APM - Understand project management planning

Question 1

Define the term ‘deployment baseline’

Answer 1

The baseline is the reference levels against which a project, programme or portfolio is monitored and controlled.

Question 2

Outline the purpose a business case

Answer 2

A business case provides justification for undertaking a project, programme or portfolio. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution. The very first consideration of a project by an organisation provides the opportunity to evaluate the options that may be available. It provides the basis for accountability for how funds are used and the level of returns gained from these funding decisions

Question 3

Outline the purpose and typical content of a business case

Answer 3

Strategic context: The compelling case for change.
Economic analysis: Return on investment based on investment appraisal of options.
Commercial approach: Derived from the sourcing strategy and procurement strategy.
Financial case: Affordability to the organisation in the time frame.
Management approach: Roles, governance structure, life cycle choice, etc

Question 4

Explain the role of a project sponsor and project manager in relation to developing a business case

Answer 4

A Sponsor is a critical role as part of the governance board of any project, programme or portfolio. The sponsor is accountable for ensuring that the work is governed effectively and delivers the objectives that meet identified needs.

Question 5

Explain how a stakeholder analysis supports effective stakeholder engagement

Answer 5

Stakeholder analysis The identification of stakeholder groups, their interest levels and ability to influence the project or programme

Question 6

Define the term ‘benefits management’

Answer 6

Benefits management The identification, definition, planning, tracking and realisation of benefits.

Question 7

State typical estimating methods - analytical (including analytical, analogous, parametric )

Answer 7

Analytical estimating is an estimating technique that uses detailed specifications to estimate time and cost for each product or activity. Also known as bottom-up estimating

Question 8

State typical estimating methods - analogous (including analytical, analogous, parametric )

Answer 8

Analogous estimating An estimating technique based on the comparison with, and factoring from, the cost of similar, previous work. Also known as comparative estimating.

Question 9

State typical estimating methods - parametric(including analytical, analogous, parametric )

Answer 9

Parametric estimating is an estimating technique that uses a statistical relationship between historic data and other variables to calculate an estimate.

Question 10

Outline the purpose of the estimating funnel

Answer 10

Estimating funnel A representation of the increasing levels of estimating accuracy that can be achieved through the phases of the life cycle

Question 11

Explain why establishing success criteria is important at the start, during, and at the handover of a project

Answer 11

Success criteria The satisfaction of stakeholder needs for the deployment of a project. Note this is a different performance measure to benefits, which are focused on the strategic intent and delivering beneficial change.

Question 12

outline the purpose and benefits of project progress reporting

Answer 12

Progress report A regular report to senior personnel, sponsors or stakeholders summarising the progress of a project including key events, milestones, costs and other issues

Question 13

Outline the typical content of a business case

Answer 13

‘Benefits’

• A full agreement of how the benefits will be realised and measured, and how the stakeholders will be involved, is crucial to ultimate feasibility.
• Information should be sufficient for stakeholders to understand the operations and ongoing maintenance required to enable the acceptance and use of the benefits.

‘Budget’

• This refers to the funds that are expected to be consumed as a result of delivering the project.
• There may also be contingency allowances to take account of uncertainties.
• As the project progresses further, more granular cost estimates will be produced and reflected back to the business case budget.

‘Risks’

• The longer the timescale of the project the more difficult it may be to identify the level of uncertainty and the most effective approach.
• Business case risks are the most important to identify. If they can’t be mitigated at this stage it may mean that the project is abandoned or a less risky strategy pursued.

‘Options appraisal’

• Major part of the justification to proceed
• Strength is increased when a full range of options is explored
• Shows organisation has not come over reliant on a single idea
• Has reflected on what other options may be possible with the available funds
• Do nothing to be considered
• Approved on the basis of strongest best option in relation to other options
• Financial appraisal considering relative costs in relation to the time phasing of return value.

Additional content
BC may also document information on timeline, success criteria, stakeholders, constraints, assumptions, dependencies and details of any plans

Question 14

Define stakeholder analysis

Answer 14

Stakeholder analysis is the identification of stakeholder groups, their interest levels and ability to influence the project or programme

Question 15

Explain how a stakeholder analysis supports effective stakeholder engagement

Answer 15

Stakeholder analysis starts with the identification of a projects key stakeholders and assessing their interests in the project and the ways in which those interests affect project risks and viability.

It contributes to project design by identifying the goals and roles of different groups and by helping to formulate appropriate forms of engagement with these groups. Developing a sound stakeholder environment means understanding the needs of stakeholders, both perceived and in reality

Question 16

Explain an approach of how a stakeholder analysis supports effective stakeholder engagement

Answer 16

A typical approach could include:

• Understanding the roles of the various stakeholders, and how this information may be used as an opportunity to improve both the perception and reception of the project
• Identifying the real nature of each stakeholder groups business and their consequent interest in the project
• Understanding stakeholders groups business and their consequent interest in the project
• Assessing how stakeholders may react to various approaches and methods of communication
• Identifying the characteristics of the stakeholders environments and developing appropriate responses to facilitate a good relationship
• Responding to the stakeholders motivation in relation to the project
• Determining the key areas that will have the most impact on the success reception of the project

Question 17

Assigning stakeholder categories

Answer 17

Each stakeholder is assigned to category according to their relative ability to influence the project and the level of power that they are thought to have

Three distinct tasks
• Identification and mapping of relevant stakeholders
• Analysis of their interests in relative power over the project or programme
• Development of an outline action plan defining how each stakeholder group will be managed throughout the life cycle of the project and the likelihood of them supporting the project
• Power is a factor that is related to influence

Power - high – low
Interest – high – low
Against project – high -low
For project – high low

Question 18

Key ways in which stakeholder expectations will influence the success of a project

Answer 18

Key ways in which stakeholder expectations will influence the success of a project

Improved communication planning
• Not everybody needs to know everything, but some people need to know something
• The results of the analysis will define the key communication requirements
• These requirements are essential to ensure effective engagement
• They are especially true if the key interests of the stakeholders have been gathered in terms of time, cost, quality, scope and benefits
• Not only can the appropriate level of information be ascertained but also where the information will come from and how it will be transmitted
Ensuring a productive team is formed
• Knowing which is the most appropriate engagement strategy to adopt for stakeholders, either;
- Partnering
- consultative
- involved
- kept informed
will help to define whether or not they need a place on the team.

• The outputs of the analysis should indicate which stakeholder relationships might be the most productive for the project being considered.
• Those see as partners may play a key role as suppliers and members of the steering group, depending on their interests and level of seniority
• Engagement strategies for stakeholders in other areas may be ultimately encourage them to be partners too. Similarly, if there many stakeholder groups that need to be consulted this may mean that a team need to be informed to complete these activities.

Enabling effective engagement actions to be considered
• Develop an effective engagement strategy for dealing with them
• Project team to focus on understanding stakeholder perspectives and how to address in order to achieve project outcomes
• Dual benefits of building understanding of issues and building relationships

Increased likelihood of project being accepted
• Stakeholders are of importance particularly when handing over as they will decide whether the output should be accepted or not
• Identifying these from the outset and fulfilling their needs will be a big step in ensuring stakeholder satisfaction is sufficient to warrant the product being accepted into the operational environment