7-1 project management from simple to complex. 7-2 this work is licensed under the creative commons...
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7-1
Project Management from Simple to Complex
7-2
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7-3
Chapter 7Starting a Project
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Learning Objectives
• Describe the difference between an organization’s mission, goals, and objectives
• Describe how the missions are different depending on the type of organization
• Define economic terms used for choosing projects
• Define a project champion and his or her role
• Describe the influences of funding, timing, and unofficial considerations on project selection
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Learning Objectives
• Define scope and describe how it is affected by project complexity
• Identify the uses of a scope document
• Describe how a scope document is developed and changed
• Identify the major activities included in project start-up
• Explain how the project start-up activities may differ on a highly complex project
• Identify the purpose of the alignment process
• Identify the components of the alignment process
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Learning Objectives
• Identify the effects of a lack of trust on a project
• Describe the differences between communications in an existing organization compared with a new project
• Describe how the detail of the communication plan is related to the complexity of the project
• Describe a communication matrix and its function
• Describe conventions for naming files to indicate their content and the version
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Mission, Goals, and Objectives of an Organization
• Mission: Statement of the purpose of an organization
• Sections:
– Purpose of the organization
– Primary stakeholders
– Responsibility of the organization toward the stakeholders
– Products or services offered
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Mission, Goals, and Objectives of an Organization
• The missions of organizations can be categorized as:
– Profit - To make profit for its owners and shareholders
– Not for profit – The service it provides
– Government - Its responsibilities to the citizens it represents
• Goal: An end toward which effort is directed
• Objective: An end toward which effort is directed that has a measurable outcome
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Figure 7.1 - Relationships between Mission, Goals, and Objectives
Relationships between Mission, Goals, and Objectives.PNG
Click below toview full-size
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Economic Selection Criteria
• Cash flow: The movement of money where income is positive and spending is negative
• Companies can raise money by:
– Borrowing it
– Funding the project from existing earnings
– Selling additional stock or ownership shares in the company
• Interest: Charge for a loan
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Economic Selection Criteria
• To qualify for selection, a project that is must be able to do the following:
– Repay loans if money must be borrowed to fund the project
– Increase future earnings for shareholders
– Make the company stock more valuable
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Economic Selection Criteria
• Simple payback: Time period it takes to recoup the original expense without considering interest payments or other complicating factors
• Internal rate of return (IRR): Average annual return on an investment that earns or saves money
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Figure 7.3 - Simple Payback
Simple Payback.PNG
Click below toview full-size
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Figure 7.5 - Internal Rate of Return
Internal Rate of Return.PNG
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Other Selection Criteria
• Keeping up with competitors
• Meeting legal requirements
• Improving the organization’s public image
• A project might be selected at a particular time for reasons such as:
– Accumulating a year-end budget surplus
– Increasing executive bonus for the year or quarter
– Funding or certification review deadline
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Project Champions and Opponents
• Project champion: Influential person who is willing to use his or her influence to help the project succeed
• To identify the advocates and opponents of the project:
– Read public documents (meeting minutes)
– Obtain the opinion of trusted colleagues
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Project Scope
• Scope document: Written description of what activities are included in the project and some of those that are specifically not included
• The size and character of the project scope document is related to the project complexity
• On more technical projects, the scope would include a significant amount of technical specifications
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Project Scope
• A well-developed project scope statement provides the project team with:
– Information to design and implement the project execution plan
– An understanding of the purpose of the project
– The basis for defining project success
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Project Scope
• The project manager develops the first draft of the project scope and then solicits feedback from:
– The project team
– The client
– Key vendors
• The project manager attempts to develop consensus around the scope
• The project client or sponsor gives the final approval
• Changes are made to the scope document to reflect new information
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Project Scope
• Maintain a written record of changes to the scope of a project
– On the least complex projects – E-mails
– On larger projects – Standard forms
• Steps to follow when documenting changes:
– Inform project stakeholders of the change request process
– Require that the change request is made in writing
– Enter the request in the scope change log
– Estimate the time needed to evaluate the change
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Project Scope
– Evaluate the change and its impact on the schedule and budget if the evaluation is approved
– Present the change request to the project sponsor for approval
– Distribute the scope change log periodically to team members
– If the change is approved, update the project charter or other initiation documents
– Update the work plan
– Distribute the revised work plan to stakeholders and team members
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Project Scope
• Use the “Project Scope Template” to develop a project scope document
• Students can present their project scope documents to the rest of the class
Source: http://www.helbig.com.au/pmo/templates/Scope_Statement_Template.doc
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Project Start-Up
• Major activities included in project start-up:
– Selecting project manager
– Establishing funding
– Developing project infrastructure – Accounting, procurement, IT
– Holding kickoff meetings
– Determining staffing
– Building relationships
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Project Start-Up
• On a project with a low complexity level:
– Developing project infrastructure can be a simple task
• Large complex projects require:
– More dedicated infrastructure
– Full-time staff
– Longer start-up meetings involving more people
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Alignment Process
• Purpose of alignment sessions:
– Developing a common understanding of the project purpose
– Agreeing on the means and methods for accomplishing the purpose
– Establishing trust among team members
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Alignment Process
• Components of the alignment process:
– Project purpose
– Goals
– Participant roles
– Methods of tracking progress and cost
– Methods of managing change
– Methods of building trust
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Alignment Process
• When a person’s trust in another person on the project is low, he or she:
– Will doubt the information received from that person
– Might not act on information without checking it with another source
– Might not share information that is necessary to the other person’s function
• The result is delayed action
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Communications Planning
• In existing organizations:
– Information gatekeepers exist
– Generation, flow, and storage of information reflect the organizational culture
– A person’s communication style must be consistent with the organization
• Projects do not have:
– An existing organizational culture
– A communication structure
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Communications Planning
• The project leadership team:
– Understands the information needs of the project members and stakeholders
– Develops a communication plan
• Highly complex projects require a detailed communication plan
• Information needed is generated and distributed to support:
– The project schedule
– The project decisions
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Communications Planning
• Communication matrix: Table that displays the responsibilities and distribution for each type of document or information
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Figure 7.13 - Simple Communication Matrix
Simple Communication Matrix.PNG
Click below toview full-size
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Document Control
• File names should be used as codes to describe the contents of the file
• Parts of the name can be used to identify:
– Category
– Location
– Subject
– Author
– Date
• File naming conventions should match those used by the parent or client organization
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