often referred to as corporate social responsibility and includes consideration for:

o the environment

o the community

o diversity

o charity work

o Global issues.

Relationship between the project and broader organisational strategies and goals

The project should have been conceived as a result of the organisation’s strategic plan and mission

statement. It will also be related to the market focus of your organisation. The whole project will be

governed by the values and ethics of your organisation, for example, if your organisation is committed

to improving environmentally sustainable working practices a constraint placed on the project may be

that all resources must be locally sourced. In many ways, all of the broader organisational strategies are

intrinsically linked because they reflect the ideology and beliefs of the organisation. The project is an

extension of these goals thus all project activities must reflect all of them wherever possible.

It is important that the project team, if external to the organisation, must understand the broader

organisational strategies and goals in relation to the project and keep them at the forefront of their

minds throughout the life of the project. The project governance plan will ensure that this is monitored

carefully at all stages in the life cycle of the project.

If the project stakeholders, including investors and sponsors, are new to the organisation, they should

also understand and agree to the organisational strategies, mission statement and values, and ethics.

Discrepancies at the beginning of the project over these issues will cause much greater problems later

on in the project. If stakeholders do not buy into the overall aims of the organisation, you should

seriously question their inclusion within the project.

If the project has been initiated to bring about a change in organisational strategies and goals, such as

to expand into a different market area or to introduce a new form of corporate social responsibility in a

venture to employ groups of disadvantaged people in a new store in the local area, for example, the

strategy plan and mission statement must be changed to reflect this in order to keep the project in line

with the organisational goals.

P a g e | 29

Activity 1E

P a g e | 30

1.6 – Determine and access available resources to undertake project

By the end of this chapter the learner should be able to:

 Identify resources needed to undertake the project

 Identify considerations for accessing each resource

 Obtain the resources needed.

Resources

The resources you need will vary from project to project. In the early stages of planning, you should

determine what resources are available to you and others so that you can plan the project around

them.

Resources may include:

 Materials and supplies

 Technology

 Financial resources

 Human resources.

Materials and supplies

Sometimes materials and supplies are needed for a project – for example, paper, ink cartridges, bricks,

wood, etc. What materials you need for a project will vary quite significantly depending on the type of

project you are involved with. If you are involved with a building project, bricks, cement, paint and

specialist tools might be needed, if your project involves creating a website you would need computer

equipment – for example, a PC, keyboard, mouse, laptop, tablet, etc.

To access this resource, you might need to speak to the procurement department.

Technology

Technology is most commonly used for communication within a project. You will need to find out from

stakeholders their communication requirements/capabilities. Try and choose the most widely available

communication technologies and ensure you use them within policies and procedures e.g. respect

privacy and confidentiality agreements.

Consider access to:

 Shared storage drives

 Video conferencing

 Telephone

 Email.

P a g e | 31

Other more specific technology may also be needed, depending on the type of project –for example,

you might need specific software to create an animation, game or website.

To access this type of resource you might need to speak to the digital or I.T team.

Financial resources

Estimating the cost of resources is very important, as this will determine whether the project is viable in

the first place and will allow you to budget effectively for the resource expenditure.

When estimating the cost of the resources required for the project, you will need to take into account:

 The cost of the resources

o Overall cost

o Agreed allowance for overrun

o Possible fluctuations in price

o Is the price likely to rise during or before the project?

o Is there room in the budget to allow for fluctuations in price?

 Resource availability

o Are you guaranteed to be able to access the required resources for the duration of the project?

o What will happen if the availability of resources is affected?

o Is there an alternative?

o Can we secure all of the required resources before the project begins?

It is good practice to have a contingency plan in place to deal with resource problems, such as a price

rise or lack of availability; this allows you to prepare your project budgets accordingly and to prepare for

such problems.

To access this type of resource you might need to speak to the financial/accounting team.

P a g e | 32

Human resources

All projects need a team of people, called the project team, to realise the project. The human resources

manager is responsible for organising the project team and attending to their welfare.

The project team needs to be:

 Recruited and acquired

 Trained where and when necessary and records

kept of courses undertaken and qualifications

obtained

 Organised into categories with designated roles

and responsibilities – an organisation chart is a

useful tool

 Motivated and empowered

 Kept updated with project news and information

 Performance managed including professional development plans

 Re-allocated to other project activities where necessary

 Kept safe and well according to Work Health and Safety legislation

 Treated fairly in alignment with anti-discriminatory legislation.

You will need to know who the people working on the project are and their individual responsibilities.

To access this type of resource you might need to speak to the human resources department.

P a g e | 33

Activity 1F

P a g e | 34

2. Develop project plan

2.1. Develop project plan in line with the project parameters

2.2. Identify and access appropriate project management tools

2.3. Formulate risk management plan for project, including Work Health and Safety (WHS)

2.4. Develop and approve project budget

2.5. Consult team members and take their views into account in planning the project

2.6. Finalise project plan and gain necessary approvals to commence project according to documented plan

P a g e | 35

2.1 – Develop project plan in line with the project parameters

By the end of this chapter the learner should be able to:

 Calculate baselines for scope, cost and schedule

 Plan for and set contingencies

 Estimate the effort and duration of the project

 Sequence tasks effectively.

Developing a project plan

A project plan is a living document that is expected to change throughout the project. It gives the

project manager and staff working on the project a general guide or direction to follow.

The project plan contains all the planning documents including:

 Baselines/performance measures – scope, cost, schedule

 Scope statement

 Roles and responsibilities of people involved

 Staffing plan – shows the time different people are

expected to work on the project

 Quality plan – shows the standards and metrics to be used.

Project parameters to consider may include:

 Project scope – a statement that sets out the limits of the

project to which all that are involved agree, before the project beginning

 Project stakeholders, including own responsibilities – who stakeholders are, own role

and responsibilities and the limit of those responsibilities

 Relationship of project to organisational objectives and other projects – for example,

dependencies between tasks and up inter-project dependencies

 Reporting requirements – who you report to and in what circumstances

 Resource requirements – for example, equipment, staff, etc. needed for the duration of

the project.

Scope baseline

Your scope baseline is your approved project scope. You can use it during scope change management to

determine and prevent the occurrence of scope creep.

Your scope baseline will encompass:

P a g e | 36

 Your project scope statement

 Your WBS

 Your WBS dictionary.

Cost baseline

Your cost baseline is a component of your project management plan, and it is a time-phased budget.

You can use your cost baseline as a basis to measure, monitor and control the overall cost performance

of your project against.

Schedule baseline

Your schedule baseline is a specific version of your project schedule. This chapter will look into what a

schedule baseline is and the ways in which you can communicate this with your stakeholders.

Regardless of the size of your project, a project schedule is a key part of project management. It is used

in the planning stage of your project and uses estimation, educated guessing and prediction to reflect all

the work that is associated with delivering your project on time. Due to this uncertainty, your project

schedule should be updated constantly. Your project schedule is a tool that can be used to

communicate what work needs to be done within your project, which resources the work requires and

the timeframes in which it needs to be performed. It will also show you the sequence in which the

project work should be done as well as the work has already been done.

You will need to take a flexible approach and prepare for the inevitability of change. If you make your

plan flexible and include contingencies into it, you are going to be able to respond efficiently when you

need to change something.

A good project plan should answer the following questions:

 ‘What are the major deliverables?

 How will we get to those deliverables and the deadline?

 Who is on the project team and what role will they play in those deliverables?

 When will the team meet milestones, and when will other members of the team play a

role in contributing to or providing feedback on those deliverables?’

Source: https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

Communication is extremely important in project management, and this goes for the planning phase of

the project too. You should work with everybody involved in the project to devise a project plan,

discussing and clarifying points in the plan with the different stakeholders.

Project milestones may include:

 Submission and approval of project

 Securing funding

 Hiring of personnel/selecting personnel to work on the project

https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

P a g e | 37

 Receiving equipment for project

 Release of formal communication such as status reports

 Final product/demonstration to the client.

What are project deliverables?

Project deliverables are the building blocks of your overall project and are the tangible, measurable and

specific results of the process of your project. Deliverables are the reason projects are created, and they

may contain a number of smaller deliverables. They are the products and/or services you give to

customers, clients and employees and they normally have a date for when they are due. A project

deliverable can be either an outcome that is to be achieved or an outcome that is to be provided.

Although they are closely related to objectives, deliverables and objectives are not the same things. To

achieve your project objectives, you will need to identify your project deliverables in order to help you.

Examples of project deliverables:

 Reports

 Documents

 Server upgrade

 Consumer goods

 Hardware

 Software

 Design documents

 User manuals

 Training program

 Systems

 Milestones.

In order to achieve these project deliverables, you should estimate the duration and effort, sequence

and dependencies of the project tasks.

Estimating the duration and effort of your project

You should estimate the duration and effort of your project in order to assign resources, determine how

long your project will take and estimate costs.

Effort is concerned with the work that needs to be done within the project. Duration is how long the

project is estimated to take. You can work out the duration estimate by taking the estimated effort and

dividing this by the estimated resources.

P a g e | 38

For example, if you had to produce a 300-page report and you know you can roughly write 10 pages a

day, you can estimate that the duration of your project will be 30 days as 300 ÷ 10 = 30.

Sequence and dependencies of tasks

Sequence is concerned with the order of the tasks and activities within your project. Dependencies are

the relationships among the tasks within your project which determine the order in which the activities

need to be performed. They are the relationships of preceding tasks to succeeding tasks.

Once the tasks are created within your project, they need to be linked to show the relationships

between them. Linking your tasks will create the task dependencies. The relationships between the

project tasks drive the schedule for the project.

Sequence and dependencies may include:

 Deliverable milestones

 Preferred, logical or required order of task completion

 Relationship between tasks impacting on start and finish times and dates.

Dependencies can be mandatory, discretionary or external.

Mandatory dependency

A mandatory dependency is a project activity that must be carried out at a particular time within the

project’s life cycle. The nature of your project will dictate the order in which some activities should be

performed. Mandatory dependencies may be requirements of the project’s contract, physical

limitations or the laws that are in place.

Discretionary dependency

Discretionary dependencies are activities within your project that don’t necessarily have to be carried

out at a particular time, but they should be. These dependencies are usually based on the project

team’s knowledge as well as best practices. They outline how and in what order the project team would

like the activities to be done; they enable to team to optimise the flow of work.

As a project progresses and adjustments are needed, these dependencies are often reviewed and

altered if necessary.

External dependency

External dependencies are outside of the project and the team’s control; they are not part of the project

activities. These dependencies should still be reflected in a project schedule as they will impact on the

actual project activities.

Example

Imagine your project is to build an extension on a house; a bathroom. Before you start anything you will

be required to gain permission to build the extension; without this permission, your project cannot

begin. This would be an external dependency that should be accounted for within your schedule. To

paint the walls of the new bathroom, they will need to be built and plastered first. These are examples

of mandatory dependencies; they must be done in that particular order. When it comes to the final

P a g e | 39

touches, such as the floor; should the skirting go on before or after? This would be an example of a

discretionary dependency as it will depend on the knowledge and experience of the project team. One

project team would put them on before; another project team would put them on after.

Legal obligations

Trade Practices Act Competition and Consumer Act

The Trade Practices Act 1974 was superseded by the Competition and Consumer Act on January 1st,

2011 and is contained within Australian Consumer Law (ACL).

The Consumer Law website offers this overview:

“Since 1 January 2011, Australia has one national law for fair trading and consumer protection—the

Australian Consumer Law. This means that Australian consumers and businesses have the same rights

and obligations wherever they are in Australia”.

The Australian Consumer Law fulfils key reforms in the Council of Australian Government’s National

Partnership Agreement to Deliver a Seamless National Economy, and will help to reduce regulatory

complexity and duplication for businesses and consumers.

The ACL includes:

 A national unfair contract terms law covering standard form

consumer contracts;

 A national law guaranteeing consumer rights when buying

goods and services;

 A national product safety law and enforcement system;

 A national law for unsolicited consumer agreements

covering door-to-door sales and telephone sales;

 Simple national rules for lay-by agreements; and

 New penalties, enforcement powers and consumer redress.”

Source: http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

Organisation for Economic Co-operation and Development (OECD) International Guidelines for Consumer Protection in the Context of Electronic Commerce

These came into effect on December 9, 1999 and exist to ensure an equal level of protection for

consumers when purchasing online to in a store. It concerns business to consumer transactions and

helps remove uncertainties in the buying and selling processes.

They help ensure online consumer protection without needing barriers to trade to do so; they are

reflective of existing legal protection for standard commerce. They require emphasis on the need for co-

operation among governments, businesses and consumers.

The aims of the guidelines are as follows – to encourage:

 Fair business practices

http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

P a g e | 40

 Fair advertising practices

 Fair marketing practices

 Clear information on the identity of a business, what it sells and any terms of conditions

for transactions

 Transparency in the confirmation of transactions

 Secure payment methods

 Timely, fair and affordable dispute resolution/redress systems

 Privacy protection

 Education for businesses and consumers.

P a g e | 41

Activity 2A

P a g e | 42

2.2 – Identify and access appropriate project management tools

By the end of this chapter the learner should be able to:

 Identify project management tools

 Understand the use of Gantt charts and project management systems

 Access and use project management tools

Project management tools

Organisation is vital to managing projects, and a number of tools and technologies will be used to

maintain the smooth running of the project including GANTT charts and a project management

information system.

A Gantt chart is a visual representation of a project schedule that shows you what has to be done within

your project and when it needs to be done by. By laying out the project tasks and events in the order

they should be completed in, the Gantt chart helps to sequence those events and tasks. It will show the

project activities displayed against time and the time is broken down into increments; days, weeks or

months. To the left of the chart is the list of activities, and along the top there is a suitable time scale.

The activities are represented by bars, and the position and length of that bar reflects the start date,

duration and end date of each activity. This chart uses the horizontal lines to show the amount of work

that is done in certain periods of time in relation to the amount of time that was originally planned for

those periods.

A Gantt chart allows you to easily see:

 The start and end date of the whole project

 What the various activities are

 When each activity begins and ends

 How long each activity is scheduled to last

 Where activities overlap with other activities, and by how much.

The Gantt chart is the most common and easiest way to create dependencies and to show predecessor

and successor relationships.

W/C 1st W/C 8th W/C 15th W/C 22nd W/C 29th W/C 6th

Briefing

Research

Writing

Editing

Distribution

P a g e | 43

Week 1 Week 2 Week 3 Week 4 Week 5

Task A

Task B

Task C

Task D

Task E

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6

Task A

Task B

Task C

Task D

Task E

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6

Prepare

Research

Write

Check

Send

Project Management Information Systems (PMIS)

You will probably use a project management information system to assist you in reporting on

performance and issues arising from governance arrangements. A project management information

system is a database that provides project managers with techniques and tools to collect, combine and

disseminate information through electronic and manual channels during the planning, execution and

closing stages of a project.

A PMIS is the vehicle through which senior and middle leaders of the project communicate with one

another. It can be as simple as a Microsoft Office file to a bespoke PMIS enterprise package. There are

also web-based PMISs.

During the planning stage, a PMIS is used to set all the frameworks for the project and defines the scope

baseline. It is used to set out the objectives and timelines of the project so that during the execution

stage all of the accomplishments of the project can be measured against the initial plan at different

stages and reports generated for stakeholders. It also enables project managers to manage materials,

keep a record of financial data, and keep a record for auditing and reporting purposes. At the close of

the project, the PMIS is used to review the project against the goals and objectives to check if all

objectives have been achieved and also to highlight areas for improvement in efficiency for future

projects. It can then be used to produce a final report on the project.

P a g e | 44

A project management information system:

 Is a means of communicating knowledge about the project, including:

o scope

o timeframes

o financial costs

o quality assurance

o human resources

o communications

o risk

o procurement

o governance

o change and issues management

o stakeholders

 Provides a systematic approach to the storage, searching and retrieval of information

relevant to the project so that information is easily accessible. A PMIS automatically

controls the following processes in relation to data:

o input

o storage

o processing

o output

o control/security

 May include:

o access authority levels

o complex computer-based systems

o data ownership considerations

o modified systems to cater for unique project requirements

o privacy considerations

o simple manual systems.

P a g e | 45

A PMIS sets a standard protocol for storing information ensuring that it is gathered, collated and

recorded in a consistent manner throughout the life of the project. Procedures and formats for

documenting information will be dictated by the PMIS so that all who input information will do so to the

agreed standard. The consistency makes analysing and comparing information throughout different

stages of the project much more efficient and accurate.

A PMIS will usually be managed by a designated person or a team of designated people responsible for

different areas of the project. The information within the PMIS will be quality assurance checked by

them to ensure accuracy and relevance of information communicated to stakeholders.

A PMIS helps to keep information relevant and up to date. When reporting during the project, the

information that is communicated must be real-time and accurate at the time of reporting. A PMIS can

generate automatic updates of specific measures within the project. A simple manual system does not

have this facility and is open to human error.

Having access authority levels, data ownership and privacy considerations all help to preserve the integrity of the information held on the PMIS. The following governance report is taken from the website of Best Outcome, a project management

software manufacturer, and can be found at: http://www.bestoutcome.com/project-governance-

gateways.html

Examples of project management tools

Further examples of project management tools include:

 Deliverables – what the end product/outcome of the project is

 Work breakdown – a breakdown of the project into smaller, manageable sections to

identify the resources needed for each activity and to allocate roles and responsibilities

for each project team and member

 Budget and allocation of resources – overall budget and breakdown e.g. for different

departments, items

 Timelines – deadlines for different milestones

 Risk management – identification of the potential risks and plan for dealing with them

 Recordkeeping and reporting – for example, recording, storing and disposing of records

and confidentiality procedures.

http://www.bestoutcome.com/project-governance-gateways.html

P a g e | 46

Activity 2B

P a g e | 47

2.3 – Formulate risk management plan for project, including Work Health and Safety (WHS)

By the end of this chapter the learner should be able to:

 Identify potential risks and workplace hazards

 Communicate risks

 Analyse risks by assessing the likelihood and consequence

 Plan a response to risks

 Devise a risk register to monitor risks

Effective risk management

Risk management is an incredibly important aspect of project management and should be embedded

thoroughly into the project plan.

A hazard is the threat of potential injury, harm to a person, property, environment; it is also the threat

of damage to your business, be it profits, reputation or inadequate working practices. This provides the

opportunity for other organisations to step in and take a share of your business, which further damages

your organisation’s ability to bounce back.

Businesses that plan and document their risk management, and review this regularly for effective

management of risks, are better placed for successful operations. By staying alert and ahead of any

risks, they take the necessary preventative actions to divert negative impacts.

Even the most thoughtfully and carefully considered plans will face potential hazards and risks during

the life cycle of the project because nobody can predict the future. Dealing proactively with potential

risks and issues by minimising threats to the project and maximising opportunities that arise is the key

to risk management, and in some cases can enhance the success and prosperity of the project.

Effective risk management should include the following:

 Make risk management part of the project plan – risk management should be

embedded in the plan and risks and issues expected, not hoped that they will not be

encountered. It should also be included in daily briefings, team meetings and reviews

throughout the life of the project

 Identify risks early in the project – accepting that your project is going to encounter

risks and issues allows you to identify potential risks in the planning stages. Use lessons

learned from previous similar projects, members of the project team, and external

experts to identify potential risks. Also consider possible risks in the documentation of

the project

P a g e | 48

 Communicate risks – every member of the team should be responsible for

communicating risks to the relevant authority as soon as they emerge. Risks can only

be dealt with if the project manager is aware of them. Risks should be included on the

agenda of all meetings with all stakeholders and serious threats should always be

communicated to the sponsor

 Consider threats and opportunities – some issues that

occur can be golden opportunities to improve the

project. Don’t always take risks to be negative

 Designate ownership of risks – once you have identified a

potential risk, assign accountability to a member of the

project team. This makes those members more aware of

the risks and subsequently more proactive in dealing

with them, especially if a lot of money is at stake

 Analyse and prioritise risks – you will not have time to

deal with each risk in the same manner; identify the most serious risks and deal with

these first and thoroughly

 Plan and implement a risk response – put in place procedures for dealing with risks and

issues. Responses include risk avoidance, risk minimisation, and risk acceptance

 Maintain a risk register/log – keeping a register allows you and your project team to

review and monitor risks and is useful when completing the lessons learned report. A

risk register should contain:

o a description of the risk

o cause and effect of the risk

o ownership of the risk

o risk response

o outcomes.

Risk management plan

A risk management plan is a document used to foresee risks and their impacts, as well as identify the

standard response to them.

Risk management plan may include:

 Audit trail for risk management over project life cycle

 Format of information

 Organisation systems and risk methods

 Manual and computerised systems

 Risk register

P a g e | 49

 Summary outcome of risk processes.

The risk management plan will contain a risk assessment matrix, such as below:

RISK MATRIX

Likelihood

Rare Unlikely Possible Likely Almost certain

C o

n se

q u

en ce

Catastrophic M H H E E

Major M M H H E

Moderate L M M H H

Minor L L M M H

Negligible L L L M M

A risk matrix can help you to decide what action to take regarding a risk and how to prioritise your

actions regarding risks.

The following key indicates the level of risk:

 E = Extreme

 H = High

 M = Medium

 L = Low.

P a g e | 50

Activity 2C

P a g e | 51

2.4 – Develop and approve project budget

By the end of this chapter the learner should be able to:

 List the costs related to your project

 Understand the difference between direct costs and indirect costs

 Use top-down approach or bottom-up approach for estimating budget

What is a project budget?

A project budget is a key element of your project proposal and is an essential tool that will be used by

many different groups of people that are involved with your project.

For example:

 A project manager will use the project budget to determine whether the project is on track

 To monitor particular project milestones, the project personnel will use the project budget as a guideline

 The client will use your project budget to assess the overall success of the effort.

Ultimately, your project budget should be a detailed estimate of all the costs that are required to

complete your project tasks. It should be an amount that you can spend without having to report back

and ask for more money. Your project budget can help to manage expectation and can give the relevant

information needed to develop a cost/benefit analysis for your project. You can also use your project

budget throughout the life cycle of your project to check that it is on track financially.

Your budget will need to specify all of the costs of your project. There are two types of costs involved

with your project budget: indirect and direct. Although costs will vary depending on the nature of your

project, they are necessary to complete your project budget. One of the major components of your

project budget will be the necessary human resources and their salaries, wages or commissions. This

only involves the people that are directly engaged with your project.

Examples of direct costs include:

 Labour/human resources

 Raw materials

 Equipment

 Travel costs

 Training costs

 Software licences

P a g e | 52

 Consultant fees.

P a g e | 53

Examples of indirect costs include:

 Office expenses, such as:

o Equipment

o Rent

o Telephone

o Internet

o Insurance.

Developing a project budget

Your project budget should be linked to the key outcomes of your project. You should establish a set of

reference baselines. As your project progresses, you should monitor the project work then analyse your

findings. The end result should be forecasted and compares with your reference baselines. If the end

result is not satisfactory, you may need to make adjustments to the project and repeat this cycle at

suitable intervals.

How much detail should your project budget have? This will depend on the nature of the project itself

and the organisational policies that may be in place. However, it is recommended that you provide the

details of each individual supply item and its cost within your project budget. Remember that your

project budget is different from your project costs. You should start developing your project budget by

identifying your project costs.

A good estimate will clearly define:

 What your project will accomplish

 The assumptions that you have made

 How long your estimate is valid for

 How much the project will cost based on current information.

When identifying your project costs, you need to be realistic. It is sometimes helpful to look at past

projects that you have been involved with to give you an idea of how to identify the project costs. There

are many techniques that can be used to identify your project costs.

For example:

 Ballpark estimation

 Budget estimation

 Definitive estimation

 Three-point estimation

 Historical project estimation

P a g e | 54

 Resource cost rates estimation software.

Assessing risks

The assessment of potential risks is very important for your budget to be successful.

Risk items include unknowns, such as:

 Team experience

 Obscurity of technology

 Location of development teams

 Planning time shortages.

There are two main approaches that are used when developing a project budget:

 The top-down approach

 The bottom-up approach.

Top-down approach

The top-down approach to project budgeting often starts with senior management deciding on how

much an overall project should cost. Then, this amount needs to be divided between each task involved

with the project. This process should be more than just guessing; you need to give details on how you

will complete each task within the allocated budget. This approach allows you to use any previous

experience to judge whether the project budget looks realistic.

An advantage of this approach is that it focuses on completing your project within the allocated budget.

This can reduce the chance of any wasteful practices, leading to a more efficient way of working.

However, a disadvantage is that it relies on previous experience to judge the budget; assuming that the

person that is developing the budget has the required knowledge to make reasonable estimates.

Bottom-up approach

The bottom-up approach looks at the cost of the lowest-level project tasks. From this, you will have to

work upwards to estimate the total cost of your project. You should start by identifying the tasks that

are involved in your project and then calculate the direct and indirect costs for each task. From this, you

will be able to estimate the total cost of your project.

An advantage of this approach is that it is an accurate method of developing a project budget. Also, this

approach can be good for team morale as it usually involves everyone. A disadvantage of this approach

is the difficulty of creating the list of tasks involved in your project. If any task is forgotten about and

missed out; this will throw your budget out.

Using project management software

It is important to choose the right project management software to use.

Although it will not eliminate any cost overruns, it can help you to manage

them. The correct project management software can show you where your

P a g e | 55

project stands at any point in its life cycle and can highlight exactly how much money has been spent.

Contingencies

There are many common strategies for developing your project budget, for example:

 You should plan for the worst

 Points within your project where changes are likely to occur need to be identified

 Once identified, these areas should be closely watched

 Develop a contingency budget – just in case things go a bit wild.

The expenses that are involved in your project may seem straight forward. However, there are many

unknowns that can affect your project, how and when it is carried out and how it is completed. A

contingency reserve should be added to your project to cover any possible risks. This fund can then be

used for the occurrence of any unexpected events during your project life cycle. You should adjust your

contingency level to match the risk level that you have identified for your overall project.

Contingencies that may relate to your project budget can include:

 Project’s unknowns or risks contingency

 Cost estimating contingency

 Design contingency

 Bid contingency

 Construction contingency

 Cost escalation contingencies.

Although your budget should be based on the best knowledge that is available, you should remember

that it is only an estimate.

Who should approve your project budget? You should know the answer to this before you start

developing your budget. It could be the project manager, the head of finance or the project manager’s

supervisor.

P a g e | 56

Activity 2D

P a g e | 57

2.5 – Consult team members and take their views into account in planning the project

By the end of this chapter the learner should be able to:

 Communicate with team members either through verbal communication or written

communication

 Use a variety of different methods appropriate to task e.g. email, meeting, phone call

Consulting with team members

Frequent and appropriate communication with all involved is essential to the smooth running of the

project.

You may need to consult with specific members of the project team to determine realistic deliverables

because you may not have the expertise and/or knowledge to understand what sub-deliverables are

required for each main deliverable. By consulting in the planning stages, you ensure that all necessary

deliverables are identified before work begins. You may also wish to consult lessons learned reports and

other documentation from previous similar projects about the deliverables employed and how effective

they were on the success of the project.

Bear in mind when consulting with stakeholders about their expected deliverables that their

expectations are relevant to the project’s objectives and not just beneficial to them.

A communications strategy may include:

 List of which team member is responsible for particular communication activities

 Methods and protocols for communicating information which may include:

o verbal communication:

 on site in person

 at meetings

 informal briefings

 brainstorming sessions

 over the telephone/internet/video conferencing

 press conferences

P a g e | 58

o written communication:

 email

 letters

 update reports

 audits

 inventories

 newsletters

 Which stakeholders need what information and their responsibilities within the

communication flow

 When information is communicated – the frequency of regular forms of communication

throughout the life of the project

 How sensitive and confidential information is handled taking into account the Privacy

Act 1988

 Potential constraints affecting the flow of communication

 The resources allocated to communication

 Standard forms or templates for specific forms of communication

 A procedure for channels of communication hierarchy

 Processes for resolving any communication-based conflicts or issues

 Communications networks and their uses.

P a g e | 59

Activity 2E

P a g e | 60

2.6 – Finalise project plan and gain necessary approvals to commence project according to documented plan

By the end of this chapter the learner should be able to:

 Negotiate with stakeholders

 Complete the project plan

 Ask appropriate people to check and sign approval of individual documents and

elements of the plan

Finalise project plan and gain approvals

Before the project can begin, the project plan needs to be approved and signed off by the sponsor and

other key stakeholders. The approval of the project plan means that the objectives and deliverables

have been reviewed and agreed to. The signing off of the project plan indicates the completion of the

planning and design stage and can be regarded as a project milestone. It also represents a commitment

from the sponsor and key stakeholders to continue with the project under the agreed constraints.

Having consulted the sponsor and key stakeholders about their requirements for the project objectives

and deliverables during the initiation stage the project plan should reflect their expectations and the

approval should be a simple process.

Gaining approval of the project plan from project authorities may mean you have to:

 Review project plan document and ensure accuracy and completion

 Disseminate the project plan to the relevant stakeholders in an agreed

format and to an agreed timescale

 Arrange a meeting with the relevant stakeholders to review and discuss

the proposed project plan. Minute the meeting and use

the minutes to amend the project plan if and where

necessary

 Amend the project plan according to the requirements of the relevant stakeholders and

re-submit the plan to an agreed timescale, arranging another meeting if necessary to

review and discuss the amendments

 Request a decision from the relevant stakeholders as to whether or not the plan has

been approved in order for the project to continue. If the plan has not been approved,

the reasons should be documented by the relevant stakeholder

 Obtain signatures from all relevant stakeholders on a separate project plan approval

document which should be an appendix to the project plan.

Good negotiators

P a g e | 61

Negotiating is a skill that can take a long time to perfect with the ideal outcome being a win-win

solution for both parties. It is a process that can take a long time.

Best practice for negotiations:

 Identify the factors upon which each stakeholder is insistent

 Identify areas for negotiation on all sides

 Identify with whom the balance of power lies regarding bargaining strength between

the stakeholders and the project team – which has more evidence for their case than

others?

 Be prepared for all eventualities when you enter negotiations with stakeholders, so you

are not caught off guard

 Always use reliable facts and figures that are accurate and cannot be questioned

 Prepare an agenda before the meeting and ensure all members of your team are

briefed and provided with sufficient information so as not to compromise the

negotiations

 Start with a wide-ranging proposal as opposed to small details to leave plenty of room

for manoeuvre

 Do not continue the meeting if communications or negotiations are breaking down –

call a recess or rearrange the meeting for another time

 Be fair and reasonable

 Ensure all negotiations are documented and recorded clearly, and wherever possible

signed by all parties, so that you have an audit trail and an accurate record of the

agreement should it be disputed when the project plan is re-submitted.

Project management plan approval

The approval document should be signed and dated by all relevant stakeholders with their name, title

and role clearly documented.

Relevant stakeholders may include:

 Project manager

 Project sponsor

 Investors

 Business steward.

The approval document will be simple and contain just a paragraph that states all the signatories have

reviewed the project plan and agree to the approaches and schedule it sets out. It may also have a

clause that states how any changes to the plan should be approved and documented.

P a g e | 62

Activity 2F

P a g e | 63

3. Administer and monitor project

3.1. Take action to ensure project team members are clear about their responsibilities and the project requirements

3.2. Provide support for project team members, especially with regard to specific needs, to ensure that the quality of the expected outcomes of the project and documented time lines are met

3.3. Establish and maintain required recordkeeping systems throughout the project

3.4. Implement and monitor plans for managing project finances, resources and quality

3.5. Complete and forward project reports as required to stakeholders

3.6. Undertake risk management as required to ensure project outcomes are met

3.7. Achieve project deliverables

P a g e | 64

3.1 – Take action to ensure project team members are clear about their responsibilities and the project requirements

By the end of this chapter the learner should be able to:

 Allocate tasks to team members

 Communicate tasks and responsibilities to team members

 Communicate project needs

Reporting lines

When assigning roles and responsibilities for reporting lines you will need to liaise with the

communications manager as the communications team will be instrumental in preparing and delivering

reports to relevant stakeholders. The communications plan should be determined in close collaboration

with project governance policies and procedures.

Project reports

During the life of the project there will be a number of reports to prepare, produce and release for

different aspects of the project and for different stakeholders which must be taken into account when

negotiating roles and responsibilities for reporting lines.

Reporting lines need to be established for the following project reports:

 Project status reports – this report details the progress of the project including:

o current status

o next steps necessary to move the project along

o any obstacles or problems that are preventing progress

o key metrics of the project

 Risk register – self-explanatory, the risk

the following:

o potential risks to the life or progress of

the project

o the extent of the potential negative

impact on the project caused by the

risks

o contingency plans to deal with the risks

P a g e | 65

 Issue log:

o a document that reports and records risks that have been realised and

unexpected events that have occurred and interrupted the project

o it documents the way in which the incident has been dealt and the impact it has

had on the project

o the accuracy of these reports is important for auditing purposes

 Executive summary – a detailed report that provides in-depth information about the

status of the whole project and the impact it is envisaged to have on the bottom line of

the organisation

 Everything else report – these reports are specific to each project and can be about

anything and everything associated with it.

Subordinates

Subordinates are the people that make up the project team; the employees, the contractors, the

subcontractors, and possibly volunteers, and are the people who get the job done. They may consist of

general assistants, team leaders, middle managers and departmental managers, depending on the size

of your organisation. They may be outsourced third parties. It is important that each member of the

project team has their role and responsibilities made clear to them at the start of the project.

Organisation chart

P a g e | 66

An organisational chart is a diagram that depicts the structure of an organisation regarding authority

and hierarchy. It also demonstrates the relationships between each member of the organisation. They

are usually pyramid shape with the director at the top followed by senior management, middle

management and employees at the bottom. People are usually denoted by a rectangle; the bigger the

rectangle, the more authority that person has. An organisational chart can be used to map out roles and

responsibilities of each member of the project team and each department if your project is on a large

scale. It might be that you have more than one organisational chart for different functions within the

project.

This organisational chart is taken from the website of the University of Saud:

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16

Work breakdown structure (WBS)

A WBS is a way of breaking down the project into smaller, manageable sections in order to identify the

resources needed for each activity and to allocate roles and responsibilities for each project team and

member. Making it a visible diagram, like the organisational chart above, ensures that subordinates

know their roles and responsibilities. It also enables you to identify potential risks in each section and

put in place contingency plans should the risk be realised.

Task descriptions

Within a project task descriptions could be written for a variety of purposes including:

 Specific project activities

 Evaluations and reporting on project activities and progress

 Job descriptions for individuals that determine their roles and responsibilities including

all stakeholders

 Task descriptions for use on requests for quotation, proposal, or tender in order to

furnish potential suppliers with sufficient information about the brief.

Deciding who should write each task description should take into account their knowledge on the

subject and their authority within the organisation. For example, a procurement officer would not write

a task description for the communications team.

Team culture values

Determining and promoting team culture values is an important role within a

project team to ensure that each member of the team is working towards

common goals with the same positive work ethic. The team culture values can

also be described as a code of conduct or business ethics which determines the

expectations of acceptable behaviour and underpins the core values of the

organisation.

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16

P a g e | 67

Business ethics are the moral principles that govern an organisation to ensure corporate responsibility,

quality assurance and customer satisfaction. When combined, a code of conduct and business ethics

defines the morality of an organisation and sets the standard for the behaviour and work ethic of its

members. It should incorporate that all members of the organisation will be given equal opportunities

and treated equally and fairly regardless of any differences.

A code of conduct and business ethics policy will normally be a written document that can be easily

accessed by all members of the organisation. It should form part of the induction process for all new

employees and be used for existing employees for refresher training at regular intervals.

A code of conduct and business ethics policy must be enforced consistently if it is to have any effect or if

it is going to be valued by those it governs. If employees that breach the code in any way are not dealt

with accordingly, other employees will have no faith in the system and may lead to increased unethical

behaviour.

Determining team culture values

When deciding upon what the team culture values will be, the team must be consulted and be an

integral part of establishing and agreeing on the values. If the team culture values are not their own,

based on their experiences in the workplace, and do not reflect what they believe to be important, they

will have a negative and demotivating impact on the workforce. The person tasked with establishing

and promoting the values should be someone in authority but in touch with the project team at ground

level whom the team respects and should embody all of the core values important to the team.

Team culture values will vary according to each organisation, but general values include:

 Accountability and responsibility for own actions

 Integrity

 Respect

 Maintaining healthy work-life balance

 Collaboration and empowerment

 Quality

 Community, embracing diversity, equal

opportunities for all

 Innovation, continuous improvement, efficiency

 Team is valued by management.

P a g e | 68

Activity 3A

P a g e | 69

3.2 – Provide support for project team members, especially with regard to specific needs, to ensure that the quality of the expected outcomes of the project and documented timelines are met

By the end of this chapter the learner should be able to:

 Identify strengths and weaknesses in team member’s skills and knowledge

 Plan training needs

 Resolve issues and conflict

Supporting team members

You will need to provide individualised support for project team members to ensure high-quality

outcomes and timelines are met.

Support may include:

 Identifying strengths and weaknesses of individual team

members/monitoring progress

 Providing additional training

 Resolving conflict.

Identifying strengths and weaknesses and monitoring progress

Performance reviews and self-assessments are a good way of identifying strengths and weaknesses of

individuals.

Self-assessment is often used as part of performance feedback, including 360 – this is a formal review of

performance and can involve both a self-assessment and a manager’s or trainer’s opinion on your

performance.

To a certain extent, a discussion of the results of a self-assessment with trainer or assessor can be used

to check whether they agree with you, but it can also help to guide you on how to improve or make the

most of your skills and knowledge. Constructive feedback both positive and negative is given to the

employee/learner to motivate them and improve their work. Some organisations have a rating system

on a scale e.g. 1-10 and a list of responsibilities, traits, and goals and then score the employee on those.

One way to tackle performance related issues is to encourage team members to participate and feel like

a group working together to reach their end goal. You should try to encourage team members to

identify ways to improve.

You can do this by providing opportunities for discussion and feedback through:

 Meetings – involve a group of people who come together to discuss their progress,

solve issues and present information.

P a g e | 70

 One-to-one sessions – involve two people conversing about elements of work one in

a more senior role than the other giving guidance and advice.

 Drop-in sessions – involve one or more people who are seeking support, advice, a

quick word with a manager (there is usually a set time for drop-in sessions e.g. a

manager will set 30 minutes aside every Tuesday to answer questions and discuss

issues).

 Brainstorming sessions – is a creative process involving a group of people who come

together to share their ideas and solutions to problems

 Suggestion boxes – can provide an opportunity for staff to anonymously confront

problems or issues.

Training needs

To plan training, you should first develop an evaluation of your team members’ strengths and

weaknesses. You should ascertain any gaps in their skills or knowledge that could be rectified by

additional training.

You should identify, plan and implement ongoing development and training of project team members

so that you can support personnel and project performance. Identifying areas that personnel need

additional help with and having ongoing support in place will help improve project performance.

Types of training include:

 Action learning sets

 Coaching and mentoring

 Performance feedback

 Team building

 On job training

 External training

 Self-directed learning.

You may be able to give the individual(s) concerned a choice of development opportunities so that they

can decide which best suits them. Alternatively, it may be necessary for you to choose the best method

to suit the time and budget of the organisation.

Action learning sets

An action learning set is a small group of peers who come together with a learning facilitator to discuss

work issues. The group will meet a few times a year and get a chance to report on various issues they

are dealing with. After reporting the other members will get a chance to ask questions to open-up the

problem or situation and help to analyse it. Each member then gets the chance to discuss what they

have learned from the session. The members take what they have learned and apply it to the

workplace.

P a g e | 71

Coaching and mentoring

Coaching and mentoring can overlap. Coaching involves creating an optimum environment for learners

to perform to the best of their abilities. It allows the learner to dissect a situation and discover their

own solutions. A coach does not necessarily have to be in a similar role to that of the learner, though

may well be. Mentoring involves regular contact with a person in a similar or higher position. The

learner will be able to draw on the experience of the mentor to help them handle issues that arise in the

workplace.

Performance feedback

Performance feedback has a more formal approach. It involves a regular ongoing assessment of an

employee’s performance by a manager or supervisor. Constructive feedback both positive and negative

is given to the employee to motivate them and improve their work. Some organisations have a rating

system on a scale e.g. 1-10 and a list of responsibilities, traits, and goals and then score the employee

on those.

Team building and group activities

Team building and group activities aim to help team members develop a skill e.g. problem-solving skills,

or get to know each other, become more motivated or adaptable. Team building activities can be

performed internally or externally and can be as simple small group exercises held in a conference room

or more adventurous outdoor pursuits. To be most effective they should be held regularly e.g.

weekly/monthly.

Training

Training provides an employee with the knowledge and skills to do the job. Training can occur at

different stages in employment, for example, induction training occurs when people start a job or are

new to a role, refresher courses can be provided for those that need a boost, and formal qualifications

can be obtained for those who are aiming for promotion.

There are various ways to train people for example:

 On-the-job training – involves learning the aspects of a job through doing the tasks related to that job.

 External training – this involves an external body and can be formal with an assessment leading to a qualification.

 Self-directed learning – this involves a learner studying in their own time.

Resolving conflict

A good project manager will prevent conflicts by using effective communication strategies throughout

the life of the project. The meeting schedules set out in the project plan should be adhered to, and if

more communication is needed, should be amended. Project managers should encourage a two-way

communications process between them and their project team to raise any issues or potential sources

of conflict before they arise. This is why the initiation, planning, and monitoring and controlling stages

are so crucial to the smooth running of the project. Involving the project team and stakeholders in

relevant consultation processes such as open forums, questionnaires, and meetings allows them to air

their concerns and for you to address potential conflicts before they arise. It also makes the project

P a g e | 72

team feel valued and take ownership of the project which results in a more cohesive and productive

work force.

Constant assessment allows sources of potential conflict to be addressed and resolved before it

becomes a huge issue that may delay the project, or worse, compromise completion.

Where conflict is unavoidable, it must be addressed swiftly and thoroughly to ensure the issues are

resolved and for the project to continue. There are a number of steps in conflict resolution models

which are generally accepted as the norm and adopted by organisations as their resolution of conflict

procedures. The number of steps you have to take to resolve the disagreement will depend upon the

needs and expectations of the disgruntled party. Some conflicts are easier to resolve than others;

submissive personalities will usually be easier to please than dominant individuals.

Steps in a conflict resolution model include:

 Negotiation – you have already covered negotiation in a previous chapter, and this is

the lowest level of conflict resolution. It is a voluntary process in which proposals are

passed back and forth from each party until an agreement is reached. Both parties can

negotiate for themselves or can involve a third party to perform the negotiations for

them, but ultimately each party makes their own decisions in the process. Negotiations

can be:

o quick and inexpensive

o informal and unstructured

o private and confidential

o resolved informally

 Mediation – if negotiations fail, mediation is the next step. Again, this is a voluntary

process that all parties agree to enter to try and resolve the dispute informally without

having to involve legal or trade union action. A third, impartial party is invited to act as

the mediator and chair the informal meeting between the parties involved. While the

meeting is informal it does run to a set format; the mediator will explain the situation

at the beginning of the meeting and lay down the ground rules to which party must

abide, such as “do not talk when another party is talking”. Each party is given the

opportunity to give their version of the dispute and the reasons for the conflict. After

each party has listened to the other, the idea is that they resolve the dispute together

by suggestions solutions to the problem. When mediation works, many creative and

innovative solutions are found that actually strengthen the relationship between the

parties involved. Mediation can be performed by a member of the project team, the

project management team or if necessary, a lawyer. All mediation meetings must

record minutes, the agreed solutions documented and signed by all parties involved.

Mediation:

P a g e | 73

o promotes communication and cooperation

o allows disputes to be proactively resolved by the parties involved

o can eliminate hostility and preserve relationships

o avoids time and expense of going through legal proceedings

o may create an even more acceptable and innovative solution than that originally proposed

o is voluntary, informal and flexible

 Arbitration – if negotiation and mediation fail to secure resolution, the matter will

require a more formal resolution. Arbitration is the process of submitting the case to an

impartial third party, the arbitrator, to hear both sides of the dispute in order for a

decision to be made. (It is an out of court method of resolving legal and trade union

disputes.) Arbitration:

o can be voluntary

o is private

o is conducted as a hearing in which all parties present evidence to the arbitrator

o is usually quicker and less expensive than going to court

o allows the parties involved to select an arbitrator with expert knowledge of their area of dispute

o results in a decision made by the arbitrator that is final and can be enforced in court

 Litigation – if the dispute becomes so serious and all steps taken to resolve the dispute

have failed, you may have to go to court. A trial will be held, during which both parties

and their respective lawyers will present evidence to a judge who will then make a

decision based upon applicable legislation. Litigation is:

o involuntary – all parties must present evidence

o a formal and structured process

o public – all court proceedings and records are open to

the public

o based upon relevant legislation

o final and binding

o expensive and can be a lengthy process

o open to appeal.

The conflict should not usually become so serious that arbitration and litigation are necessary, as most

conflict can be resolved informally and internally with negotiation and mediation.

P a g e | 74

Activity 3B

P a g e | 75

3.3 – Establish and maintain required recordkeeping systems throughout the project

By the end of this chapter the learner should be able to:

 Analyse core business activities

 Create a list of documents you will need a record for

 Recognise system requirements

 Complete record keeping tasks

 Maintain and update records

Recordkeeping systems

A recording system can be either manual or electronic, but should be simple, easy to understand and

use. Managing and monitoring business or records systems involves determining requirements or

modifications. This can be achieved by researching core business, supporting activities, resources and

business and social context. Research can be done through observing and consultation with head office,

local management, principals and staff.

There are many reasons why records are produced and updated during a project. Not only is it

imperative for the general communication between team members, clients, and stakeholders, but also

for administrative duties, planning and resource obtainment.

Records need to be maintained to ensure the most recent information is available to everyone working

on a project.

Also, records need to be maintained to ensure:

 Team has a way of communicating in general

 Ease of problem identification

 Evidence of contracts and agreements

 Plans, schedules and budgets to use as a guide

 Human resource allocation and designated authorities.

Core business activities

You should first think about documenting the core activities of the business. Core activities are non-

routine (administrative) activities that improve customer value, provide profits and are strategic for

example, customer service, designing a product or marketing activities. After identifying your

organisation’s core activities, you should document them.

P a g e | 76

Documenting core business activities may involve identifying:

 Diagrammatic representations

 Formal documents

 Handwritten documents

 Informal communications

 Online instructions or computer-based format instructions that can be updated

 Paper-based manuals

 Other texts.

System requirements

You will also need to think about the system requirements. System requirements will differ between

organisations and will have to meet certain standards and provide certain functions.

Some example requirements:

 Records should be retrievable

 The integrity of the record should be able to be preserved

 Records disposal should only occur when authorised

 Records that need to be held long-term can be archived.

You will need to select an appropriate scale and number of business or record systems using

information regarding the scale and nature of business operations at the organisation. To determine the

scale, you should first consider what data needs to be stored and how e.g. electronic or paper based.

How information is stored depends on upon the purpose of the task; long-term storage may need to be

in a secure location, either in the office, storage facilities, or on the computer, whereas short-term

storage tasks will vary from task to task.

 Established procedure: this may be implemented by organisational stipulation or

through how your workplace works.

 Organisational stipulation will likely be company-wide and is in place to ensure that

legal obligations are met and that a uniform system is used across the company.

 Workplaces may have their own system that revolves around the space, layout, and

staffing of the office, for example:

o The use of filing cabinets

o Whether all staff have access to the same files on the computer

P a g e | 77

o Whether staff have pigeonholes or trays

o Whether there is a member of staff employed

to manage the information system or whether

everyone does their own work

o Security restrictions:

 Who has access to the computer?

 Who has access to the filing cabinet?

 Who has access to the office area?

Recordkeeping tasks

There are many possible record-keeping responsibilities which may include:

 Storing, indexing and classifying records

 Developing filing systems and ensuring they meet the required organisational and legal

standards

 Create schedules for retaining and disposing of records

 Managing paper and electronic based information

 Maintaining and reviewing records systems

 Identifying record resources

 Advising colleagues and other management on recordkeeping issues including areas of

controversy or complexity such as those involving the Freedom of Information Act and

other legislation

 Setting up a policy framework to help guide staff

 Ensure staff comply with regulations and legislation when recordkeeping

 Managing the transition from paper to electronic systems

 Regulating access to information

 Resolving information management problems

 Helping with internal and external queries

 Manage and monitor budgets and resources

 Organise and take part in training and supervising records staff.

P a g e | 78

Maintaining, disposing and updating requirements

The first step here is to determine your requirements:

 What processes do you need to maintain and dispose

of records?

 Do you need an I.T department for example and will

this be onsite or offsite?

 Do you need storage space and does this require

human resources e.g. for security, shredding, deleting files?

 Will you need to buy or renew equipment e.g. computers, printers, shredders, etc?

 How often will the system be updated?

Record continuum theory

The record continuum is compared to a life-cycle of records. This lifecycle contains creation of a record,

use of a record and then either authorised disposal of a record or further storage and administration of

a record (see the below diagram).

All records generated during the project should be kept for future reference if necessary. All required

information should be filled in and all documents checked for accuracy. Decide which records need to

be kept and collate all the documentation in chronological order ensuring you create a contents page

that documents the author, the date and the version history number of the document.

Maintain and update records

Maintaining and updating records against project deliverables will involve documenting any changes or

additions to your baselines. Intervals will vary on the type of plan and your organisation’s requirements.

If you are using project software such as Microsoft Projects, then you should access this and alter it

accordingly.

You many need to update the following areas:

 Time worked – can be collected through timesheets e.g. at the end of each week. The project manager should estimate the time worked each week and compare this to the actual time worked each week to see if the schedule is running as planned.

 Costs – can change over time for example:

o Changes to materials or the cost of materials e.g. if there is an offer

o Changes to contractors e.g. using different companies, switching suppliers, etc.

o Changes to pay of staff e.g. if someone is promoted.

 Scope – changes to scope can be complex and require approval, so any changes should be identified and implemented as quickly as possible. You may have contingency scope plans that you can use for reference.

P a g e | 79

You should have in place a quality assurance policy that instructs you in how to keep records updated in

an accurate and timely way.

Generally, records are held in electronic systems that deliver a report based on the inputted

information. These may be stored in a computer based file or folder. A computer directory is a

computer-based filing system that is organised into files and folders on a computer. You may have

several files and folders in use on your computer, and you should ensure that you manage these

appropriately so that the information can be stored for ease of access again. You may have specific

guidelines regarding titles or codes for naming files and folders. You will be given specific procedures in

order to manage this system correctly and according to your organisational requirements.

To manage this filing system, you may need to:

 Create new folders

 Copy folders or files within folders and move to other

locations

 Change the name of a file or folder

 Delete files and folders.

To be given the above options you should right click on the folder or

file with your mouse to bring up the drop-down list of options.

P a g e | 80

Activity 3C

P a g e | 81

3.4 – Implement and monitor plans for managing project finances, resources and quality

By the end of this chapter the learner should be able to:

 Create an action plan for managing finances, resources, and quality

 Use cost-estimating methods

 Use resource levelling

 Test for resources and processes against standards for performance, suitability,

consistency, reliability, and functionality.

Managing project finances

You will need to create a financial action plan for managing project finances.

This action plan should include:

 Your recommended action – goals you need to achieve to strengthen your finances

 The purpose of achieving the goals – what is the outcome/benefit?

 Timescales – you will need to ensure there are target dates for the goals to be

completed.

You may also need to consult with financial experts or colleagues when implementing a plan to manage

project finances.

Failure to account for problems in resource availability and price can mean that your project cannot be

completed at all or that the budget is overspent.

For example, if your project involved building 500 houses, how would you cope if the supplier ran out of bricks?

 Would you be able to source the same product elsewhere?

o Would this cost more? How much more?

o Would you be able to wait for the bricks to come back into stock?

What if the cost of the bricks raised significantly mid-way through the project?

 Will the budget allow for the additional expenditure?

 Would it make more sense to secure the entire resource requirement before the project commences?

 Can the same product be bought elsewhere for the same or

P a g e | 82

lower price?

Contingency plans can be put in place to deal with the cost or availability of resources. Without a

contingency plan, the whole project could collapse if an essential resource became unavailable or

considerably more expensive.

Overrunning problems can cause significant problems, regarding the business’ operation and the cost of

the project.

In cost-management terms:

 How much will it cost to pay the staff and contractors for their additional time?

o Will this attract a higher rate?

 Will you have to pay staff and contractors emergency overtime?

 How much will the business lose in takings from being closed / partially closed?

 How much will any additional resources cost?

You should identify what could possibly go wrong, estimate a cost for this and budget for it accordingly.

For example, if the builders from the earlier example overran on their project for building the 500 houses:

 How much will it cost to pay the staff and contractors for their additional time?

The builders cost $25,000 a week, so four additional weeks would cost an additional

$100,000.

You could budget for an eight-week overrun, costing $200,000. Then, if the build does

overrun for any reason, the money is budgeted for this, and it will not be financially

ruinous for the project.

 Will you have to pay staff and contractors emergency

overtime?

The builders will charge the same rate of $25,000 a

week, so the price won’t rise unless they are required to

do emergency overtime in order to get the project

finished quickly.

 How much will the business lose in takings from being closed / partially closed?

Not applicable, as the houses are going to be sold to buyers and this will be the same amount whether or not the houses are finished two months later.

 How much will any additional resources cost?

Not applicable, but you would budget for additional resources anyway in the resource budget.

P a g e | 83

Cost-estimating methods

To implement a financial plan, you will need to calculate the costs associated with the project. There are

several different ways of estimating the costs associated with a project.

These cost-estimating methods may be:

 Allowance for contingency and risk

o Allowing additional budget space to cover contingencies. By allowing time and money to be available in the event of a problem, your planning is more flexible and more able to cope with issues

 Cost of Quality (COQ)

o The costs associated with maintaining the required or desired quality level of the project that you should budget for. You need to factor these costs into your cost- management plans.

o Bear in mind the cost of failure!

 Expert opinion

o Experts and specialists can give you advice on costs, quantities, qualities and durations

o This can mean that your estimations are more accurate and well-informed

 Organisational budget and cost-control policy

o Your organisation may have set or advised budgets, targets, and limits to help you with your cost-estimation process, by providing a framework and a guide

 Organisational chart of accounts

o The chart of accounts defines different types of expenditure the organisation has and can be used to assess the financial state of the business

o Assessing the financial state of the business can help with cost-estimating because you can build your budget around the organisation’s current position

 Parametric estimating

o Parametric estimating is a technique that uses statistics from historical data and

project variables to estimate the cost and duration of projects

 Prior project history

o Prior project histories are useful because you can use any lessons learned in your

current and future projects. You can also examine previous budgets and

contingencies in order to better prepare your estimations this time around

P a g e | 84

 Reserve analysis

o A reserve analysis is a technique that determines whether and how much

reserve should be allocated to cover contingencies, regarding cost, budget and

time

 Review of organisational records

o Reviewing organisational records can allow you to identify what went wrong ad

what went well in previous projects.

o Organisational records may also be related to income, expenditure, and budgets

and can assist you in cost-estimating.

 Top-down estimating

o Top-down estimating involves looking at the project as a whole and estimating

the cost as one overall figure; for example, the whole cost will be $1.1 million.

This method is not usually as accurate as bottom-up estimating, but is

advantageous in that it allows you to see the bigger picture.

 Bottom-up estimating

o Bottom-up estimating breaks the whole project up into smaller elements and

components and allows you to estimate costs for each of these steps. This can be

a more accurate way of estimating costs, as it allows you to look in more detail at

each part of the project.

The methods you use will depend on the information you have and the nature of the project. Your

organisation may make stipulations about which methods should or should not be used and may

provide templates.

Resource levelling

This is when you ensure that teams are only given work they can realistically achieve within a given

deadline.

So, for example, tasks are spread out over a specific schedule, so the team is not overloaded with work

all at once. Also, tasks can be split into phases and responsibilities delegated, to spread the workload

across the team.

You can use programs like Microsoft Office Project to automatically do this for you.

Microsoft Office Project has features to help you distribute work, including:

 Task ID

 Scheduling dates

 Available slack

 Task priority

 Task dependencies

 Task constraints.

P a g e | 85

What the program does is split tasks or delay them to a later date; it will not alter their information or

who/what resources are assigned to. These tasks could be done manually, without using Microsoft

Project, but you will need to consider the time it will take versus the cost of implementing an

automated system. Don't over-allocate resources; it will mean the assigned team cannot complete the

given tasks by deadlines.

Be aware that Microsoft project will not account for the availability of resources when assignment tasks,

but just the requirements for it. Therefore, you will need to keep an eye on over-allocations and resolve

them accordingly.

Managing project quality

Successful quality management throughout a project ensures that the end product and outcome meets

or exceeds the expectations and needs of the clients and stakeholders which are determined during the

initiation and planning stages of the project. Quality management is an ongoing process and may result

in changes being made to a number of factors within the project such as timescale and allocated

resources, both of which may impact on all of the other eight project functions.

Effective quality project management will include the following:

 Definition of quality – the definition of expected quality will be determined by the stakeholders at the beginning of the project and will refer to the end result ad the deliverables, and also the processes and procedures adopted during the project

 Quality characteristics – the deliverables, technology and equipment used to produce the deliverables, and the processes and procedures used during the project will be measured against certain characteristics such as:

o performance

o suitability

o consistency

o reliability

o functionality

 Quality plan – a clear quality management plan should be set out that determines all the activities required to meet the determined quality standards including:

o quality definitions

o management responsibility

o design and document control procedures

o purchasing requirements

o procedures for inspection testing, non-conformance, and corrective actions

o how quality records are kept and maintained

o quality assurance – schedule for quality audits and procedures for reporting back to stakeholders

o training requirements

P a g e | 86

 Quality improvement (or continuous improvement) – this is the process of constantly

evaluating the quality of a product, system, process, procedure or material to find ways

to make it better and more efficient. It is the responsibility of every member of the

project team to strive to improve the quality of every aspect of their work

 Quality control – the evaluation of the quality of the end result regarding the

expectations of the stakeholders. If the quality expected is not met the end result may

be rejected and more work will need to be undertaken to meet the requirements. This

is why continuous improvement and quality audits are important throughout the

execution of the project

 Cost of quality – this relates to the methods and procedures used to produce

deliverable to the expected level of quality and also the costs of failing to meet

expectations and any waste in the course of the project.

Quality assurance refers to the process of monitoring quality throughout the duration of the project to

ensure that it is maintained. Quality assurance allows any issues and problems to be detected early so

that they can be resolved promptly and therefore minimise impact to the rest of the project.

Quality assurance may include:

 Systematic review of the project management process to ensure compliance with

organisational policy and guidelines

 Project finalisation process to capture lessons learned and to

enable continuous improvement.

Quality assurance audits may include:

 Conformance to plan

 Conformance to standards

 Governance and decision making

 Independence and valid processes

 Maintenance of project records.

P a g e | 87

Activity 3D

P a g e | 88

3.4 – Implement and monitor plans for managing project finances, resources and quality

By the end of this chapter the learner should be able to:

 Plan a report on an element of the project

 Use presentation tools

 Structure a report

 Proofread and check the report

Complete and forward project reports

You will need to complete and forward project reports to stakeholders who need to be informed. You

might need to complete regular reports – it will depend on what you have decided. Regular reports can

help to keep stakeholders informed about the status of the project. A final report is also needed at the

end of the project.

When creating reports:

 Be honest and objective with the data

 Note success for use in other projects

 Use hindsight to document potential problems to look for in other projects

 Avoid blame and focus on the learning process and future improvements

 Try to create an open-minded learning culture, so people are willing to share

 Be aware of obstacles to reviews e.g. resistance from team members, dishonesty,

subjectivity

 Look at positives and negatives to learn from

 Make recommendations for applying successful points of the project.

By listening to the opinions of your team and analysing these documents, you can decide on the

important lessons to learn from the project.

A report format includes:

 Overview or summary

 List of tasks (possibly a prioritised list)

 Financial reports

P a g e | 89

 Progress report e.g. tasks completed versus to do

 Workload – how much work is assigned to a task, or on a regular basis e.g. daily or per

resource?

What tools can you use to help?

 Presentations

 Flow charts

 Diagrams

 Bar charts

 Statistical data.

Preparing and producing reports

When preparing and producing a report, there are some things you have to keep in mind.

Initial planning:

 Make sure you understand the topic of the report

 Purpose of the report – persuade, inform, argue, evaluate, advise

 Audience of the report

 Format required.

If you are given instructions and guidelines to follow, make sure you do.

Planning and researching:

 Determine the key aspects of the report to understand what information is required

 Keep the topic in mind when researching and reject any information that is irrelevant

 Keep records of sources used.

Report structure:

 Determine the format of the report – is there a specific template used by your organisation?

 Determine the content. Does the report require any of the following:

o title page

o contents page

o terms of reference

o introduction

o main body

o supporting evidence

o summary/results

o evaluation

o conclusion

o recommendations

P a g e | 90

o glossary/references/bibliography/appendices

 Language style – is the tone of the report formal or informal?

P a g e | 91

Proofreading and checking the finished document for:

 General layout and style

 Coherence of the text

 Grammar, spelling and punctuation

 Whether it has met the brief?

Writing reports

Ensure documentation is written in the active voice rather than the passive, as this gets the message

across more directly and helps with concise writing.

Documents should:

 Be concise

 Be objective

 Appropriate in language (no slang, unless recording

direct speech)

 Include only necessary information.

Being concise means including the right amount of information – not

too little or too much. You need to get to the point in as few words as possible; use appropriate words,

sentence structures and avoid frivolous information that is not relevant.

Being objective involves only including the facts in documentation and no opinions or bias affecting

what is recording. Subjective information is based on assumptions and feelings and will not accurately

portray the incident.

Ensure documentation is dated so that it can be filed chronologically and used in accordance with other

documents relative to the same time period.

 What are your organisation's requirements for documentation?

 What things need to be documented?

 Are there standard reports for performance against KPIs?

 Do certain visual representations (graphs, charts, etc.) need to be included?

P a g e | 92

Activity 3E

P a g e | 93

3.6 – Undertake risk management as required to ensure project outcomes are met

By the end of this chapter the learner should be able to:

 Detect and respond to risks

 Conduct risk review processes

 Know how to prevent further risk

Risk management

To manage risks, you will need to review risks regularly to maintain the currency of the risk plan and

ensure project outcomes are met.

Risk review processes may include:

 Ad hoc due to emergency events

 Gateway or stage transition reviews

 Ongoing through team member assigned responsibility

 Regular risk discussions at project meetings

 Scheduled formal reviews.

The process can either be informal, or a formal, structured process – which of these it is will depend on

the size and complexity of your project.

A structured approach would include review systems, checklists and measurement tests to ensure the

currency of risk plans.

Further risk review processes may include:

 Risk control audits

 Risk insurance review

 Contract reviews (internal and external)

 Review of internal processes

 Incident debriefs

 Test/trial events.

Monitoring and controlling project risks should be a

cyclical process and should continuously occur.

P a g e | 94

Activity 3F

P a g e | 95

3.7 – Achieve project deliverables

By the end of this chapter the learner should be able to:

 Identify the outcomes of the project

 List deliverables you should have achieved

 Check to see if they have been achieved.

Achieving project deliverables

Before you can finalise the project, including obtaining sign-offs for the concluding of the project, you

will need to demonstrate you have achieved the project deliverables. Project deliverables will obviously

vary depending on the industry you work in and the specific project.

They are the building blocks of your overall project and are the tangible, measurable and specific results

of the process of your project. Deliverables are the reason projects are created, and they may contain

some smaller deliverables. They are the products and/or services you give to customers, clients and

employees and they normally have a date for when they are due.

Deliverables can sometimes be called outputs. The output is something that a project has delivered and

should be easily measurable, for example, a content management system, a redesigned website, a

product, etc.

Project deliverables may include:

 Definable product, service or document

 Discrete components of the overall project outputs

 Specified products of the project

 Time, quality and cost.

You may have a checklist for deliverables that makes it easy for you to see if you have provided them.

You can now look down the list and check that you have achieved each deliverable. You may also

consult with different people in the project team and stakeholders to determine whether the

deliverables have been met.

P a g e | 96

Activity 3G

P a g e | 97

4. Finalise project

4.1. Complete financial recordkeeping associated with project and check for accuracy

4.2. Ensure transition of staff involved in project to new roles or reassignment to previous roles

4.3. Complete project documentation and obtain necessary sign-offs for concluding project

P a g e | 98

4.1 – Complete financial recordkeeping associated with project and check for accuracy

By the end of this chapter the learner should be able to:

 Check what you need to record

 Check how you need to record it

 File the document according to your recordkeeping system procedures

 Check you have recorded and filed it correctly

Project finalisation activities

You are reaching the completion of your project and you now need to complete the final activities in

preparation for the handover to the client.

Project finalisation activities may include:

 Completing financial transactions

 Consolidating and storing project data

 Documenting outstanding project issues

 Obtaining or providing certifications

 Preparing final project reports

 Updating organisation knowledge management.

All financial transactions need to be completed and recorded appropriately and in compliance with legal

and accounting requirements and also for auditing purposes. The project cannot be handed over to the

client with any outstanding monies owed. Financial transactions may include payments to suppliers,

wages for the project team; rent for premises, utility bills and many others specific to your project.

Legal requirements

‘For financial reporting, Australian Securities and Investments Commission (ASIC) breaks reporting

requirements down by business type.

Personal financial records must be kept for five years, whereas the following records must be kept for seven years:

 Financial records for your company

 Most employee records

 All records of fringe benefits and capital gains’.

P a g e | 99

Source: https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-

business/basic-record-keeping-requirements

You should look into details of your specific industry and state requirements but should at least meet basic legal requirements such as:

 A cash book or financial accounting program - that records cash receipts and cash

payments

 Bank accounts - cheque books, deposit books, and bank statements

 Employment records - hours of work, overtime, remuneration or other benefits, leave,

superannuation benefits, termination of employment, type of employment, personal

details of workers, employee personal contact and employment details

 Occupational training records - for both you and employees to comply with work, health

and safety laws including evacuation and emergency training attendance.

 Sales records - invoice books, receipt books, cash register tapes,

credit card documentation, credit notes for goods

returned and a record of goods used by the business

owner personally

 Proof of purchases - cheque butts (larger purchases),

petty cash system (smaller cash purchases), receipts,

credit card statements, invoices, any other documents

relating to purchases including copies of agreements or leases

 Work, health and safety (WHS) records – workplace incidents, risk register and

management plan, names of key WHS people (e.g. WHS representative, trained safety

advisor (TSA), first aid attendant), chemical storage records, first aid incident register,

workplace assessments, material safety data sheets (MSDS).

Source: https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-

business/basic-record-keeping-requirements

Financial obligations

Dependent on the scale of your project you may have financial obligations to finalise both internally and

externally.

Internal financial obligations may include the final accounting for the overall spend of the project, broken down into the following project areas:

 Cost management plan – reconciliation of planned expenditure and actual expenditure

 Work breakdown structure – how did the actual spend compare to the budgets

allocated to each component of the WBS?

 Change and risk management – how did changes to the project affect budgets?

 Procurement records and accounts need to be finalised and recorded appropriately

 Payroll needs to be finalised and records stored/handed over appropriately

https://www.business.qld.gov.au/business/starting/starting-a-business/record-keeping-business/basic-record-keeping-requirements

P a g e | 100

 Vendors should be given their final payments and accounts update accordingly; there

should be no outstanding invoices.

External financial obligations relate to outside borrowing; funds that have been lent by sources other

than the stakeholders and investors, such as bank loans or contracts for services (utilities for example).

It is important to finalise these external financial obligations as, if the obligation is not honoured or paid

in full, it could result in court action and the seizure of assets of the project and/or the organisation.

P a g e | 101

Activity 4A

P a g e | 102

4.2 – Ensure transition of staff involved in project to new roles or reassignment to previous roles

By the end of this chapter the learner should be able to:

 Inform staff of any changes and reasons why

 Provide staff with additional training or refresher courses to support transitions

 Debrief the team

 Retain people if needed or reassign them to new tasks.

Change management

If not handled appropriately, change can be met with resistance from staff. To manage the transition,

you will have to plan a tactical approach to encourage a positive experience and reaction to change.

Consulting with staff/stakeholders can help to assess the impact of making changes. There may be

advantages and disadvantages to the changes. Theses should be discussed with the relevant

stakeholders.

It is important to keep all stakeholders informed of changes and how it will affect them and the

everyday operations of the business.

You may need to reassure staff and provide them with additional training. Refresher courses can be

provided for those that need a boost, but additional training will be needed for any changes to

operations.

You should identify, plan and implement ongoing development and training of team members so that

you can support personnel and organisational performance. Identifying areas that personnel need

additional help with and having ongoing support in place will help improve performance.

Think about making changes gradually; once employees have become accustomed to one or two

changes, you can introduce more. This ensures a smoother transition into the whole process and allows

time to tackle any early day problems.

P a g e | 103

Staff transitioning

The end of a project is signified by having completed all stages of the project, and the outputs have

been acknowledged by the project director or sponsor. Disbanding a team occurs at the end of a project

and is similar to de-briefing. It is sometimes overlooked but needs consideration because it can help you

to learn from the project.

Disbanding helps you to:

 Recognise the effort and success of team

members

 Learn from what you have achieved

 Become a better team and better at working in

teams

 Look towards the future and other projects.

Procedures for disbanding teams

You may have organisational policies and procedures to follow, and you should refer to these guidelines

as organisational procedures will vary. The project manager, sponsor or steering committee may have a

responsibility to disband the team; you should check whose role this is.

Procedures may include:

 How to decide who to retain

 The process for retaining workers

 Reassigning staff

 How to tackle the financial ends of a project

 The structure of the formal conclusion.

It can be difficult to disband teams, especially if some workers are retained and not others.

Retaining people for future work

Teams who are productive and work well together should be retained where possible and used for

other projects. These types of teams that reflect the culture of the organisation can also help to set an

example for others and can help teach the qualities that are most valued at the organisation.

You can also learn from the teams that work well and analyse why that might be. You should look at

how teams communicate and collaborate on projects. What attitudes to team members have? They

may be results driven, for example, empathetic, can handle conflict particularly well, etc.

P a g e | 104

Activity 4B

P a g e | 105

4.3 – Complete project documentation and obtain necessary sign-offs for concluding project

By the end of this chapter the learner should be able to:

 Gather relevant documentation/logs

 Use organisational templates to complete documents

 Ask a delegated authority/stakeholder to sign-off on aspects of project.

Completing documentation

All aspects and requirements in each stage must be completed, and usually signed off by a delegated

authority before the project can progress to the next stage.

What documentation needs to be completed by the conclusion of the project will depend on the size if

your project. You may not need to include everything from the following list if you are conducting a

small project.

Documentation which needs to be completed may include:

 Project brief

 Issue list

 Project schedule

 Project plan

 Deployment plan

 Technical specification

 Quality assessment plan

 Change log

 Communications plan.

The specific key requirements for stage completion within your project will be determined by client

expectations and the project objectives. These will vary the most from one project to another in the

execution and controlling stages as project activity is unique to each project.

P a g e | 106

Generic key requirements to the completion of the closing stage are:

 Producing a closing report that includes:

o sign off

o budget analysis

o schedule analysis

o releasing project staff

o lessons learned from the project

o overall outcome of the project

 Redistribution of resources and/or equipment used in or leftover from the project

 Completing any relevant administrative work for the project

 Recording any next steps for the next or future projects.

Logs and registers act as tools to record elements of a project. They may be necessary as part of an

auditing process and make it easy for both internal and external audits to be taken. There are many

different logs and registers used on projects.

Project logs and registers may include:

 Change log

 Correspondence log

 Daily log

 Issues log

 Non-conformance log

 Quality log

 Risk register

 Task completion log

 Version control log.

These allow easy access to specific information about the project, for example, if you need to check the

quality of something you can access the quality log. These logs will be accessible to everyone involved in

the project and are therefore a great communication tool. Your organisation will have templates for the

logs and registers which make them easy to use and understand.

P a g e | 107

Activity 4C

P a g e | 108

5. Review project

5.1. Review project outcomes and processes against the project scope and plan

5.2. Involve team members in the project review

5.3. Document lessons learned from the project and report within the organisation

P a g e | 109

5.1 – Review project outcomes and processes against the project scope and plan

By the end of this chapter the learner should be able to:

 Assess the benefits of the project

 Evaluate outcomes (long-term and short-term, expected/unexpected)– for example:

o was the project within its scope?

o did the team complete on time and on budget?

Reviewing project outcomes

At the end of every project, it is important to spend time reviewing, evaluating and assessing how

successful and effective each aspect of the project has been in order to identify areas of improvement

for future projects.

Project review assessments may include:

 Benefits realisation review

 Outcomes evaluation

 Post-implementation review

 Project lessons learned.

Benefits do not just happen as soon as the project is finished. Time should be invested in embedding the

procedures and practices that will lead to full realisation of benefits. The true benefits may not be seen

for five years after completion of the project. For example, in a landscape gardening project, you would

not expect the gardener to rotovate and prepare the land, plant seeds, bulbs and saplings and then

leave them to bloom alone without any aftercare and cultivation. The same principle applies to all

projects.

Benefits realisation includes:

 Delivering training

 Carrying out demonstrations

 Preparing training manuals

 Providing help desks and troubleshooting

 Soliciting feedback from employees and the client

 Making changes to the project after it has been completed.

P a g e | 110

Benefits realisation may not take place immediately after the completion of the project. It might not

occur until six months after the project implementation review to allow the project time to establish

itself.

The benefits realisation review may include the following:

 Purpose of the review – to determine whether the expected benefits of the project

have been realised and whether any issues or problems have occurred

 Expected benefits that were documented in the original business case and project

initiation document

 How the benefits have been measured

 Resources used in benefit realisation – what support has been implemented since the

completion of the project?

 Resources required to complete the review

 Actual benefits realised after project handover:

o do they meet the expected benefits, if not,

how far off are they?

o are they different to the expected benefits?

o are there more benefits than expected?

o were the benefits realised faster than

expected?

o are there further benefits to be made?

o do changes need to be made to the support structure in order to realise benefits

and if so, is this cost effective?

 What non-benefits have been realised and what problems have they caused?

Outcomes evaluation

The outcomes evaluation will be very similar to the benefits realisation review as outcomes are very

similar to benefits. Outcomes and benefits are the result of your work within the project and directly

related to the project objectives.

The outcomes evaluation may state:

 Expected and agreed project outcomes set out at the beginning of the project, short

and long-term

 Key performance indicators to measure the outcomes

 Actual outcomes and whether they meet the initial expected outcomes, including:

o changes to knowledge within the organisation

o changes to actions and behaviour of the organisation itself and its employees

o changes to conditions

P a g e | 111

 Any unexpected and unwanted outcomes that are detrimental as opposed to beneficial

 Any unexpected but welcome outcomes that have improved the organisation

 No change at all.

Post-implementation review

A post-implementation review (PIR) is the final step in the life-cycle of the project. It is a critical

evaluation of the entire project that determines whether or not the project was a success and the

reasons for this. It is usually conducted by somebody impartial and usually between three and six

months after the completion of the project. This allows the project work time to settle into the

organisation and enables the benefits substantial time to be realised. It assesses each aspect of the

project to determine whether or not the project has met its objectives.

A PIR performs the following functions:

 Measures the objectives, benefits, and outcomes

 Determines whether or not the project was within its scope

 Assesses the quality and accuracy of the final deliverables

 Reviews the project against the schedule

 Compares the actual expenditure against the budget

 Identifies the key achievements of the project and milestones

 Provides information and evaluation for lessons learned

 Is a method of reporting the findings to the stakeholders

 Evaluates the outcome of the project.

A report of lessons learned is vital to help to improve project management in future projects. This is

covered in section 5:3.

P a g e | 112

Activity 5A

P a g e | 113

5.2 – Involve team members in the project review

By the end of this chapter the learner should be able to:

 Arrange opportunities to review project with team e.g. a team meeting

 Use quality management tools to measure outcomes

 Track continuous improvement

Involving team members

Involving team members in the project review can be helpful because they may have seen things from a

different angle, or have particular experience in an area of the project. You should also think about the

performance of the team and individuals. You will need to allocate adequate time for reviewing the

performance of your team to ensure that everyone is working together as effectively as possible. You

may need to organise regular opportunities for feedback for everybody involved e.g. all internal and

external stakeholders).

Methods to elicit feedback include:

 Team meetings

 One-to-one sessions

 Workshops

 Group sessions

 Surveys.

It is important to record team member’s ideas and make minutes in any meetings you have so that you

have a document to refer to when planning improvements.

Sometimes it can be difficult for people to come forward with ideas. Staff need to have the confidence

to do this. Therefore, supervisors and other members of the team need to be accommodating of

mistakes and encourage people to try new things within the limits of their responsibilities. Supervisors

need to be approachable so that staff will share their ideas with them and trial them out. Stakeholder

satisfaction should be measured and analysed to gauge the success of the project. This information can

be used to improve the quality of future projects.

P a g e | 114

Measuring outcomes

Project outcomes and deliverables are usually based on the goals and desires of stakeholders; the

achievement of these goals and desires is the whole point of a project. To achieve stakeholder

satisfaction, these goals will need to be attained to an extent; the success of the project and its

outcomes, as well as its quality, will be a major contributing aspect to stakeholder satisfaction.

Quality management tools may include:

 Cause and effect diagram:

o Fishbone

o Ishikawa

 Control charts

 Flowcharting

 Histogram

 Pareto chart

 Root cause analysis

 Run chart

 Scatter diagram.

Quality management methodologies may include:

 Continuous improvement process

 Lean management

 Six Sigma

 Total Quality Management.

Assessing the effectiveness of quality management in an ongoing manner contributes to continuous

improvement; where issues are identified and resolved, an improvement has been made. Identifying

poor performance and implementing a resolution prevents standards slipping and project quality

becoming habitually poor. Each project should be examined regarding quality to gain the maximum

benefit of continuous improvement.

P a g e | 115

Continuous improvement

Continuous improvement is the constant determination to improve products, services or processes. This

can be a result of an idea and happen instantly, or it can be a gradual progression over time. It is

important to document what you learned from the process to support continuous improvement.

Continuous improvement can be tracked using a variety of methods:

 Regular audits and spot checks

 Notes or minutes from meetings with staff

 Ask staff regularly for ways to improve

 Complaints forms

 Feedback and suggestion forms

 Staff incentives/rewards documentation

 Disciplinary documentation.

 By listening to the opinions of your team and analysing these documents, you can

decide on the important lessons to learn from the project.

P a g e | 116

Activity 5B

P a g e | 117

5.3 – Document lessons learned from the project and report within the organisation

By the end of this chapter the learner should be able to:

 Collate information from the review process

 Draw conclusions from the information

 Record lessons learned and communicated within organisation

Lessons learned

A report of lessons learned is vital to help to improve project management in future projects. Every

strategy employed by the project team throughout the project should be evaluated, reported on and

fed back to project authorities or senior management within your organisation at the end of the project.

Record essential information

To put all the strategies into context, it is important to record details of the project.

Essential information includes:

 Project objectives, benefits, and outcomes

 Project manager and leaders

 Description of the client/customer/sponsor/investors – understanding their needs and

expectations regarding governance will have a bearing on the review

 Dates of the project

 Deliverables.

Document a complete picture

If lessons are going to be learned, the mistakes need to be included as much, if not more, than the

successes to prevent them happening again. Include what worked, what didn’t work, and why. It is as

important to document the reasons for strategies not working because they may work well in

alternative projects but just were not suited to this particular one. Suggest more efficient methods of

management in the scenarios you have experienced within the project and what you would do

differently in hindsight.

You should have a plethora of documents and reports that have been generated throughout the life of

the project from which to compile your lessons learned report. Capturing and recording information as

you go through the project allows you to analyse successes and failures at different points within the

project and enables a more balanced and accurate review of governance effectiveness. If you haven’t

kept records throughout the project, this in itself could be a valuable lesson learned for the next project.

P a g e | 118

Think about the following questions:

 What did you learn?

 Did you identify best practices?

 Could you use what you learned for other projects?

 What recommendations would you make for the future?

 What are the main elements contributing to this project's success or failure?

Be honest

To get a full picture of how effective project management was, ascertain honest and open feedback

from all involved. Feedback should be sought from all team members from top to bottom in the chain of

command and all information, however small, should be noted and reported to make the best

improvements to future processes. Seek feedback from all other internal and external stakeholders in

the same manner. Asking for the opinions of your stakeholders makes them feel valued and more

motivated.

Embrace the negative comments and treat them with respect. These are the most critical aspects of the

report that, if used appropriately, could transform the efficiency of project management processes.

Always searching for continuous improvement keeps an organisation dynamic and at the forefront of

improving efficiency; this mentality makes an organisation attractive to work with and keeps employees

motivated and committed.

Input into future projects

All of the project review assessments should be used to compile one report that highlights areas of

project management and project activities that worked well and should be employed in future projects.

It also highlights room for improvement and serious errors that could have been avoided, and as such

what should not be employed in future projects.

Keeping accurate records, logs, and registers from the initiation stage through to the completion of the

project will enable a much more accurate evaluation and review of the success of the project. Record

keeping may be a lesson learned in itself; there are numerous logs, registers, and databases to keep

updated, but ultimately they are telling the story of how successful or unsuccessful your project was. If

there are gaps or inaccuracies in the records, the evaluation of your project will not be complete. This

not only has an impact on the project itself, but could tarnish the reputation of the project management

team, particularly the project manager, and that of the client and stakeholders involved.

P a g e | 119

Activity 5C

P a g e | 120

Summative Assessments

At the end of your Learner Workbook, you will find the Summative Assessments.

This includes:

 Skills assessment

 Knowledge assessment

 Performance assessment.

This holistically assesses your understanding and application of the skills, knowledge and performance

requirements for this unit. Once this is completed, you will have finished this unit and be ready to move

onto the next one – well done!

P a g e | 121

References

These suggested references are for further reading and do not necessarily represent the contents of

this unit.

Websites

Planning a project:

https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

Australian Consumer Law:

http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

Governance report:

http://www.bestoutcome.com/project-governance-gateways.html

Example organisational chart:

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16

All references accessed on and correct as of 26/09/2016, unless other otherwise stated.

https://www.teamgantt.com/guide-to-project-management/how-to-plan-a-project/

http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm

http://www.bestoutcome.com/project-governance-gateways.html

http://pharmacy.ksu.edu.sa/en/pages/departments/quality/?page_id=16