how project management can support an organisation

8/7/2019 How project management can support an organisation

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(a) How project management can support an organisation¶s strategic plan?

Project management is the discipline of planning, organizing, securing and managing

resources to bring about the successful completion of specific project goals and objectives. It is

sometimes conflated with program management, however technically that is actually a higher

level construction: a group of related and somehow interdependent engineering projects.

A project is a temporary endeavor, having a defined beginning and end (usually

constrained by date, but can be by funding or deliverables), undertaken to meet unique goals and

objectives, usually to bring about beneficial change or added value. The temporary nature of

projects stands in contrast to business as usual (or operations), which are repetitive, permanent or

semi-permanent functional work to produce products or services. In practice, the management of

these two systems is often found to be quite different, and as such requires the development of

distinct technical skills and the adoption of separate management. The primary challenge of

project management is to achieve all of the project goals and objectives while honoring the

preconceived project constraints. Typical constraints are scope, time, and budget. The

secondary²and more ambitious²challenge is to optimize the allocation and integration of

inputs necessary to meet pre-defined objectives.

While, the strategic planning is Strategic planning is an organization's process of

defining its strategy, or direction, and making decisions on allocating its resources to pursue this

strategy, including its capital and people. Various business analysis techniques can be used in

strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats

), PEST analysis (Political, Economic, Social, and Technological), STEER analysis (Socio-

cultural, Technological, Economic, Ecological, and Regulatory factors), and EPISTEL

(Environment, Political, Informatic, Social, Technological, Economic and Legal).

Strategic planning is the formal consideration of an organization's future course. All strategic

planning deals with at least one of three key questions:

1. "What do we do?"

2. "For whom do we do it?"

3. "How do we excel?"



In business strategic planning, some authors phrase the third question as "How can we beat

or avoid competition?". (Bradford and Duncan, page 1). But this approach is more about

defeating competitors than about excelling.

In many organizations, this is viewed as a process for determining where an organization is

going over the next year or - more typically - 3 to 5 years (long term), although some extend

their vision to 20 years.

In order to determine where it is going, the organization needs to know exactly where it

stands, then determine where it wants to go and how it will get there. The resulting document is

called the "strategic plan."

It is also true that strategic planning may be a tool for effectively plotting the direction of a

company; however, strategic planning itself cannot foretell exactly how the market will evolve

and what issues will surface in the coming days in order to plan your organizational strategy.

Therefore, strategic innovation and tinkering with the 'strategic plan' have to be a cornerstone

strategy for an organization to survive the turbulent business climate.

Through the project management, it will support the organization¶s strategic planning by

specific the goal and objective. It also makes the organization¶s strategic planning become more

specific through its process.

Traditionally, project management includes a number of elements: four to five process groups,

and a control system. Regardless of the methodology or terminology used, the same basic project

management processes will be used.

The project development stages[19]

Major process groups generally include[20]

:



y Initiation

y Planning or development

y Production or execution

y Monitoring and controlling

y Closing

In project environments with a significant exploratory element (e.g., Research and development),

these stages may be supplemented with decision points (go/no go decisions) at which the

project's continuation is debated and decided. An example is the Stage-Gate model.

[edit] Initiation

Initiating Process Group Processes[19]

The initiation processes determine the nature and scope of the project.[21]

If this stage is not

performed well, it is unlikely that the project will be successful in meeting the business¶ needs.

The key project controls needed here are an understanding of the business environment and

making sure that all necessary controls are incorporated into the project. Any deficiencies should

be reported and a recommendation should be made to fix them.

The initiation stage should include a plan that encompasses the following areas:

y Analyzing the business needs/requirements in measurable goals

y Reviewing of the current operations

y Financial analysis of the costs and benefits including a budget

y Stakeholder analysis, including users, and support personnel for the project

y Project charter including costs, tasks, deliverables, and schedule

[edit] Planning and design



Planning Process Group Activities[19]

After the initiation stage, the project is planned to an appropriate level of detail. The main

purpose is to plan time, cost and resources adequately to estimate the work needed and to

effectively manage risk during project execution. As with the Initiation process group, a failure

to adequately plan greatly reduces the project's chances of successfully accomplishing its goals.

Project planning generally consists of [22]

y determining how to plan (e.g. by level of detail or rolling wave);

y developing the scope statement;

y selecting the planning team;

y identifying deliverables and creating the work breakdown structure;

y identifying the activities needed to complete those deliverables and networking the

activities in their logical sequence;

y estimating the resource requirements for the activities;

y estimating time and cost for activities;

y developing the schedule;

y developing the budget;

y risk planning;

y gaining formal approval to begin work.

Additional processes, such as planning for communications and for scope management,

identifying roles and responsibilities, determining what to purchase for the project and holding a

kick-off meeting are also generally advisable.



For new product development projects, conceptual design of the operation of the final product

may be performed concurrent with the project planning activities, and may help to inform the

planning team when identifying deliverables and planning activities.

[edit] Executing

Executing Process Group Processes[19]

Executing consists of the processes used to complete the work defined in the project

management plan to accomplish the project's requirements. Execution process involves

coordinating people and resources, as well as integrating and performing the activities of the

project in accordance with the project management plan. The deliverables are produced as

outputs from the processes performed as defined in the project management plan.

[edit] Monitoring and controlling

Monitoring and controlling consists of those processes performed to observe project execution so

that potential problems can be identified in a timely manner and corrective action can be taken,

when necessary, to control the execution of the project. The key benefit is that project

performance is observed and measured regularly to identify variances from the project

management plan.



Monitoring and Controlling Process Group Processes[19]

Monitoring and Controlling includes:[23]

y Measuring the ongoing project activities ('where we are');

y Monitoring the project variables (cost, effort, scope, etc.) against the project management

plan and the project performance baseline (where we should be);

y Identify corrective actions to address issues and risks properly (H ow can we get on track

again);

y Influencing the factors that could circumvent integrated change control so only approved

changes are implemented

In multi-phase projects, the monitoring and control process also provides feedback between

project phases, in order to implement corrective or preventive actions to bring the project into

compliance with the project management plan.

Project Maintenance is an ongoing process, and it includes:[20]

y Continuing support of end users

y Correction of errors

y Updates of the software over time

Monitoring and Controlling cycle

In this stage, auditors should pay attention to how effectively and quickly user problems are

resolved.



Over the course of any construction project, the work scope may change. Change is a normal and

expected part of the construction process. Changes can be the result of necessary design

modifications, differing site conditions, material availability, contractor-requested changes, value

engineering and impacts from third parties, to name a few. Beyond executing the change in the

field, the change normally needs to be documented to show what was actually constructed. This

is referred to as Change Management. Hence, the owner usually requires a final record to show

all changes or, more specifically, any change that modifies the tangible portions of the finished

work. The record is made on the contract documents ± usually, but not necessarily limited to, the

design drawings. The end product of this effort is what the industry terms as-built drawings, or

more simply, ³as built.´ The requirement for providing them is a norm in construction contracts.

When changes are introduced to the project, the viability of the project has to be re-assessed. It isimportant not to lose sight of the initial goals and targets of the projects. When the changes

accumulate, the forecasted result may not justify the original proposed investment in the project.

[edit] Closing

Closing Process Group Processes.[19]

Closing includes the formal acceptance of the project and the ending thereof. Administrative

activities include the archiving of the files and documenting lessons learned.

This phase consists of:[20]

y Project close: Finalize all activities across all of the process groups to formally close the

project or a project phase

y Contract closure: Complete and settle each contract (including the resolution of any

open items) and close each contract applicable to the project or project phase.

how project management can support an organisation

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