r n Successful t Dossier 02 SCITECH EDUCATIONAL 658.404 AIT ~NEBS Management I I DOSSIER 02 DELIVERING SUCCESSFUL PROJECTS C , r Delivering Successful Projects ACKNOWLEDGEMENTS This publication was developed by Scitech Educational in partnership with NEBS Management Project management: Diana Thomas (NEBS Management) Don McLeod (Scitech Educational) Series editor: Darren O'Conor Authors: William Aitken, Darren O'Conor Dossier 02: Delivering Successful Projects A Scitech Educational publication Distributed by Scitech-DIOL ISBN 948672 77 © Copyright Scitech Educational Ltd, 2000 Every effort has been made to ensure that the information contained in this publication is true and correct at the time of going to press However, NEBS Management and Scitech Educational products and services are subject to continuous improvement and the right is reserved to change products from time to time Neither NEBS Management nor Scitech Educational can accept liability for loss or damage resulting from the use of information in this publication Under no circumstances may any part of this publication be reproduced, stored in a retrieval system or transmitted in any form or by any means, whether electronic, electrostatic, magnetic tape, mechanical, photocopying or otherwise without express permission in writing from the publisher Published by: Scitech Educational Ltd 15 - 17 The St John Business Centre St Peter's Road Margate Kent CT9 HE Tel: +44 (0)1843 231494 Fax: +44 (0)1843 231485 Website: www.universal-manager.co.uk http://www.scitechdiol.co.uk www.universal-manager.co.uk Delivering Successful Projects CONTENTS DELIVERING SUCCESSFUL PROJECTS • • • • • • • • www.universal-manager.co.uk Preface Learning Profile 02-1 The Management of Projects 02-2 Project Types and Cycles 25 02-3 The Front End 41 02-4 The Key Players 51 02-5 Closing the Project 69 Appendices Commentary on Activities Glossary Useful Resources NEBS Management Diploma 79 81 87 89 Index 91 Delivering Successful Projects THE UNIVERSAL MANAGER SERIES Books 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Risk Management Delivering Successful Projects Planning and Controlling Projects The Learning Organization Managing for Knowledge Obtaining and Retaining Customers Human Resource Planning Business Planning Financial Performance Managing Quality Business Relationships Managing for High Performance Managing Harmoniously 21 st Century Communication Managing for Sustainability Computer-based Resources Management Assignments (CD-ROM) Personal Developing Planning Toolkit (at www.universal-manager.co.uk) Learning Styles Toolkit (at www.universal-manager.co.uk) www.universal-manager.co.uk Delivering Successful Projects • PREFACE Today, the concept of project management enjoys greater visibility and credibility than ever before The tools and techniques of the discipline have spread far beyond the industry sectors that developed them, and are now just as likely to be employed within a bank or hospital as in a construction or manufacturing company Project management textbooks and software packages are available in abundance, and there is no shortage of training and consultancy for organizations and individuals who want to learn how it should be done There is however a downside to this increasing awareness and buy-in to project management principles Every sector, every textbook and every software programme seems to have its own unique take on project management divergence can be found even on fundamental matters such as the definition of key terms (project, programme, design, build, etc.) Round up half a dozen project managers from different backgrounds, leave them to talk for a few minutes, and before long you will have utter confusion It is not simply that terminologies vary Even more problematic is that project managers tend to 'specialize' in what they consider to be the essential aspect of project management - for most this is planning, but many focus on the front end definition of a project before detailed planning begins, while others may concentrate on the political realm (relationship building, maintaining a high profile, and so on) The Universal Manager series attempts to take a balanced view of the total discipline in two dossiers: I'I'- 02 03 Delivering Successful Projects Planning and Controlling Projects This dossier, Delivering Successful Projects, concentrates on what might be considered the 'softer' project management skills: initiating and scoping projects, establishing feasibility, building the project team and dealing with the key players It also explores the evolution of project management theory from post-war US Department of Defence developments, to the more recent concepts of 'lean thinking' and 'modified design' Its companion, Planning and Controlling Projects, examines the 'harder' skills which come into play after project start-up: contracting; planning and scheduling; monitoring, review and evaluation Key techniques discussed here include the Critical Path Method, resource allocation, earned value analysis and various financial evaluation tests www.unlversal-rnanaqer.co.uk Delivering Successful Projects Overall, we hope that both dossiers provide a clear and even-handed view of the theories, processes, tools and techniques which together make up project management The material in both has been designed for study by practising and aspiring project managers, with an emphasis on encouraging the transfer of learning to the workplace As well as providing a wealth of information for the general reader, Delivering Successful Projects will support candidates working towards the NEBS Management Diploma and the Management S/NVQ at Level If you are working towards either qualification, your approved centre will provide guidance on how your study of Delivering Successful Projects fits in with the overall programme Appendix of this dossier contains information about the NEBS Management Diploma www.universal-manager.co.uk Delivering Successful Projects LEARNING PROFILE Topics included in this dossier are listed below Use them to make a quick judgement about the level of your current knowledge and understanding, and to highlight the sections of the dossier which will be most useful to you KEY Low Mid You have never or not recently studied this topic, nor recently applied the concepts at work You have a broad understanding of the concepts or some experience of working with them, but are not confident about your current level of knowledge High You are familiar with the concepts and their theoretical underpinning You could confidently apply the concepts in any work context Low Mid High 0 I.J U u 0 0 0 0 0 0 0 0 0 0 0 0 (1) The Management of Projects ' The origins and development of project management as an organizational discipline How definitions of key project management terms can vary, and the importance of establishing common terms within project teams and organizations , The range of knowledge, skills and aptitudes an effective project manager should possess The effect that organizational structure may have on the success of projects and on the authority and effectiveness of project managers The factors which will dictate a need for a project management approach to organizational activities (2) Project Types and Cycles How to distinguish between different types of project and how this may influence planning and management decisions ' The four stages of a basic project cycle and the activities which might occur at each stage ' The purpose and application of more sophisticated project models , The structure and process contained in the PRINCE model The arguments for and against concurrency in projects ' The thrust of the 'modified design' and 'tear down the walls' philosophies www.universal-manager.co.uk Delivering Successful Projects (3) The Front End How feasibility is established at the start of projects '.- How to clarify a project's scope and initial definition '.- The meaning of risk management - How a risk management process may be integrated within project management - The content and application of a standard risk management process .- (4) The Key Players '.- Techniques for organizing the project team for maximum efficiency (including the responsibility and documentation matrices) ,.- How creativity and conflict may be managed in the interests of project success ,.- How to categorize the key players in a project, and how to identify their divergent and common interests ,.- The importance of political awareness in a project manager i'- Various political strategies and their application (5) Closing the Project ,.- The distinctions between terminated, completed and handover projects {.- The factors that must be weighed when deciding whether to close a project ,.- A standard procedure for project closure including reporting and review ,.- Organizational strategies for ensuring the lessons are learned from closed projects Low Mid High LJ 0 Q 0 0 LJ 0 0 0 0 0 Q LJ lJ : l 0 o Q Q 0 0 0 U LJ 0 0 0 www.universal-manager.co.uk The Management of Projects 02-1 ' - www.universal-manager.co.uk THE MANAGEMENT OF PROJECTS 02-1-1 A Brief History 10 r~ 02-1-2 ••••••••••••• Projects, Programmes and Portfolios ••• 12 •••••••• 02-1-3 02-1-4 Characteristics of a Project Manager 14 Organizational Structure 17 " ~ 02-1-5 _ The Need for Project Management 21 Delivering Successful Projects Negotiation Attempting to achieve your own desired outcome from a transaction, while leaving all other parties equally satisfied at the subsequent outcome Operations and Technical Management Management of the physical resources (usually labour, equipment and materials) required for design and production of a product or service Organization Design Design of the most appropriate organizational structure for a project Performance Measurement Measurement of a project's progress in relation to planned cost and schedule, sometimes using the calculation of Earned Value Planning Creation of a project plan which details the project purpose, objectives, strategy, standards, key players, task breakdown, resource allocation, schedule and milestones Portfolio A group of projects managed by the same organization, team or individual, which are not necessarily aligned towards the same strategic objective Post Project Appraisal Usually carried out once a project's outputs or end results are in use Chief purpose is to provide feedback in order to identify key lessons learned which can benefit future projects Procurement Can include: an investment appraisal into the options available; procurement or acquisition strategy; preparation of contract documentation; acquisition; selection of suppliers; administration of contracts; and storage, inspection, expediting and handling of materials and equipment Programme A group of projects which together contribute to the achievement of the same strategic objective Programme Management Management of a suite of strategically aligned projects Project A non-routine piece of work undertaken to deliver: ( A beneficial result c" Of a specified quality ( Within defined time and cost constraints ' And which contains an element of risk www.universal-manager.co.uk 83 Delivering Successful Projects Project Appraisal Calculating the viability of the project - will include financial, environmental, health & safety and performance appraisals Project Environment All external influences which may be brought to bear on a project Project Life Cycle The sequence of phases through which a project will pass from conception to completion Project Management Planning, organization, monitoring and control of all aspects of a project, plus the motivation of all involved to achieve the project objectives safely and within agreed time, cost and performance criteria Project Strategy High level, comprehensive definition of how a project will be developed and managed Project Success/Failure Criteria The UK Association for Project Management (APM) identifies three different types of criteria: ' Those of the project sponsor or client i"Time, budget, and specification '''Profitability Quality Assuring that required standards of performance are attained Includes: defining a Quality policy; establishing a system for Quality management; Quality Assurance (QA) which defines procedural and documentation requirements; Quality Control (QC) - the process of measuring whether a pre-defined level of performance has indeed been achieved Risk Analysis and Measurement Risk Management is the process of identification, assessment, analysis and management of all project risks Safety Determining standards and methods to minimize the likelihood of accident or damage to people and equipment Ensuring that these standards are respected in operation, and reviewing them to ensure their continued validity Scheduling Selecting and applying the most appropriate techniques to create a timetable for delivery of project outputs on time and to specification 84 www.universal-manager.co.uk Delivering Successful Projects Sub-project A work package for which responsibility has been delegated to someone other than the leader of the overall project Systems and Procedures These detail the standard methods, practices and processes for handling frequently occurring events within the project Systems Management Prime activities are Systems Analysis, Systems Design and Engineering and Systems Development Team Building Assembling the right project team, and creating a co-operative environment Value Analysis Application of a series of analytical techniques to an existing product, process or organization Value Engineering Application of a series of proven techniques during the concept and design stages of a project Value Management A structured means of improving business effectiveness in line with strategic goals: may incorporate techniques such as Value Engineering and Value Analysis Variation Control See 'Change Control' Work Definition The definition of project work and organization is achieved through the use of a Work Breakdown Structure (WBS) and an Organization Breakdown Structure (OBS) Work Package A component of the project: a piece of work contributing to project objectives, and which may be coupled with other work packages www.uruversar-rnanaqerco.uk 85 Delivering Successful Projects 86 www.universal-manager.co.uk Delivering Successful Projects APPENDIX USEFUL RESOURCES W H Aitken (1997/98), Project Management & Operations Research, South Bank University London Project Magazine, produced by the Association for Project Management N M L Barnes (1990), Financial Control, Thomas Telford Publications R Buttrick (1997), The Project Workout, Pitman Publishing J Chalmers (1997), Managing Projects, How To Books C Chapman & SWard (1998), Project Risk Management, Wiley R K Corrie (1990), Project Evaluation, Thomas Telford Publications M A Cusumano & K Nobeoka (1998), Thinking Beyond Lean, The Free Press S Ghoshal & C A Bartlett (1998), The Individualized Corporation, William Heinemann PO Gaddis (1959), 'The Project Manager', Harvard Business Review G Johnson & K Scholes (1988), Exploring Corporate Strategy, Prentice Hall R L Kliem & I S Ludin (1992), The People Side of Project Management, Gower B P Lientz & K P Rea (1998), Project Management for the 21 st Century, Academic Press o Lock (1998), Project Management, Gower H Mintzberg (1979), The Structuring of Organizations, Prentice Hall P W G Morris (1997), The Management of Projects, Thomas Telford Publications T Peters & R Waterman (1982), In Search of Excellence, Harper & Row G Reiss (1996), Programme Management Demystified, E & F N Spon P M Senge (1990), The Fifth Discipline, Century Business J R Turner (1993), The Handbook of Project-based Management, McGraw-HilI J Whatmore (1999), Releasing Creativity, Kogan Page J R Womack & Ross (1990), The Machine That Changed The World, Maxwell Macmillan International www.universal-manager.co.uk 87 Delivering Successful Projects WEBSITES Association for Project Management www.apm.org.uk Project Management Resources pmblvd.com www.ccta.gov.uk/prince www.pug.mcmail.com/pip/about-prince.html 88 www.universal-manager.co.uk Delivering Successful Projects APPENDIX NEBS Management Diploma NEBS Management is the Awarding Body for specialist management qualifications - committed to developing qualifications which meet the needs of today's managers at all levels across industry The NEBS Management Diploma is a broad management development programme aimed at practising and aspiring middle managers It offers a comprehensive,integrated programme of personal and organizational development Content During the Diploma programme, a candidate will: r.r.- Establish a Personal Development Plan Study theory and practice in the following key management areas: c.- Managing Human Resources c.- Financial Management Organizational Activities and Change c.- Management Skills Produce a specialist Management Report Compile an Individual Development Portfolio c.c.c.- Flexibility The NEBS Management Diploma requires a minimum of 240 hours of study but can be completed on a full-time or part-time basis as appropriate Many programmes will offer a mix of direct training, open learning and practical workbased activity In connection with the Universal Manager series, the Diploma therefore offers the facility for learning in a variety of media including paperbased material, on-line resources and taught elements Assessment Assessment of performance takes a rounded view of the capability demonstrated by the candidate in assignments and specialist tasks, in the management report and portfolio, and in interview www.universal-rnanaqer.co.uk 89 Delivering Successful Projects Enrolment The usual entry requirements are: c'" c At least two years' relevant management experience PLUS a NEBS Management Certificate, a Management S/NVQ at Level or the equivalent qualification There are many Accredited Centres approved to offer the Diploma programme in the UK and abroad Call NEBS Management on 0171 2943053 for details of your nearest Centre 90 www.universal-manager.co.uk Delivering Successful Projects • INDEX A accountability 34 adhocracy 20 advertising 28 annual review 13 Apollo space project 11 Association for Project Management (APM) (UK) 14, 49 B Best Practice Transfer 22 blame culture 65, 77 Body of Knowledge 14, 17 BOO(T) projects (Build - Own - Operate - (Transfer)) 46 budget see costs bureaucracy 19 Buttrick, R 13, 29, 36, 61 C Canary Wharf 71 case studies 26-7, 46-7, 55-7, 64-7, 70-1, 79-80 Central Computer and Telecommunications Agency (CCTA) 36 Certificate in Project Management 14 change control 11, 81 Channel Tunnel (case study) 46-7, 79 Chapman, Chris 49 Chrysler 39 civil engineering 29 clients see sponsors closing the project 34, 69-77, 80 co-operation (co-option of opposition and alliance building) 66 co-ordination 38-9, 55-8 communication 28, 52, 59, 73, 80, 81 competition in the marketplace 22, 59 Concorde 11, 71 concurrency 37-9, 79 conflict 54-8, 63, 80, 81 consenters 61 construction projects 35, 72, 75 contingency plans 56 costs actual against budget 74 budget 32, 34, 45 control 10-11,81 estimates of 31, 32, 45, 46 over-budget 11, 57 of project gone awry 70, 73 creativity 54-8 Critical Path Analysis 10, 12, 32, 63 Cusmano, MA and K Nobeoka 38 customers 45 D deadlines 53 decision points see gates decision-makers 34, 58-61 definitions 7,12-14,81-5 delegation 66, 81 www.universal-manager.co.uk design see specification development opportunities 32 divide and conquer 65 documentation 53-4, 73 Downey, WG (Ministry of Aviation) 11 downsizing 11 E Earned Value 10 effeciency 39 empowerment of employees 20, 22 end users 59-60 environmental uncertainty 23, 31, 42, 45 ethics 65 Eurotunnel 46-7, 71, 79 evaluation 59 F feasibility study 31, 42, 47 filibustering 67 front end 41-9 functional environment 18, 20 funding 35, 42, 46, 59, 62 G Gaddis (article in Harvard Business Review) 10 Gantt charts 12, 26, 32 gates 31-4, 71 globalization 22, 61 H historical resume 10-12 Honda 38 I influencers 58-61 Information Technology see IT innovation 38 interests, shared or conflicting 63 IT project management for 36-7 see also software; websites J Japan influence on project management theory 11 motor industry 17, 38 job description 20 K Kliem, RL and IS Ludin 65-7 Knowledge Management 22,76-7 L lean thinking 38 learning profile 7-8 lessons learned 34, 75, 76-7 Levene, Dr Ralph 30 Lientz, BP and KP Rea 13 local governrnent 26-7 91 Delivering Successful Projects Lock, 13, 29, 75 London docklands 72 M management29,49,61,64-5 manufacturing 29, 38, 75 market analysis 45 marketing 60, 70-1 matrix structure 19, 20, 32 methodologies 29, 32 military requirements, influence on project management theory 10-11, 47-9 Ministry of Defence (MOD) 11, 47-9 Mintzberg ('adhocracy') 20 monitoring 34 Morris, PWG 35 motor industry 11, 17, 38-9 N NEBS Diploma in Management 5, 91 NHS Trusts 39 o Obeng, Eddie 29 objectives 26, 28-9, 31, 37, 43-5, 52, 59, 74 organizational structure 17-21 p Pentagon 35 people 44-5, 51-67, 70 personal learning profile see learning profile PERT (Program Evaluation Review Technique) 10,26, 32 Peters, Tom 11 Peters and Waterman ('In Search of Excellence') 1920 phased project management 11 phases see stages planning 32-3, 36-7, 38, 45, 83 players 61 politics (internal and external) 42, 62-7, 70, 75, 79 portfolio definition of 14 management 39 power-brokering 66 practicality 42 PRINCE (Projects in Controlled Environments) model 7, 36-7, 55 priorities 19 product development 35, 37, 38-9 Program Evaluation Review Technique see PERT programme, definitions 12-14 progress reports 59 project closing 34, 69-77, 80 definitions 12-14, 59, 83-4 internal or external 20, 27-8 life cycle 30-7, 80, 84 mega-projects 33 outputs 74-5 planning design and specification 32-3, 36-7, 55-6, 60, 67 post project appraisal 75-7, 83 teams 52-4, 75 types 27-30 project centre see task force 92 project management need for 21-3 political dimension 62-7 tools and techniques 26-7 Project Management Institute (US) 11 project manager, characteristics of 14-17 project-centred development approach 11 publicly-funded projects 62 Q quality 39, 45, 84 quick fix (sacrificing the future for the present) 67 R Reiss, G 13,27,30,39 repeaters (project type) 30 reports, closure 74-5 research 29, 35, 72 resources best use of 18-19 charts 63 project resourcing 29, 80 sharing of 45 waste of 34 responsibility assignment of 32, 53, 66 matrix 53 reviews 34 risk management 8,11-12,30,33,47-9,52 Risk Management Processes (RMPs) 47-9 runners (project type) 30 S scapegoating 67 scoping brief 43-7, 55, 79 self-assessment 7-8, 15-16 software case study of software development project 26-7 programmes for project management 35, 63 project management requirements in development of 11 specification 32-3, 60, 79 spiral cycle of project development 35 sponsors 12, 45, 55, 59, 70, 73 stages 35-7,48-9 stakeholders 12, 45, 60-1, 63, 75 standards 45, 53, 59, 79 status, value placed on 20 strangers (one-off projects) 30 strategy 31, 42, 45 structures 17-21, 32 T task force 11, 20 team-working 52-4 technological acceleration 22, 23, 70 tendering and bidding for contracts 33 termination of project 70-1, 73 terminology 7,12-14,35-6,52,81-5 testing processes 60 timescales 53 Toyota 38 track record of organization 45 training 26, 72 Turner, JR 13 www.universaJ-manager.co.uk Delivering Successful Projects U uncertainty levels 29 United States influence on project management theory 10 motor industry 39 W waterfall cycle for project development 35 WBS (Work Breakdown Structure) 10,32 Wearne, SJ 35 websites 28, 55-7, 72 Whatrnore, John 54 Womack, Jones and Roos 38 Work Breakdown Structure see WBS work package, definition 14 www.universal-manager.co.uk 93 Delivering Successful Projects 94 www.universal-manager.co.uk Delivering Successful Projects www.universal-manager.co.uk 95 Delivering Successful Projects 96 www.universal-rnanaqer.co.uk Delivering Successful Projects This dossier describes the evolution of project management ([.I' a discipline" !t explores the terminologv used and the theorv behind delivering successful projects" The "soft skills' ofproject management are covered including project start-up and seeping: roles atul responsibilities; the 'people side' Etj'ectil'e closure strategies (/1'1' cvamined st The Universal Manager is a dynamic, flexible learning resource for 21 century managers Designed to NEBS Management and S/NVQ standards, it contains w of material to support both the professional development of experienced mi I managers, and the formative development of management students and recent graduates Reflecting the diversity of media available to today's learner, The Universal a incorporates material in print, CD-ROM and on-line formats Key elements are dossiers in the series: each one provides an authoritative, clear-sighted and ,'C.'A '" provocative survey of a hot management topic 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 rH''':>II\I Risk Management Delivering Successful Projects Planning and Controlling Projects The Learning Organization Managing for Knowledge Obtaining and Retaining Customers Human Resource Planning Business Planning Financial Performance Managing Quality Business Relationships Managing for High Performance Managing Harmoniously 21 st Century Communication Managing for Sustainability For more information about The Universal Manager, visit our website at: www.universal-manager.co.uk SCITEC EDUCATIONAL A partnership project with ~ NEBS Management ISBN 0-948672-77-3 ... view of the total discipline in two dossiers: I'I'- 02 03 Delivering Successful Projects Planning and Controlling Projects This dossier, Delivering Successful Projects, concentrates on what might... www.universal-manager.co.uk Delivering Successful Projects CONTENTS DELIVERING SUCCESSFUL PROJECTS • • • • • • • • www.universal-manager.co.uk Preface Learning Profile 02- 1 The Management of Projects 02- 2 Project...I I DOSSIER 02 DELIVERING SUCCESSFUL PROJECTS C , r Delivering Successful Projects ACKNOWLEDGEMENTS This publication was developed by Scitech