Pm Booklet Basics V1

PROJECT MANAGEMENT

A QUICK GUIDE

Foreword Over the past five years, there has been a significant increas e in applying project management methodology within the Tasmanian State Government. This approach has been based on the Government’s Project Management Guidelines. Project Management: A Quick Guide has been developed to meet the need for an overview of project management. It aims to provide project participants with an easy-to-read introduction to the Tasmanian Government’s project management methodology. I would like to thank all those who have assisted with the preparation of this booklet, in particular the Project Services’ team members, and recommend its use as a guide for all project participants.

Linda Hornsey Secretary Department of Premier and Cabinet

Acknowledgements Thanks to the following people for their contributions: Project Management and Information Resources Project Reference Group In preparing this booklet, a number of sources have been drawn on, including: Australian Bureau of Statistics – booklet and course reference material Project Management Guidelines Version 4.0 – November 2000 Department of Premier and Cabinet John Smyrk – Sigma Management Science Pty Ltd Project Management web sites

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Introduction

Projects – we all get caught up in them in some form or another: as a Project Team member, Project Manager, Project Sponsor, Steering Committee member, or as a beneficiary. You may not even be involved in a project … yet!

Project Management: A Quick Guide has been produced to provide you with some plain English, basic information about project management in the following way: Contents

page

The Basics …………………………………………

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The Essentials …………………………………….

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Project Sizing ……………………………………. 13 Life of a Project …………………………………. 14 Summary ………………………………………… 17 Tips from Project Managers …………………… 18 Resources, Support & Advice…………………… 19

This booklet introduces project management terminology and gives you an overview of the phases in the life of a project and the major project management plans for each phase. It also introduces the key elements that a Project Manager needs to consider no matter what the complexity or size of the project.

There are some useful tips from practising Tasmanian State Service Project Managers, and a list of resources available on the Project Management website at: http://www.projectmanagement.tas.gov.au

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What is a Project?

A

project brings about change and involves a group of inter-related

activities that are planned and then executed in a certain sequence to create a unique product or service within a specific time frame. Project Management is a formalised and structured method of managing change. Some even view it as a creative problem solving process. No matter how you approach it, the focus of project management is to develop specifically defined products (outputs) so that the planned benefits (outcomes) are achieved. The outputs are to be produced: By a certain time To a defined quality With a given level of resources

Effective project management is essential for the success of a project. “The nice thing about not planning is that failure comes as a complete surprise and is not preceded by a period of activity.” (John Preston, Boston University)

Why Do Projects Need to be Managed? The value of good project management is that you have standard processes in place to deal with all possibilities. Using sound project management techniques and processes will increase the likelihood that your project will be completed on time, within budget, and to an acceptable level of quality.

Carefully consider all aspects of how to manage a project, and build the right processes for your project.

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The Basics

What Are the Characteristics of a Project? A significant project in the Tasmanian State Government is usually characterised as having: Definable, measurable project outcomes that relate to the organisation’s goals Project outputs (required for the attainment of the project outcomes) produced by a project team(s) A start date and an end date A balance between time, cost and quality A governance structure Well defined multidisciplinary project team(s) Involvement of stakeholders/other organisations Criteria to measure project performance

What Are the Key Elements?

As a Project Manager, you will need to consider the following elements, regardless of the size or complexity of the project: Planning and scoping Governance Organisational change management Stakeholder management Risk management Issues management Resource management Quality management Status reporting Evaluation Closure

Now read on and learn more about the key elements of project management.

The Essentials

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“If You Fail to Plan, You Plan to Fail.” Planning & Scoping

The importance of the planning stage of the project cannot be over-estimated. No matter how small the project, a clear definition and statement of the areas of impact and boundaries of the project needs to be established.

Do not under-estimate the amount of time and effort involved in the planning phase of your project.

The scope of the project is more than the work involved. It includes:

Outcomes (long term benefits) Customers (those who use the outputs) Outputs (services and/or products generated by the project) Work (activities and tasks to produce the outputs) Resources (human and financial - to get the work done)

So how do you ensure that the scope remains manageable a nd all of your work will produce the required outcomes? The Input-Transform-Outcome (ITO) model is an effective tool for scoping a project.

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The Essentials

The ITO Model

Figure 1: John Smyrk’s Input-Transform-Outcome (ITO) Model diagram.

When initially defining a project, each component of the model is considered from right to left. The implementation of the project takes place from left to right.

This method of defining and scoping a project will instil a greater confidence that the work to be done will lead to the achievement of the originally intended outcome.

Who is Responsible for What? Governance

Realisation of the project outcomes requires planning and management. The management structure is known as the Governance for the project. This structure identifies the specific players, their roles and responsibilities, a nd the way in which they interact for the life of the project.

The Essentials

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How Do You Smooth Out the Bumps? Organisational Change Management

Resistance to change is normal and it is important to make the transition to the new working environment as smooth as possible for ever yone concerned. When planning the project activities, help make it a positive experience by considering how the change will affect things such as:

Organisational culture Physical working environment Organisational structure Job design and responsibilities Skills & knowledge of employees

Employee motivation/incentives Policies & procedures Workflow & processes Human resource management

Organisational Change Management within a project is about communicating the extent of the change to all involved and developing an approach for managing the change.

Who Needs to be Involved? Stakeholder Management You need the right people involved to have a better chance of a successful project. Stakeholders are the people or organisations that have an interest in the project processes, outputs or outcomes, and will be a ke y component to the project’s success. Get them involved in the project as early a s possible; meet and talk with them regularly, keep them informed, identify the nature of their interests, develop a stakeholder register, and plan for how their involvement will be managed on an ongoing basis.

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The Essentials

It is a Risky Business! Risk Management

In successful projects, potential problems are minimised. This is the art of risk management, which concerns identifying, analysing, and planning a response to potential threats to the project. A useful tool is a risk register, and for this you will need to know: What are the risks - risk identification The extent and likelihood of them happening - risk quantification What you would do to prevent them happening - risk response development What you would do to recover if they did happen - risk response control

Concerns … What Are You Doing About Them? Issues Management Throughout the life of a project, issues and concerns will arise and need to be managed. Establish a monitoring and review process, because if the issues are not addressed, they may threaten the success of the project.

Depending on the size of the project, a useful tool for this process is an issues register. It contains the following details:

A description of the issue When the issue was raised/noted Current status Description of any action to be taken, by whom, and by when

The Essentials

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It Takes More Than Money and People. Resource Management

Resource Management is more than obtaining dollars and people to do the work. It is about planning for managing the people, fi nances, and the physical and information resources required to perform the project activities. For example:

Managing what the people in your team need to do How and when they do the tasks Providing suitable accommodation for the project team Producing the outputs Managing information on a website Working to an agreed budget Setting up agreements with contractors and making sure that they deliver

No matter the size or complexity of the project, it is vital to manage your resources.

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The Essentials

Are You Doing a Good Job? Quality Management It can be difficult defining what is a ‘good’ or quality job in relation to a project. Generally, quality describes a product or service that satisfies the customer’s requirements. It is important to agree on the level of quality the customer expects, as this may have a flow-on effect on the project budget. In addition, there is also a variable level of quality or discipline that is applied to the project management processes. Quality Management in a project reduces the risk of project failure. Some of the things to consider in relation to Quality Management within a project include:

Using valid methodologies and standards Managing change Adhering to review and acceptance procedures Resolving emerging issues Monitoring progress Engaging project staff with the appropriate skills Maintaining appropriate documentation and record keeping Delivering an output that meets the agreed customers requirements Completing the project within budget and on time

Remember, it is cheaper to get it ‘right’ the first time.

The Essentials

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How is it Going So Far? Status Reporting The people responsible for the success of the project are going to want to know what progress has been made. Status reports should be provided on a regular basis and include progress details about: Milestones - what outputs have been delivered, e.g. first draft of document developed. Budget - how much money has been spent from the budget; does it deviate from the original estimate? Issues - areas of concern that may threaten the successful completion of the project, such as tasks not completed by the assigned time (slippage), or not enough people to do the required work. Risks - such as the issues that have escalated and are now a threat to the project.

Have You Made the Grade? Evaluation There comes a time in all projects when you need to evaluate the success of the project. No matter the size or complexity of the project, a measurement of success against well-defined criteria is necessary. An evaluation process will assist you in determining:

Whether the project is on time, on track and on budget (i.e. under control) The level of adherence to documented plans, methodologies and standards Useability of outputs The achievement of outcomes

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The Essentials

Tying Up the Loose Ends. Closure Eventually, the work will be complete and you will need to plan for the closing of the project. How formal the closure process will need to be is determined by the nature and size of the project. Essentially, successful project closure involves: Hand-over of project outputs to the Project Business Owner (customer) Review of project outputs and outcomes against the Project Business Plan or agreed project plan Completion or re-assignment of outstanding tasks Finalisation of project records Staffing issues e.g. redeploying team members, taking of outstanding leave Confirmation that the benefits of the project have been achieved ‘Tying up the loose ends’

Why is it Important to Determine Project Size? Project Sizing Projects vary in size and complexity and it is not appropriate for all projects to carry out all project management activities to the same level of detail or discipline. In short, the size of the project will determine how formally the project will need to be managed.

information the keythe elements found can in the More More information about about determining size of can yourbeproject be Project Management Guidelines at: found in the Project Management Fact Sheet: Project Sizing. To help you assess the size of your project, go to the Project Management website andhttp://www.go.tas.gov.au/projman/pmg use the interactive Project Sizing Calculat4sum.htm or, available at: http://www.projectmanagement.tas.gov.au

Project Sizing

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Life of a Project

Projects do have a life, and this picture represents the life cycle of a project.

Figure 2: Life of a Project

Figure 2 also shows which major project management plans are required at each phase. For example, a Project Proposal is used in the ‘initial’ phase of a project, whereas the Project Business Plan is used t hroughout the ‘manage’ and ‘finalise’ phases of the project.

This model represents an over-simplification of most projects, but is included to make sense of what can be a quite messy and non-linear process in reality.

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Life of a Project

Whose Idea Was This? Initiate Project initiatives may originate in a number of ways. For example, they may be from: Government policy An Agency's corporate and business unit planning processes (which in turn is driven by Government policy) Changes in Government policy Other external factors, such as customer servi ce requirements A good idea!

Most projects are usually justified in terms of corporate objectives and should be closely aligned to them. This relationship is confirmed through the initial scoping and planning documents, which include the Project Proposal/Brief, the Feasibility Report, and/or the Project Business Case.

If the project is not approved, it will not continue on to the other phases.

How Do I Get Going? Set Up Once a project is approved and funded, there is an initial Set Up period involving the appointment of the Project Manager and team and the organisation of the resources required to produce the outputs. This period must be allowed for in any initial planning.

Life of a Project

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How Do I Keep It Going? Manage This stage is considered the most productive and hectic stage of any project, requiring ongoing management to ensure the production of the project outputs. It is concerned with: Managing people

Keeping stakeholders involved

Productivity and quality

Contingencies

Meeting deadlines

Managing risks and issues

Prioritising

Unexpected problems

Managing budgets

Doing the work !

Maintaining enthusiasm

While all of this is happening, the business unit(s) is preparing to make the changes necessary to use and manage the outputs.

Going, Going … Gone! Finalise Finalising a project involves the handover of the project outputs to the Project Business Owner (customer) to use and generate the project outcomes. After the project’s success has been evaluated, the Steering Committee formally closes the project and the celebrations can begin. This is the phase that involves moving from the project (transformational) activities to the ongoing business operational (transactional) activities.

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Life of a Project

How Does All This Go Together?

To help you put all of this together, the table below broadly summarises where each of these key elements sit within the phases in the Life of a Project. As you work through the project, use it as a checklist to make sure that the key elements are all being considered.

Stages in the Life of a Project Key Element

Initiate Set Up

Manage

Finalise

Planning & Scoping Governance Organisational Change Management Stakeholder Management Risk Management Issues Management Resource Management Quality Management Status Reporting Evaluation Closure

Once a project is approved and funded, there is an initial Set Up period. This period must be allowed for in any initial planning.

Summary

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What Do Project Managers Have To Say?

Here are some useful tips and comments made by practising Tasmanian State Service Project Managers:

Scoping activities precede any other project management activities. For scoping to occur adequately, there needs to be a full analysis of stakeholders and all stakeholders must be adequately involved. With projects that are initiated by edict, active stakeholder involvement is still necessary (though there is a need to facilitate an appreciation of constraints). Express the scope in ways that people understand and appreciate. Make sure the important stakeholders sign off the scope of the project. Be aware of related projects, developments and standards early. Carefully define what is inside and outside the scope. Beware of scope creep. Change initiatives do not necessarily have to be translated into single projects. They may be achieved through a series of interlinked projects. Ensure that project activities align with the scope. Be aware that some people may be operating with differing agendas that may not be formally defined in the scope. Continually monitor the scope and project actions in relation to it. There may be a need to redefine the scope or bring the project back on track.

“If you have ever crossed a busy street, then you know what project management can be like - uncertain and hazardous.” Rainbow Signs Inc.

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Tips from Project Managers

What Is Available?

Resources Project Management Guidelines

Fact Sheets, including: ⇒

Project Management

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Project Proposal

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Project Sizing

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Project Business Case

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Project Business Plan

Developing a Communication Strategy

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Project Execution Plan

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Outcome Realisation Plan

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Project Status Report

Templates, including:

Knowledge Base

Guide to Education & Training Opportunities Glossary Interactive Tools, including: ⇒ Project Sizing Calculator

Support & Advice Project Management Helpdesk ([email protected])

Project Zone Newsletters

Project Advisory Services

Website Feedback Form

Project Review Services

Upcoming Workshops and Forums

Information Sessions

Project Services Information Flyer

Documentation Review

Individual help and advice

List Server

For more information, please contact Project Services: Web Address: http://www.projectmanagement.tas.gov.au Telephone: Manager, Project Services, eServices Group - (03) 6233 4163

Address: Level 8, 144 - 148 Macquarie Street, Hobart, 7000

Resources, Support & Advice

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PROJECT MANAGEMENT A QUICK GUIDE

eServices Group Department of Premier and Cabinet, Tasmania http://www.go.tas.gov.au January 2002