Learning outcome 6 Flashcards
6.1 Explain the importance of a business case throughout the project lifecycle
Provides a checkpoint at all gate reviews to check alignment and rationale to continue
WHAT- PROVIDES OPTIONS
WHY- During the COCEPT phase the BC will outline several options aligned at providing a solution to the REASON for the project. As it has EVALUATED the benefit, cost, risk of options- including doing nothing. It will then provide a rationale to the SPONSOR for their option choice. It will also indicate to CORPORATE the JUSTIFICATION for the INVESTMENT.
WHAT- VIABILTY OF PROJECT
WHY- As the BC has BASELINED the TCQS parameters of the project it is used to check the alignment of the project at any given time in line with the Ob’s and expected benefits of the project. This will allow the SPONSOR to measure whether it is still worth continuing with the project, if for any reason the benefits are no longer going to be realised or obj’s not met then the project may be stopped. Stopping with no return will cost the Org money but continuing could cost a lot more.
WHAT- DECISION MAKING
WHY- The BC is the document that drives all decision making throughout the project. As it has outlined what parameters make the project viable it allows the SPONSOR to use it as a tool of which to measure by. It will allow them to make informed decisions about critical choices throughout the lifecycle which in turn will reduce risk of failure of the project and risk of significant impact to the Org viability.
6.2 Explain what is meant by benefits management and phases
Identification, definition, planning, tracking and realisation of benefits.
WHAT- DEFINITION PHASE
WHY- Having IDENTIFIED the potential BENEFITS and DISBENEFITS the PM is required to DEFINE them. By using a BENEFITS REGISTER to log the two or using a BENEFITS PROFILE to capture the information needed, such as BASELINE level. This will allow the PM to DEFINE the PRIORITY, OWNERSHIP, RISK LEVEL and TGT MEASURES of all the IDENTFIED potential BENEFITS in better detail.
WHAT- PLANNING
WHY- A BENEFITS REALISATION PLAN shows how and when the PM will make a measurement of the REALISATION of the benefits and disbenefits. By having a BRP the PM will be able to manage the BENEFIT DEPENDENCIES and work out how to best REPORT the data and frequency of BENEFIT review. This will then aid the SPONSOR in managing BENEFITS during the BR phase of the project once the PM has moved on.
WHAT- REALISATION
WHY- REALISATION is about embedding the change and making sure the Org’ has TRANSITIONED to using the OUTPUTS. The SPONSOR is ACCOUNTABLE for the REALISATION of the benefits in the project, so they are in control of this phase of the life cycle. By managing the review of accruing benefits, the SPONSOR will be able to implement procedures if required to maximise the return on the investment and ensure the validity of the original BC.
6.3 explain investment appraisal techniques used by a project manager
WHAT- NET PRESENT VALUE
WHY- Is a technique used by the PM in the DEFINITION phase of the project lifecycle. It checks the viability of a project by bringing its FINACIAL WORTH back to TODAYS NET PRESENT VALUE. By firstly applying the DISCOUNTED CASH FLOW to the VALUE of INVESTMENT is specific years, then ADDING the values across all the years and finally DEDUCTING the amount INVESTED. The sum of which outlines the FUTURE VALUE OF THE INVESTEMENT which in source is the ATTRACTIVENESS of the INVESMENT for the BC. The technique considers the TIME-VALUE of money there by accounting for impact of inflation and interest rates.
WHAT- INTERNAL RATE OF RETURN
WHY- Compares PREDICTED RTN RATE against COST OF CAPITAL. By plotting a graph that allows the PM to work out the DISCOUNT RATE at which the NPV is 0, this means that the FUTURE CASH FLOW is EQUAL to the INITAL INVESTMENT. This provides an indication of how ‘SAFE’ the investment is by showing its robustness. It is a good tool for allowing COMPARABILITY of projects and making sound informed GO/ NO GO
critical decisions.
WHAT- PAYBACK
WHY- Is the amount of time it takes your project to RECOVER the INITAL INVESTMENT form the SUBSEQUENT NET CASH FLOWS. It is suited to LCC why there is more CERTAINTY in OUTCOMES as opposed to ILC. Or small firms on shorter projects as they are inherently seeking less risk. Unfortunately, it is too simple a tool for longer periods as it does not take into account inflation.
6.4 Explain an information management process
WHAT- COLLECTION
WHY- The PM will outline what is to be collected and what isn’t, when it will be required and the format by which the Information is to be received. This will help provide a firm understanding of the levels of compliance outlined by legislation and corporate policy and also reach the corporate expectation and satisfaction levels that all the relevant info is being captured.
WHAT- STORAGE
WHY- The PM needs to outline how and where to store information in the info management plan. This is so everyone understands the needs for future accessibility, who has ownership and permission to view and edit it. It will also need to outline how it will be secured and where. Usually, a task taken on by the PMO, this allows for a firm standardisation of the process and ability to stay in line with strict legislation and governance rules.
WHAT- DESEMINATION
WHY- The PM will outline who will have access to what information and at what intervals. In conjunction with the stakeholder analysis and comms plan the PM s afforded the ability to systemise the information going to be sent forward to stakeholders. It allows for efficient and secure and standardised plan of information movement.
6.5 Explain factors that would typically be reported on to help ensure successful project outcomes
WHAT- PROGRESS AGAINST SCHEDULE
WHY- Reporting on how much actual work has been completed against how much planned allows stakeholders to understand if any further action is required to help the project reach the TCQ constraints. If the project is behind schedule, it will afford the SPONSOR to able to implement some form of contingency, be it money or resources to assist the PM in manging the project back to its baseline. It may also allow reallocation of resources if the work is ahead of schedule with resource smoothing.
WHAT- PROJECT AGAINST ACTUAL SPEND
WHY- By using EVM the PM will be able to inform the SPONSOR how much money has actually be spent to complete the achieved work against what was planned. This either promote stakeholder confidence that the project is in hand and aligned to obj’s and benefits or allow to implement the PSB to implement change to rectify the problems brining the project back in line and on course for success.
WHAT- CHANGE OF SCOPE
WHY- During the ITERATIVE lifecycle at the end of each time box when a deliverable is deployed users will provide feedback. This can lead to a reprioritisation of requirements and thus a change in scope. Reporting this will identify the new levels of acceptance criteria, giving everyone a firm understanding of the work required to provide the optimal solution for the user and the success of the project.
6.6 Explain the relationship between the deployment baseline and the development of a project management plan in Linear and Iterative lifecycles.
WHAT- SCOPE OF REQUIRMENTS
WHY- The DEPLOYMENT BASELINE is agreed at the end of the DEFINITION phase in LLC by the SPONSOR signing off on the PMP developed by the PM. In that baseline is the scope of requirements which outlines the work to completed to reach the acceptance criteria, this should not change with the exception of PESTLE factors or USER request. Having the SCOPE BASELINED means everyone involved has a clear understanding of the work be completed and by whom as it will be fully displayed in the WBS and the OBS
WHAT- ALLOWING FOR CHANGE
WHY- IN the ILC the DEPLOYMENT BASELINE is not FIRM. The PMP is an EVOLVING product as the project goes through the ITERATIONS of EVOLVING the SOLUTION it produces a deliverable to be operated by the USER. This allows the USER to provide FEED BACK and REPRIORITISE, if necessary, their requirements. To which end this allows the scope to be redefined and as such the PMP will reflect this, and a new DEPLOYMENT BASELINE will be agreed before the next iteration.
6.7 Explain the importance of producing a PMP
WHAT- MONITORING AND CONTROL
WHY- The PMP is the main focal point of the project developed by the PM in the DEFINITON phase of the project. It documents what’s going to be delivered and how it’s going to be managed signed off by the SPONSOR at the end of the phase. As it is the documenting how the whole project will run and what is required it used as a tool to measure against. If at any time the PM feels they are losing control of a certain aspect of the project, they can refer to it and see if the actuals aligned to what was planned. This allows the PM at tighter control of the project increasing chances of success.
WHAT- COMMUNICATION
WHY- The PMP holds the documents responsible for all aspects of COMMUNICATION in the project such as the STAKEHOLDER ENGAGEMWNT PLAN and COMMUNICATIONS PLAN. These documents allow the right people to be informed at the right time about the right things. Without the PMP and these documents the project would be ‘blind’ when trying to make informed decisions about the viability of the project and an increased risk of project failure.
WHAT- ROLES AND RESPONSIBILITIES
WHY- When the PM develops the PMP a couple of the fundamental documents are the PBS, WBS and OBS. They are produced so that everyone listed in the PROJECT ORGANISATIONAL STRUCTURE fully understand their roles and responsibilities. This means that everyone understands what is required of them at a certain point in the lifecycle. Reducing the chance of people completing incorrect tasks or reworked process steps that would lead to implications on the TCQ constraints.
6.8 Describe the typical contents of a PMP
WHAT-STAKEHOLDER MANAGEMENT PLAN
WHEN- Definition
WHO- PM
HOW- Stakeholder analysis
WHERE- Used throughout the project
WHY- When the PM has done a thorough STAKEHOLDER ANALYSIS it allows them to determine the amount of INFLUENCE that SH will have on the project. If the SH has a greater IMPORTANCE and INFLUENCE, then it will be important to make sure they have BUY IN to the project. If a poor analysis has been done and an SH that was thought to be a supporter turns out to be a blocker, also have not been engaged properly or influenced successfully, they could bring the project to a halt effecting the TC constraints. Equally they could affect how other SH’s perceive the project.
WHAT BUSINESS CASE
WHEN- Outlined in concept completed in definition
WHO-PM
HOW- Outline options in Concept, preferred solution selected and refined in definitions
WHERE- Outline business case is the output of concept
WHY- The BC is the main document for measurement against for the project’s viability. It drives all the decision making by the SPONSOR and PSB at gate reviews and on items such as RISK/ISSUE/CHANGE. By sanity checking these major decisions against the BC it identifies if the project is still aligned to the business’ key Obj’s and benefits.
WHAT- RISK MANAGEMENT PLAN
WHEN- Developed in definition
WHO-PM
HOW- Through thorough risk analysis
WHERE- Implemented throughout the project lifecycle after concept phase
WHY- Although projects inherently seek change that will always come with risk, negative needs to mitigated for and minimised to increase the chance of success for the project. A thorough risk analysis will be performed by the PM using many tools to identify and record uncertainty in the project. Depending on the risk appetite of the Snr SH’s and PSB, too much NEGATIVE risk will reduce stakeholder buy in and and confidence in the project.
6.9 Explain approaches to producing estimates including analogous, parametric, analytical and Delphi
WHAT- PARAMETRIC
WHY- Can be used to create estimate by accessing the data of comparable projects and applying the relevant PARAMETERS to the information required. It is a highly efficient tool as the equations already exists, however may cost the organisation if they do not already own the software. Ensuring the data in current is key, all things such as TIME and COST can be derived from the data. However, the figure produced will be too accurate for the estimate and will require attention from the PM to make it more realistic taking into account such things as inflation and interest.
WHAT- ANALYTICAL
WHY- The PM can take their WBS and by adding up the sum of parts can produce a figure for use in the estimation. However, this task is time consuming but yields a more accurate figure for use as long as the WBS is accurate. There is a need to have ‘in house experience’ to confirm quotes when they are received, to ensure the Org will not be overspending and keep the project inside the cost constraint.
WHAT- DELPHI
WHY- Is a general technique and can be used to ID risk and get a more accurate and truthful estimation when trying to involve multiple parties. By contacting parties individually first to get a gauge on their estimation they are likely to be more forthcoming with honest answers. Afterwards you can bring all parties to the table and offer the parameters of the highest and lowest estimates as you start point. This will allow the project to reach a much more realistic estimation than if asking in an open form in the first place.
6.10 explain the reasons and benefits for re-estimating in throughout the lifecycle
NRTNLM
New data
Resources moved
Team competency varied with expectation
New technologies
Lack of detail at the start of project
Many assumptions made were incorrect
ITII
Improves accuracy- more likely success
The estimate is based of info from project
It conveys more accurate state of project
It adjusts expectations and gives warning
6.11 Explain the relationship between stakeholder analysis, influence and engagement
WHAT- INFLUENCE
WHY- When the PM has done a thorough STAKEHOLDER ANALYSIS it allows them to determine the amount of INFLUENCE that SH will have on the project. If the SH has a greater IMPORTANCE and INFLUENCE, then it will be important to make sure they have BUY IN to the project. If a poor analysis has been done and an SH that was thought to be a supporter turns out to be a blocker, also have not been engaged properly or influenced successfully, they could bring the project to a halt effecting the TC constraints. Equally they could affect how other SH’s perceive the project.
WHAT- COMPLEXITY
WHY- The Analysis will outline who best to engage with whom for successful engagement and influence. Projects create complex internal and external relationships and having an understanding of this allows the PM to task the correct person to engage in the task. For example, if the PM has someone who is of HIGH POWER but does not BUY IN, they will understand they need to task someone of equally high power to interact and hopefully influence the NEGATIVE stakeholder in a POSITIVE way. As opposed to someone of LOW POWER trying to do the same task and possibly coming up against a STATUS barrier.
WHAT iterest .
6.12 Explain the importance of managing stakeholder expectations to the success of the project
WHAT- UNDERSTANDING SCOPE
WHY- A key factor to the success of the project is understanding the SUCCESS FACTORS and ACCEPTANCE FACTORS of the project from the USERS. This will in fact end up defining the scope of the project. It is necessary to know what it is that the USERS require but equally managing expectations by providing them with the information of what is not achievable. Once that has been defined there is a much better chance of the project succeeding.
WHAT- COMMUNICATIONS
WHY- The PM needs to understand the level of ENAGEMENT the SH is EXPECTING. Keeping the COMMS PLAN in line with SH EXPECTATIONS of engagement will ensure they feel more involved in what is being developed and the work being done. This will naturally breed SH confidence and build relationships which can be beneficial if requesting more resources to bring about the project success.
WHAT- TEAM EXPECTATIONS
WHY- It is always best to involve the TEAM in the in the PLANNING phase, if that’s not possible you should still discuss requirements with them. When requirements and roles are unclear, project can feel like they are taking on too much once it is underway. To avoid this and confusion, ROLES and RESPONSIBILITIES need to be defined as early as possible. Also define schedules and dependencies within the team. An efficient productive team will work hard with the PM to bring the project to a successful conclusion.
