Project Initiation, Planning and Execution

MBA642

Project Initiation,

Planning and Execution

Workshop Week 10

Resource Management

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Week 9 review

• Project methodologies vary for different use cases

• We have considered four methodologies

• Agile

• Kanban

• Waterfall

• CCPM

• Understand the management of human resources on projects

• Explain the facets of managing financial resources

• Identify the physical resources associated with projects

• Examine the management of information resources on projects

Week 10 Learning Objectives

Project Resources

Managing projects involves coordinating:

• Human resources

• Financial resources

• Physical resources

• Information resources

To achieve a specific outcome

Human Resources

• Right people

• Right combinations

• Right time

Source: ‘Enabling People, Enabling Projects’ with Pauline Stewart-Long, By Project Management Paradise.

Recruitment Strategy • Source

– Local vs international

– Recruitment agency

– Advertising

– Word-of-mouth

• Type of employment

– Casual

– Part-time

– Permanent

– Contract

• Location

– Office

– Work-from-home

People Training

• Onboarding (Induction)

– Facility walk through

– Meet-and-greet

– Policies and procedures

– OHS

• Project training (how we manage projects)

• Software training (soft tools)

• Equipment training (hard tools)

People Management

• Supervision

• Culture

• Performance management

• Rewarding

• Conflict management

• Communication strategy

Rewarding People

Attract

The right people at

the right time for the

right jobs, tasks or

roles

Retain

The best people by

satisfying their work-

related needs and

aspirations and

recognising and

rewarding their

contribution

Develop

Required workforce

capabilities by

recognising and

rewarding

employees for

knowledge, skill and

ability enhancement

Motivate

To contribute to the

best of their

capability by

recognising and

rewarding high

individual and group

contributions

towards meeting the

organisation's

strategic objectives

Source: Nankervis et al (2010) Human resource Management: strategy and practice, Cengage, Australia

Conflict Management

Communication Strategy

• Stakeholders

• Employees

• Team

Communication mediums:

• Presentations

• Newsletters/Blogs

• Emails

• Meetings

Workshop Activity

• In small groups of 2 or 3, identify

the different approaches to HRM

that might be relevant for project

management vs that found in

traditional organisations

• Share your results with the class

Financial Resources

• Estimating the budget

• Risks & contingencies

• Systems

• Transaction processing

– Personnel (accountants, clerks)

• Internal controls

• Policies & procedures

• Templates, forms

Estimating

• Expert judgement

– Ask an expert

• Analogous estimating

– Compare previous costs to current situation

• Parametric estimating

– Compare previous costs with known changes

• Three-point estimating

– 3 estimates – commonly worst case, most likely, best case

• Bottom-up estimating

– Use WBS components

Risks & Contingencies

• Deliverables – Time

– Cost

– Quality

• Operational

• People

• Economic

• Technological

• How can we mitigate the risk?

• What do we do if it happens?

Financial Systems

• Procurement management

• Expense management

• Payroll management

• Inventory management

• Asset register

• General ledger

– Expense statements

– Profit & loss statements

– Budget performance

– Cash flow

Workshop Activity

In small groups of 2 or 3 consider:

• The financial systems you have in place to

manage your own affairs

• What tools do you use?

Share your results with the class

Physical Resources

Type of physical resources:

• Land

• Facilities

• Furniture & fittings

• Equipment

Asset Management

• Records

• Location

• Security & loss

• Access control

• Logistics: movement

Workshop Activity

In small groups of 2 or 3:

• List a range of personal assets that you

own

• What controls do you have in place to

ensure their security

• Identify the type of control(s) that you have

for each asset

Share your results with the class

Managing Procurement

Five processes involved in the purchasing transaction:

1. Specification

2. Selection

3. Contracting

4. Control

5. Measurement

1. Specification

Identifying

requirements:

– Quality

– Quantity

– Price

– Timing

2. Selection

• Vendor selection criteria

• Evidence of viability

• Tender process

3. Contracting

• Statement of Work

• Terms

• Conditions

• Delivery

• Acceptance criteria

• Problem resolution

• Payment schedule

4. Control

• Contract negotiation

• Liaising with the supplier

– Documenting conversations

• Tracking contract

performance

– What is outstanding

• Change management

– Clear documentation for

alterations

5. Measurement

• How effective was the process

• How well did they perform

– Would you hire them

again?

• Performance indicators

• Recording feedback

Workshop Activity • In small groups of 2 or 3, list a range of issues that

could go wrong with contracted suppliers

• Share your results with the class

Information Resources

1. People-related information

2. Financial-related information

3. Asset-related information

4. Document-related information

1. People-Related Information

• Position descriptions

• Contracts

• Timesheets

• Performance evaluations

2. Financial-Related Information

• Estimating worksheets

• Budgets

• Expense summaries

• Comparisons to budget

• Change records

• Audit records

3. Asset-Related Information

• Asset records

• Compliance testing

• Audit records

• Security & controls

4. Document-Related Information

• Policies

• Procedures

• Contracts

• Templates

• Forms

• Reports

• Change records

Summary

Managing a project involves:

• Right people

• Right conversations

• Right time

• Right resources

Next week

• Understand what can go wrong with

projects

• Monitoring is vital for project success

• Building an effective monitoring system

• Problems will occur: what is your plan?