Project Charter Scenario: Roto Air You will be working with the following scenario throughout this course. You are free to make reasonable assumptions when facts have not been provided, but do state them as you complete the assignments. You are a projec

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Home >Business & Finance homework help >Operations Management homework help >Project Charter Scenario: Roto Air You will be working with the following scenario throughout this course. You are free to make reasonable assumptions when facts have not been provided, but do state them as you complete the assignments. You are a projec

2 Project Management Life Cycle

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Learning Objectives

By the end of this chapter, you will be able to:

• Explain the importance of project governance.

• Identify the phases in the project management cycle.

• Describe the activities necessary to align and initiate the right project.

• Discuss how to prepare the project management plan and baseline documents.

• List the components necessary to execute a project plan.

• Identify the steps needed to monitor and correct work to meet project objectives.

• Describe the process of closing and assessing a project.

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Introduction

Pretest

1. An organization’s top management, stakeholders, and customers are involved in governance of its projects. a. True b. False

2. Because no two projects are alike, each passes through a different number of major phases during its life cycle. a. True b. False

3. The primary goal of the initiation phase of the project life cycle is to select the right project to pursue. a. True b. False

4. Project teams should always seek to produce the highest quality deliverable possible. a. True b. False

5. Careful attention to detail during the planning phase makes executing a project easy. a. True b. False

6. The monitoring and corrective action phase of the project life cycle involves looking forward at the work ahead. a. True b. False

7. In the final phase of a project, the project team and manager perform a financial audit that accounts for all expenditures and assets. a. True b. False

Answers can be found at the end of the chapter.

Introduction Have you ever been part of a project team that did not know where it was—or where it was going? While most projects go through predictable phases toward completion, sometimes team members get so involved in their own detailed tasks that they lose sight of the whole process. When this happens, projects can suffer because of a lack of urgency. It seems that there is no “flow” of work toward an end point, just a lot of individual tasks getting done.

To avoid this situation, someone must be able to see the big picture to ensure that tasks are completed according to schedule and that the project constantly moves toward its final

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Section 2.1 Project Governance

deliverables. This process of shepherding the project along as an integrated effort is called governance. We will address this function in this chapter, along with the various phases in a typical project.

Now that you have an introductory view of the field of project management, we will focus on the project management process and its five major phases. This chapter is an overview of these broad, sequential phases of project management, each of which adds value and content to the project as it moves from initial concept to production and delivery to the customer.

2.1 Project Governance The concept of project governance is important because it designs the system of project phases and guides projects through the project cycle. Project governance is the process of leading and managing a project, including all supporting processes and support systems to ensure achievement of project goals. The project cycle is the complete, sequential process that projects go through from beginning to end, broken down into phases. Project phases are the steps or stages projects go through toward completion, specifically initiation, planning, execution, monitoring, and closeout.

Governance implies an enterprise-wide system directed by top management to structure processes, decision-making tools, and supporting functions that serve project managers and their teams. It is the overseeing function and can include top management, stakeholders, and even customers, since they often drive some project decisions themselves.

Company or agency leadership determines project governance through policies and pro- cedures on how projects are to be handled. In more mature, project-based organizations, governance is an enterprise-wide activity, and the business of producing and improving is accomplished through projects. The organization supports the project management process through a support system and culture based on doing work through projects. Such an organi- zation would refer to project management as “the way we do business.”

A project management office (PMO) is associated with governance-type functions, including:

1. standards for project success; 2. project phase definitions and requirements; 3. guidance for project and phase-gate reviews; 4. procedures to resolve conflicts; 5. quality standards for deliverables; 6. communication and reporting requirements; 7. standards for organizing the project team, including a matrix framework that relates

functional and project manager responsibilities; and 8. procedures for change orders and other kinds of changes in project plans.

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Phase 1

Initiation

Align and kick off

the project

Phase 2

Planning

Produce project plan

Phase 3

Execution

Assign and direct

work

Phase 4

Monitoring

Track project

Phase 5

Closeout

Close, evaluate, and learn

Section 2.2 Project Management Cycle

The PMO serves top management as well as project managers and teams. Support to top management includes analysis of project data, learning from past projects, staff support to phase- gate reviews at the end of each phase, and keeping up with developments and software systems in the field. Phase-gate reviews are stopping points at the end of each phase when manage- ment takes a hard look at the progress of the project and decides whether to proceed to the next phase. The PMO serves project managers with project data, documentation, schedule and budget updates, staff support to proj- ect team meetings, and monitoring and tracking information.

In organizations without a strong project management ethic and no overall governance sys- tem, project managers must handle project guidance, structure, and processes themselves. Although all the tools and techniques of project management are available to these managers, they face more difficult challenges without a supporting system and culture.

2.2 Project Management Cycle Figure 2.1 provides a view of the five basic phases: initiation, planning, execution, monitoring and controlling, and closeout and outcomes assessment. Before discussing what goes on in each phase, we will focus on why these phases are important and how they add value to the whole process. Each phase has a principle theme or purpose.

Figure 2.1: The project management cycle

The project management cycle is made up of five phases: initiation, planning, execution, monitoring, and closeout..

Phase 1

Initiation

Align and kick off

the project

Phase 2

Planning

Produce project plan

Phase 3

Execution

Assign and direct

work

Phase 4

Monitoring

Track project

Phase 5

Closeout

Close, evaluate, and learn

Fuse/Thinkstock

Ensuring that products meet a specific standard is just one form of project governance function.

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Initiation Planning Executing Monitoring Closeout

Project Monitoring and Corrective Action

Section 2.2 Project Management Cycle

The purpose of each phase is as follows:

1. initiation: the early strategic planning and startup phase for selected projects; 2. planning: the design, work plan, schedule, and budget; 3. executing and assigning the work: the process of authorizing and carrying out the

work; 4. monitoring and controlling: the process of looking over the work being accom-

plished, identifying variances from the plan, adjusting to change, and taking correc- tive actions; and

5. closeout and evaluation: closing out the project and evaluating its performance in terms of goals, planned outputs, and longer-term outcomes and benefits.

Phase 4, monitoring or tracking project progress, actually occurs throughout the project from beginning to end, even though most monitoring occurs during the execution phase. Figure 2.2 provides another way of showing the role of the monitoring function.

Transitions from one phase to another focus on making sure the outcomes of each phase— marked by phase gates, or project reviews on performance to date—are consistent with plans and offer promise for the continuation of the project. Although not every project will go through all five phases and some project managers may not be in charge for all of the phases, top management typically stresses that no project can be successful unless it goes through the whole process.

Although the phases are typically completed in sequence, some projects may conduct some phases in parallel. For instance, planning and execution can be conducted in parallel when it is possible to implement early stages of the plan while later stages are still in development.

In a project to design a new sports stadium, the design architects and construction engineers would collaborate to design and build parts of the stadium together. As soon as designs are drafted on a given portion of the stadium, the construction engineers will begin to build it. The execution and monitoring phases can be conducted in parallel so that key execution tasks and milestones are monitored as they are completed. When phases are managed concurrently, it is critical that there is constant communication between the task leaders (those assigned to tasks or in charge of those assigned to tasks) of both phases to ensure effective coordination and collaboration.

Figure 2.2: Project monitoring

Monitoring occurs throughout every phase, though a majority of monitoring occurs during execution.

Initiation Planning Executing Monitoring Closeout

Project Monitoring and Corrective Action

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Section 2.2 Project Management Cycle

Projects are managed through these phases, whether they are performed by companies, non- profits, or the public sector.

Phase Activities

Each project phase activity has a purpose tied to its overall goal, and each is linked to the pre- vious and subsequent activity. While this sequence is a model of interdependence and seam- less handoffs from one activity to another, it provides a wide view and guiding framework for actual work. No project will go smoothly through these phases, but they provide some structure to guide the process.

State Department of Health and Human Services Public Sector Case Study

As you recall, Secretary of HHS Robert Mikawa, Performance Officer Veronica Ramirez, and Assistant Secretary for Programs Rebecca Dawson have started the conversation on how to equip the department with a management system that will allow them to reduce costs and control medical costs in their state. They have determined that the biggest chal- lenge is to install a cascading system that begins with strategic objectives at the top and integrates these objectives through the hierarchy down to operations and product and service delivery.

The group has been debating how to define their new system. Mikawa and Ramirez are arguing their points.

Ramirez wants to focus on middle management and its ability to define and transition pro- grams and projects that are aligned with the agency’s long-range plans. She stresses the need to get everyone in their agency on board if they want to make a change to become an agency that controls costs within their available budgets, delivers specific products and services, works to improve quality and performance simultaneously, and evaluates pro- grams and projects in terms of earned value. (Earned value is an accounting of how much work is done that is consistent with the original work definition, cost, and schedule.)

Mikawa argues that they are not a corporation and need to keep in mind their public expo- sure. He reminds the group that HHS works through other agencies and does not produce anything that reaches customers directly.

Ramirez thinks that this can be managed by using the project management phases: initia- tion, planning, execution, monitoring, and closeout, along with phase-gate reviews for each phase completion. She wants to mandate this process to all agencies receiving state and federal health assistance so that everyone in the network HHS serves is on the same page. However, she concedes that it will be difficult with the public exposure and they will be sub- ject to criticism by anyone who opposes the project, regardless of how it is managed.

Question for Discussion

1. Do you feel that using project phases will be helpful to HHS? Explain your reasoning.

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Section 2.2 Project Management Cycle

These phases follow the framework for project phases in the Project Management Institute’s (PMI’s) Project Management Body of Knowledge (PMBOK) standards. However, this chapter departs from the standard process by focusing more on the goals and activities of each phase and broadening the role of project management in the whole process through which an orga- nization plans its portfolios, or its investments in improvement and growth; its programs, or its broad sets of projects in each target area; and its specific project deliverables.

Table 2.1 shows a summary of the phase activities. Note that each phase has a major pur- pose and is characterized by several typical activities. Some projects will go through each of these activities, but some will perform only those activities relevant to that project and its deliverables.

Table 2.1: Phase activities in the project cycle

Phase 1: initiation

Phase 2: planning

Phase 3: execution

Phase 4: mon- itoring and controlling

Phase 5: closeout and evaluation

Purpose Choose and shape the right project to position it for success.

Produce a project plan.

In carrying out the plan, build inter- dependence, accountability, and quality into the effort

Track progress to make sure the project is going accord- ing to plan

Assess lessons learned.

Activity 1 Review stra- tegic plan and generate ideas and concepts to deliver on the plan.

Define project objectives, scope, and deliverables.

Direct initia- tion of project work, make assignments, clarify expecta- tions, and clear the path for performance.

Develop proj- ect tracking and monitoring approach.

Obtain acceptance of deliverables by customers.

Activity 2 Generate a portfolio of investments, programs, and projects to implement the strategic plan.

Develop proj- ect plan and documents, including broad outline of scope, time, cost, quality, communica- tions, human resources, risks, pro- curement, information systems, and stakeholder engagement.

Acquire neces- sary project resources, both internal and contractor.

Use past phase- gate review information to control work.

Review project budget and cost information and prepare for final audit.

continued

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Section 2.2 Project Management Cycle

Phase 1: initiation

Phase 2: planning

Phase 3: execution

Phase 4: mon- itoring and controlling

Phase 5: closeout and evaluation

Activity 3 Develop criteria for selection and prioritiza- tion of projects.

Develop work breakdown and task structure.

Clarify project objectives, roles, assign- ments, and accountability of the project team.

Conduct fre- quent review meetings, tele- conferences, and group discussions on progress.

Conduct post- project reviews with team, stakeholders, and sponsors.

Activity 4 Select and pri- oritize projects.

Develop inte- grated project schedule.

Enable and empower project team to perform through train- ing, develop- ment, and incentives.

From monitor- ing effort, iden- tify changes in project, orga- nizational, and environmental changes requir- ing action.

Archive project data and documents.

Activity 5 Define a vision of the project and initial scope, customer, and business case.

Conduct cost estimate and budget.

Oversee work and identify gaps in working relationships.

Review con- tingencies, take corrective action, focus team on for- ward view.

Close out contract and procurement activity.

Activity 6 Select project manager, team, and charter.

Conduct risk assessment and risk matrix.

Report on proj- ect progress and issues.

Counsel team members on performance issues.

Conduct lessons-learned focus groups and prepare a report.

Activity 7 Identify stake- holders and align expecta- tions with proj- ect purpose.

Negotiate with team and func- tional leaders on project requirements.

Manage team performance and problems.

Prepare for phase-gate review.

Perform a team assess- ment and identify next assignments.

Activity 8 Conduct phase-gate review.

Conduct phase-gate review.

Tools and Techniques

Various project management tools and techniques are typically applied in various phases. For instance, in the initiation phase, projects are selected through a portfolio process that uses tools such as a weighted scoring model to compare and score projects in terms of their alignment with strategic objectives. A portfolio is a financial term referring to a company’s planned investments. A project portfolio process determines what projects will be approved and funded by the enterprise, creating a series of projects that are characterized as the enter- prise portfolio.

Table 2.1: Phase activities in the project cycle (continued)

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

In the planning phase, a WBS is developed, defining the work involved in producing the proj- ect outcome. Also in this phase, a Gantt chart schedule is typically prepared to serve as the basic point of departure for executing, adjusting, and completing sequenced tasks.

In the execution phase, work is actually authorized through a work authorization process that enables the team to proceed from task to task and phase to phase. In the monitoring phase, earned value calculations are made that measure the variation of the actual work versus the planned work in terms of schedule and cost. In the project closeout phase, a lessons-learned document is prepared from feedback on what did and did not work in the project cycle.

2.3 Phase 1: Aligning and Initiating the Right Project The initiation phase is intended to assure that the right projects are selected. The underly- ing assumption in this phase is that if a project does not evolve out of a strategic planning and budgeting process driven by the organization’s leadership, its chances of succeeding are lower than that of a project that comes from a structured planning process.

Despite the tight budgeting, scheduling, and quality control efforts in the project manage- ment toolbox, ad hoc and unaligned projects—sometimes called pet projects—face major obstacles. In other words, the right projects align with the organization’s plans and capacity to produce. A project that has been conceived and shaped from the parent organization’s planning and phasing process—as well as an assessment of its core competency and capacity to perform and a phase-gate review after each phase—will likely succeed. Good projects typi- cally result from an analysis of the market or the customers and clients it is intended to serve.

There are two subphases in phase 1 that ensure the right project is selected: alignment and initiation. Alignment activities confirm that projects are in line with the organization’s plans and goals, so they are better positioned to succeed. These four activities include reviewing the strategic plan; generating the portfolio, programs, and candidate projects; developing criteria for project selection; and selecting the project.

Initiation then begins in activity 5, as the project is identified and fleshed out. This subphase is when the project manager typically takes charge and where the definition of the project initiation phase begins in the PMBOK standard for project management.

Activity 1: Produce a Strategic Plan and Objectives for the Enterprise

As the PMI has acknowledged in its standards on portfolio and program management, projects should be aligned with the company’s strategic plan. The key decision to proceed is a budgetary commitment of the enterprise to fund the project at least through its first phase, initiation.

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

A strategic plan reflects the results of a strengths, weaknesses, opportunities, and threats (SWOT) analysis, and the strategy identifies opportunities for advancing the company’s goals and ways to offset its weaknesses. The strategy aims to take advantage of its opportunities, addresses its threats and risks, and overcome or improve its weaknesses.

The strategic plan outlines the longer term approach the enterprise will take to address its goals and objectives. Strategic planning identifies how the organization is positioned within its market arena to succeed. The plan reflects an understanding of external and internal forces that affect its performance and provides guidance to shorter term, tactical actions, such as programs and projects, to carry out the strategy incrementally year-to year.

For instance, as an outcome of its stra- tegic planning process, the Coca-Cola Company could establish a goal of increasing its market share in the mobile bottle vending machine system market. Its strategy might be to develop a variety of new product concepts that would deliver more variety in vending options to the customer and in more locations than the competition. That strategy would be fleshed out in objec- tives over several years and would be funded in the budget system.

Remember that a strategic plan is a broad look at how to achieve outcomes that benefit the organization, whereas individual projects are short-term initia- tives that produce outputs and services. The last phase of a project, closeout and evaluation, focuses on two aspects of the project: (a) whether the project achieved its goals in terms of outputs, products, and ser- vices, on time and within budget; and (b) whether the project contributed value to the strategic plan in terms of outcomes.

A project may have been managed well and achieved its efficiency objectives but still not have contributed to the organization’s strategic plan. For instance, an aviation company could pro- duce new aircraft cockpit instrumentation on time and within budget, but the instrumenta- tion could be found unacceptable in commercial aircraft because of new federal regulations that were promulgated after the project design.

Jewel Samad/Staff /AFP/Getty Images

The Coca-Cola Company has created very successful strategic planning—especially in how it distributes product to the consumer, such as through vending machines.

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

The Links Corporation Private Sector Case Study

Although the Links Corporation leadership has determined that the company needed to move toward a stronger project management system, leadership had not yet convinced the workforce of the need to change. CEO Phillip Johnson and HR VP Sheila Chen discussed the situation and agreed to begin the strategic planning process by holding meetings with the board to get feedback and to design a plan for change that would be brought to the workforce.

Some Background

The company had determined the need for change during a top management planning process that looked into the future in terms of global markets and economic developments, as well as the company’s capacity to respond and stay ahead of the competition in meeting new demand.

The company had produced a strategic plan along with objectives and was in the budgeting process, selecting and funding major programs and projects for improving its position in the market for the 2014–2015 period. A total of $5 million remained available for projects during this period.

The company identified five major strategic objectives:

1. Improve its capacity to produce new products in the transportation field. 2. Increase its profitability in production and manufacturing. 3. Improve its productivity through a focus on new processes. 4. Improve its workforce morale and energy level. 5. Identify new customers in emerging markets.

The company generated five major projects that focused on moving toward these objec- tives, but found in the process that there were major questions about whether the com- pany was positioned to carry out these funded projects with its current workforce and key business processes.

Given its strategic planning and SWOT analysis, the company saw that it had strong market share in the production of aviation instrumentation in compliance with federal regulations and standards but was weak in innovation and new products. It had not extended its core competency in instrumentation to other fields and markets, even though the opportunity was there. Company leadership decided to halt funding new projects until it determined how capable it was of producing them.

In moving toward a new core competency in project management, Chen determined that the process needed to be defined and described. This led to a short planning effort that produced a five-phase project life cycle to demonstrate how the company was going to move new improvement projects through from initiation to final project closure and delivery, including phase-gate reviews. Chen and Johnson then created a presentation of this life cycle to present to the board.

Question for Discussion

1. Why do you think the company has determined that its ability to produce new, innovative products would be enhanced through the use of project management and project teams?

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

Activity 2: Generate a Project Portfolio, Programs, and Candidate Projects

Programs and projects are shorter term, tactical initiatives that work in combination to move the enterprise closer to its strategic objectives. A program is a broad framework for several projects that are focused on the same strategic objective.

Once a strategic plan is developed, programs and projects are generated to implement the plan. This is accomplished by addressing the strategic objectives with broad initiatives that are translated into programs and specific projects.

For example, a program of projects to implement the Coca-Cola Company’s strategic plan could include:

1. a market research program aimed at understanding future user needs, with several associated projects;

2. a new product development program aimed at developing three separate, highly interactive vending systems and projects; and

3. a new hiring program aimed at improving its internal capacity to engineer and test new products.

The specific projects in this line of planning are the focus of this book, but it is important to see projects as manageable, temporary, and team-based initiatives that deliver on the goals and objectives of the enterprise. Projects are short-term, controlled efforts of work to pro- duce new products and facilities, improve the way the company operates, or carry out its core business. No project operates as an isolated activity in a project-based organization; it is connected to other efforts and calls for a high degree of collaboration and coordination within the enterprise.

Activity 3: Develop Criteria for Project Prioritization and Selection

Still in the subphase leading up to selection and initiation of a project, this activity develops standards for an organization to use in separating out the potential projects from those that have less promise. While the content of this process is highly specific to a given industry, there are generic issues involved. Four major standards may apply: the business case, alignment, enterprise capacity, and financing.

The Business Case This standard measures a project in terms of value added, using an indicator of project-produced revenues and profitability for a private sector enterprise and project-produced benefits and social outcomes for a public nonprofit agency. The business case must be made for each project to assure that it contributes value to the goals of the organization. Measures in the business case are also used in phase-gate reviews. Business value is analyzed using revenue and benefit projec- tions that will be explained in more detail later in this book.

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

Alignment This standard aligns the project with the organization’s goals and strategic plans. A project may have value, but it should be connected to the organization’s plans to increase its likeli- hood of success. Alignment is measured by a model that scores the project compared with a ranking of strategic objectives. In this case a project is given a score from 1 to 10 based on how well it is aligned with the company’s strategic objectives. If a project does not relate at all, it receives a score of 0; if it is a critical activity in achieving the objective, it receives a 10.

Enterprise Capacity This standard measures the organization’s capacity to successfully produce the project out- put and outcomes, given its past history and performance in the field appropriate to the intended outcomes.

Financing If several candidate projects exceed the standard for implementation but the organization cannot afford to fund them, then they cannot be selected. Therefore, a major standard is the budgeting process that identifies available funds for investing in projects and establishes a cutoff point based on financing.

Activity 4: Select and Prioritize the Project

Using these four measures and other measures tailored to the industry or agency, projects are selected for implementation. Examples of these additional measures tailored to a particular industry might include:

1. government health regulations and extent of risk involved for a health services project; 2. availability of labor, new building codes and planning or zoning issues, and availabil-

ity and cost of construction equipment for a construction project; 3. prospect of security and patent problems, competition, and business risk for a new

product project; and 4. technical feasibility, government regulations, and data-security issues for an IT project.

This subphase begins the project initiation process described by the PMI in its PMBOK stan- dards, which includes the selection of a project manager and the creation of the project team. The assumption is that the designated project manager for a selected project may not have been party to the original inception of the project in subphase 1. In this case the project manager is expected to review the documentation generated by the subphase to gain insight into how and why the project was selected for execution. Much of this data will be relevant to how the project is initiated and is useful in setting project goals (which are the intended results of a project in terms of quality, cost, and schedule) and objectives that align with its history.

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

Activity 5: Develop Project Goals, Vision, Scope, and Charter

This activity may or may not include a project manager and team, depending on when they are chosen. But the three elements of this subphase are important in setting project goals, boundaries, and expectations of the project.

The project vision is a statement by the organization leadership about how the project, through its products and outcomes, is expected to contribute value to the organization. The vision is not simply that of the project manager but of the whole organization.

For example, a project vision for a digital health system project might be:

This project will produce a new digital health system model and a set of global standards to apply to the model that all health agencies can use to provide a paperless health records system that would be recognized and used through- out the world.

The project charter is top management’s authorization to proceed; it is the mandate or “charge” to the project manager and team to accomplish their goals. The charter gives the project legitimacy and eligibility for company resources and process supports. It also pro- vides the team with a sense of the project’s boundaries.

A project charter for a digital health system project might read something like:

This digital health system project is a key element in the company’s strategic objective to establish itself as the designer and developer of the first global digi- tal health records system model. This project therefore is a pivotal part of the company’s financial and market goal for the next several years. The project is to include the design of a health records information system framework, includ- ing all necessary components, platforms, software, and network connectivity. The project also includes an installation process that can be used to install the system into any compatible health records system at all levels, such as health professionals, clinics, hospitals, health insurance companies, and government medical offices. The system is to be secure, meeting the standards of the national cybersecurity task force recommended criteria for broad health systems.

The project scope of work describes the work to be done to complete the project. It defines the project tasks, activities, phases, and deliverables and defines the requirements for cus- tomer approval. The purpose of the scope is to define the work expected to produce the required deliverables within schedule and budget constraints. In defining the work, the scope also draws the boundaries of the project so that it is clear when work actually being done on the project will exceed the work included in the scope. When work exceeds the scope and risks cost overrun, it is called scope creep.

A project scope might read something like:

This project will include all health records of all patients covered by any kind of insurance system but will not include patients without such insurance. The latter patient record system will be established as follow-on activity to

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

this project but is not included in this project. The scope of work includes all developmental and design activity to produce and install prototype hardware platforms, software, network accessibility, and electronic systems necessary to support a global network. The scope does not include any work to design, develop, or install digital health record systems for institutions or for health professionals who are uncertified by the American Medical Association and the U.S. Department of Health and Human Services.

The statement of work provides details on the work to be accomplished to meet customer requirements. It is typically designed for contractors as a contractual document. Contractors are responsible for performing the statement of work that is made part of the contract.

A project statement of work might read something like:

The contractor will design and develop a network system to facilitate exchange of information on a digital health records system, including but not limited to all platform, broadband, software, hardware, satellite, cable, and connection equipment to serve mobile phone, business system, and residential personal computers and tablets.

Activity 6: Select a Project Manager and Team

Recall the qualities of a good project manager from Chapter 1. They include:

• leadership: vision, interpersonal skills, and the capacity to influence behaviors and work performance;

• motivation: understanding motivation and the ways that individuals can be motivated;

• understanding organizational culture: understanding that the values inherent in what is acceptable behavior in the organization drive performance to a certain extent;

• understanding values: the beliefs and standards held by the individuals in the orga- nization. Project managers must instill in their project teams the values of project management, discipline, control, predictability, open communication, efficiency, quality, agility, and interdependence;

• experience in job design: focusing on real tasks, not artificial job descriptions; • resolving conflict: the ability to address conflict; and • good communication: the ability and willingness to communicate honestly.

Companies and agencies will vary in determining at what point in the project cycle a project manager is selected. Typically, a project manager is not selected until the early stages of phase 1, initiation. Most project managers are not active parties in the early strategic planning and analy- sis that ideates and generates the project, although they may be. The project manager should have the following credentials:

1. practical experience leading and managing a project team; 2. technical familiarity with the project processes and outputs; 3. strong leadership, interpersonal, and problem-solving skills;

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Section 2.3 Phase 1: Aligning and Initiating the Right Project

4. working knowledge of basic project management tools, including application of database packages such as Microsoft Project® or another project management soft- ware program; and

5. demonstrated capacity to control project work and focus on producing project deliv- erables on time, within budget, and in line with customer requirements and quality standards.

Project managers should not simply be technical experts; they must have the capacity to lead and manage people and processes.

The project team is typically selected after the project manager is chosen. The process of selecting members of the team starts with a high-level WBS and description of the project process tailored to the target products and ser- vices in the project. The work itself is broken down first in order to popu- late the team with specialists, techni- cians, professionals, and support staff capable of doing the technical work inherent in the project and their task assignment.

Activity 7: Identify and Engage Stakeholders

Stakeholders are the key clients of the project; those people and institutions with a stake or investment in the success of the project. The network of stakeholders in a complex project can be formidable. For instance, for a major building construction project, the stakeholders might include:

• suppliers of construction materials, • current and prospective owners of the facility under construction, • local and state building code officers and personnel, • investors in the company managing the project, • unions and employee associations involved, • trade associations promoting specific materials in the construction process, • construction safety officers and government safety organizations, • land-use and zoning interests associated with the location and setting of the facility, • emergency responders in the local fire station serving the facility, and • representatives from Americans with Disabilities Act interests targeting handi-

capped accessibility.

This initial listing shows that there are many interests in any project, all of which have a direct interest in how and when this project is completed and who will actively voice their opinions throughout the process.

mediaphotos/iStock/Thinkstock

A project manager should have the technical skills to understand the project, such as the ability to read and comprehend building plans.

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Section 2.4 Phase 2: Planning

Activity 8: Conduct Phase-Gate Review of Phase 1 Outcomes

As indicated previously, every project should incorporate a checkpoint at the end of each phase to enable an enterprise-wide view of how things are going and whether to proceed to the next phase. This checkpoint is typically called a phase gate, or sometimes a stage gate. It requires a formal assessment conducted by the project manager and top management offi- cials, including the project sponsor.

In preparation for the review, the project documentation is completed for phase 1 and made available to all participants in the phase-gate review. Important input documents for this review are project vision, scope, charter, and an assessment of the project team capacity to proceed to planning.

Changes in the agency strategic planning and scanning are reviewed. The major function of this phase-gate review is not the performance of phase 1 as much as the extent to which the project is still aligned with the external factors inherent in the strategic plan. This means that the effort to align, select, and initiate the project in phase 1 was based on the strategic plan and objectives that were generated by the SWOT analysis. Have those forces changed or did new developments in the external world or internal to the organization occur during phase 1 that might change the basis for the phase 1 process?

Other questions in the review include:

• Did the project identify the right project; is it aligned with the organization’s strategic plan and long-term goals?

• Did the project produce a project vision, charter, and scope? • Were the project manager and team composition determined? • Did the project identify the project stakeholders? • Does the project appear to have value to the organization; will it help sustain and

develop the organization based on its vision, charter, and scope? • Finally, should the project be authorized and funded to proceed to the planning phase?

In sum, the initiation phase prepares a project for detailed planning and execution by making sure it is aligned and consistent with the business plan and has the potential for success. This is also where projects are terminated because they are not aligned, not well thought out, or cannot be funded.

2.4 Phase 2: Planning This phase involves the preparation of two kinds of plans: (a) a project management plan that outlines how the project will be managed, and (b) the actual project plan and baseline documents that guide the team, including the definition of requirements, outputs and deliver- ables, WBS, schedule, budget, risk management plan, and other content documents.

The project management plan addresses how the project will be managed and delivered. It includes all plans and baselines, or the basic core activities in the project. Its main audience is the project team, functional managers in the organization whose support is required, and the

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Section 2.4 Phase 2: Planning

company’s top management, and it explains how they are to collaborate in order to complete the project. The plan includes the process of producing the project goals, charter, scope of work, requirements, schedule, cost estimate, quality control, risk assessment, procurement and contracting, and stakeholder communication. It also covers the review and change man- agement process, team assignments, and how documentation will be handled.

The baseline documents address the content, or the actual project plans to be included in the project management plan:

1. The scope of work 2. The work breakdown structure 3. The project schedule 4. The cost estimate 5. The risk assessment 6. Change management procedures

The project plan includes the substance of the work, or the key deliverables, how the deliver- ables will meet customer functional and quality requirements, how the project work will be accomplished technically, and how the work will be integrated, tested, and delivered.

Activity 1: Define Project Objectives, Scope, Risks, and Deliverables

The project objectives are derived from the alignment of the project to the organization’s strategic plan. Objectives are stated in terms of how the project will measure success or what criteria will govern assessment of the project.

For instance, in a construction project, the project objectives might read something like:

The objective of this project is to design and build a four-story office building that meets customer requirements and is consistent with the final design and engineering drawings and metrics for the project and that meets or exceeds applicable building and land-use zoning codes. The facility is to be completed in 30 months at a cost of $55 million. The final building will house a variety of technical organizations and will meet the requirements of each in terms of space, wiring, ventilation, decor, and general functionality.

Scope The scope developed in phase 1, activity 5, is outlined in more detail in this stage and incorpo- rated into the project plan. The scope will then be disseminated to the team, top management, and key stakeholders to get consensus on the boundaries of the project and what work will be done.

Risk Management Plan The risk management plan is prepared to describe the process used to assess risks. It covers the process of documenting project risks and producing plan elements, including a qualitative

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Section 2.4 Phase 2: Planning

risk analysis (a prioritized listing of risks based on severity and probability for more in-depth analysis), a quantitative risk analysis (a numerical analysis of the impact of the risks identi- fied), and a plan for controlling risks (actions to track, reduce, and evaluate risks and threats).

Risks are to be identified, assessed, and organized in a risk matrix, or risk register. The risk matrix is a handy tool to sum up the results of risk analysis. It identifies all project tasks that pose a potential risk, or a possibility of failure, then describes the risk associated with each task, the probability that it will occur, its impact on the project, its severity in terms of its potential damage to the project, and finally a series of preventive actions or contingency actions to mitigate the risk. The actions are fed back into the scheduling activity as contingent tasks to assure that they are included should the issue occur.

Deliverables Deliverables are project outputs, such as documents, services, physical products, plans, and specifications, inherent in the customer’s requirements. These are the key outputs of the proj- ect that create value for the customer and are typically identified in the project schedule as key milestones and final outcomes.

Activity 2: Develop a Project Management Plan

This activity creates a project management plan that defines the project process and the expectation for how the team is to collaborate to complete the work. This plan provides the standard of excellence for the project team and its functional staff. Its focus is management, including project administration, schedule, resources and costs, company or agency pro- cesses, information system support, task integration and handoff, team performance, change procedures, meetings and information exchange, and product quality.

The plan is a living computer file, not a static hard-copy plan. It is a series of files in a project folder that are available to all team members in a network environment. As a digital file or series of files, the project plan is flexible and provides a procedure for change requests that can be initiated by any team member.

Project Administration This file includes procedures for addressing job and task descriptions, performance appraisal and feedback, budget, procurement, scheduling, and employee support and recognition. It identifies how team members are expected to perform in terms of their jobs and their interac- tion with other team members, applicable human resource policies and procedures that will apply to the project, and budget and scheduling requirements.

Schedule The final project schedule is a separate file, typically in Microsoft Project® or a similar project management software program, that can be accessed by team members, along with a feed- back process to allow team members to identify schedule changes and impacts.

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Section 2.4 Phase 2: Planning

Resources and Costs Final budgets are integrated into the schedule, so that each team member can see all costs asso- ciated with their tasks in the cost estimate and how variances in those costs can be recorded.

Processes The plan addresses how company processes such as test systems, network systems, and pro- curement processes are to be handled.

Task Integration and Handoff Here the plan addresses the importance of team performance. Each team member must keep other colleagues informed of how work is progressing and make them aware of any changes in due dates and handoffs from one task to another in the sequence of interdependence built into the schedule.

Information System Support This section addresses how and where data and information will be accessed, as well as asso- ciated network issues such as access from mobile devices and tablets. This process involves making sure all team members have access to all relevant project data but also that the data is secured through a computer security system.

Team Performance, Meetings, and Information Exchange Here the plan addresses how teams will communicate through conventional and virtual meet- ings, teleconferences, and other systems. Ethical codes of conduct are also included to ensure that all team members understand the importance of honest progress reporting as well as company policy and procedures on proprietary information and cybersecurity.

Change Procedures Given the inevitability of change in the dynamic environment of a complex project, the pro- cess of change and change requests or orders is addressed. A process for internal changes and customer- and contractor-based change orders is provided.

Product and Work Quality Project team members constantly face difficult decisions on how much quality to build into project deliverables. Quality is defined in terms of company standards and customer require- ments. Company standards are typically derived from industry standards on such activities as software development, electrical engineering, and publishing.

Since the project does not always call for this highest standard in a given deliverable, but rather the standard required by the customer, team members are reminded that achieving higher-than-necessary quality can be expensive and even lead to unacceptable deliverables, given customer expectations (Studer, 2013).

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Section 2.4 Phase 2: Planning

Activity 3: Develop a Detailed Project Plan, Including WBS, Task List, and Schedule

Project organization includes many of the traditional project planning and control steps, sim- plified for practical use. While this procedure can be handled by project management soft- ware, it is useful to go through the process by hand to understand how it can be useful in thinking through the project in the planning phase.

Organizing a project from scratch involves five basic steps:

1. Work breakdown structure 2. Task list with estimated durations, linkages, and resource assumptions 3. Network diagram 4. Time-based network diagram 5. Gantt chart schedule, which will be discussed in Activity 4

Work Breakdown Structure First level. The first step in defining the work necessary to produce the deliverable is to com- plete a WBS from the top (the deliverable) down to the third or fourth level of tasks. Microsoft Project® and other project management software programs provide a convenient template for building the WBS, which translates to the project work outline in the Gantt chart. The top of the WBS is the first level of this organization chart of the work. It is the final product or service of the project, up and running and accepted by the sponsor, client, or user.

Second level. The second level across the organization chart of the deliverable includes the five or six basic chunks of high-level work that serve as the basic components of the project; the summary tasks that are integrated at the end of the project to complete the job. For a soft- ware project, these chunks might include hardware platform, software, interfaces, training program, and financing. For a building project, these chunks of work might include the basic blueprint, foundation, wood supplies and carpentry, ventilation systems, water, and electrical systems. For a health management system, they might include the clinic population, health information system, medical personnel, space, and equipment.

Third level. The third level breaks down each of the five or six summary tasks into two or more subtasks that are necessary to complete to produce the second-level summary task. For a build- ing project, under blueprint summary task, this might include three tasks: Hire an architect, prepare a preliminary blueprint, and check against the trade association’s template blueprint.

Fourth level. The fourth level is an extra level of detail on the third level. For instance, for the hire an architect task, this might include a number of finer tuned tasks necessary to accomplish that objective: Build a list of candidate architects, develop the criteria for selection, screen can- didates, interview candidates, conduct reference checks, compile candidate information, dis- tribute candidate information, convene a meeting, and conduct the process of selection.

It is this last level of task that is used to create the task list, or the work assignments that will be necessary to identify and schedule before the work can begin.

Figure 2.3 shows a sample task list, and Figure 2.4 shows a sample work breakdown structure.

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25 30

35 3 3

100

20 100

50 40 50

E D

F G H

B A

C F

E, G

Screen candidates

Build candidate list

Reference checks Interview candidates

Define criteria for selection

Compile information Distribute information Conduct selection process

ID Task Duration (total estimated elapsed time) (weeks)

Resource (percent assigned)

Predecessor (linkage or dependencies)

Section 2.4 Phase 2: Planning

Task List To document the tasks to be completed in the project, it is helpful to prepare a task listing and update the listing each time a new or updated task is identified. The task list in Figure 2.3 includes tasks that a human resources department found necessary to complete a high-priority executive hiring process. The tasks start with a listing of candidates followed in sequence by all the tasks necessary to complete the hiring.

Here it may be useful to provide a word about estimating task durations. The process is not easy and can complicate a project if not done carefully. Since the duration of a task is depen- dent on the resources applied to it, project managers need to know resource availability and assignments before they can estimate duration.

The logic of the process is the following: If 4 people can complete a task in 5 days, then 8 peo- ple should be able to complete that same task in half the time, or 2.5 days. However, this logic does not always work, because it cannot be assumed that doubling a task staff increases the productivity of that staff by 100%. This is because each task staff member will have a different capacity to do the job and a different pace for completing it. Also, different combinations of task members will perform differently as a team.

The key here is that task duration estimates must take into consideration what resources are to be applied to that task and who will be assigned to the task; thus, resources (people and supplies) must be estimated before a task duration can be estimated and before the overall project cost estimate is conducted.

The purpose of the task listing is:

• to serve as the basic definition of the work required of each task, consistent with the definition of work in Microsoft Project® (Work = duration × resources), or another project management software program;

• to serve as the basis for the network diagram, each task will be an arrow in the net- work diagram; and

• to serve as the first opportunity to identify high-risk tasks.

Figure 2.3: Sample task list

This task list shows all of the steps, in sequence, that a human resources department will need to take to fill a position.

25 30

35 3 3

100

20 100

50 40 50

E D

F G H

B A

C F

E, G

Screen candidates

Build candidate list

Reference checks Interview candidates

Define criteria for selection

Compile information Distribute information Conduct selection process

ID Task Duration (total estimated elapsed time) (weeks)

Resource (percent assigned)

Predecessor (linkage or dependencies)

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Build candidate

list

Conduct selection process

Define criteria

for selection

Screen candidates

Interview candidates

WBS: Hire Key

Executive

Reference checks

Compile information

Distribute information

Phone calls

Web search

Review job

List qualifications

Priority list

Meet them

Full interview

Find early jobs

Write evaluations

Get feedback

Send out evaluations

Select and offer

Section 2.4 Phase 2: Planning

Figure 2.4 is a sample WBS for this project, with two levels of tasks shown. Note that the high-level tasks are dependent on the subtasks at the next level down before moving on to the next task. For instance, to build a candidate list, you must first make phone calls, con- duct a web search, and so on.

Figure 2.4: Sample work breakdown structure

The work breakdown structure shows the lower level tasks a human resources department must take to fill a vacancy. See how the subtasks “phone calls” and “web search,” when completed, “roll up” to the task called “build candidate list,” leading to the next task, “define criteria for selection,” that starts with a lower level task, “review job,” and so on..

Build candidate

list

Conduct selection process

Define criteria

for selection

Screen candidates

Interview candidates

WBS: Hire Key

Executive

Reference checks

Compile information

Distribute information

Phone calls

Web search

Review job

List qualifications

Priority list

Meet them

Full interview

Find early jobs

Write evaluations

Get feedback

Send out evaluations

Select and offer

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Project initiation

Project completion

Task A = 6 days

Task C = 50 days

Task D = 30 days

Task B = 3 days

Task E = 25 days

Task F = 35 days

Task G = 3 days

Task H = 3 days

Section 2.4 Phase 2: Planning

Network Diagram After identifying the basics of this summary task, a network diagram of the summary task is created. A network diagram is done with arrows and shows how each task is connected to the one that precedes it and that follows it. This linkage of tasks is called a task dependency. The dia- gram shows each task as a line, connected to the next task that follows it, and so on. The length of the lines is not related to the duration of the task. When tasks are linked together through the project, the whole sequence of tasks is called a path. There may be several paths in a project.

In Figure 2.5, you can see that task A and task B start the project off at the same time. Task A is followed by task C, then F, then G, then H. The path is described by the tasks linked in it; for example, A, C, F, G, H. Other paths in the project are A, D, G, H and B, E, H.

Project Paths Of all the paths in a project, one will be critical; that is, all the tasks in that path must be completed on time or the project will be late. The critical path will have the longest string of linked tasks in the project. Project managers try to avoid delaying any tasks on the critical path because any delay in those tasks endangers the project’s ability to produce its products or services on time.

Paths that are not critical have slack; that is, tasks in that path can be delayed without exceed- ing the duration of the critical path. Thus, there is some flexibility—or slack—in the dates tasks in that path are finished. In order to calculate the critical path, you need to know the

Figure 2.5: Network diagram

The network diagram shows each project task as a continuous line or arrow, connected to tasks that precede it and follow it. The diagram helps show what tasks are dependent on what other tasks before they can start. This figure illustrates the possible paths to a project’s completion. Note that the dummy activity does not produce progress toward the project’s completion..

Project initiation

Project completion

Task A = 6 days

Task C = 50 days

Task D = 30 days

Task B = 3 days

Task E = 25 days

Task F = 35 days

Task G = 3 days

Task H = 3 days

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A G H

C F

Weeks 48 72 96

Section 2.4 Phase 2: Planning

durations of each task in each path. Below are the durations of each task so that the paths can be added up to find the critical path.

A = 6 days B = 3 days C = 50 days D = 30 days E = 25 days F = 35 days G = 3 days H = 3 days

In this project the critical path is A, C, F, G, H because the combined duration in that path, 97 days, exceeds the other two paths, 42 and 31.

A, C, F, G, H = 6 + 50 + 35 + 3 + 3 = 97 (critical path) A, D, G, H = 6 + 30 + 3 + 3 = 42 B, E, H = 3 + 25 + 3 = 31

If you place the lines in a network diagram against a calendar, then the length of the line does coincide with the duration of the task. The result is a time-based network shown below. This figure shows the critical path as a continuous line, while the other two paths show dotted lines to represent the slack they have regarding when tasks are done. The value of this kind of figure is that it not only shows the critical path, but also the slack in each of the other paths (Figure 2.6).

Figure 2.6: Time-based network diagram

The time-based network compares the network diagram to a calendar to show, based on the relative length of each line, how long a task will take. This diagram also shows the slack in those paths that are not critical by a dotted line..

A G H

C F

Weeks 48 72 96

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Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Q1 Task Name

Q4 Q2 Q3 JulMay JunAprFeb MarJanNov DecOct

Compile Information

Distribute Information

Conduct Selection Process

Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Compile Information

Distribute Information

Conduct Selection Process

Start Date

10/07

10/15

12/24

02/04

03/11

04/29

10/14

05/01

10/09

12/23

02/03

03/10

04/28

05/01

End Date

Duration

149

Predecessor

Select Candidate Select Candidate

Section 2.4 Phase 2: Planning

Activity 4: Develop an Integrated Project Schedule: The Gantt Chart

The schedule is built from the WBS, first with entries of all tasks, then by estimating task durations and predecessors. Microsoft Project® or a similar project management software program will display a Gantt chart reflecting the interdependence of tasks and the impact on project and milestone due dates, as shown in Figure 2.7. This schedule is updated and fleshed out until there is team agreement, then a baseline schedule is made part of the project man- agement plan.

The Gantt chart combines the task list with information on task duration, start and finish dates, predecessors (tasks that must be completed before a given task can begin), and a bar chart showing calendar dates for each task and the project as a whole. We will go into more detail in Chapter 7 regarding how the Gantt chart is populated and applied in project manage- ment software.

Again, the purpose of the steps—going through the WBS, the task list, the network diagram, the time-based diagram, and finally the Gantt chart—is to show how the Gantt chart schedule is developed. Using modern project management software, these calculations are made auto- matically from entry data, but there is value in seeing how the schedule and task interdepen- dencies are built through these manual tools as well. Now we will see how the cost estimate is developed.

Figure 2.7: Gantt chart

The Gantt chart is a key project management tool because it shows each task in sequence, with durations, start and finish dates, and predecessors (tasks that precede each task). It also shows the tasks in a calendar bar chart to pin down exact dates for start and finish for each task, and shows dependencies with an arrow to the next task.

Adapted from Smartsheet.com.

Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Q1 Task Name

Q4 Q2 Q3 JulMay JunAprFeb MarJanNov DecOct

Compile Information

Distribute Information

Conduct Selection Process

Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Compile Information

Distribute Information

Conduct Selection Process

Start Date

10/07

10/15

12/24

02/04

03/11

04/29

10/14

05/01

10/09

12/23

02/03

03/10

04/28

05/01

End Date

Duration

149

Predecessor

Select Candidate Select Candidate

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Section 2.4 Phase 2: Planning

Activity 5: Prepare a Cost Estimate and Budget

The budget is typically provided to the project manager based on a project cost estimate and a budget decision on how the company will fund the project. The project manager and team build the cost estimate by associating resources with each task, entering unit costs, and assur- ing that all labor and material costs, plus overhead and administrative costs, are entered into the schedule. Thus, the scheduling effort creates a cost estimate that is a direct reflection of the sum of all tasks and resource needs.

For example, if a project includes three main tasks—design product, produce test product, and test product—costs for each task are estimated by the team members assigned to those tasks. They will review the work and duration and then estimate resources and costs in the following categories for their task and enter them into project management software (if appropriate):

1. direct labor: all personnel costs for the duration of the task; 2. indirect labor: all support costs; 3. equipment and supplies; 4. overhead: the percentage of costs that a company or agency incurs to support the

project, determined by audit; 5. administrative costs: the costs of management involvement in the project; and 6. other costs.

When all task costs are entered, a total project cost estimate is calculated and submitted to management for budget decisions. If the budget allocated to the project is different than the cost estimate, adjustments are made in the project to ensure that it can be completed within budget.

Activity 6: Conduct a Risk Assessment and Prepare a Detailed Risk Matrix

During this activity, the detailed risk matrix is prepared, consistent with the project manage- ment plan. Table 2.2 shows a detailed example for an organization that is creating a new airline.

Table 2.2: Risk matrix sample

Task Risk Probability Impact Severity Contingency plan

File U.S. Department of Transporta- tion (DOT) application

Application incomplete or missing required information

25% Delay in projected commence- ment date

Showstopper Resubmit application with DOT.

Pass DOT fitness test part 1

Sufficient business and aviation experience

25% Delay in projected commence- ment date

Showstopper Ensure man- agement team is experienced.

continued

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Section 2.4 Phase 2: Planning

Task Risk Probability Impact Severity Contingency plan

Pass DOT fitness test part 2

Review of operating and financial plans

25% Delay in projected commence- ment date

Showstopper Ensure seed and bridge funding (backup fund- ing programs) are in progress or completed.

Pass DOT fitness test part 3

Applicant’s history of compliance record with DOT rules and regulations

10% Delay in projected commence- ment date

Very high; would have to realign management team.

Should not pose a problem with intensive background check of man- agement staff.

File Federal Aviation Administra- tion (FAA) preapplication statement of intent

FAA preap- plication not on file before DOT reviews application

20% Delay in certification

Medium Ensure that this applica- tion is filed first.

Complete DOT application form

Markets served, frequency of flights, aircraft type inconsis- tent with first- year revenues and expenses

30% Delay in certification

Showstopper; will cause DOT to reject application.

Ensure that application is in align- ment with financials.

Potential impacts of risks are identified to enable the project manager and team to anticipate how a particular risk or risk event will affect project performance. For instance, if a contractor does not deliver a required component for a deliverable that meets requirements on time, it may delay not only the next task but also the whole project.

Activity 7: Negotiate With Team and Organization Functional Leaders on Project Requirements

This activity involves presenting the project plan, including early versions of the WBS, sched- ule, and risk assessment, to the team and getting their investment in the process so that they can contribute and take ownership of the process. The ultimate goal is to arrive at total con- sensus on the plan and to encourage all team members to incorporate it into their profes- sional planning and personal scheduling. Team members should have a unified view of the project so that they enter into the execution phase with a shared view of project success.

Table 2.2: Risk matrix sample (continued)

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Section 2.5 Phase 3: Execution

Activity 8: Conduct a Phase-Gate Review of Phase 2 Outcomes

Since the project is about to enter the most expensive and time-consuming phase, execution, it is important that the phase-gate review includes the right project team members and man- ager, top managers and sponsors, and selected stakeholders.

The following are questions that should be asked during the phase-gate review:

• Have the final project plan, including objectives, final scope and statement of work, schedule, budget, and risk assessment been thoroughly analyzed and are they sup- ported by quality data?

• Are the planning documents integrated or consistent with each other? For instance, does the project schedule align with the customer’s key milestones and final deliver- able due date?

• Will the required project resources, including key team members and functional support staff, as well as materials and supplies, be available when required in the project schedule?

• Have the key milestones been identified so that the project manager and team can assess progress using them?

• Is the project cost estimate consistent with the available funding for the project, and if not, should the project be adjusted or downsized to align with available resources?

When the planning phase is completed, the project plan is documented and the work kicked off to start the execution phase. Although all the planning tools help guide the project as it is implemented in execution, the project manager cannot simply rely on the plan. Execution requires the project manager to get things started and keep them going to meet scheduled milestones and deliverables, so customers and stakeholders are satisfied.

2.5 Phase 3: Execution Execution is the phase that delivers value—the process of carrying out the project work out- lined in planning documents. If the deliverable is a new public park, this is where it is planned and implemented. If the project deliverable is a magazine, this is where it is written, edited, and published. The goal of this phase is to carry out the plan.

Execution involves work assignments that engage the experts and supporting staff on the project team, working together to produce the project deliverables. This is a tricky phase because all of the planning in the world cannot guarantee that the team will collaborate, meet quality goals in their work, or perform according to schedule.

Activity 1: Create an Expectation of Team Accountability and Interdependence and Direct Project Kickoff

This is where the project manager kicks off the project and sets the tone for the project team as it begins to carry out the project plan. This activity includes a kickoff meeting that includes

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Section 2.5 Phase 3: Execution

a representative of top management and project sponsors. In this meeting, the value of the project is presented to assure project team members of the priority and critical contribution that a successful project will make to company performance.

Project work is formally authorized in this phase so that all project team members know the project has started and initial work is expected to begin on schedule. Although not all team members will have work that is covered by the project budget and therefore “authorized” in the initial weeks of the project, they need to know the project is underway and begin to plan for their participation. Project managers like to keep their project teams on work in the plan and schedule and to avoid work that was not included in the scope of work.

Activity 2: Acquire Necessary Resources, Internal and Contractor

At this stage of the process, the project manager ensures that the necessary resources— including materials, supplies, facilities, team members, and functional and support staff—are acquired and committed to the project. This is when the project manager identifies the neces- sary contract work and provides the basis for the procurement of contractor services, includ- ing writing statements of work and participating in the selection of contractors.

Activity 3: Clarify Project Assumptions, Objectives, Team Roles, Review Processes, Assignments, and Accountability

An important role of the project manager is working closely with each team member. This is an extension of activity 2 but with more emphasis on working with each team member to clarify assignments, review tasks and roles, assumptions behind the project and their partici- pation, and how performance will be reviewed, as well as to emphasize the interdependence and accountability built into the project plans.

This is an important step in the project because although team members and support staff may be assigned to this project, they also have other duties and responsibilities, some to other projects. Therefore, it becomes important that they see this project as a high-priority commitment, requiring them to plan their schedules and anticipate their task function well ahead of time.

Activity 4: Enable and Empower Team Members to Perform Through Training and Development, Information, and Guidance

This activity identifies gaps in team member competencies in light of project tasks, provides for closing those gaps through training, development, or contractor support, and ensures that team members have access to all key documents and files. An important by-product of this activity is the process of uncovering gaps in capacity that might not have been apparent in

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Section 2.5 Phase 3: Execution

selecting the team member in the first place. For instance, a software engi- neer may have been identified for the project based on a database and cod- ing capacity, but the project calls for a strong iterative function—developing software gradually through trial and error instead of all at once—that the team member has never experienced.

Activity 5: Oversee Work and Identify Performance Issues

Overseeing the work is a sensitive but necessary leadership function. This function requires the project manager to review task work in terms of quality and timeliness without micromanaging those doing the work. The manager is also looking to the team to identify performance issues early and assuring them that performance problems will be addressed.

Activity 6: Report on Project Progress and Issues

Reports on project progress are made in face-to-face or virtual meetings. Reports by exception—reports that communicate variations or diversions from the plan—should be the rule. Subjects or tasks that are not on the expectation report are assumed to be going well and according to plan. Reports should focus on what is not going as planned, on what adjustments are necessary, and on keeping top management, project sponsors, and stake- holders informed.

Activity 7: Manage Team Performance and Problems

Problem solving requires a capacity to identify issues and resolve them without exacerbat- ing interpersonal issues. This activity focuses on conflicts that typically arise in the execution phase regarding quality of work, handoff problems, individual performance problems, and lack of facility or functional process support. The project manager uses negotiation and com- munication skills to identify problems early and facilitate problem solving if the issue can be addressed through overt action.

For instance, if a team member is having difficulty getting access to required company test- ing or other functional support, the project manager will intervene and work with the func- tional manager to make the support available or will acquire it some other way, such as through contracting.

In the case of interpersonal or performance issues, the project manager may have to make difficult decisions to replace a team member who is not performing well.

Offering employee training is one of the best ways to ensure team members can perform their tasks efficiently.

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Section 2.6 Phase 4: Monitoring and Corrective Action

Activity 8: Conduct a Phase-Gate Review of Phase 3 Outcomes

This phase-gate review targets cost and schedule variances, new developments, and team performance. Here, top management and the project management team identify areas for corrective action, like changing the project content and WBS, schedule, deliverable defini- tions, or standards.

Cost and Schedule Variance If the project has negative variance, it is costing more than anticipated, given the work per- formed; or if the project is late—or unusually ahead of schedule—the phase-gate review will target the situation and identify the problem.

New Developments This phase involves any changes that might have taken place since the planning phase. Ques- tions are asked, such as have there been new developments in execution, is the feasibility of completing certain complex tasks in question, are there developing contractor performance problems, or have outside factors such as competition or regulations changed?

Team Performance Team performance must be evaluated as well. It must be asked if the team is performing well in executing the project and if not, what corrective actions are suggested for the next phase.

While project execution is underway, the project is monitored so that the project manager and team know whether things are going as planned. This means that the next phase, moni- toring and corrective action, is proceeding during execution rather than after execution is completed. It is considered a separate phase even though it goes on in parallel with the others as a tracking action.

2.6 Phase 4: Monitoring and Corrective Action Monitoring and corrective action is the phase that occurs in parallel with execution. Its pur- pose is to track actual work and to adjust and make corrections as needed to meet project objectives. Monitoring requires the selection of indicators and performance measures used to evaluate progress. As the work is executed, the tendency in this phase is to look back, to assess cost, schedule, and quality variance from the original plan using earned value tools.

Once variances and problems are identified, the project manager takes corrective actions. However, sometimes it is more important to point the team toward the remaining work and outcomes rather than concentrating on staying the course, especially if there have been changes and forces that require revisiting the original plan.

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Section 2.6 Phase 4: Monitoring and Corrective Action

Activity 1: Develop a Tracking and Monitoring System

The tracking and monitoring system has two basic goals: (a) to track variances from the plan, and (b) to look forward to remaining work, given current variances, and take corrective actions such as rescheduling the project. Project managers track measures of project prog- ress that are most important to project success, and these differ depending on the customer and the project.

In most projects, the core measures that are monitored are schedule, cost, quality, and cus- tomer satisfaction. Based on the design of the project monitoring system, data and informa- tion on each of these measures are collected regularly to make sure the project is progressing as planned. In addition, monitoring data suggesting major variations from the plan may require a completely new plan and baseline. The focus then shifts to how the remaining work can be completed on time and within budget, given the changes that have occurred.

While all phases of the project are monitored, monitoring is typically focused on the phase where most of the resources are consumed and the actual work accomplished—the execu- tion phase.

Activity 2: Use Past Phase-Gate Review Outcomes to Anticipate Issues

The phase-gate reviews from phases 1 and 2 will be useful to anticipate issues in the execu- tion and monitoring phases. For instance, if the phase-gate review from phase 2 identified some risks for which the assessment of probabilities and impacts was tentative or lacked supporting data, those risks become major focal points for monitoring and corrective action.

Since the phase-gate review is at the end point of each phase, it uses monitoring data and information to determine how the project is doing. This review differs from the regular proj- ect reviews during each phase because top management and the project sponsor are usually involved in the phase-gate reviews, so it is important that the right measures were tracked and the information is accurate.

Activity 3: Conduct Frequent Review Meetings, Teleconferences, and Group Discussions on Project Performance

Review meetings during each phase and especially during execution, all leading up to phase- gate review, should focus on the following agenda items:

• project updates: individual reports; • project issues and problems; • data and information; • corrective actions; and • team member performance.

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Section 2.6 Phase 4: Monitoring and Corrective Action

The focus for these regular project reviews is to track variance from the plan. Usually a variance of 10% or more from the budget or schedule will receive special attention by the project manager, who will try to understand what changes or events have prompted the variance. Sometimes the issue is bad estimates, but occasionally the data will expose major change factors unanticipated in the project planning process. Review meetings are short and sweet, with follow-up with partic- ular members of the team depending on the issue.

A major value of these regular meet- ings held every 2 weeks or so is to get early indications of problems, either in

the work itself or in team, contractor, or customer relationships. Reviews are typically docu- mented and used to report progress and prepare for the phase-gate review. Project managers typically try to avoid long meetings with the whole team, since time is at a premium in most projects and team members can become anxious when the issues being reviewed do not per- tain to them.

Activity 4: Identify Necessary Adjustments, Changes, and Unanticipated Forces

At this stage, the project manager is looking at changes, new factors, and events or forces on the project that were not anticipated or reflected in the plan. For instance, in a business marketing project, the monitoring process could indicate that the schedule for the production of the market research plan was late by several days, threaten- ing the timeline for the whole project. In pursuing the schedule slippage with the marketing specialist on the team, the project manager may find that the information on product per- formance was not made available in time to prepare the marketing plan. It turns out that the product development engineer was on time with product performance and testing data but did not make it available to marketing.

This is a typical handoff problem that occurs in projects when one task leader completes an assignment but does not make the effort to communicate progress and handoff to the next task leader. This kind of problem is internal to the project and can be addressed by a short meeting with the parties involved.

Sometimes, more critical outside forces are discovered in monitoring. For instance, in an IT project, monitoring data might suggest that all is well on project performance in terms of schedule and cost. However, in scanning the environment, the project manager might find that a competitor is marketing a product that performs better and more reliably than the project deliverable will, given its requirements and design. In this case, the project manager might flag this information and report it to top management or hold it for the phase-gate review.

BananaStock/Thinkstock

What is the benefit of conducting review meetings as a project manager?

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Section 2.6 Phase 4: Monitoring and Corrective Action

Activity 5: Review Contingencies and Take Appropriate Corrective Action

In this activity the project manager reviews the risk assessments and assesses various pre- ventive and corrective actions from the risk management plan. While it is one thing to pick up indicators of project problems in these reviews, it is quite another to figure out what to do about them. This is where the project manager’s judgment comes into play.

If the corrective action is not timed well, it may not be successful and can even undermine a project team. For instance, in a construction project one risk that was highlighted in planning was the potential for quality problems in required construction supplies and material. The con- tingency action for that risk was to terminate the contract and rebid the project. While this action might be effective, a project manager has to weigh whether improvements can be made in the current contract to address the supply quality problems and avoid the process of rebid- ding the work, which poses the risk that another contractor might have the same problems.

In any case, it is useful for a project manager to anticipate risks and problems and identify con- tingencies and corrective actions, if only to provide a starting point in the event of a risk event.

Activity 6: Counsel Team Members With Performance Feedback and Guidance

One of the benefits of regular project reviews is to assess the performance of the project team and to anticipate any issues in team relationships and work quality. During the reviews, the project manager can pick up indicators of problems such as interpersonal issues in the team, disruptions or delays in handing off work outputs from one team member to another, and individual performance issues. If there are personnel issues, the project manager does not pursue them in the team meetings or project reviews, but rather takes the time to have indi- vidual discussions with team members who are having problems.

In project management organizations, project managers try to have performance reviews follow project reviews so that the discussions are timely and revolve around recent project work. This gives a sense of urgency and reality to the discussions and allows the project man- ager to counsel and guide team members using real examples and gives team members time to respond to feedback during the project process.

Activity 7: Prepare for the Phase-Gate Review

Preparation for the phase-gate review involves using cost and schedule variance and perfor- mance measures and indicator data. Monitoring data is useful in preparing for phase-gate reviews, particularly information on schedule and cost variance. Project managers also look for new, outside economic, social, and market forces that might influence the success of the project.

For instance, in a new product development project in the execution phase, the project man- ager may find that schedule slippage and cost overruns are due to difficulties the team is having in producing new products for testing that meet requirements. This would be a major agenda item for a phase-gate review. Or the manager may see evidence of new competition in

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Section 2.7 Phase 5: Project Closure and Assessment

the field that could render the product uncompetitive—in other words, the product will not sell. Lastly, the project manager may be receiving feedback from the customer that deserves special attention in a review.

Activity 8: Conduct a Phase-Gate Review at the End of Phase 4

A phase-gate review is a special, in-depth review conducted at the end of each phase of a proj- ect. Its purpose is to review progress and decide whether the project should continue to the next phase or be terminated. Top management participates in the phase-gate review because future funding of the project is in question. The reason these reviews are conducted is that research had found that many projects, especially those working on new products, should have been stopped after an early phase but were not, despite evidence that the project was failing. (See Cooper, Edgett, & Kleinschmidt, 2001.)

Project managers prepare for phase-gate reviews by determining what data and information to monitor and collect, how to interpret the data, and how to present the data to top man- agement and key stakeholders. This typically includes information on project performance, issues and problems, objectives, schedule, budget, risks, process, and potential changes, all focused on whether the project has value and should be continued. When a phase-gate review is conducted, the project manager and team collect key information on the project and pres- ent it to top management and stakeholders, including the project sponsor.

In sum, monitoring and corrective action involves collecting data and information on project progress in order to make necessary adjustments in planning or executing the project. Regu- lar reviews help the project manager and team keep up with progress and critical develop- ments in the project. Phase-gate reviews help top management decide whether to continue investing in the project into the next phase.

2.7 Phase 5: Project Closure and Assessment This phase covers the process of achieving closure on the project and obtaining customer acceptance of the deliverables, and making sure finances are covered and closed out. But it also includes assessment—the process of evaluating the project in terms of its goals, objectives, and plans—and identifying lessons learned so that the organization benefits from the experience.

Activity 1: Obtain Customer Acceptance of Project Deliverables

The project manager seeks customer acceptance of deliverables in this phase to enable project closure and evaluation. This is accomplished by a formal documentation of customer accep- tance in writing. The project manager requests the customer to accept the deliverable(s) so that the project can be closed out. For instance, in a construction project, the customer is requested to accept the final building and to certify that it meets requirements. In a proj- ect involving the development and installation of a new computer system, the customer is requested to certify that the new system works as planned and meets system requirements.

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Section 2.7 Phase 5: Project Closure and Assessment

Activity 2: Review Project Budget and Cost Information

During project closeout, the financial performance of the project is reviewed. This involves how well the project stayed within its budget. The process involves reviewing financial documents and making sure all costs attributed to the project are documented. Any variances from the budget are analyzed and documented to help future project managers estimate similar cost items in their budgets. The review helps determine how well the project team managed finan- cial resources and documentation, as well as how profitable the project was for the enterprise.

This process sometimes also includes a formal audit that accounts for all project expenditures and project assets carried out by a separate audit team.

Activity 3: Conduct a Postproject Review With Team, Stakeholders, Top Management, and Sponsors

Here the project manager meets with stakeholders, top management, and sponsors to obtain feedback on project performance. The purpose of these meetings is to review the whole proj- ect process to identify what went well and what did not go well. Sometimes the problems that were experienced in the project are analyzed to find root causes. This postproject review is conducted with the team, stakeholders, top management, and the project sponsor to ensure that all possible perspectives on the project are considered.

Activity 4: Archive Project Data and Information

The project manager must ensure that all project files are backed up and saved in a company database for future reference. Electronic project files are backed up in this activity and stored for future reference in financial and project management software. The purpose of archiving documents is to be ready for a possible audit, a review of lessons learned, and possible con- tract claims and issues related to contractor expenses and charges.

Activity 5: Contract Closeout and Procurement Activity

Contract closeout requires a check of all contractor activity and performance and closing contracts out by accounting for all invoices and payments. Because contractors are often involved in proj- ects, the closeout process also typically includes closing out contracts, paying all remaining eligible costs claimed by the contractor, and addressing any contractor concerns or issues. It is at this point that contractors will invoice costs for work that may not be eligible for reimbursement or work that is not

AndreyPopov/IStock/Thinkstock

Confirming all invoices have been paid is a way to ensure the project—and the money—is closed.

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Section 2.7 Phase 5: Project Closure and Assessment

covered in the contract but that the contractor contends was necessary to complete the work. If there is no agreement on these costs, the enterprise and contractor may enter into arbitration to resolve the problem or even settle in the courts.

Activity 6: Conduct Lessons-Learned Focus Groups and Prepare a Report

In this activity the project team meets to discuss lessons learned so that future project teams can benefit from the team feedback on this project. Documentation from postproject reviews is made available to the team for a lessons-learned meeting. During that meeting the follow- ing questions are raised and discussed:

1. What information resulted from the postproject review that will be useful to future project managers?

2. What project processes went well and according to plan? 3. What project processes did not go well and why? 4. What fixes or adjustments to project processes need to be made to address the prob-

lems identified in this process?

The lessons-learned report is prepared by the project manager and summarizes the key les- sons from the project. The report is sent to top management and other project managers for their use in planning and managing new projects. Sometimes there are recommendations in the report that are discussed with top management if they involve new resources or changes in key business processes.

Activity 7: Perform a Team Assessment and Identify Next Assignments and Career Implications

The project manager is responsible for providing feedback on team and individual performance and ensuring with top management that team members are reassigned to other projects or related work. The process aims to avoid costs that are attributable to project team members charging to the project because they have no new chargeable work. This is a common problem in projects because team members are expected to be doing “value added” work that is covered by approved project budgets. If they are not assigned to approved, funded projects during this process, there is a tendency for some team members to keep charging to a project that is being closed out. To avoid this problem, team members must be reassigned to other project work.

Activity 8: Conduct a Final Project Assessment

An overall project assessment focuses on the project process, the quality of the work, project costs and financial performance, schedule management, and customer satisfaction. This pro- cess can result in a project report to stakeholders on the project’s outcomes and benefits. If

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Summary and Resources

the project is being financed by a customer, then it is common practice after this assessment to propose follow-on work with the customer to carry the project to another level or to do related work through a new contract.

The project closeout phase involves not only closing the books on the project and making sure the team is reassigned to other projects, but also assessing lessons learned and making recommendations for changes in project processes if appropriate.

Summary and Resources

Chapter Summary • Most projects go through phases that help define a logical sequence of work neces-

sary to complete the project. These phases include: • initiation: including the selection of the project and kicking it off; • planning: preparing the project management plan and defining the project goals,

scope of work, deliverables, risks, budget, and schedule; • execution: assigning work and implementing tasks according to the schedule; • monitoring: tracking the work and team performance to ensure the project is

progressing as planned, and taking correction action if it is not; and • closeout: delivering the project product or service and closing out the project

books. • All projects should progress through the five phases, but some phases can be con-

ducted in parallel as long as there is constant communication between task leaders. • The initiation phase includes the process of generating ideas for new projects and

soliciting customers for project needs, as well as the process of evaluating and selecting the right projects for implementation.

• The planning phase includes not only the project plans and required documents, but also the process of committing team members and stakeholders to their part in the achievement of project goals.

• The execution phase does not just happen. This phase must be initiated and man- aged proactively by the project manager, who makes assignments, reviews perfor- mance, and solves problems.

• The monitoring phase can be conducted in parallel with execution so that corrective actions can be taken if the project gets off course.

• Project closeout involves closing the project’s financial books, as well as the process of deciding what assignments the project team will assume when its work on the project is finished.

Posttest 1. A project management office (PMO) serves __________. a. organizations that cannot support their own in-house project management teams b. the external customers and clients who are stakeholders in a company’s projects c. an organization’s top management, project managers, and project teams d. the public, especially with requests for information about community projects

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Summary and Resources

2. Which of the following types of standards is NOT usually provided by a project man- agement office (PMO) to guide project teams?

a. standards for assessing the success of a project b. standards for quality of deliverables c. standards for how the project team should be organized d. standards for how project managers should provide governance to teams

3. A team is currently involved in the activity of hiring contractors and identifying internal resources that will help create its new software. In which phase of the proj- ect life cycle is the team working?

a. phase 1: initiation b. phase 2: planning c. phase 3: executing and assigning d. phase 4: monitoring and corrective action

4. Which of the following activities is MOST often associated with phase 2 of the proj- ect life cycle?

a. conducting a risk assessment b. defining a vision of the project c. clarifying roles and assignments of the project team d. selecting project manager and project team

5. An organization’s long-term approach to positioning itself within the market is its __________.

a. SWOT analysis b. strategic plan c. charter d. vision statement

6. A statement by top management of how a project is expected to contribute value to the organization is the __________.

a. project vision b. project scope c. project charter d. project statement of work

7. __________ describe(s) the project’s key outcomes, whereas __________ describe(s) how and when the outcomes will be produced and who will produce them.

a. the project plan; the project management plan b. project objectives; the project scope c. the project management plan; the project plan d. the project scope; project objectives

8. In project management, the term deliverables refers to __________. a. the final due date milestones set forth in the schedule b. only project tasks completed and submitted by contractors c. any physical product that is created during the project process d. any key final outputs specified by a project’s customer

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Summary and Resources

9. What is one reason project managers work one-on-one with each team member to clarify assignments, assumptions, and accountability?

a. Once the hectic execution phase begins, it is impossible for a project manager to meet with many team members at once.

b. Many team members are uncomfortable discussing their assignments in front of their teammates.

c. The one-on-one meeting helps the team member see the project as a high prior- ity and treat it as such.

d. In most organizations, human resources requires such meetings as part of employee performance documentation.

10. Which of the following is a balance project managers must be especially careful to strike during the executing and assigning phase of a project?

a. aligning with the strategic goals of the organization while meeting customer expectations

b. overseeing the quality of team members’ work while avoiding micromanagement c. maintaining a productive environment while avoiding scope creep d. identifying corrective action for problems while keeping the project on schedule

11. If monitoring demonstrates a need for preventative or corrective action, which docu- ment does the project manager review to assess various options?

a. the task list b. the product breakdown structure c. the time-based network diagram d. the risk management plan

12. The monitoring and corrective action phase of the project cycle is best focused on __________.

a. issues identified in the phase 1 and 2 phase-gate reviews b. gaps in the analysis of the final scope and statement of work c. availability of project resources, materials, and supplies d. the integration and consistency, or lack thereof, of the project planning documents

13. The main purpose of the postproject review is to __________. a. negotiate with top management for increases in team member compensation b. demonstrate the project to customers and obtain approval of deliverables c. use public relations tactics to showcase a project’s success to the general public d. seek feedback on performance from top management, stakeholders, and others

14. What is one activity the project manager and team undertake in the last project phase specifically to assist future project teams?

a. meet to review the lessons learned from the project and prepare a report b. ensure that finances are closed out c. meet with top management to make sure team members are assigned to new

projects d. clarify any remaining project assumptions, team roles, or accountability

procedures

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Summary and Resources

Review Questions 1. Why does a project management system need a formal project cycle? 2. How are the five project phases tailored and customized to fundamentally different

industries such as construction and IT? 3. Why is phase 3, execution, and phase 4, monitoring, placed in sequence in the cycle

when monitoring occurs in parallel with execution? 4. What happens to projects—and their staff and funding—that do not make it to the

next phase because a phase-gate review determines that the project will not succeed?

Think About It! Reflective Exercises to Enhance Your Learning 1. Choose a project and propose three questions you would raise in the phase-gate

review at the end of each of its five phases. 2. Prepare the business case that would be used in the project selection process for a

project of your choice. 3. Interview three project managers and see how they have used the project cycle in

their projects.

Additional Resources Barkley, B. (2006). Integrated project management. New York: McGraw-Hill.

Cooper, R. G., Edgett, S., & Kleinschmidt, E. (2001). Portfolio management for new products (2nd ed.). Cambridge, MA: Perseus.

Kerzner, H. (2005). Using the project management maturity model (2nd ed.). Hoboken, NJ: Wiley.

Project Management Institute. (2013). A guide to the project management body of knowledge (5th ed.). Washington, DC: Project Management Institute.

An article on how to identify key milestones in a project schedule: Ormen, P. (2013). The five universal checkpoints. Retrieved from Project Management Hut website: http://www .pmhut.com/the-five-universal-project-checkpoints

Answers and Rejoinders to Chapter Pretest 1. True. Project governance is an overseeing function and can involve all those who

drive project decisions, which may at times include customers. 2. False. The standard management cycle has five key phases, through which almost all

successful projects must pass. 3. True. Projects that align with the organization’s strategic plans and goals are more

likely to succeed than unaligned, ad hoc projects, no matter what project manage- ment tools are used. Thus, the goal of this phase is to make sure projects align with the parent organization.

4. False. Deliverables should meet the standards set forth by the customer, which might not always be the highest standard possible. Achieving higher-than-necessary

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http://www.pmhut.com/the-five-universal-project-checkpoints

Summary and Resources

quality might cost more and could even result in deliverables that are unacceptable to the customer.

5. False. The execution phase is tricky no matter how carefully the project has been planned, because nothing can guarantee that team members will meet schedule and quality goals or collaborate well.

6. True. Though the tendency in this phase is to look back at the project’s variance from its original plan, it can be as important to look ahead to the remaining work and any corrective action that may need to be taken.

7. The final project audit is not performed by the project manager and team but by an independent, objective audit team.

Answers and Rejoinders to Chapter Posttest 1. c. A project management office supports top management, project managers, and

project teams with governance-type functions, including analysis of project data, documentation, and monitoring and tracking information, among many other tasks.

2. d. Governance is not provided by project managers. Instead, governance is an enterprise-wide overseeing function, of which the PMO and the project standards and requirements it communicates are important parts.

3. c. The standard management cycle has five key phases, through which almost all successful projects must pass.

4. a. Risk assessments are conducted during phase 2, the planning phase. The project’s vision is defined earlier, in the initiation phase, which is when the team and man- ager are chosen. The team’s roles are usually clarified once work begins in phase 3, the executing and assigning phase.

5. b. The strategic plan is an organization’s outline for achieving its long-term goals and objectives. All programs and projects developed by an organization are gener- ated to support its strategic plan.

6. a. A project charter is an authorization for the project to proceed, the project scope sets boundaries for the team, and the statement of work defines a contractor’s tasks. The project vision, on the other hand, explains how the project’s outcomes are expected to add value to the organization as a whole.

7. a. The project plan addresses the substance of the work to be done, whereas the project management plan outlines how this work will be handled and managed.

8. d. Deliverables are the key outputs that create value for the customer. They may take any form the customer requires, including plans, documents, services, or physical products.

9. c. Team members often have responsibilities outside the project, including to other projects. This clarifying discussion helps team members plan and schedule for their project tasks, establishing the project as a high-priority commitment.

10. b. Overseeing team members’ work is an essential but sensitive leadership function. The project manager needs to avoid micromanaging the people doing the work, while still making sure that tasks are performed on time and meet expectations.

11. d. The risk management plan and risk assessment matrix developed in phase 2 include contingency plans for risk events. In phase 4 of the project life cycle, those corrective actions may be put into place.

12. a. In activity 2 of phase 4, previous phase-gate reviews are used to anticipate issues that might arise in execution. These issues become focal points for monitoring and corrective action.

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Summary and Resources

13. d. In the postproject review, the project manager meets with the team, stakeholders, top management, and sponsors to obtain feedback on the project.

14. a. A main purpose of the project team’s lessons-learned focus group and report is to allow future project teams to benefit from this team’s experiences.

Key Terms

alignment Part of the first phase of a proj- ect; when a project is consistent and “lined up” with the enterprise strategic plan and objectives.

phase-gate review A project progress review scheduled at the end of each phase to confirm the value of the project and autho- rize transition to the next phase.

project charter The document that top management uses to communicate an expec- tation of responsibility on the part of the project team to complete the project work within budget and on schedule.

project cycle The complete process that projects go through from beginning to end, broken down into phases.

project goal The overall purpose and value of the project to the organization and the customer.

project governance The process of leading and managing a project, including all sup- porting processes and support systems to ensure achievement of project goals.

project management plan The documen- tation of project goals, objectives, mile- stones, processes, project team, schedule, budget, and risk management plan.

project objective Measurable milestones on the way toward achievement of the goal.

project vision The intended outcome of a project; the ultimate state of project success.

scope of work The statement of work to be done to complete the project, including its boundaries.

statement of work A contract document that includes the scope of work and outlines all work to be performed by a contractor.

task leader The accountable team member in charge of each project task.

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