1st Edition

Undertake project work

BSBPMG522A

Student Workbook

 Student Workbook
BSBPMG522A Undertake project work
1st Edition 2013

Part of a suite of support materials for the

BSB07 Business Services Training Package
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Published by: Innovation and Business Industry 1st edition published: June 2013
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1st edition version: 2
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ISBN: 978-1-922203-49-6
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Table of Contents
Getting Started ....................................................................................................................1
Features of the training program .................................................................................1
Structure of the training program ................................................................................1
Recommended reading ................................................................................................2

Section 1 Introduction to Project Management

1.1 About Project Management ......................................................................................7
About projects ...............................................................................................................7
History of project management ................................................................................ 10
Section summary ....................................................................................................... 13
Further reading .......................................................................................................... 13
1.2 Elements of Project Management ......................................................................... 14
What skills will you need? ......................................................................................... 14
Increased use of project management tools ........................................................... 15
Key terms and definitions ......................................................................................... 16
Project management principles ................................................................................ 17
Project management structures ............................................................................... 19
Project management systems .................................................................................. 21
Legislative and regulatory requirements .................................................................. 24
Project roles ............................................................................................................... 29
Project management descriptions and methodologies........................................... 30
Developing your skills ................................................................................................ 34
Common project problems ........................................................................................ 36
Section summary ....................................................................................................... 37
Further reading .......................................................................................................... 37
Section checklist ........................................................................................................ 38

Section 2 Undertaking a Project

2.1 Project Management Cycle .................................................................................... 41
What skills will you need? ......................................................................................... 41
The project management life cycle ........................................................................... 42
Software and support ................................................................................................ 44
Section summary ....................................................................................................... 47
Further reading .......................................................................................................... 47
Section checklist ........................................................................................................ 47
2.2 Initiating a Project .................................................................................................. 48
What skills will you need? ......................................................................................... 49
Purpose and aims ...................................................................................................... 49
Project deliverables ................................................................................................... 50
Goals and objectives ................................................................................................. 51
Project parameters .................................................................................................... 53
Selecting the team ..................................................................................................... 55
Identifying the stakeholders ...................................................................................... 56
Key documents and tools .......................................................................................... 58
Section summary ....................................................................................................... 59
Further reading .......................................................................................................... 59
Section checklist ........................................................................................................ 59
2.3 Planning a Project .................................................................................................. 60
What skills will you need? ......................................................................................... 61
Planning the project................................................................................................... 61
Identify the tasks with a work breakdown structure................................................ 68
Building the team....................................................................................................... 70
Assigning tasks .......................................................................................................... 71
Scheduling the work .................................................................................................. 72
Develop a budget ....................................................................................................... 76
Managing risk............................................................................................................. 77
Develop a communication plan ................................................................................ 80
Consult with team members ..................................................................................... 82
Get training................................................................................................................. 83
Obtain approval for project plan ............................................................................... 83
Section summary ....................................................................................................... 84
Further reading .......................................................................................................... 84
Section checklist ........................................................................................................ 84
2.4 Implementing a Project Plan ................................................................................. 85
What skills will you need? ......................................................................................... 86
Managing the project team ....................................................................................... 87
Stick to your plans ..................................................................................................... 88
Solving problems ....................................................................................................... 89
Monitoring team performance: Coach your team .................................................... 98
Section summary ..................................................................................................... 104
Further reading ........................................................................................................ 104
Section checklist ...................................................................................................... 104
2.5 Monitoring a Project ............................................................................................. 105
What skills will you need? ....................................................................................... 105
Monitor plans and strategies .................................................................................. 106
General characteristics of KPIs............................................................................... 108
Report on progress .................................................................................................. 111
Section summary ..................................................................................................... 112
Further reading ........................................................................................................ 112
Section checklist ...................................................................................................... 112
2.6 Closing a Project ................................................................................................... 113
What skills will you need? ....................................................................................... 114
Finalising a project planning in advance ............................................................ 114
Finalise the project general overview.................................................................. 115
Review with the client/sponsor............................................................................... 117
Section summary ..................................................................................................... 119
Further reading ........................................................................................................ 120
Section checklist ...................................................................................................... 120
Glossary .......................................................................................................................... 121
Appendices ..................................................................................................................... 123
Appendix 1 Max Lionel Realty simulated business ............................................ 123
Appendix 2 Forms and templates ....................................................................... 126
Appendix 3 Max Lionel Realty Privacy Policy ...................................................... 151
Appendix 4 Project initiation document .............................................................. 154
Appendix 5 Communications management plan ............................................... 168
Student Workbook Getting Started

Getting Started
Features of the training program
The key features of this program are:
Student Workbook self-paced learning activities to help you develop an
understanding of key concepts and terms. The Student Workbook is broken down
into several sections.
Facilitator-led sessions challenging and interesting learning activities that can be
completed in the classroom or by distance learning that will help you to consolidate
and apply what you have learned in the Student Workbook.
Assessment Tasks summative assessments where you can apply your new skills
and knowledge to solve authentic workplace tasks and problems.

Structure of the training program

This training program introduces you to international marketing. Specifically, you will
develop the skills and knowledge in the following topic areas:
Section 1 Introduction to project management:

1.1 About project management

1.2 Elements of project management

Section 2 Undertaking a project:

2.1 Project management cycle

2.2 Initiating a project
2.3 Planning a project
2.4 Implementing a project plan
2.5 Monitoring a project
2.6 Closing a project.

Your facilitator may choose to combine or split sessions. For example, in some cases, this
training program may be delivered in two or three sessions, or in others, as many as
eight sessions.

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Getting Started Student Workbook

Recommended reading
Some recommended reading for this unit includes:

Print
Great Britain Office of Government Commerce, 2009, Managing successful
Projects with PRINCE2, Stationery Office Books, London, UK.
Project Management Institute, 2013, A guide to the project management body of
knowledge, 5th edn, Project Management Institute, Newtown Square, Pennsylvania.
Standards Australia, 2002, AS 4915-2002 Project management general
conditions, SAI Global.
Standards Australia, 2003, AS ISO 10006-2003 Quality management systems
guidelines for quality management in projects, SAI Global.
Standards Australia, 2009, AS/NZS ISO 31000:2009 Risk management
principles and guidelines, SAI Global.

Online
Alexander, J., 2007, 11. Take corrective action promptly, Managing small projects,
viewed May 2013, <http://www.managingsmallprojects.com/take-corrective-
action-promptly.html>.
Australian Institute of Project Management, 2013, Australian Institute of Project
Management links page, AIPM, viewed May 2013,
<http://www.aipm.com.au/html/links_page.cfm>.
Bond, C., 2009, Realising project benefits: the Tasmanian Government approach,
Tasmanian Government, viewed May 2013,
<http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0005/78314/
Realising_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>.
BusinessMate, 2010, What is a functional organizational structure?,
BusinessMate.org, viewed May 2013,
<http://www.businessmate.org/Article.php?ArtikelId=184>.
Egeland, B., 2009, Five key steps to closing down the project, Project
management tips, viewed May 2013, <http://pmtips.net/key-steps-closing-
project/>.
Haughey, D., 2010, Avoid failed projects, Project smart, viewed May 2013,
<http://www.projectsmart.co.uk/avoid-failed-projects.html>.
Haughey, D., 2010, The project management body of knowledge (PMBOK), Project
smart, viewed May 2013, <http://www.projectsmart.co.uk/pmbok.html>.
Hutchings, R., 2011, PRINCE2, Project management: project management
certification and training, viewed May 2013,
<http://www.projectmanagement.net.au/prince2>.
Hutchings, R., 2011, Project management downloads, Project management,
viewed May 2013, <http://www.projectmanagement.net.au/downloads>.

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Student Workbook Getting Started

Inter Agency Policy and Projects Unit, 2008, Project management fact sheet: why
project management?, Tasmanian Government, viewed May 2013,
<http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0004/78187/Why_
Project_Management_Fact_Sheet.pdf>.
Jordan, A., 2012, Your projects approved ... now what?, Project
management.com, viewed May 2013, <http://www.projectmanagement.com/
articles/275421/Your-Projects-Approved---Now-What->.
Kozak-Holland, M., 2009, Lessons from history, The history of project
management, viewed May 2013, <http://lessons-from-history.com/node/16>.
Microsoft, 2010, Project help and how-to, Microsoft Office Online, viewed May
2013, <http://office.microsoft.com/en-au/project/default.aspx>.
Office of Government Commerce, United Kingdom, 2011, PRINCE2 methodology,
PRINCE2.com, viewed May 2013, <http://www.prince2.com/prince2-
structure.asp>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Shrewsbury, L., 2011, What is an agile project?, Project management.com, viewed

May 2013, <http://projectmanager.com.au/education/methodologies/agile-
project/>.
Stanleigh, M., 2010, Combining the ISO 10006 and PMBOK to ensure successful
projects, Business Improvement Architects, viewed May 2013,
<http://www.bia.ca/articles/pj-combining-iso-10006-pmbok-to-ensure-successful-
projects.htm>.
Tasmanian Government, 2013, Risk management, Tasmanian Government,
viewed May 2013, <http://www.egovernment.tas.gov.au/assets_for_review/
supporting_resources/toolkit/risk_management>.
TechMediaNetwork, 2011, Learning Center, TopTenReviews, viewed May 2013,
<http://software.toptenreviews.com/learning-center.html>.
Vellani, A., 2009, Functional organization structure What is it?, The business
plan, viewed May 2013, <http://the-business-plan.com/functional-organization-
structure/>.
Wallace, S., 2007, Project structure and organisation, The ePMbook, viewed May
2013, <http://www.epmbook.com/structure.htm>.
Walsh, A., 2011, 5 Whys, Chart it now, viewed May 2013,
<http://www.chartitnow.com/5_Whys.html>.
Wideman, M., 2002, Wideman comparative glossary of project management terms
v3.1, Maxs project management wisdom, viewed May 2013,
<http://www.maxwideman.com/pmglossary>.

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Section 1 Introduction to Project
Management

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Student Workbook 1.1 About Project Management

1.1 About Project Management

About projects

What is a project?
A project is usually defined as a set of distinct processes and tasks and runs for a set
period of time, and delivers academic, business or technical objectives. According to the
Project Management Institute, a project is a temporary endeavour undertaken to create a
unique product, service, or result.1 Therefore, a key feature of projects, as opposed to
operations, is that they have distinct beginnings and ends.

Case study: Max Lionel Realty

Max Lionel Realty was founded in 2008 by property developer Max Lionel. Through its
client agents, the organisation manages property sales and rentals (both residential
and commercial) on behalf of a range of clients. The organisation also separately
engages in investment activities, such as property and land development. Max Lionel
Realty has been a member of the Real Estate Institute of Victoria (REIV) since 2008
and proudly follows the REIV Code of Conduct.
Max Lionel conducts day-to-day operations to achieve company strategic objectives.
These strategic objectives include:
engaging with customers and clients

building goodwill and reputation for integrity

supporting innovative thinking, management and leadership skills

creating a high-performing, highly profitable organisation.

On occasion, Max Lionel will sponsor projects to further the strategic objectives listed
above. Successful past projects at Max Lionel include:
rollout of new computers and outsourced IT services to all agents

agent induction program design and pilot rollout

implementation of new accounting system, including training of relevant

employees.

1 Project Management Institute, 2013, A guide to the project management body of knowledge, 5th edn,

Project Management Institute, Newtown Square, Pennsylvania, p. 3.

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1.1 About Project Management Student Workbook

Why do businesses run projects?

Some of the reasons a business might initiate a project include:
market demand for a quality product or service

technological advances

solving a business need

request from a customer

ensure new laws and regulations can be complied with

response to competition.

Planning and keeping track of all the elements of a project has become a management
skill in its own right, with a defined set of parameters.

What is project management?

There are numerous definitions of project management. Definitions may differ depending
on whether the focus is on organisational change management as such or on the delivery
of products goals or outcomes. According to the Tasmanian State Government, project
management is a formalised and structured method of managing change in a rigorous
manner to meet these outcomes.2 According to the Project management institute, project
management is the application of knowledge, skills, tools, and techniques to project
activities to meet the project requirements.3
Project management concentrates on using knowledge and skills to achieve specific
outcomes to be accomplished by a certain time, to a clear quality standard and within a
given level of resources or budget.
Wherever you work, the chances are that you will need to understand the language and
concepts of project management and to apply the skills you will learn in this course of
study.

Customer expectations
You might think that project management is only required to get a specified outcome, but
its more than that. Its about getting an outcome that meets the requirements of the
customer, whether that customer is internal or external, a client or senior management.

Scope, cost and time: The triple constraint of project management

Many workplaces, whether business, academic or manufacturing, use project
management as a way of getting set tasks completed on time, within budget and to an
agreed specification.

2 C. Bond, 2009, Realising project benefits: the Tasmanian Government approach, Tasmanian Government,
viewed May 2013, <http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0005/78314/
Realising_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>.
3 Project Management Institute, 2013, A guide to the project management body of knowledge, 5th edn,

Project Management Institute, Newtown Square, Pennsylvania, p. 3.

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Student Workbook 1.1 About Project Management

Ensuring that quality, cost and time requirements are met is critical to project
management and critical to business.
Project management methodology provides the structure
to manage business needs and customer expectations
with regard to:
scope/quality/performance, for example, what is
done, delivered and to what specification
cost, for example, human or physical resources

time, the duration of the project.

These three components of project management are

often referred to as the triple constraint of
project management. Changing one constraint setting necessarily affects one or two other
constraints. For example, increasing the amount or quality of deliverables will increase
cost, time or both.

Reasons for project failure

While using project management methodology greatly increases the chances of the
project succeeding, some projects do fail. Some of the reasons for project failure include:
changing scope (that is, whats in/whats not keeps changing as the project
evolves)
insufficient planning

risks are not managed

issues are not managed

poor communication

lack of commitment and responsibility by stakeholders.

By keeping an eye on the reasons for failure, we can reduce the likelihood of project
failure.

Learning activity: Quality, time, cost

The three components of project management are:

scope/quality cost time.

Changing one component affects the other two.

Discuss how/why.

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1.1 About Project Management Student Workbook

Research 3 constraints of project management on the internet.

What models exist?

Why, in some models is quality or performance considered separately to scope?

Consider an example of a work project you were involved in or are aware of in which
one, two or all three constraints were altered during the course of the project. For
example, contractors took too long to finish a project-related task and both cost and
time increased.
Discuss how changes in one constraint affected the other constraints.

History of project management

Although it is claimed that modern project management has only existed since the 1950s,
students of history might find this hard to believe. In the past, how did people:
build the pyramids of Egypt?

build Chartres Cathedral?

undertake the campaigns of the Crusades?

build the Great Wall of China?

build the Suez Canal?

build transcontinental railroads?

They did it by following project management principles. As these examples show, the
basic principles of project management are easy to understand and have been around for
a long time.

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Student Workbook 1.1 About Project Management

Fast forward to the modern era

At the beginning of the last century, project management took on a more scientific
approach. Modern project management principles are what they are today because of
this movement.
Project management has evolved from various industry fields, such as construction,
engineering and defence. Initially, the most notable contributors to project management
were Henry Gantt and Henri Fayol. They used planning and control techniques and are
famously known for the development and use of the Gantt chart as a project
management tool, as well as the five management functions (which currently forms the
basis for the body of knowledge associated with project and program management
today).
Prior to the 1950s, projects were managed using mostly Gantt charts and various other
informal methods. During the First and Second World Wars, project management was
used for managing resources and undertaking campaigns.

Learning activity: History of project management

Do an internet search for the following terms:

history of project management

project management timeline.

Visit and read through this site, which provides an interesting insight into the history of
project management:
Lessons from history, The history of project management, viewed May 2013,
<http://lessons-from-history.com/node/16>.

In what way were the major projects built in ancient times similar to projects
undertaken today?

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1.1 About Project Management Student Workbook

More recent times

Current project management methods have been used only as recent as the 1960s.
Project management is now extensively adopted by most organisations as it is a work
structure that provides effective use of time and resources, quality control and cost
management. Effective project management is vital for the successful undertaking of a
project. A successful project means that the specified results are delivered on time and
within budget.

Tip: Project skills are increasingly in demand

Business projects can be quite diverse, for example, the development of a new product
or service; the establishment of a new production line in a manufacturing organisation,
a public relations campaign, or a major building (or re-building) program.
While the 1980s were about quality and the 1990s all about globalisation, the 2000s
are about velocity (including speed to market, rapid response to customer needs, etc.).

Learning activity: Project attitudes

Why is it important to manage the activities involved in achieving a specific outcome?

Complete the questionnaire below.
What are your current attitudes towards project management?
Using the scale shown below, evaluate the following statements before proceeding any
further with this unit. On a scale of zero to five, zero stands for strongly disagree and
five stands for strongly agree.

0 1 2 3 4 5
Strongly Disagree Somewhat Somewhat Agree Strongly
disagree disagree agree agree
1. I can trust that other people will do their job without me following them up.
2. Projects always run late. Theres nothing you can do about it.
3. The holiday/house/event wont cost any more than the amount Ive been
quoted.
4. Im only going on a holiday, nothing can possibly go wrong.
5. I believe the old Aussie saying, shell be right mate.
Total Score:

The range of scores achieved in the questionnaire can range from 0 to 25. If you are:
closer to 25 You may be too optimistic. You might need to change your attitude
in order to do well in this program
closer to 0 you are a natural project manager, you just need to do the course to
get the technical skills.

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Student Workbook 1.1 About Project Management

Project managers have to be able to lead and motivate, but they also have to be able to
step away and analyse and plan for what can go wrong.
What you can you learn and put into practice about project management will not only
improve your score, but also how you can improve the likelihood of achieving your goals
on time and on budget, by following a project management methodology.

Section summary
You should know understand what project management entails, and have a background
on how it has been applied historically and in more recent times.

Further reading
Bond, C., 2009, Realising project benefits: the Tasmanian Government approach,
Tasmanian Government, viewed May 2013,
<http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0005/78314/Reali
sing_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>.
Kozak-Holland, M., 2009, Lessons from history, The history of project
management, viewed May 2013, <http://lessons-from-history.com/node/16>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Wideman, M., 2002, Wideman comparative glossary of project management terms

v3.1, Maxs project management wisdom, viewed May 2013,
<http://www.maxwideman.com/pmglossary>.

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1.2 Elements of Project Management Student Workbook

1.2 Elements of Project Management

Many organisations use a project management methodology to achieve their
organisational or corporate goals and objectives as well as for process improvement
initiatives.
This section will discuss project management methodologies, where they are used and
why they are used.

Case study: CRM system implementation at Max Lionel Realty

To build client relationships and improve client service, Max Lionel Realty intends to
source and implement a new customer relationship management (CRM) system. The
purchase and initial rollout of the system, including relevant training will constitute a
project sponsored by Operations General Manager, Kim Sweeney. The project has a
fixed, six-month timeframe for completion.
Kim Sweeney, your manager, has asked you to project manage this important
implementation. You are excited about running this project but, focusing on your role as
an estate agent, you have not worked as a project manager for some years. You will
need to re-acquaint yourself with important methods and terms.
The budget for the implementation will be in the range of $50,000, a significant capital
expense for Max Lionel Realty. But, according to cost-benefit analysis already
undertaken the project will deliver a sizable return on investment over the next three
years. For these reasons, the project must succeed (by meeting all stakeholder
expectations regarding scope, quality, cost and time) and has been given the highest
priority.

What skills will you need?

In order to effectively prepare for projects as a project manager, you must be able to:

identify basic project management principles and methodologies

have an understanding of project management systems and structures

outline legislative and regulatory requirements.

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Student Workbook 1.2 Elements of Project Management

Increased use of project management tools

The last five to ten years have seen increased accountability requirements on companies
and government agencies, resulting in a greater focus on efficiency and effectiveness in
the way they conduct their business and allocate resources.
Todays rapidly changing economic environment, with its diverse opportunities and
requirements, can be supported by using project management methodologies to support
the achievement of organisational goals, while providing greater assurance to
stakeholders that the organisations resources are being used effectively.
Objectives are clarified and agreed, resources identified and allocated, thereby ensuring
accountability for performance and results, engendering a focus on the benefits to be
achieved for all concerned.
Some of the benefits of using project management methodology include:
efficiency so more work is achieved in less time, with fewer resources

reduced project risk as risks are identified and managed

increased customer satisfaction as better quality outputs are produced

learnings from past experience are utilised so mistakes are not repeated.

Tip: Who uses project management?

Organisational types currently using project management include:

defence departments, e.g. ship building, re-fits, etc.

government departments, e.g. Department of Infrastructure

local government, improvements/upgrades to roads and community amenities

construction industry houses, shopping centres, high-rises

software developers customised, modified software

sporting associations finals, international competitions

large scale organisations (LSOs) product management, implementing new

internal systems, complying with new government requirements
small to medium enterprises (SMEs) small business, including tradespeople
tendering for contracts, managing existing contracts.

Typical projects
Types of projects that are undertaken by various organisations on a regular or ad hoc
basis include:
IT builds new, modified, upgrades of computer systems and software

building and construction from houses to high-rises, bridges and freeways

major events Commonwealth and Olympic games, football finals, expos (e.g. the
annual age career expo for students)

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1.2 Elements of Project Management Student Workbook

factory closures, sometimes with off-shore relocation

defence departments acquiring/building/refurbishing planes, ships, bases

individual or company moving to new premises (requires printing new stationary,

physical relocation and set up of all equipment, etc.)
office refurbishment/house renovation (e.g. do staff have to be temporarily
relocated or will work be done at the weekend?)
installation of new telephone or computer systems in existing work premises (e.g.
computer system would require identifying and training relevant employees, as well
as the testing and installation of the new system).

Key terms and definitions

As is often the case, there is some project jargon that is often used in project
management that will be essential for you to understand.

Deliverables
A deliverable is an output produced at the end of a project or task. Its usually something
tangible. Examples of deliverables can include products, plans, reports, buildings,
computer programs, policies and procedures.

Gantt charts
A Gantt chart is a type of horizontal bar chart that shows a project schedule. They can
show the dependencies between tasks.

Goals and objectives

A goal or objective is a projected state of affairs that a person or a system plans or
intends to achieve. An objective is a level of performance or achievement and can be
monitored and graphed, for example:

We will increase sales by 10% by the EOY 201X.

Milestones
Milestones are project checkpoints. They have no duration but they mark significant
points of progress in a project.
Milestones are used to see whether a project is on time or not. A milestone may be
Design is finished, Sign contract, Project ends, etc.

Parameters
Parameters are a fact or circumstance that restricts how something is done or what can
be done. In a project, this most commonly refers to budgets, timeframes and the scope
(or size) of a project.

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Project plan
A project plan is a document that describes and brings together the components of a
project. The project plan:
is the guidebook for all stakeholders to the project
covers all aspects of the project, with the level of detail dependent on the project
size.

Scope
How big is the project? The project scope defines the Whats in and Whats out of the
project.
Scoping processes are required to ensure that the project includes all the work required,
and only the work required, to complete the project successfully.

Scope creep
Scope creep is the continual extension of the scope of a project, often leading to a
runaway project. As some projects progress, especially through development,
requirements continuously change incrementally, causing the project manager to add to
the project objectives. A related concept is feature creep.

Stakeholders
Stakeholders are people with a vested interest in the outcome of the project. Individuals
and organisations that are involved in, or may be affected by, project activities.

Tasks
Tasks are activities with a fixed timeframe that contribute to the project outcome.

Work breakdown structure

A work breakdown structure (WBS) is a hierarchical, sequential breakdown of the tasks
(work) to be done in the project.

Project management principles

Most projects are governed by time, cost and quality.

On time, within budget, to specification.

Being capable of understanding and using standard project management methods and
tools will help you to ensure that you get the best possible outcome within the parameters
of the project brief.

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Principles for project management differ somewhat by methodologies described later in

this section. For example, consider the PRINCE2 set of principles. These would apply to all
but the most free-wheeling of project management approaches: 4

Continued business Keep focused on the business goals the project is meant to
justification promote.

Learn from Be willing to alter your approach to the project, re-plan and try
experience new approaches as required. Most project management
approaches encourage an iterative approach in which
outcomes are constantly monitored and plans are altered as
more information becomes available. Some methodologies,
such as agile, which will be discussed later, focus on rapid
cycles of development and improvement.

Define roles and This is a point on which methodologies may differ or interpret
responsibilities differently.

Manage by stages The next section, will look more closely at the project life cycle.

Manage by exception Look for project variances and act to keep performance within
tolerances. You want to ensure no delays and that team
performance meets targets. Remember, over-performance
may be as detrimental to your project as underperformance.
For example, adding extra but unnecessary features to
products, i.e. gold-plating, may take up your teams time and
resources that would be better spent on key outcomes and
picking up slack in other areas of the project.

Focus on products What do you need to deliver? To what quality? What does your
customer or client need?

Tailor to suit the No two projects are the same. The level of control required for
project environment a multi-million dollar project is much greater than that
required for a project only costing ten thousand dollars. The
number of stages required for a high risk project is likely to be
greater than a low risk project.

Keep these principles in mind as you make your way through this Student Workbook and
note how they are applied in the different phases of the project life cycle and in different
knowledge areas of project management, such as risk management or coaching.

4 Great Britain. Office of Government Commerce, 2009, Managing Successful Projects with PRINCE2, TSO

(the Stationary Office), p. 11.

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Good, fast or cheap? Another look at the triple constraint model

Recall the triple constraint model discussed earlier. Resources are finite, so when you are
trying to meet project outcomes, you are balancing scope, cost and time.
In the triangle illustration on the right, you are given the options of fast (time), good
(scope) and cheap (cost) and told to pick any two. Fast refers to the time required to
deliver the product, good is the scope of the final product, while cheap refers to the total
cost of designing and building the product.
The triangle reflects that these three properties of a project
are interrelated, and it is not possible to optimise all three
one will always suffer.
In other words you have three options:
fast and good, but expensive

fast and cheap, but poor quality

good and cheap, but it will take a lot longer to produce.

It is important, therefore, to educate your project stakeholders on the interrelationship of

time, cost and quality factors to set realistic expectations for the project. This is best done
in the project initiation phase, which will be discussed later in this Student Workbook.

Project management structures

Some types of organisations are more open to project management approaches than
others. Not all organisations have the prerequisite structures, systems and behaviours to
be able to successfully carry out a project.
You need to be aware of your organisational structure in order to manage your projects
effectively.

Functional structures
A functional organisational structure is based upon the functions of specific jobs within
the organisation. Most organisations in Australia would be organised functionally.

Organisation with a functional structure

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There is only one chain of command in a functional organisation.

These types of organisations could carry out a project effectively when one functional
area or department (i.e. manufacturing) has a dominant role or stake in the project.

Project structures
Some businesses are organised solely around projects. Typically these include:
IT businesses

construction businesses

consulting businesses

Organisation with a project structure

These types of organisations are structured around projects and obviously need systems
and structures that focus on projects.
These types of structures are simple, focused and effective. However, they are also
expensive to operate.

Matrix structures
Matrix structures are somewhere between functional and project organisations. There are
many variations on the matrix structure but they typically have two chains of command (a
functional manager and a project manager).

Organisation with a matrix structure

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For example, one such instance of a matrix structure is essentially a functional

organisation with a standing project team (see above). The different functional areas can
conduct projects under the guidance and support of a standing project team/manager
that works with the functional area for the duration of the project.

Learning activity: Project management structures

Visit the websites listed below to find more information about the following
key areas.
For information relating to project structure and organisation:
Wallace, S., 2007, Project structure and organisation, The ePMbook, viewed
May 2013, <http://www.epmbook.com/structure.htm>.

For information relating to matrix organisation structure:

What is a matrix organisational structure?, 2011, Blurtit, viewed May 2013,
<http://www.blurtit.com/q947633.html>.
Matrix structure and organization, 2011, Global Integration, viewed May 2013,
<http://www.global-integration.com/what_we_do/matrix_organisation
_structures.html>.

For information relating to functional organisation structure:

Vellani, A., 2009, Functional organization structure What is it?, The business
plan, viewed May 2013, <http://the-business-plan.com/functional-organization-
structure/>.
What is a functional organizational structure?, BusinessMate.org, viewed May
2013, <http://www.businessmate.org/Article.php?ArtikelId=184>.

Take notes relating to what you have learned and any questions you have for your
facilitator.

Project management systems

A project management system is a pre-defined set of management procedures designed
as a guide to developing, planning, managing and implementing projects and the quality
management framework in which projects are conducted.5 This can include:
project software

policy and procedures

documentation such as forms.

5Inter Agency Policy and Projects Unit, 2008, Project management fact sheet: why project management?,
Tasmanian Government, viewed October 2011, <http://www.egovernment.tas.gov.au/__data/assets/
pdf_file/0004/78187/Why_Project_Management_Fact_Sheet.pdf>.

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What are workplace systems?

Workplace systems aim to guide the business or organisation to conduct its business in
an efficient, professional, ethical, reliable and consistent manner. Workplace systems are
often supported by project management software and have the ability to provide tasks
such as forecasting, scheduling, time and attendance, and will work in conjunction with
an organisations existing budgeting and planning tools. Additionally, there are many
other workplace systems within an organisation, including:
IT requirements

quality control systems and processes

work health and safety

people management policies and processes

operational processes

manufacturing processes

customer service.

Quality standards
Standards and systems for project management quality continue to develop as project
management methods become more accepted and used by businesses and Project
Management Offices (PMOs) within businesses. Two recognised standards for project
management are:
AS 4915-2002 Project management General conditions

AS ISO 10006-2003 Quality management systems Guidelines for quality

management in projects.

Methodologies such as PMBOK and PRINCE2, discussed later in this section, may also be
considered standards. The organisation behind PMBOK, the Project Management
Institute (PMI), for example, offers a number of recognised certifications, such as PMP,
which is based on the application of PMBOK.

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Learning activity: ISO and PMI

The following articles is provides a good comparison of International

Organisation for Standardisation (ISO) Guidelines for Quality Project
Management and PMBOK:
Stanleigh, M., 2010, Combining the ISO 10006 and PMBOK to ensure
successful projects, Business Improvement Architects, viewed May 2013,
<http://www.bia.ca/articles/pj-combining-iso-10006-pmbok-to-ensure-
successful-projects.htm>.

Outline the key strategies incorporated by both the ISO standard and PMBOK to ensure
a successful project is achieved.

Communication systems
When planning your project you need to consider how, when and what you will
communicate with your stakeholders and the communication system to be used.
The strategy that you use will be determined by the systems that your organisation has
available. These may include:
intranets

websites

email lists or groups

newsletters

SMS gateways

noticeboards.

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Tip: Survey your communication systems

Take the time to identify what sort of communication systems that your organisation
has at hand. When your project starts, you will need to be able to make good use of the
resources you have available.
You may need to:
interview key people to find out how information is transmitted in the
organisation
organise training for yourself in things like using:

the organisations intranet

mailing lists.

Legislative and regulatory requirements

When implementing project management strategies, you need to make sure that you and
your organisation will comply with the legislative and regulatory requirements that apply
to your industry.

Types of legislation
Legislation is frequently updated so its important that your knowledge is current and that
youre aware of recent changes. Some key legislative and regulatory areas to consider
include:
work health and safety (WHS/OHS)

anti-discrimination legislation

privacy laws

ethical principles

codes of practice.

The federal, state and territory governments have responsibility for different areas of
legislation, so it is important to know exactly what applies in your workplace. Listed below
are the websites where you can find information.

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Legislation

Click on the links below to access federal legislation and the legislation for each state
and territory.
Federal legislation:
ComLaw has the most complete and up-to-date collection of Commonwealth
legislation, <http://www.comlaw.gov.au>
The National Anti-Discrimination Information Gateway provides a national
anti-discrimination information gateway to many other sites, including those
listed below, <http://www.antidiscrimination.gov.au>

State and territory legislation:

Australian Capital Territory: <http://www.legislation.act.gov.au>

New South Wales: <http://www.legislation.nsw.gov.au>

Northern Territory: <http://www.dcm.nt.gov.au>

Queensland: <http://www.legislation.qld.gov.au>

South Australia: <http://www.legislation.sa.gov.au>

Tasmania: <http://www.legislation.tas.gov.au>

Victoria: <http://www.legislation.vic.gov.au>

Western Australia: <http://www.slp.wa.gov.au>.

Work health and safety (WHS/OHS)

The legislative framework for work health and safety in Australia is made up of:
Acts

Regulations

standards

codes of practice and guidelines.

WHS Acts are different for each state and territory, and there are also guidelines and
codes of practice that apply to specific industries. It is important to know which legislation
is applicable to you in your workplace.

Learning activity: WHS legislation

Find a code of practice or piece of legislation relating to work health and

safety that is specific to an industry sector and explain why it is needed for
this industry.

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What legislation or codes of practice could apply to the Max Lionel Realty CRM rollout?

Anti-discrimination
Anti-discrimination legislation promotes equal opportunity for all people by making it
unlawful to treat a person unfavourably based on personal characteristics. These
characteristics may include age, gender, marital status, race or disability. There are a
number of Acts at both state and federal levels that deal with anti-discrimination and it is
essential that you know which ones apply to your workplace.

Learning activity: Anti-discrimination legislation

Search the internet and find a piece of Commonwealth legislation that

deals with issues of discrimination. Summarise it below.

How would the legislation affect the Max Lionel Realtys CRM implementation project?

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Privacy
The Australian Government has restricted the amount of freedom an organisation is
allowed when dealing with private information. The Privacy Act outlines how an
organisation should protect the privacy of individuals, in regard to:
data collection

data use and disclosure

data quality data is to be accurate, complete and up-to-date

data security

openness

access and correction

identifiers

anonymity

transborder data flows

sensitive information.

Most organisations have their own privacy policy that seeks to establish guidelines and a
set of minimum acceptable standards for protecting the privacy of online users. Included
in Appendix 2 of this Student Workbook is an example of a privacy policy.

Learning activity: Collecting Information

Most retail stores rely on keeping up-to-date with customer trends by collecting various
types of information. After reading through Max Lionel Realtys Privacy Policy (Appendix
3 of this Student Workbook), determine whether each which of the following ways of
using customer information would be considered appropriate and why:
Collecting a clients postcode, and using it to determine how many clients come
from a particular neighbourhood.

Selling a clients contact details and purchasing behaviour to numerous

marketing companies.

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Storing a clients details onto the company database after the customer has
placed an order via email.

Recording a clients internet address, domain name, and date and time they
visited the Max Lionel Realty website.

Ethical principles
A code of ethics is a set of rules or standards that help guide staff to determine how to
behave on ethical issues during their daily interactions. Every employee shares in the
responsibility for creating and maintaining an organisations ethical culture.

Example: Code of ethics

The following is a summarised list of the Code of Ethics that ABC University staff must
adhere to.
The main principles of their Code of Ethics are as follows.
We are committed to student-centered, quality learning opportunities.

We work towards building a harmonious working environment in which we

maximise our professional performance.
We recognise and value the contributions made by people to the University.

We demonstrate openness and fairness in all our dealings with people.

We respect the essential dignity of all people.

We recognise our responsibility to build civilised communities.

We care for the social and natural environment.

We value and support the right to confidentiality.

Each of these principles is further explored and detailed in ABC Universitys Human
Resources Code of Ethics policy.

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Codes of practice
Codes of practice are developed through consultation with representatives from industry,
workers and employers, special interest groups and government agencies. For example,
codes of practice for work health and safety are made under the relevant state or territory
Act and must be approved by the relevant minister before they come into effect. A code of
practice is not law, but it should be followed, unless there is an alternative course of
action that achieves the same or better standards.
It is important for project managers to be aware that they should determine and follow
any code of practice relevant to their work (or the work of employees, contractors,
suppliers involved in the project to meet legal obligations. Codes of practice should be
used in conjunction with any Act or Regulations that apply to project work.

Project roles
There are a number of roles directly associated with project management. These include:
project owner initiator/financer of project

project sponsor executive responsible for the project (often the owner)

project manager manages the projects implementation

project team undertake tasks involved in the project

stakeholders other interested parties, for example:

clients suppliers
company management customers.

Jobs directly related to projects

Especially within a large organisation, there are many job roles that use or require project
management methodology and skills. Some of the roles are:
product manager program manager

product development event managers

continuous improvement manager project coordinator

IT/software development engineers.

Tip: Who does what?

The project manager is not necessarily the one to facilitate each activity.
For example, a middle manager may prepare a project proposal with the project
manager being appointed afterwards.
Someone external to the project can conduct the project closing, if required.

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Project management descriptions and methodologies

A project management methodology is an approach that a group takes to managing
a project. Some typical project management methodologies include:
traditional, PMBOK, approach (discussed in this Workbook)

PRINCE2 (discussed in detail below)

Agile

critical path method (CPM) developed for managing plant maintenance

critical path project management (CPPM) puts emphasis on resources

extreme project management PERT based for large, one-off projects

event chain methodology next advance from critical path/chain method

process-based management project control

rational unified process iterative software development framework

interactive related series of projects executed over a broad period of time

incremental low-risk, short-term projects

phased deliverables are completed in phases.

PRINCE2 (Projects in Controlled Environments)

Many organisations now use the PRINCE2 project management methodology, originally
developed by the UK Government, where projects are rigidly reviewed at key points.
It has been estimated that this methodology provides savings of 500 million per year
(approximately AUD$1 billion) to the UK Government.
PRINCE2 project management methodology specifically describes:
product-based planning

change control techniques

quality review techniques.

PRINCE2 was released in the 1990s as a generic, process-driven project management

method and is now used in over 50 countries and has been subsequently updated.
PRINCE2 defines 45 sub-processes organised into eight processes:

1. Starting up 2. Planning 3. Initiating a 4. Directing a

a project (SU) (PL) project (IP) project (DP)

6. Managing 7. Managing
5. Controlling 8. Closing a
product stage
a stage (CS) project (CP)
delivery (MP) boundaries (SB)

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For more information regarding PRINCE2, visit:

Hutchings, R., 2011, PRINCE2, Project management: project management
certification and training, viewed May 2013,
<http://www.projectmanagement.net.au/prince2>.
Office of Government Commerce, United Kingdom, 2011, PRINCE2 methodology,
PRINCE2.com, viewed May 2013, <http://www.prince2.com/prince2-
structure.asp>.

The PMBOK methodology

The Project Management Body of Knowledge (PMBOK) approach to managing projects
recognises five basic process groups and nine knowledge areas typical of almost all
projects. As this is the main focus of this Workbook, we will be addressing these steps in
greater detail in the following sections. These basic concepts are applicable to projects,
programs and operations.
The five basic process groups are:

4. Monitoring
1. Initiating 2. Planning 3. Executing 5. Closing
and controlling

Many methodologies exist, but they all follow the same basic cycle or process as PMBOK.
This is known as the project management life cycle.
These processes usually overlap and interact throughout the overall project and phases
of the project. Processes are described in terms of:
inputs (documents, plans, designs, etc.)

tools and techniques (mechanisms applied to inputs)

outputs (documents, products, etc.).

Example: PMBOK

The Project Management Institute (PMI) is US-based organisation that sets standards,
researches and provides education in project management.
The publication A Guide to the Project Management Body of Knowledge is recognised
as the industry standard project methodology.
You can find out more by visiting the PMI site at: <http://www.pmi.org>.

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Agile methods
Agile methods are relatively new, but are gaining acceptance by business, particularly in
high-risk and volatile industries such as software development. According to the PMI:

adaptive methods are generally preferred when dealing with a

rapidly changing environment, when requirements and scope are
difficult to define in advance, and when it is possible to define
small incremental improvements that will deliver value to
stakeholders.6

Perhaps because it is so new, and the fact that agile methods are often mixed with more
traditional approaches, there is some disagreement as to what agile means. Generally,
however, agile approaches have the following attributes:

Iterative Agile methods are characterised by rapid prototyping of

deliverables to satisfy priority requirements. The prototype is then
successively improved in cyclic phases until all stakeholder
requirements are met. Agile is a great method to use when, due to
the nature of the product or deliverable, exact requirements cant
be known at the beginning. Consider the example of the software
development cycle, in which software is continuously tested and
improved in later versions. Consider also a training program that
is rolled out in pilot form and then improved with learner feedback
until a final version of the training is developed.

Phased, short Agile is characterised by detailed scheduling for near-term

term prioritised goals. Long-term schedules for inherently longer-term,
unknown, or lower-priority items are left to be worked out later,
presumably when more information on stakeholder requirements
and actual results are available to feed into future planning.

Have fixed time This element of agile methods is sometimes referred to as time-
and scope boxing. Both the work to be done and the time are fixed and
strictly enforced before a review is undertaken to determine the
next phase of development.

Lower risk for Agile methods, because they entail short development and review
some projects phases, may be considered inherently less risky because of the
high level of regular scrutiny and stakeholder involvement in that
scrutiny. There are more opportunities, therefore, to address
problems when the project is in trouble and more opportunity to
deliver value to customers (that is, products that deliver real
benefits and meet present customer expectations).

6 Project Management Institute, 2013, A guide to the project management body of knowledge, 5th edn,

Project Management Institute, Newtown Square, Pennsylvania, p. 46.

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Change is The focus is on delivering on customer expectations. The

expected and solution may not be known at the outset, but with stakeholder
embraced. involvement the end result is more likely to satisfy the real
requirements and expectations of the client or stakeholder.

Focused on Perhaps a key attraction of agile methods is its involving the team
people, team and and stakeholders in a collaborative effort in which performance
collaboration and results are given more value than enforcement of strict,
hierarchical roles. The project manager is not so much a
manager as a coach and facilitator aiming to get the best out of
their team.

Although agile methods are new, they have had a significant effect on the application, if
not the theory and supporting body of knowledge of other methodologies. As you read
through this Student Workbook and research different project management
methodologies, note the influence of agile methods. Even if you work in an environment
where projects are always undertaken in the same traditional way, make note of how
agile methods could be applied to reduce risk, encourage more active involvement of
stakeholders, and improve outcomes through more rigorous and regular review.

Learning activity: Project management methodologies

There are many methodologies for project management and the body of
knowledge around project management is constantly evolving.
Use the internet to search for the following methodologies:
PMBOK PRINCE2 Another method of
your choice.
Agile SCRUM

What did you discover? Note your findings below.

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Developing your skills

A great project manager will possess a number of skills and abilities. The skills and
abilities identified below may take several years to develop. Many people who are good
project managers now may have left a wake of failed projects behind them.
What is most important is that you continually analyse and reflect on your own skills and
abilities and learn from your mistakes.

What skills do you need to manage projects?

The nine knowledge areas of PMBOK, referred to above, are:

1. Project
2. Project scope 3. Project time
integration
management manegement
management

6. Project human
4. Project cost 5. Project quality
resources
management management
management

7. Project 9. Project
8. Project risk
communications procurement
management
management management

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As a project manager you need to have some capabilities in all of these areas. For
example, PMBOK knowledge area 9, Project procurement management, requires skills
such as:
procurement planning
solicitation planning
solicitation (making requests or petitions)
source selection
contract administration
contract close-out7

Example: A typical project manager job ad

A job ad for a project manager may list the following tasks/competencies.

Create and execute project work plans and revise as appropriate to meet
changing needs and requirements.
Identify resources needed and assign individual responsibilities.

Manage day-to-day operational aspects of a project and scope.

Review deliverables prepared by team before passing to client.

Effectively apply project management methodology and enforce project

standards.
Motivate and manage the project team to achieve project outcomes, using
appropriate team-building and management skills.
Prepare for project reviews and quality assurance procedures.

Minimise the companys exposure and risk on project.

Ensure management and stakeholders are informed of the projects progress

with timely, relevant information.
Ensure project documents are complete, current, and stored appropriately.

Using project work as an opportunity for professional development

You may find that your employer needs you to be a part time project manager. This is not
uncommon in small and medium-sized businesses. If you are asked and you agree to
participate on a project team and that is not your usual job role, ensure that:
team membership is agreed upfront

your responsibilities are agreed in writing

project duration is agreed on, hours you will work and other related issues are also
agreed to by all concerned (e.g. your usual manager, yourself, project manager).

7 Haughey, D., 2010, The project management body of knowledge (PMBOK), Project Smart, viewed October

2011, <http://www.projectsmart.co.uk/pmbok.html>.

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There are many advantages that result from participating on a project team. These can
include additional training, responsibility, teamwork, networking, learning time
management and self-discipline.
Remember to update your resume or curriculum vitae when the project is completed,
noting your achievements.

Common project problems

Finally, be aware that they are some common problem areas for projects. These include:
communication (or lack of)

resources people, equipment, office space, funding

scope creep define the scope agree and record changes

risk identification and management (or lack of)

time and cost estimates (usually under-estimated)

skill/experience of the project manager and team (or lack of)

monitoring performance and meeting milestones (or lack of).

Learning activity: Make an agenda

Think of a possible project that you could be involved in. If no projects come
to mind, use Max Lionel Realtys CRM rollout as your project.
In the space on the following page, create a standard agenda for a project
review meeting. Use the list above as a starting point and include:
how often do you meet?

who needs to attend?

what issues should you discuss?

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Section summary
This section examined the background of project management as well as taking a look at
the principles and methodologies that are regularly used today. It examined the project
management systems and structures that help make a project successful. This section
also outlined some of the legislative and regulatory requirements that need to be
considered by project managers.

Further reading
BusinessMate, 2010, What is a functional organizational structure?,
BusinessMate.org, viewed May 2013,
<http://www.businessmate.org/Article.php?ArtikelId=184>.
Haughey, D., 2010, The project management body of knowledge (PMBOK), Project
Smart, viewed May 2013, <http://www.projectsmart.co.uk/pmbok.html>.
Hutchings, R., 2011, PRINCE2, Project management: project management
certification and training, viewed May 2013,
<http://www.projectmanagement.net.au/prince2>.
Inter Agency Policy and Projects Unit, 2008, Project management fact sheet: why
project management?, Tasmanian Government, viewed May 2013,
<http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0004/78187/Why_
Project_Management_Fact_Sheet.pdf>.
Office of Government Commerce, United Kingdom, 2011, PRINCE2 Methodology,
PRINCE2.com, viewed May 2013, <http://www.prince2.com/prince2-
structure.asp>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Shrewsbury, L., 2011, What is an agile project?, Project management.com, viewed

May 2013, <http://projectmanager.com.au/education/methodologies/agile-
project/>.
Stanleigh, M., 2010, Combining the ISO 10006 and PMBOK to ensure successful
projects, Business Improvement Architects, viewed May 2013,
<http://www.bia.ca/articles/pj-combining-iso-10006-pmbok-to-ensure-successful-
projects.htm>.
Vellani, A., 2009, Functional organization structure What is it?, The business
plan, viewed May 2013, <http://the-business-plan.com/functional-organization-
structure/>.
Wallace, S., 2007, Project structure and organisation, The ePMbook, viewed May
2013, <http://www.epmbook.com/structure.htm>.

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Section checklist
Before you proceed to the next section, make sure that you understand:

identify basic project management principles and methodologies

have an understanding of project management systems and structures

outline legislative and regulatory requirements.

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Section 2 Undertaking a Project

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2.1 Project Management Cycle

The Project Management Institutes Project Management Body of Knowledge (PMBOK)
provides an excellent structure for scoping project management activities. Successful
project management involves adhering to proven principles and techniques.
It is important to note that the individual phases in project management are not one-time
events. Instead, they are overlapping activities that occur at varying levels of intensity
throughout the life of the project.

Case study: Max Lionel Realty and the project management cycle

Recall that Max Lionel intends to implement a new customer relationship management
(CRM) software system to meet organisational goals over the next three years. You
have six months in which to initiate and close the project.
Max Lionel Realty is a small company, that runs projects infrequently, does not have a
Project Management Office (PMO) to run projects, nor even has strict project
management procedures to provide strict guidance. However, the company has run
successful projects in the past and has been supportive of methodical, best practice
approaches. The company appreciates that following standard practices allows for finer
control, results in better outcomes and greater buy-in, and generates valuable
organisational learning to apply to future projects.
You have decided, therefore, that the best way to approach this project is to use the
five phases of the project management life cycle, which align with most project
management standards, methods and bodies of professional knowledge such as
PMBOK:

1. Initiate 2. Plan 3. Implement/ 4. Monitor 5. Close

execute and control

This approach advantages you in two ways: the project management cycle will provide
you with a basic framework to plan and manage your project to completion; and the
framework will also allow you freedom within each phase to plan specific, custom
activities to meet the needs of Max Lionel Realty for this project.

Using project management methodology helps organise any project, as well as help make
the project smoother, more efficient and more effective. This section will have take a very
brief overview of the project management life cycle, as we will cover each phase in
greater detail in the following sections.

What skills will you need?

In order to work effectively as a project manager, you must be able to:

understand the project management life cycle

have an awareness of the various types of project management software available.

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The project management life cycle

A project is often described as having a limited life from beginning to end. Below we can
see that the project management life cycle comprises five phases:

Note: Each of these phases will be covered in greater detail in later sections of this
workbook.

Initiate
Project initiating involves:
describing purpose, aims and deliverables

stating parameters (timescales, budgets, range, scope, territory, authority)

stating people involved and the way the team will work (frequency of meetings,
decision-making process)
establishing break-points at which to review and check progress, and how
progress and results will be measured.

Plan
Project planning phase enables the project manager to identify what has to be done, by
whom, at what cost and when, and involves the following steps.
1. Defining and refining objectives.
2. Preparing the project plans and associated sub-plans for running the project.
3. Review of current operations.
4. Financial analysis of costs and benefits, including a budget.
5. Stakeholder analysis, including users and project team.
6. Gaining final allocation of funding.
7. Project charter including costs, tasks, deliverables and schedule.

Note: Some of the biggest problems that projects encounter arise from inadequate
definition and poor planning.

Implement
Implementing the project involves:
executing the project plans

coordinating people and other resources to carry out the project plans.

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Typically, this is the longest phase of the project. Implementing includes management of:
change requests

issues logs

project monitoring

status reports.

Monitor
Monitoring the project includes:
ensuring that project objectives are met by monitoring and measuring progress
regularly to identify variances from the plans
taking corrective action when necessary; tracking variances and changes.

Close
Closing involves bringing the project to an orderly end by:
formalising and communicating the acceptance or conclusion of a project

handing over to the ongoing accountable area

completing a project completion report

holding a post-implementation review.

Learning activity: Organising a BBQ (or other project)

For each of the five basic process areas, outline the tasks you may be undertaking if
you were to do one of the activities below:
organising a BBQ

making a wooden table

purchasing a car

implementing the CRM at Max Lionel Realty.

Initiating

Planning

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Executing

Monitoring and controlling

Closing

Software and support

All projects should be assessed for the appropriate level of control required, as too much
control is time consuming and too little control puts the project at risk.
The approach so far has been based on MS Office tools (Word and Excel); however, there
are other options.

Project management software

There is a plethora of project management software available free and for purchase.
Some are suitable for simple one-off projects, while others are more suitable for large
consultancies managing complex multiple projects.
These systems are used to plan, monitor and control the project, ensuring it stays on
track, on time and within budget. Project control occurs early in the project planning ends
late in the project, at the post implementation review stage, with thorough involvement in
each phase.

Desktop or web-based?
Project management software can be purchased as a program that runs on your
computer like Microsoft Word. This will give you a fast and graphically-intense style of
interface.
Project management software is also available as a web application, accessed through an
intranet or extranet using a web browser.

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Open source or proprietary?

Another consideration is using open source or proprietary software. Open source tends to
have the advantage of low or no purchase cost, but it may or may not be well supported
by the developer should you have problems with it.

Simple or complex?
Another consideration is the complexity of the project. Some software (like Outlook) is
more about simple task management and this may be sufficient for your needs. Other
projects may require fully featured project management tools like MS Project.

Some products
Some of the products available include:
MS Project MS Outlook

dotProject MS Office Visio (Gantt chart template)

Remember The Milk MS Excel.

Tip: Criteria for good project management software

Below are some criteria that project managers should look for when deciding which
project management software to use:8
Collaboration
Collaboration is the way information and issues are communicated, including email,
conference calls, meetings, intranets and web-based locations. Collaboration should be
simple and intuitive.
Resource management
A project management program should manage and control the limited resources
needed to run a project, such as people, money, time and equipment.
Project management
The processes, practices and specific activities needed to perform continuous and
consistent evaluation, prioritisation, budgeting and selection of investments. This
provides the greatest value and contribution to the strategic interest of the
organisation.
Ease of use
All online project management has a learning curve, but the best software has features
and instructions that are easy to find and simple enough for anyone to use.
Help/support
Project management services should offer a comprehensive user guide and help
system. The manufacturer should offer a customer service email address or telephone
number so you can get answers directly from the technical support team.

8TechMediaNetwork, 2013, Online Project Management Review, TopTenReviews, viewed May 2013,
<http://online-project-management-review.toptenreviews.com>.

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Learning activity: Project management software

Imagine that you a are a project manager in charge of the Max Lionel Realty CRM
rollout.
Research at least three popular project management software programs.
Think about how you would expect project management software to assist you and list
how you would expect each one to perform in the following areas.

Software 1: Software 2: Software 3:

Collaboration:

Resource
management:

Project
management:

Ease of use:

Help/support:

Which of the three project management software products do you consider to be most
suitable for the project and why?

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Section summary
This section took a brief outlook on the five phases of the project management life cycle
initiate, plan, implement, monitor and close. This section also examined how software can
used to help support project management decisions.

Further reading
TechMediaNetwork, 2013, Online Project Management Review, TopTenReviews,
viewed May 2013, <http://online-project-management-review.toptenreviews.com>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Section checklist
Before you proceed to the next section, make sure that you can:

outline the five phases of the project management life cycle

describe the various types of project management software available.

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2.2 Initiating a Project

The project management cycle commences with the initiate stage.

A journey of a thousand miles begins with the first step

The project initiation is the, who, why, what, when and how, part of the project. It defines
all major aspects of a project and forms the basis for its management and the
assessment of overall success.

Initiate is the first step in the project management life cycle

Case study : Max Lionel Realty: Initiating the project

Recall that Max Lionel Realty intends to implement a new customer relationship
management (CRM) software system to meet organisational goals over the next three
years. You have six months in which to initiate and close the project.
To begin the project you will first need to formally initiate the project. In this phase you
will need to answer some key questions for the CRM rollout.
What is the purpose of the project?

What are the deliverables?

What are the goals and stakeholder expectations?

What are the project constraints?

What human and physical resources are available?

What skills do your people have?

Do you need to train people to do the work the project requires?

Who are your stakeholders?

You have decided to consult with key stakeholders and to document all the above key
details of the project in a Project Initiation document, which includes details of agreed
scope.
You have also decided to agree on a project charter with team members and
stakeholders to ensure everyone is on the same page about procedural rules before
you begin.

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What skills will you need?

To increase the likelihood of project approval and success, a number of key activities are
undertaken during the projects conception, feasibility and initiation phases.
It is imperative that the project is thoroughly scoped, as project scope has a big impact on
probability of project success.
To this end, during project initiation, you should be able to:

identify the purpose and aims

identify deliverables

develop goals and objectives

develop key success criteria

identify constraints

identify stakeholders

select the project team

develop project rules.

Purpose and aims

Have you ever worked on a project that is going nowhere fast? Or perhaps one that just
got bigger and bigger? It could be that the project was poorly defined.

If you dont know where you are going, every road will take you there!

Before you start anything, you need to ensure that somebody with authority has
conducted sufficient research to establish:
aims what are we doing?

purpose why are we doing it?

feasibility can we do it?

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Example: Is it feasible?

Bruno is a trainer in a small training company. His manager instructed him to work with
the sales team and the new products team to develop a training program in
warehousing for unemployed people.
When the project started, Bruno asked to see the market research in order to get a
better understanding of the purpose and aims for the project. The sales team were
unable to produce any research. When he asked what the rationale was for the project,
the team were incapable of providing that either.
Despite raising these concerns with his manager, Bruno was asked to continue, which
he did. About three weeks later, Bruno had the program put together and was ready to
present to the manager, sales team and new product manager.
The manager chose not to implement the program because of lack of clear market
interest and the risk of losing money in the program. Bruno wondered whether the
program was ever feasible and was frustrated and angered by the wasted time.

Project deliverables
The project deliverables are agreed upon, tangible results that are delivered by the
project. Generally speaking, any planned outcome of the project that you can touch or see
is a deliverable. Some examples of this could include products like:
for a consultancy project, the deliverable may be a final report

for an IT project, the deliverable may be software or hardware

for an engineering project, the deliverable might be a product (like a newly

designed car)
for a construction project, the deliverable might be a bridge or building.

Learning activity: A new product

Consider a manufacturing business that makes

power tools.
After having some success with angle grinders, the
management team has concluded that they need to
develop a cordless drill.
Apart from the drill itself, list three other possible,
associated deliverables that may be required for
this project to address this aim:

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Consider a project run by your organisation or a project you are familiar with.
List all the deliverables:

List all the possible deliverables for the Max Lionel Realty CRM implementation:

Goals and objectives

A normal project tends to have a purpose, aim and targets. Goals and objectives are
terms that are used interchangeably in project management and these are the targets
that you aim for with your projects.
Project goals and objectives must be clearly defined. If all participants know and
understand the project goals and objectives, they are better able to respond to changes
and keep on track.

Goals
Goals are statements of what the company wants to achieve. Examples of company
goals are:
to improve profitability

to increase efficiency

to capture a bigger market share

to provide better customer service

to improve employee training

to reduce carbon emissions.

However, these goals are not specific enough. Goals need to include clear and
measurable targets called objectives.

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Objectives
Objectives are the measurable outcomes that a goal sets out to achieve. For example, a
retail tyre company might set one of the goals above; to provide better customer service.
The objectives of this goal might include:
greeting each new customer within one minute of entering the store

refurbishing the reception area new reception desk, carpet and wall paint

installing a screened-off lounge area for customers to sit, have coffee and read
magazines while waiting for tyres to be fitted
offering a free tyre check, rotation and balance after 10,000 kilometres.

Tip

Each goal and objective statement needs to begin with a measurable and observable
action verb. This clearly outlines the behaviour required and makes the action
assessable. The answer to has the objective been achieved? must be answerable with
a yes or a no.

Goals and objectives need to be SMART (Specific, Measurable, Attainable, Relevant and
have a Timeframe).
Specific a short and sweet statement of what it is you want to achieve.

Measurable have a component that can be measured either quantitatively (as in

quantity, you can count it) or qualitatively (as in quality, you can measure peoples
feelings or satisfaction levels).
Attainable not too pie in the sky. Aim for what you believe you can realistically
achieve in the short term.
Relevant objectives should align with the organisations vision and mission
statement.
Timeframe an objective should have a specific start and expected finish date.

Example: Setting SMART goals

Frank is an IT officer in a medium-sized business in Australia. He has been asked by the

IT manager to upgrade the operating systems in the Melbourne, Sydney and Perth
offices. Frank finds that he gets requests at times that lack clear objectives. Frank has
clarified this request by wording it as a SMART goal. Frank has identified that:
The IT team must upgrade all Melbourne, Sydney and Perth
computer operating systems to Windows 7 by the EOY 2014.
This goal is SMART, since it defines:
what is to be done (upgrade all computer operating systems)

to what standard (all of them to Windows 7)

by when (by the end of year (EOY) 2014).

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Key performance indicators

Key performance indicators (KPIs) tell you how you are progressing towards your goal. In
the example above, a KPI could be:
number of computers upgraded

percentage of computers upgraded.

Key success criteria

What outcomes will indicate that youve done a good job? You may need to clarify that
with the customer or the project stakeholders. You may need to ask them questions like:
What do you believe will be the outcomes of the project?

How do we know when weve completed the project successfully?

How do we know if we have done a good job?

Tip: Key performance indicators and key success criteria

A lot of project managers get confused on KPIs and

key success criteria and objectives.
It helps to think of a road trip in a car. Lets say you
have to attend an event in Sydney on Friday night
and you live in Melbourne.
Where are you going?
These are your goals and objectives. It might be something like you need to leave
for Sydney on Friday morning and be there by Friday night.
How can you tell how you are progressing?
These are your key performance indicators. Speed, distance travelled, time, fuel,
and so on. If you dont keep an eye on your KPIs, you are doomed!
How can you tell if you made it there successfully?
This might include things like you arrived at the event on time, safe and healthy,
didnt run out of petrol and the car didnt break down.

Project parameters
Unfortunately project management types often dont speak in plain English. Words like
parameters, scope, assets, etc., often sound impressive but are not well understood by
anyone. Project parameters is one such term.
Project parameters are the limits or constraints of the project. Everything has limits and
so should your projects. Typical constraints include:
deliverables of the project (scope) money (budgets)

features of the deliverable (also scope) location (territory)

time (timescales) control and influence (authority).

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Recall the triple constraint of project management discussed earlier: scope, time, and
cost (resources). Change in one constraint inevitably impacts others and may impact the
final outcome of your project. Constraints such as scope must be monitored and
managed by the project manager. Otherwise, the project could start to run away.

Three certainties in a project managers life:

Death, taxes and scope creep!

Everyone knows how scope changes can cause problems. Scope will change, you have to
expect this.
As projects develop, more complications will creep in. Many things cant be foreseen until
you implement the project. So you need to have some methods for managing it. (These
will be investigated in the next section on planning).

Example: Feature creep

Feature creep is a type of scope creep. In this

case, a manufacturing business was making
cordless drills for an Australian retail business.
When they defined the product originally, nobody
felt it was worth mentioning the need for a spare
battery. The retailer assumed the manufacturer
thought the same way they did. However, the
manufacturer didnt intend to provide it unless
the retailer specified it.

When defining scope, make sure you look at it from at least three different perspectives.
Some recommended definitions include:
define deliverables

define functionality

define technical structure.

Workshop the scope with the stakeholders (this may include the customer).

Learning activity: Review scoping document

In Appendix 2 of this Student Workbook, youll find a scoping document.

Consider the Max Lionel Realty CRM rollout.
Try completing that document with that example in mind.
You may want to role-play this with a fellow learner, acting as the project manager while
they play one of the stakeholders.

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Selecting the team

In organisations that are familiar with project management methodologies, the team
selection may be completed at the same time as the project is initiated.
This may be because:
there is no choice about which resources will be used

projects do not enter the definition phase unless approval has been given.

Effective teams
An effective team is a group of people who act together and are committed to a common
purpose or goal.
A group in itself does not necessarily constitute a team. Teams normally have members
with complementary skills. They generate synergy through a coordinated effort which
allows each member to maximise his or her strengths and minimise his or her
weaknesses.
Effective teams can:
solve problems better

tackle bigger and more

complex issues
create a sense of
wellbeing and purpose
make better use of
resources
facilitate work flexibility.

However, poorly functioning teams can also be sources of conflict and stress.

Team skills
It is important to match project task requirements with the project teams skills. You may
require the assistance of human resources professional to help you establish this.

Tip: Can you do it?

It is essential to have a skills matrix for your project team. You need to be able identify,
at a glance, what skills and experience your project team has or doesnt have.
This information is often presented in a table. In the example shown below, skills
required for the project are listed down the rows and across the columns, the project
team members are shown.
Each team member is given a rating for their level of competence in each skill.

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The skills gaps can be easily identified and then addressed through training, recruiting
or outsourcing.

In addition to technical skills, in order to work in a team, team members must have some
specific team skills. Some essential skills are:
communication

conflict resolution

group decision making

problem-solving

time management.

Identifying the stakeholders

When you are initiating a project, it is important that you identify all of the stakeholders
of the project.
The project team may include some of the stakeholders, but it is a common mistake on
smaller projects to neglect the needs and wants of the stakeholders.
The project manager needs to spend some time and effort in identifying all of the
stakeholders.
It helps to think of project stakeholders as those internal and external people or
groups who:
have an interest in a project

are affected by a project

sponsor a project

can otherwise influence a project (positively or negatively).

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Example: Improving meat merchandising

A supermarkets management team has identified that the meat and poultry
department is underperforming. They want to improve the quality standards of the
product as well as merchandise and market more effectively.
A small project team has been established, but in addition to the customers, there are
a number of stakeholders in this project, including:
butchers

merchandising/sales staff

managers

buyers

supply chain (inward goods)

administration.

Getting approval
The project initiation document will need to be formally approved and signed off by the
project owner at the end of the initiation stage of the project.

Note: If the scope is not defined up front it is almost impossible to control it throughout
the project.

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Key documents and tools

There are a number of documents that are relevant in this stage of the project
management cycle. These include:
project initiation document

scoping document

project charter

skills matrix.

Learning activity: Project initiation document

An integral part of formal project methodologies such as PRINCE2, is a project initiation

document (PID) which brings together the key information needed to start a project on
a sound basis.
The purpose of the project initiation document is to ensure that the project has a
complete and sound basis before there is any major commitment to the project and to
act as a base document against which the projects progress can be assessed.
Refer to Appendix 4 for an example template of a project initiation document.
Examine the template and write down any additional benefits of having a project
initiation document.

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Section summary
You should now understand the importance of thoroughly scoping your project during
initiation and gaining approval to proceed from the project sponsor.
Project scope includes the project charter, project sponsor, project manager and project
team. Project scope documents can include a business case and feasibility study.

Further reading
Jordan, A., 2012, Your projects approved ... now what?, Project
management.com, viewed May 2013, <http://www.projectmanagement.com/
articles/275421/Your-Projects-Approved---Now-What->.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Section checklist
Before you proceed to the next section, make sure that you can:

identify the purpose and aims

identify deliverables

develop goals and objectives

develop key success criteria

identify constraints

identify stakeholders

select the project team

develop project rules.

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2.3 Planning a Project

Planning is a critical stage in the project management cycle. To ensure project success, it
is necessary to undertake rigorous planning activities.

Theres an old saying: If you fail to plan, you plan to fail.

While you may be tempted to start the actual work immediately, planning the project is an
essential activity that will greatly increase the likelihood of the projects success, saving
time in the long run, and ensuring there are no last minute crises.

Plan is the second step in the project management life cycle

Case study: Max Lionel Realty: Planning the implementation of the CRM

You have now completed the initiation of the CRM rollout project at Max Lionel Realty.
Kim Sweeney, the project sponsor, senior management and other key stakeholders
have agreed on the main goals and project parameters.
Among other tasks, your project will include the following:
You will need to ensure the right system is purchased to meet business needs to
organise and retrieve client information.
You will need to install software.

You will need to train agents to use the system to a minimum defined level of
competence.

To manage the project and schedule to complete the project in six months and to
agreed specifications, you will need to perform a number of management tasks. These
tasks include developing a work breakdown structure (WBS) and resource estimation
(budget), project plan or schedule, team building, risk assessment and development of
contingency planning and obtaining approval for the planning.
The cost of the system and implementation will be significant, so it will make sense for
Max Lionel Realty to amortise the expense of the project over a number of years. The
CFO, Riz Mehra will require you to create a detailed project budget for reporting
purposes.

Planning involves analysing the project and breaking it down into smaller tasks or
activities.
The plan is only as good as the information, effort and estimates that go into it. The work
required needs to be accurately estimated. Some tasks can be done in parallel while
others need to be done sequentially.

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There are no good project managers only lucky ones.

The more you plan, the luckier you get!

What skills will you need?

As a project manager planning a project, you will need to be able to:

develop a project plan

build the team

develop and approve a budget

develop risk management plans

identify and consult with team members

obtain approval for project plan

use project management tools.

Planning the project

The big picture

A plan is a blueprint for how the projects goals are to be achieved. Plans outline the how,
when, where, what, why and who. Plans are constantly monitored to ensure that changes
in the operating environment are responded to effectively and efficiently.
A project manager relies on a range of different plans to guide their operations at
different levels. Different types of plans have different specific purposes, but generally
they all provide guidance for those wishing to find out about the operation of business.
When creating workgroup plans, you will need to know about the organisations range of
other plans so that yours can be designed to align with them.

Workgroup plans designed for a project

Workgroup plans are developed by project managers to outline the specific actions
required for a group of workers over a specified time period. They provide a way to track
performance and assess achievement.
A workgroup plan can be written for routine daily, weekly or monthly activities. They can
also be prepared for projects and one-off events. Like all plans, they will include the
required human, physical and financial resources as well as timeframes and targets.
Workgroup plans must take into account two key considerations.
1. The desired outcome of the project.
2. The needs of the customer.

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Creating workgroup plans is a vital step in project, because they set out how tasks are to
be completed, by who, when, where and what targets need to be reached. All parties
involved in the work task can then access the plan to find out about it.
As a project manager, there are a wide range of different workgroup plans that you may
be involved in preparing and/or using, including:
budgetary plans project plans

production plans team and individual learning goals

reporting plans team participation

sales plans work schedules.

training plans

The nature of each of these plans varies widely from one to another, and also based on
the size and complexity of the work task being undertaken, the size of the organisation
and a wide variety of other factors.

Scenario: Tanias product launch

Tania works for a marketing company in the city. They have just won a new client, a
major cosmetics company called Rouge.
Tanias manager, Lou, has delegated the first project with the new client to Tania, as he
knows that she is highly experienced. The project involves preparing promotional
material and a media show for a new range of perfume. Tania is given a budget to work
with and the contact details of Rouges marketing manager, Madge.
Tania knows that the best way to manage a project like this is to create a workgroup
plan in order to focus the teams activities, and to which everyone can refer to find out
the project requirements and their roles. In order to create this, Tania begins gathering
the necessary information.
Tania contacts Madge to clarify the exact details of the launch and to confirm Rouges
needs. The launch is being held in a hotel in the city in six weeks time. Tanias
company are to design a range of flyers and posters and a media show to be broadcast
at the launch luncheon.

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Now she understands the project requirements, Tania finalises her plan. She defines
the project goal as:
develop promotional material and implement a media show for Rouge, to the
satisfaction of all parties.

She sets objectives:

design and confirm an advertising theme

create print-based promotional materials

create an advertising film

organise and run promotional show within a timeframe of six weeks.

With a clear goal and objectives set for the project, Tania can now begin creating the
rest of her workgroup plan. To do this, she will need to define the actions that are
required to achieve each objective, evaluate the human, physical and financial
resources at her disposal, develop a schedule and set key performance indicators so
that she can monitor the projects progress and success.

Planning considerations
No company operates in isolation; we are all a part of a bigger corporate, social and
physical environment. Organisations are becoming increasingly aware of their role as a
corporate citizen. Business planning now takes into account a wide range of factors,
including:

How does the company engage the local and wider community as
Social a corporate citizen? Do they give back to the community in
some way?

Do the companys operations take into account the cultural

Cultural heritage of the area with which it interacts? Does it have a
management plan that considers all stakeholders in the project?

Is the company upholding the ethical expectations and standards

Ethical of the community? Will its operations inflict any harm on another
person?

Will the company cause harm to the environment? Is there a plan

Environmental for sustainable use of resources, waste and pollution
management and site restoration?

Does the companys project meet the requirements of governing

Legal
legislation and organisational standards?

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Learning activity: Ethical planning

Briefly describe how your company (or a company you know of) meets its obligations
under the five broad categories listed above. If you are unsure, ask someone from the
human resources department.

Social:

Cultural:

Ethical:

Environmental:

Legal:

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Structure of a workgroup plan

Workgroup plans follow the standard format of most plans. A structure for a project plan
is set out below.

Project Title

The Project aim is a short overview of what the project is setting

Project aim out to achieve. It should be no more than one small paragraph.

Goals are the broad desired outcome, written using

Goals SMART principles.

Objectives are the measurable outcomes that a

Objectives goal sets out to achieve. There can be several
objectives for each goal.

Actions are the specific tasks required to

Actions achieve the objectives. These should clearly
identify the who, what, when, where and how.

Resources: There are three common categories

of resources.
Human what staff, paid and/or
volunteer, will be required to achieve the
objective?
Resources
Physical what physical requirements
are needed, e.g. equipment,
consumables, and capital items?
Financial each goal should include a
budget of financial requirements.

Outcomes/performance indicators are the

Outcomes specific measures that will tell you that the
action has been achieved.

Tip

For most projects, limit the number of goals, objectives and actions to no more than
five. This will keep the plan manageable.

Workgroup planning template example

The following example uses the Workgroup planning template in Appendix 2 (under
heading 1.2 Planning) to show how a workgroup plan can be formalised and tabled. In
this case it is for a small project.

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Remember, there are many different possibilities for setting out workgroup plans.
Continue to research and develop a format that works for your own project.

Project title Install a secure chemical storage unit at a fruit packing shed.

Project aim To install a chemical storage unit that meets industry regulations for the
safe and secure storage of all industrial and agricultural chemicals used
in the operation of the packing facility.

Goal 1 Identify the requirements of industry regulations for safe and

secure chemical storage.

Objective 1.1 Obtain written copies of all relevant regulations.

Action Action Admin Officer conducts an internet search and prints off
1.1.1 regulations, standards and codes of practice.

Action Admin Officer emails Department of Primary Industries

1.1.2 (DPI) to request relevant information.

Action Admin officer visits the Farmsafe Extension Officer to

1.1.3 seek advice on regulations.

Timeframe End of project week 1 (insert actual date).

Human Admin Officer x 6 hours.

resources

Physical Existing office equipment and vehicle.

resources
Vehicle costs for visit to Farmsafe office.

Financial Admin Officer x 6 hrs @ $22 = $132

resources
Vehicle x 120km @ 0.70 = $84

Subtotal = $216

Performance Action Printed copies of regulations.

indicators 1.1.1

Action Information received from DPI.

1.1.2

Action Written summary of meeting with Farmsafe Extension

1.1.3 Officer.

Objective 1.2 Seek approval from the DPI for the chemical storage unit.

Action Action Continue as above until all the project goals are written
1.2.1 into the plan.

Goal 2 Continue as with Goal 1 above.

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Learning activity: Workgroup plan

Use the workgroup planning template in Appendix 2, heading 1.2 Planning, to

develop a workgroup plan for a project or activity that is relevant to your work.
Complete at least one goal with all objectives, actions, resources and performance
indicators. Alternatively, use the Max Lionel Realty case study project.

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Identify the tasks with a work breakdown structure

When developing a project plan a key document will be the work breakdown structure
(WBS). Large projects are often organised by breaking them down into smaller and
smaller tasks until they are a collection of defined work packages.
A WBS enables:
more accurate and specific definition and organisation of the scope of the total
project
assignment of responsibilities, resource allocation, monitoring the project, and
controlling the project
double checking of all the deliverables specifics with stakeholders, ensuring no
omissions or overlaps.

project scope statement

Inputs to the work project scope management plan

breakdown structure organisational process assets

approved change requests

WBS

work breakdown structure (a list of broken down

deliverables)
WBS dictionary (a document that describes each
component in the WBS)
Work breakdown structure
outputs scope baseline

project scope statement (updates)

project scope management plan (updates)

requested changes

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Example: Work breakdown structure

Weddings tend to be sizeable projects in themselves. Imagine yourself as a wedding

planner with an understanding that there are many tasks that need to be organised. A
WBS is a good way to list and organise them all in one place.

The work breakdown needs to provide the project manager with enough detail to:
prepare an accurate budget

accurately schedule the work

indicate the actual effort required to those performing each task.

Developing the WBS is a key process for identifying and limiting the scope of a project.
The following is an example of a work breakdown structure for the banquet segment of
Sallys upcoming conference.

Example: Work breakdown structure (WBS)

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Building the team

Many organisations undertake team-building activities in order to get their team
functioning effectively.
While skills like effective communication techniques and an understanding of group
development processes are important for turning groups into cohesive and effective
teams, there are often other factors to be considered.
These can include:
team size cohesion is easier to generate in small, rather than large teams

amount of time teams spend together

past successes these reinforce a positive commitment to the team and the
valuing of individual team members.

Example: Team, group or herd?

The term team leader as the name suggests is

about being able to lead a team. That of course
assumes that a team exists.
Even though people are bought together as a work
group they are not automatically a team, even if
that is their title, i.e. the accounting team.

A team needs to have a clear picture of why it exists and how its contribution will support
the organisation in reaching goals and objectives. A team vision is important when trying
to establish your teams goals and objectives.
Each team member should understand their part in the team and how their individual
contributions impacts on the teams success.

Stages of team development

Be aware of the stages of team development. As a project manager, you need to get your
team performing as quickly as possible.
For an ad hoc team or a team that has come together for a specific project, the curve
might appear as the one that follows.

Stages of group development for a project team

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Assigning tasks
When you initiate the project, you will need to identify the stakeholders and the team
members. However, now that you are planning project tasks and have undertaken some
scheduling, you will need to start assigning people to tasks.
A project manager needs to define the parameters of each project team members
responsibility. As a project manager, you will need to examine your own overall
responsibility of the project as well as individual team members within the project, how
variations to the project will affect how the project is managed and who is responsible for
each task.
It is important that each member of your project team has a series of clearly defined
responsibilities to ensure that they understand exactly what they should do and what
every other team member is doing. This is essentially defining the scope of responsibility.
Creating clear tasks and responsibilities will also ensure that team members dont
undertake tasks that they are not authorised to do (or even ensure that they arent doing
less than they should be!).

Example: Who will do it?

Below is an example of a skill matrix that will help allocate responsibilities for each
team member based on their skill and ability.

A well prepared skills matrix gives you a good indication, at a glance, at who can carry
out different tasks.

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Scheduling the work

Once you have identified all of the tasks, you can start estimating duration of tasks and
preparing schedules.
To estimate the duration of the project, consider:
time required to complete each task

duration of each task

dependencies among the tasks.

Schedule the tasks using a network diagram or Gantt chart.

A Gantt chart is like a horizontal bar chart. It can show not only tasks and milestones but
also dependencies.

Example: Gantt chart

In a Gantt chart, the tasks appear as bars and the milestones as diamonds.

Example: PERT chart

Drawing tasks in PERT charts, network diagrams or flowcharts can help you identify
concurrent tasks.

Action plans are lists of tasks that indicate:

tasks to be done and who is responsible to complete the task

costs comprising both time and/or money.

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Example: Action plan

This example shows a number of activities undertaken by a worker to improve workflow

in their work area.

Objective/goal: To reduce waste in work cell

Action How? Who? When? Status

Consult Discussed project with cell. Jared/Cell Feb 14

Spaghetti To help visualise movement Jared Mar 14

diagram in cell.

Value stream To help visualise wasteful Jared April 14

map processes.

Pareto charts To identify most significant Jared April 14

waste.

Report results Toolbox meeting in the cell. Jared/Cell/ May 14

Supervisor

Success in actioning the plan depends on how well the project manager:
develops the project team

communicates with stakeholders

tracks the projects performance

modifies plans when required.

Tip: Action plans, Gantt charts, schedules

Fortunately, with modern project management software, you dont have to choose
between a Gantt chart or a schedule. If you put your tasks in correctly, you can display
your data in a number of ways.
The screenshot below is from a free project management software program called dot
Project. (See <http://www.dotproject.net/>.)

The project data can be displayed as Gantt charts, task lists, reports, and so on.

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Tip: A note on bigger projects

When managing larger/more complex projects:

understand project management frameworks

specify parameters and constraints

specify team selection criteria

identify deliverables and associated performance criteria

perform thorough risk management analysis and planning

use network diagrams to schedule tasks

manage and record variations to project scope

understand the capacity of project management software.

Remember, prevention is better than cure. Without a project definition and project
plan, you risk scope change, different perceptions and expectations from stakeholders
and a very difficult project to manage.

Learning activity: How do I make a Gantt chart in Excel?

For small projects, you may find that you have a need to create a Gantt
chart but you dont have the budget or need for project management
software.
You can actually make simple Gantt charts in Excel by using the stacked bar chart
type available in Excel. The following sites will show you how:
Create a Gantt chart in Excel, Microsoft Office Online, viewed May 2013,
<http://office.microsoft.com/en-us/excel/HA010346051033.aspx>.
Gantt chart template for Excel, Vertex42: A guide to Excel in everything, viewed
May 2013, <http://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html>.

Review the sites above and make note of anything important. Then, use Excel to create
a Gantt chart of your own.

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Learning activity: Scheduling work at Callaghan Collision Centre

Watch the video BSBPMG510A: Scheduling work at Callaghan Collision

Centre on IBSAs YouTube channel at <http://youtu.be/42Crp4Vx6ds>.
Answer the following questions.
List the various functions that the program ScheduleBoss allows the team at Callaghan
Collision Centre to perform.

The project management software that Callaghan Collision centre uses to allocate
tasks displays data in a Gantt resource chart. Using a chart like this, how can you
distinguish between different types of tasks e.g. buff and polish, paint, repair, etc.?

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Develop a budget
The project budget is the estimate of the costs of the project. These costs will likely
include labour, materials, and other related expenses. The project budget is often broken
down into specific tasks, with amounts assigned to each task.

Example: Project budget

Project Name:

Income Inc. GST Ex. GST

Stage 1 $5,000

Stage 2 $5,000

Total Income $10,000

Expense Inc. GST Ex. GST

Design $600

Development $5,000

Graphics $300

QA 1 $300

QA 2 $400

Editing $700

Subtotal $7,300

Contingency (+10%) $1,000

TOTAL $18,300

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page 1 of x

Riskplan.doc

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Managing risk
In any project, things dont always go as planned. Unexpected events can threaten your
project outcomes.
Risk management is the systematic identification, assessment and control of risks to
business or project objectives. Risk management approaches, such as the methodology
described in the recognised Australian standard for risk management, AS/NZS ISO
31000:2009, include the following phases (or similar) as applied to projects:
1. Identify and characterise potential threats to the project.
2. Determine the risk (i.e. analyse the probability and impact of these occurring).
3. Evaluate the acceptability of the risk with respect to the project and business
objectives.
4. Identify strategies to manage the risk.
5. Prioritise risk reduction measures based on a strategy.

Review and monitor the risks

As a project manager, you are responsible for managing the risk in the project. In practice,
this means keeping a register of potential risks to project success and reviewing their
status periodically throughout the project.
It helps to review risks in terms of their probability and impact. For example, a high priority
risk is one that combines serious consequences (impact) with a high probability of the
risk occurring.

You may want to add risk assessment to your project meeting agendas.

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Common project risks

When you are planning the project, you need to consider all of the what ifs, i.e. what if:
the client goes bankrupt or cant pay?

I lose a key member of my project team?

I have issues with one of my suppliers?

The following list contains a number of typical risks you may need to consider when
undertaking a project.

Type of risk Impact

Project schedule Increased project time

Budgets/funding Increased cost

Personnel issues Loss of key team member not enough team

members for the project

Quality Doesnt meet standards

Key stakeholder consensus Conflicts and project delays

Scope changes Increased project time and cost

Project plan Increased project time and cost, impact on quality,

poor direction and communication

Project management Increased project time and cost

methodology

Business risk Poor public image

Management risk Re-organisation resulting in loss of team members

Vendor issues Delivery delays

Legal issues Increased costs, poor public image

Political issues Poor public image

Environment risk Increased costs, delays to schedule, poor public

image

Weather or natural disasters Schedule delays, delivery delays, increased costs

Technology risks Not available when needed

Project complexity Inexperience of project team

Project manager skills Inexperience of project manager

Team skills and abilities Inexperience of team members, lack of training

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Tip: Develop a risk register

With your project team, it is recommended that you brainstorm the potential
project risks.
Recording this in a project risk register is a good idea. That way you can be sure not to
miss something that may threaten your project outcome if left unmanaged.
Note: An example of a risk register can be found on the Tasmanian Governments
website:
Tasmanian Government, 2010, Risk management, Tasmanian Government,
viewed May 2013, <http://www.egovernment.tas.gov.au/
assets_for_review/supporting_resources/toolkit/risk_management>.

Risk management strategies

Identifying and assessing risk is critical, but you also need to manage the risk. Strategies
to manage risk fall into these categories:

Transfer Retain
Avoid Reduce
(outsource or (accept and
(eliminate) (mitigate)
insure) budget)

We can see these four categories demonstrated on a risk matrix, where the result of a
particular event stemming from exposure to a specific risk, is plotted against the
likelihood of the event occurring. From the diagram below it is easy to see that projects
with high-risk and high-impact should try to be avoided at all costs, as ideally the project
tries to retain a low risk and low business impact strategy.

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A good tool for addressing the impact that specific events may have on a project is to
undertake a risk management plan. You may not need a documented risk management
plan for all risks, but you will definitely require this for the high probability/high impact
risks. The following is an example of a project manager assessing the risk to his project
for three potential dangers to the project.

Example: Risk assessment form

Likelihood Impact Risk response

Risk Responsible
(H/M/L) (H/M/L) (contingency strategies)

Equipment supplier H H Source alternative PM

cant make delivery suppliers

Project team members H H Commence PM

dont have capability training/mentoring
program prior to
implementation

Bugs are identified H L Patches to be PM

with software installed

Project Sponsor: Version: 1 Project Client:

Bob Jenkins Innovative Widgets

Project Manager: Date: File Name: Page 1 of 1

Paul Miloknay 19/05/20XX RiskPlan.doc

Develop a communication plan

How are you going to communicate with the project team? Whose role is it to
communicate with the stakeholders and management?
A good communication plan will tell the stakeholder the following information.
1. What information needs to be communicated.
2. Who is the target audience.
3. Why (purpose why do they need to know).
4. When (frequency).
5. How will it be delivered (e.g. Regularly updated website, regular report, meeting,
etc.).
6. Who is responsible to communicate this information.

Good communications among all stakeholders is

critical for project success.

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Scenario: Progress reporting

Bob was responsible for rolling out a national project for improving standard work
procedures. The project required a small project team that would travel state to state
consulting, presenting and training staff in new processes.
The national sales manager, Frank, was also involved in the project and saw their role
as dealing with the top level management. Bob was happy with that and sent monthly
project reports to Frank. Bob assumed that since Frank was dealing with the client
management, that Frank would be
sending the progress reports on to the
managers.
About three months down the track,
Bob and Franks Director pulls them
into his office for a please explain.
The top level management of the client
had no idea about what was going on
and asked for a status report. Bob and
Franks Director wanted to know why
management werent getting the
report.
It turns out that Frank hadnt been forwarding the reports. Bob assumed it was Franks
job. Frank assumed it was Bobs job.
As this scenario illustrates, you must have a good communication strategy in place in
order for the project to be successful.

Plan to communicate and communicate the plan.

Example: A communication plan

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A communication plan comprises strategies to communicate to stakeholders identified in

the project proposal and any new stakeholders subsequently determined who need to be
informed of the projects progress.
Websites are often used to communicate the latest project updates to a target audience.
Information included on the website can include:
news stories relevant to the work of the group

discussion boards (which could be led by a team member)

a calendar of relevant events and deadlines

a list of projects being conducted by sub-teams, including their status and priority

shared files such as administrative documents, relevant research, meeting notes

other helpful web links.

Learning activity: Communication plan

Consider a previous project you have run or one you were involved in or familiar with.
Alternatively use the Max Lionel Realty case study project.
Think of some of the major pieces of information that needed to be communicated to
customers and other staff members.
Complete a communication plan.
You may want to use the Communication Plan template that is located in Appendix 4.

Consult with team members

Now that all the preliminary planning is
completed, you need to get team and
stakeholder feedback.
As the project manager, you will need to
communicate the project plan to the team and
actively get their input and feedback. After all,
they are the ones who have to do it, so they
should at least understand what they are meant
to be doing and have some input into how it will
be done.
An effective way is to provide relevant
documentation and conduct a follow-up meeting. At the meeting, record your teams
feedback and affirm what you have agreed on by distributing minutes of your meetings
with them.

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Get training
While it is an unwritten rule of project management that you dont recruit team members
who dont have the capacity to do the task, in reality, it rarely works that way.
You may need to source training for people before the project commences.

Example: Gap training

Neil is a project manager in a small business owned by Jim. Jim has asked Neil to
implement a process improvement project relating to the computer production department.
Jims cousin Theo works in music production and is influential but not very capable at
using advanced computer software, and Jim has insisted that Theo is part of the project.
As a result, Neil has had to source training for Theo. Theo underwent a basic computer
systems course and used his current production skills to relate his strengths towards
his new role. After the training, he was a much more valuable contributor to the team.

Obtain approval for project plan

Before you start implementing your project, make sure that you communicate the plan to
relevant stakeholders and that you are given the necessary approval for the project to go
ahead. This may include:
submitting reports/presentations to management or other stakeholders

conducting a project approval meeting.

The key to project approval meetings is to be ready with options and alternatives for
finishing earlier, spending less money and using alternative resources. Good project
managers are eager to change the plan to fit senior management needs and preferences
as long as the scope, budget and duration are feasible. Remember, trade-offs are
important!

Case study: Peter jumps the gun

Peter is part of a project team that is reorganising a work area in a factory. A project
planning process has been put in place requiring that all the stakeholders are
consulted on any changes before implementation occurs.
Peter is enthusiastic (maybe too enthusiastic) about the changes in his teams area.
His team have discussed their ideas with their supervisor and the supervisor has
agreed to take them to the next planning meeting for approval.
While his supervisor was away on the Friday, Peter got
sick of waiting. He decided to take the opportunity to
make the improvement. After all, all of his team
members were convinced that the improvement was
going to make their jobs easier, so why not just do it?

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Monday morning, all hell breaks loose. When Peters supervisor returns, the other
supervisors are waiting for her. Apparently, while the changes made Peters area work
better, the changes had a negative effect on the adjacent areas.

Section summary
You should now understand the importance of completing a project plan and obtaining
sign-off by the project sponsor.
Included in the project plan are work breakdown structure, risk management plan and
communications plan.
The project plan is your road map to the completion of your project.

Further reading
Create a Gantt chart in Excel, Microsoft Office Online, viewed May 2013,
<http://office.microsoft.com/en-us/excel/HA010346051033.aspx>.
Gantt chart template for Excel, Vertex42: A guide to Excel in everything, viewed
May 2013, <http://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Standards Australia, 2009, AS/NZS ISO 31000:2009 Risk management

principles and guidelines, SAI Global.
Tasmanian Government, 2013, Risk management, Tasmanian Government,
viewed May 2013, <http://www.egovernment.tas.gov.au/
assets_for_review/supporting_resources/toolkit/risk_management>.

Section checklist
Before you proceed to the next section, make sure that you can:

develop a project plan

build the team

develop risk management plans

identify and consult with team members

obtain approval for project plan

use project management tools.

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2.4 Implementing a Project Plan

Implementing is when you are doing all of the work in the project management cycle.

A badly planned project will take three times

longer than expected a well planned project only twice
as long as expected.

If you have scoped and planned well, your chances of success are greatly improve.
However, the real test is implementation.

Implement is the third step in the project management life cycle

Case study: Max Lionel Realty: Turning the plan into action

You are now ready to implement the rollout of the CRM system at Max Lionel Realty.
You have created a work breakdown structure (WBS). From the WBS you have been
about to estimate resource duration, effort and cost. You have created a project plan or
schedule and incorporated risk management in the form of buffers and contingency
plans. You have also developed a communications plan to keep key stakeholders on
side throughout the life of the project.
Your previous project management experience has taught you several important
lessons about implementing projects:
Regularly monitor small units of work, so that people are held regularly
accountable.
Act quickly to respond to issues and coach poor team performers.

Expect, even embrace, change:

Issues will occur, but if you have taken actions to identify, control and plan
for contingencies, you should be able to manage these; moreover, change
is not necessarily bad for a project: new tools or technology may become
available to speed progress; business needs and stakeholder expectations
may change or become clearer over the course of the project. Taking an
iterative, agile approach to planning and replanning is often the best
approach to take to project management.

You will need to be calm, resourceful, flexible and fair with your team. Use your project
plan as a guide to keep your project on track.

Project management is management by objectives. Implementing the project consists of

the processes used to complete the objectives defined in the project plan in order to
accomplish the projects outcomes. Typically, this is the longest phase of the project.

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What skills will you need?

As a project manager implementing your plan, you will need to be able to:

manage tasks

solve problems

coach your team.

Learning activity: Internet research

Project management is more than just managing a schedule. Using the internet, search
for the following terms:
leadership style

coaching.

What is the difference between managing and leading?

What leadership styles are there? What style are you? How can you learn from the
other styles to improve your leadership of projects?

What is coaching?

Considering what you have learned about project management and methodologies so
far, how would you apply leadership attributes and coaching to your implementation of
projects?

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Managing the project team

It is important that project managers are able to manage their team and activities through
meetings, communicating, supporting, and helping with decisions (but not making them
for people who can make them for themselves).
One of the big challenges for a project manager is deciding how much independence to
give for each specific task. Stringent parameters and lots of checking are necessary for
team members who like clear instructions, but this approach may result in the kiss of
death to experienced, entrepreneurial and creative people. For the latter, they tend to
prefer a wider brief, more freedom, and less checking.
Manage people by the results they get not how they get them. It is important for project
managers to differentiate in personality and working styles in their team.
Misunderstanding personal styles can get in the way of team cooperation (thats why their
role here is to enable and translate). Face-to-face meetings, when you can bring team
members together, are generally the best way to avoid issues and relationships becoming
too personalised and emotional. It is important to constantly communicate the progress
and successes of the project regularly to everyone.
Give the people in your team the recognition, particularly when someone high up
expresses satisfaction, while trying not to accept plaudits yourself. Conversely, a good
project manager must be able to stand up and take the blame for anything that goes
wrong and be sure to never dump problems or stresses on anyone in the project team.
As project manager, any problem is always ultimately down to you anyway.
Use empathy and conflict handling techniques, and look out for signs of stress and
manage it accordingly. A happy, positive team with a basic plan will outperform a
miserable team with a brilliant plan every time.

Tip

Many successful leaders find their success using this simple philosophy:
Praise loudly; blame softly.

Starting out
You may want to commence implementation with a meeting to kick-off the project and
reiterate the project details with the team.
An effective start-up meeting will ensure that all project team members have an
understanding of:
the project objectives

scope and constraints

roles and responsibilities in the project

work plan (deliverables and milestones)

tracking their project time

finding project documentation.

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They should have a good handle on the details but may need to be refocused since
considerable time may have passed between planning and implementation.

Stick to your plans

In the previous section, you identified plans and strategies. These included:
project plan

communication plan

risk plan

budget.

Implementing requires you to follow these plans and strategies and adjust as necessary.

Use workplace systems and resources

Keep in mind that as you are implementing the project, success or failure doesnt all fall
on your shoulders. The whole organisation should have a stake in your success or failure.
Providing yourself with project management tools to assist your project team is a quick
and easy way to help guide your project down the correct path. Additional tools used in
projected management can often include:

Project Such as MS Project and SEER software.

management
software

Stakeholders Ask people who have an interest in your project if they are willing to
and sponsors share in any of the tasks or if they are able to contribute in other
ways such as mentoring staff or donating money or time.

Other workplace It is amazing how often resources in the workplace get

resources underutilised. Having a thorough knowledge of resources available
for use can be a big contributor as to whether a project will meet
its budgetary requirements as well as concluding in a timely
fashion. A good project manager is never afraid to search and ask
for additional people or equipment that will help give the project
the edge it needs. Remember: never be afraid to ask for additional
assistance.

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Tip: Critical success factors

Critical success factors (CSFs) are things that are needed for the project to be
successful.
Identifying critical success factors is important as it allows a project team to focus their
efforts on building their capabilities to meet the CSFs, or even allow the project
manager to decide if they have the capability to build the requirements necessary to
meet CSFs.

Note that CSFs are often confused with KPIs. KPIs measure the achievement of your
project goals and objectives to indicate how you are performing.
A critical success factor helps the business improve. Without them, you cant achieve
your goals and objectives. For example:
KPI = number of workplace injuries

CSF = appointment of a WHS advisor to assist in improving safety.

Note also that, in various project management sources and contexts, the term Critical
Success Factors may also, confusingly, refer to:
project objectives as quantified and measured by KPIs

project activities considered key to project success, such as gaining stakeholder

agreement, risk management, etc.

Solving problems
Without a doubt, you will be faced with problems at some point during the project.

Murphys law:
Anything that can go wrong, will go wrong!

Project managers are accountable for making short- and medium-term decisions to
ensure the goal of the organisation is achieved. In doing so they must be able to identify
and solve problems. Good problem-solving skills are essential for any project manager to
possess.

Problem-solving process
The process for identifying and solving problems contains three basic steps:
defining the problem

developing, weighing and selecting alternative solutions

implementing the selected solution/s.

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The flow of these steps has these processes:

define the gather develop

problem information alternatives

weigh select best implement

alternatives option solution

review/learn
monitor
from your
progress
experience

Using this flow requires flexibility. While the flow may appear to move from step to step,
real life is somewhat different.
The flow, in use, overlaps. For example, information gathering occurs at all steps. New
information may force the redefinition of the problem. Some steps, for some problems
may be shortened or missed altogether.

Problem-solving methods
There are countless methods at disposal for a project manager to use problem-solving
methods. Some suggested methods include:
5 Whys approach

root cause analysis (fish bone diagrams)

8 Disciplines (8Ds).

5 Whys:
The 5 Whys is a method used to explore the cause/effect relationships underlying a
particular problem. Ultimately, the goal of applying the 5 Whys method is to continuously
ask why questions until a solution has been determined to the root cause of a defect or
problem.9

9 A. Walsh, 2011, 5 Whys, Chart it now, viewed June 2013, <http://www.chartitnow.com/5_Whys.html>.

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Example: The car wont start

Problem: The car will not start.

Why? The battery is dead. (first why)
Why? The alternator is not functioning. (second why)
Why? The alternator belt has broken. (third why)
Why? The alternator belt was well beyond its useful service life and has
never been replaced. (fourth why)
Why? I have not been maintaining my car according to the recommended
service schedule. (fifth why, a root cause)
Why? Replacement parts are not available because of the extreme age of
my vehicle. (sixth why, optional footnote)

Solution: I will start maintaining my car according to the recommended service

schedule.
Note: The sixth why was added to indicate that the process does not have to end
precisely after the fifth why.

Root cause analysis

From time to time it may be necessary to come together as a team and confront a
particular problem or issue that is affecting results. The Fishbone technique is typically a
great place to start as it tends to identify the root or cause of the problem so that time
isnt wasted trying to fix the effects.
The following figures show an example of a manufacturer tackling the problem of the need
for extra production for the busy Christmas period.

Machinery/
Equipment People

Need extra
production
for
Christmas
period

Methods Materials

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Cause and effect diagrams: Identifying the likely causes of problems

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Making a fishbone diagram

Stage 1: Identify the problem

1. Write down the exact problem you face in detail.
2. Where appropriate, identify who is involved, what the problem is, and when and
where it occurs.
3. Write the problem in a box on the left hand side of a large sheet of paper. Draw a
line across the paper horizontally from the box. This gives you space to develop
ideas.

Stage 2: Work out the major factors involved

1. Next identify the factors that may contribute to the problem.
2. Draw lines off the spine for each factor, and label it.
3. These may be people involved with the problem, systems, equipment, materials,
external forces, etc. Try to draw out as many possible factors as possible.
4. If you are trying to solve the problem as part of a group, then this may be a good
time for some brainstorming.
5. Using the fishbone analogy, the factors you find can be thought of as the bones of
the fish.

Stage 3: Identify possible causes

1. For each of the factors you considered in Stage 2, brainstorm possible causes of
the problem that may be related to the factor.
2. Show these as smaller lines coming off the bones of the fish.

Stage 4: Analyse your diagram

1. By this stage you should have a diagram showing all the possible causes of your
problem.
2. Depending on the complexity and importance of the problem, you can now
investigate the most likely causes further. This may involve setting up
investigations, carrying out surveys, etc. These will be designed to test whether your
assessments are correct.

Learning activity: Fishbone diagram

Consider a project issue that has arisen in a project you have run or in which you have
been involved.
Set aside for a moment the actual cause arrived at and, in the space provided on the
following page, complete your own fishbone diagram to identify the cause of the issue
and identify a solution.

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Did you identify a different cause, or different solution to the issue? If so, what would
you have recommended doing in your project to address the issue?

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8 Disciplines (8Ds)/Plan, Do, Check, Act

The 8D system is a problem-solving process that:
identifies problems

takes interim containment action

describes problems in measurable terms

analyses them using data and basic statistical tools

finds the true root cause

corrects the problem by eliminating the root cause

implements mistake proofing to prevent reoccurrence

uses lessons learned concepts as prevention techniques.

Often it is summarised as the methodology of Plan, Do, Check, Act. This can be seen
from the diagram below:

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Example: Plan, Do, Check, Act

Peter is a project manager who hires temporary staff but not often enough to have a
designated Human Resources Department. Peter hires employees occasionally but
because it is not part of a larger system, important information that an employee
should be aware of is missed in the process. This results in a less than ideal experience
for the new employees.
To help make staff transition more productive, Peter does the following:
1. Plan Plan what needs to be done to improve the hiring experience. This may
include creating a new employee orientation check list. This can be done by
asking employees what information would have been helpful for them when they
started their job.
2. Do Roll out the plan and test it on new employees as they are hired.
3. Check Follow up with new employees who have used the new process and
collect data on how well that process worked for them and if they could suggest
any other changes that could help improve the new process.
4. Act Incorporate what was learned into the new process and implement.
Repeat the process again.

This is a very simplified example but its important to understand that this does not
have to be a difficult process; just one that keeps on task and is followed-up on.

Learning activity: Which analysis technique?

As a project manager in charge of developing a new computer software program for

accountants, which of the following do you think you might use if you were having
problems with the software crashing during the testing phase? (theres no incorrect
answer)
5 Whys

root cause analysis

8 Disciplines (8Ds).

How did you make your decision?

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Corrective action
A corrective action is a change implemented to resolve a problem. Sometimes corrective
actions are implemented in response to:
a customer complaint

poor quality

an internal audit.

Corrective action can and should be taken to address project issues and problems. Every
project must have a process in place to ensure issues and problems are:
1. investigated thoroughly
2. escalated (if necessary)
3. resolved in an efficient manner.

Tip: Taking corrective action

A great article that focuses on how to take corrective action can be found here:
Alexander, J., 2007, 11. Take corrective action promptly, Managing small
projects, viewed May 2013, <http://www.managingsmallprojects.com/take-
corrective-action-promptly.html>.

The article tackles the following issues relating to project management:

compensate for tasks that are taking too long

compensate for tasks costing too much

check on resources and precursors of tasks that should have started

check on skills and obstacles in tasks not completing or finishing fast enough

correct issues where unscheduled tasks are being worked

correct inadequate tasks and deliverables.

Change requests
Change requests are a request to obtain formal approval for changes to the scope,
design, methods, costs or planned aspects of a project. They:
may arise through changes in the business or issues in the project

should be logged, assessed and agreed on before a change to the project can be
made.

Issues log
Issues are usually raised by team members. An issues log helps to:
re-assign and track issues

analyse and prioritise issues

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report on issues

indicate the project health and production readiness

record resolutions, as a reference for future similar or repeated issues.

Learning activity: Review documentation

Review Appendix 2 of this Student Workbook, heading 1.3 Implementing.

How would you use these documents to implement a project, for example, the Max
Lionel Realty CRM rollout?

Monitoring team performance: Coach your team

Work coaching
Workplace coaching is a collection of methods and techniques used by managers and
supervisors to help them to maintain or improve their employees work performance.

What do we coach?
When we are talking about coaching peoples work performance, we are usually talking
about:

Task goals Which include bottom line targets that are measured by KPIs,
production goals, deadlines, quality standards

Non-task goals Which include targets such as housekeeping, attendance at

important meetings, and participation in continuous improvement

Behaviours Which include things like attitude towards workmates, personal

attire.

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Who do we coach?
Traditionally, managing has involved controlling and directing the work of other people. As
a coach, however, the manager works with the employees to guide them towards solving
problems for themselves, rather than directing them to the solution.
Generally, most performance problems can be resolved through effective communication
between managers and employees. Most employees can benefit from coaching in some
way. Coaching applies to any skill at any time. It is a simple way to set, discuss, and
monitor goals in a collaborative way.

How do we coach?
Good coaches challenge employees and ask questions that help the employee to discover
how to improve.
Coach when you wish to focus attention on any specific aspect of the employees
performance.
A coaching meeting should focus on just one or two aspects of performance. Any
more than that and employees wont remember the main impact of your meeting.
Keep coaching conversations brief and between five and ten minutes long.

Being an effective coach requires understanding of what motivates the members of

your team. Remember that people are motivated in different ways. Be sensitive to
the things that drive your people to perform.
When things are performing well, take the time to understand what is working and
why.
Good coaching is guiding, not telling or doing.

Allow the employee to own the problem and its solutions. Ask them: How do you
think we should handle this?

When do we coach?
Coaching is different to formal training. But how do you know when you should step in, or
let employees work through the problems for themselves?
Observe the employee's work and be alert for certain triggers or signs. For example,
you may notice an attitude or behaviour creeping in, or you discover a slump in the
weekly KPIs.
Coach when you want to focus attention on any specific aspect of the employee's
performance.
Dont hesitate do it now. Coaching is a process that is most effective when it
happens daily.
Be sure you document any key elements that come out of your coaching sessions
and store them in the employees file.

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Characteristics of good coaches

Good coaches:
understand employees jobs

are accessible and approachable

lead by example

practice what they preach

are sincere and honest

make decisions on facts not feelings

dont procrastinate

listen more than talk

seek assistance when necessary.

Example: The life of a workplace coach

Steve is a department manager with a team of eight employees. He notices that one of
his staff members, Alex, seems to lack direction, displays low self-esteem, and has a
number of performance issues (regularly shows up late for work and takes more sick
days that the other employees). Steve has tried a number
of things, but has had little or no success.
Steve spoke to Jill in HR who suggested he might try
coaching Alex. Steve approached Alex and asked if he
wanted to try coaching. They both agreed it was worth
trying and they agreed to work together once a week over
three months.
The first thing Steve asked was for Alex to write a list of the
things he was good at and the things he wasn't good at.
This gave them both a focus, as they were able to look at
the areas they could work on to help Alex improve over the
coaching and monitoring period.
Six months later the improvements were noticeable. Alex is
now the first one at work every day and is being recognised
as a motivated team member. Instead of potentially losing
a staff member, Steve has gained a valuable asset and is
now looking at more training to help Alex develop his
career.

What is the difference between coaching and mentoring?

Coaching and mentoring are two techniques that can be used to develop individual
workers or teams. These approaches help to motivate employees.
Coaching is a good solution when an individual has a wide range of general performance
issues. It involves a workplace coach monitoring and addressing an individuals general
skills over a period of time.

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Mentoring is a good solution when there is specific knowledge or skill that an individual
needs to build. It involves a more experienced or senior staff member passing on their
knowledge or skills in a short timeframe.

Mentor Coach

Individual, career and personal Performance.

Focus
development.

Role Mentor has no agenda. Coach has specific agenda.

Selected by mentee. Comes automatically with the job

Relationship
or team project.

Source of Perceived value of mentors Position held by coach.

influence experience.

Can be informal, meetings can Generally more structured in

Approach take place when mentee needs nature and meetings are
advice, guidance or support. scheduled on a regular basis.

Agenda is set by mentee, with The agenda is focused on

mentor providing support and achieving specific, immediate
Agenda
guidance to prepare them for goals.
future roles.

Learning activity: Finding a mentor/buddy for a new team member

Sometimes you will need to organise a mentor for a new team member.
Sandra has recently joined the sales department for an online sales advertising
business. Her position responsibilities include being 2IC second in charge! She has
been trained and her manager has provided her with support and resources.
Mandy, another member of the team, has extensive sales experience and recognises
she needs help to develop her leadership skills.
What mentoring options would you suggest?

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Now consider and note your own experiences with mentoring and coaching.
Do you have a mentor? What is it about this person that makes them a good
mentor?
What do you consider to be the characteristics of or qualities of an effective
coach?
If you were to choose a mentor to support you with this unit of study, who would it
be and why? How can you make this happen?
What are the benefits of coaching as a performance improvement tool?

What benefits do coaching provide for the person being coached?

List the benefits that coaching can provide an organisation.

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The GROW model

In the world of performance management, a number of different workplace coaching
models exist.
GROW is a simple but effective model for running coaching sessions. GROW is an
acronym that stands for: Goal (current) Reality Options Will.

Goal
Things can change, and the employees goals may need to be revisited and reviewed.

Current Reality
Getting to the root cause of problems means asking the team member about what is
happening and how the problem is affecting them. Often managers can leap to a
conclusion about solving a performance problem. Important information that can help to
solve the problem is often missed.
Some useful coaching questions include:
How is this change affecting your work?

If things changed do we need to revisit how we planned to approach this?

Options
Once you and your team member have explored the current reality, it's time to start
exploring the alternatives for solving the problem. It should be a two-way process, so
encourage the team member for their ideas and views about what might be done.
Ask questions like:
What other options have you considered for how we might handle this?

What are the alternatives?

How else could we approach this? What risks are involved?

What are the possible risks involved in these other options?

What constraints exist?

Will
By this stage you will have examined the current reality and canvassed the options for
what could be done. The team member should now have a clear idea of how to deal with
the situation. The final step for you as a coach is to get them to commit to taking action.
So how will you take this forward?

How are you going to achieve this?

What obstacles could prevent this happening?

What else will you do?

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Note: The coaching conversation does not need to rigidly follow the order above. Any
genuinely two-way conversation will develop in unplanned ways. Nevertheless, each
element of the GROW model should be addressed at some point in any coaching session
that is likely to be effective.

Section summary
You should now understand some of the importance of implementing your project against
the approved project plan and taking corrective action to solve problems.
Implementing the project means ensuring that the project team follows the project plan,
taking the required actions to ensure that the project is progressing toward the
attainment of the agreed outcomes as well as managing any risks and issues that arise. It
is also important to keep stakeholders informed of the projects progress.

Further reading
Alexander, J., 2007, 11. Take corrective action promptly, Managing small projects,
viewed May 2013, <http://www.managingsmallprojects.com/take-corrective-
action-promptly.html>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Walsh, A., 2011, 5 Whys, Chart it now, viewed May 2013,

<http://www.chartitnow.com/5_Whys.html>.

Section checklist
Before you proceed to the next section, make sure that you can:

manage project tasks

coach your team.

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2.5 Monitoring a Project

While others are doing the project, another key part of your role, as the project manager,
is to monitor the project.

If stupidity got us into this mess, then why can't it get us out?
Will Rogers

Monitor is the fourth step in the project management life cycle

Case study: Max Lionel Realty: Monitoring and progress reporting

The rollout of the customer Relationship Management (CRM) system at Max Lionel
Realty is underway. Over the course of the implementation you have had to deal with
some team turnover, poorly performing team members and a key supplier missing a
delivery date.
In a major development, senior management identified a business need involving extra
CRM functionality. This scope-creep could have derailed the project had you not built in
a time buffer and, knowing this sort of thing regularly happens with software
implementations, planned appropriately for contingencies.
Overall, the project has been kept on track due to your planning and quick responses to
issues. Possibly, a key factor has been the supportive, tough but fair approach that you
have taken with your team as performance coach. You are proud of the leadership
skills you have demonstrated in addition to your management skills.
Now you will need to remain vigilant and provide regular progress reporting against
baseline performance measures, such as labour cost, completion of installation, and
numbers of agents trained in the new CRM.

What skills will you need?

In order to monitor a project effectively as a project manager, you must be able to:

monitor plans and strategies

take corrective action

report on progress.

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Monitor plans and strategies

Project implementation involves coordinating people and resources, integrating,
performing, controlling and monitoring the activities of the project plan, ensuring that the
deliverables are produced as outputs of the processes, performed in accordance with the
project plan.
The project manager is accountable for achieving the project outcomes:
on time

on budget

to agreed specifications.

Therefore, a critical aspect of managing projects is to ensure that project activities are
properly executed and controlled. Items to manage therefore include:
time

costs

communication.

Project monitoring is a process. It needs to be done regularly and consistently. Setting the
boundaries of the monitoring process is critical from the outset of your projects. Plan how
you will monitor progress right along with how you will accomplish the work. Set the
process in motion and keep it moving from the beginning.
The following are some important aspects of monitoring projects.

Tracking and Monitoring how your

Monitoring the
reporting on project relates to
project at different
progress and other projects and
levels
variance business priorities

Monitor the project at different levels

The needs of the project determine the level at which you need to track progress:
task level

assignment level

as total

as progress by time period.

Track and report on progress and variance

At the very least, a project manager will need to track the variance between what is
actually happening and what was planned. This includes analysing whether start and
finish dates for specific tasks are being met; how planned costs are being followed or
possible in practice; whether planned resource requirements are being utilised as they
should, and; whether the expected outcomes are being created. Its important to

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remember that a project can easily slide further and further behind schedule simply due
to a lack of effective monitoring of these most basic elements.
By using various monitoring processes (face-to-face meetings, email, written reports,
periodic groups meetings, etc.) as the project leader, you will have the responsibility of
tracking the project. Setting a clear expectation for progress and status throughout the
project is an efficient way of keeping a project under control.
With this in mind, if you set an expectation (for example, that status reports are to be
submitted weekly) you must follow up on it. If someone has not submitted a report by the
deadline, you must contact them and get it. A project manager cant make informed
decisions about what actions to take when the project gets off track if they don't know it's
off track!
Monitoring the technical aspects of a project is often where most of the time is focused.
Many project managers are given their position in the first place because of their
technical ability to complete particular tasks. However, if the monitoring process is only
placed on technical measurements, there is a strong possibility that the things that will
cause problems in the project will be team and interpersonal issues (a project team
doesnt blow up as a result of a simple technical problem). So, in addition to the
monitoring those nice clean technical tasks, you must also keep an eye on the health
and welfare of the team working on the project.

Monitor how your project relates to other projects and business

priorities
Another ingredient to monitoring a project successfully is to be able to monitor the status
of your project in light of every other project that your organisation is undertaking at the
same time. Shifting priorities often affect most projects. Keeping an eye on the changing
priorities in your environment can warn you of impending problems in time to prepare for
them.

Tip

Having project management software (as outlined in Section 1.2) is often a great tool to
assist in monitoring how a project is going. When using the software as a reporting tool,
ensure you use the reporting capabilities of tools to display only information you and
your stakeholders require hide irrelevant data. Consider using the tools to create one-
page summaries, or project dashboards with key performance measures for
stakeholders to view.

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General characteristics of KPIs

In a previous section, we discussed KPIs as a measure of progress towards your project
goals.

KPI characteristics
KPIs must conform to three minimum characteristics:
KPIs must be simple enough for anyone to understand

KPIs must be calculated in a standard way across the organisation

KPIs must be documented.

KPIS must be measurable

Key performance indicators, also known as KPIs, are performance measures agreed upon
by your project team and stakeholders. KPIs provide everyone with a clear picture of what
is important in order to achieve successful implementation of the project plan.
They also help to define each persons role in making that happen. KPIs may be for the
entire team or specific for the individual.
On a team level, KPIs are typically tied to a companys strategy and are used to help a
project team define and evaluate how successful it is. The KPI, when developed properly,
should support clear goals and objectives, coupled with an understanding of how they
relate to the overall success of the organisation. Published internally and continually
referred to, they will also strengthen shared values and create common goals.
A KPI is a key part of a measurable objective, which is made up of a direction, a KPI, a
benchmark, a target, and a timeframe. For example, a retail company may state that they
will Increase the average revenue per customer from $30 to $35 by end of year 2013.
As mentioned earlier, a KPI should not be confused with a critical success factor (CSF).
For the example given above, average revenue per customer is the KPI, while the factor
critical to the KPIs success (the CSF) might be a new product range or better marketing
of existing products. KPIs are also frequently used to add value (or measurement) to
activities that are sometimes hard to measure, such as the benefits of leadership
development or customer satisfaction.
On an individual level, when setting KPIs for employees, there are three basic principles
you need to be aware of.
1. Key is of fundamental importance and a make or break component in the
success or failure of the current project. For example, the level of money is an
important factor in project management operations, but it may not be critical (key) if
the project has no problem in using alternate resources to continue achieving its
plans.
2. Performance can be clearly measured, quantified and easily influenced by the
project manager. For example, bad weather influences many tourist-related
businesses, but the project manager cannot influence the weather. Sales growth in
holiday packages may be important to performance criteria but the targets set must
be measurable.

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3. Indicator provides leading information on future performance. A considerable

amount of data within the organisation only has value for historical purposes, for
example, annual trends in sales or how long it takes for invoices to be paid. By
contrast, rates of new product development provide excellent leading edge
information.

Key Performance Indicator

make or break measurable and provides

component quantifiable information usable
for future
performance

Make adjustments to KPIs

KPIs are an instrument used to provide feedback on performance and can alter over time
due to changes in objectives, roles and priorities. The key to making adjustments to KPIs
is to continue to incorporate the characteristics that make them effective, ensuring
that they:
are aligned with the overall strategy, and are relevant and refreshed when
appropriate
are owned by the team and the individuals

are leading indicators

can be actioned within the team context

are limited to just a few in number

are easy to understand

link back to the overall objectives

are standardised in definition, calculation and rules

are reinforced by incentives.

If KPIs are not being met or are not able to be met by an individual within a team,
sometimes it may be necessary to evaluate the portfolio of work assigned to them and
other team members. This can occur for a range of reasons, from a change in the
assigned workload (which can be seasonal) to a new skill being required. Usually within a
team environment it is possible to re-allocate job tasks to ensure workloads are
equitable, and to ensure that the person with the required skill set is assigned to the task.

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Learning activity: Characteristics of effective KPIs

Identify three examples of projects or individual KPIs on a project you have managed or
are familiar with.

Explain how the KPIs demonstrate the characteristic listed above that make them
effective.

Graphing KPIs
If KPIs are measurable, then they can also be displayed graphically. Graphing your KPIs
will assist greatly when running projects. KPIs look at performance over time, which is why
they are typically displayed as a graph (time-series charts tend to be the best way to
display KPIs).
If you can see KPI progression at a glance, you can easily tell whether or not the project
is going well.

Example: In control

A KPI that is on track or in control can usually be displayed as being within upper
control limits (UCL) and lower control limits (LCL).

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A KPI that is heading out of control will appear as one deviating out of the control limits.

Report on progress
Regular status reports help to ensure that the team has a clear vision to the true state of
a project and that management stays properly informed about project progress,
difficulties, and issues, by periodically getting the right kinds of information from the
project manager. Frequent communication of project status and issues is a vital part of
effective project risk management.
The reports should let management know whether the project is on track to deliver its
outcome as planned, and must highlight to management any place where their decision
making or direct help is needed.

Status reports
A status report is often a one- to two-page document that provides an overview of
progress on a project. The format normally incorporates the following three sections.
1. What we did last period.
2. What were doing next period.
3. Issues were working on now.

The report is formatted to allow stakeholders and team members to quickly assess a
projects status, progress, and key current activities.
Many project managers use special software (such as MS Project) to track progress on
project tasks as well as for project reporting.

Tip: One-page report

Project management methodology recommends the use of a planned versus actual

approach when evaluating specific tasks, linked to milestone reviews. This requires
setting a tolerance limit, e.g. +/ 5%.

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A one- or two-page report can be produced that tracks progress against the end phase.
Is the project on track? Some even like to use traffic lights red, yellow, green to
illustrate progress.
Clear reporting ensures project performance is regularly monitored and that variances
from the project plan are identified and corrected.
Note: Examples of project status report templates can be found at the following sites:
Project status report, Microsoft Office Online: Templates, viewed June 2013,
<http://office.microsoft.com/en-au/templates/project-status-report-
TC001141723.aspx>.
Project status report example, National Cancer Institute Frederick: Project
management resources, viewed June 2013, <http://saic.ncifcrf.gov/
projectmanagement/pm/docs/ProjectStatusReportExample.doc>.

Section summary
You should now understand the importance of monitoring and controlling your projects
implementation against the approved project plan.
Monitoring and controlling the project enables you to ensure that the project is
progressing toward the attainment of the agreed outcomes as well as managing any risks
and issues that arise. It is also important to keep stakeholders informed of the projects
progress.

Further reading
Microsoft Office, 2010, Project status report, Microsoft Office Online: Templates,
viewed May 2013, <http://office.microsoft.com/en-au/templates/project-status-
report-TC001141723.aspx>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Project Management Office, 2007, Project status report example, National Cancer
Institute Frederick: Project management resources, viewed May 2013,
<http://saic.ncifcrf.gov/projectmanagement/pm/docs/ProjectStatusReport
Example.doc>.

Section checklist
Before you proceed to the next section, make sure that you can:

monitor plans and strategies

report on progress.

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Student Workbook 2.6 Closing a Project

2.6 Closing a Project

Once the project deliverables have been completed, a number of tasks are required to be
undertaken to close the project.

If at first you don't succeed, destroy all

evidence that you tried!

Close is the final step in the project management life cycle

Case study: Project close and review

It is now six months since the beginning of the customer relationship management
(CRM) system rollout and the project is now complete.
The system has been purchased and installed as per the supplier contract.

Company processes have been updated.

Agents have been trained on the new CRM.

Previous experience has taught you that, even when successful projects finish, the way
you end is critically important. You want to avoid the sense of the project simply fading
away with the project deliverables delivered and project team drifting back into their
former roles.
You will now need to finalise the project by meeting with key stakeholders to handover
and get sign-off on the project deliverables. This represents an opportunity to thank the
stakeholders and ensure their satisfaction and final impressions on the project. You will
also need to ensure you have handed over the CRM in a way that it will fit seamlessly
into ongoing operations. In addition, Operations General Manager Kim Sweeney, the
project sponsor, has asked you to prepare a post-implementation report to evaluate the
project and its performance against requirements and a review report to identify
lessons to take away. Recording such lessons will be important for Max Lionel Realtys
continuous improvement of project management. Your handover, post-implementation
and review reports represent an opportunity to you to underscore for your stakeholders
the successes of the project and your professionalism.
Finally, you have also planned to meet with your team individually to thank them for
their efforts and officially assign team members to new roles where appropriate. Before
your team members take up their new roles, you have planned to hold a party for the
project team to close the project on the best possible note.

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What skills will you need?

As a project manager closing a project, you will need to be able to:

finalise the project

review the project with the client.

Finalising a project planning in advance

The way to close/finalise a project successfully is to plan its closure from the beginning of
your project. The following are ways to plan during the early stages of a project to give
your project team the best chance of a successful close.

Plan for support

Your project team will need to think about the plans it is going to put in place for
supporting the deliverables of the project for example, if you are delivering a new
computer program, you will need to determine an approach regarding how to provide
support for users going forward.
Things a project manager should consider include the following.
1. Will your organisation need to provide a support function that will pick up the
ongoing maintenance and queries?
2. Will there need to be a user guide or manual produced as part of the project to be
provided as part of the support function?
3. Will your project team be conducting additional activities after the completion of the
project that would provide useful information for the support function?

Involve any support people early

After you have identified your client and the deliverables, try and involve the support team
early in the project. It is a lot easier to gain their support for something if they have been
involved throughout the project.
Things a project manager should consider include the following.
1. Will your project require assistance from any support team after the project is
concluded? (And what role will they perform?)
2. How much of a time commitment will your project need from the support people
between now and the time that the project is officially handed over?

Organise documentation
Inevitably you will need to hand over project paperwork to relevant stakeholders and the
support team, so it is important to keep documentation organised and up to date. This
includes documenting the outcomes of regular review sessions.

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Things a project manager should consider include the following.

1. How will your project team organise and store project documents?
2. How will the project team identify what documents would be useful for the support
team?
3. Are there any other databases (like a wiki) that would be useful to hand over to
support?

What will indicate the close of the project?

It is beneficial, from the early stages in the project, to think about how the closure of the
project will take place.
Things a project manager should consider include the following.
1. When will you conduct any final consultation or communication about project
closure?
2. How will the final consultation or communication be conducted?
3. How will you help the project team transition to new projects or other roles?
4. What will you do if you cant close all actions, risks and issues? (And who will take
over anything outstanding?)

The project team will also need to consider the timeframe for the closure phase. It is often
easy to underestimate the amount of work required to finish up a project appropriately
and complete the handover.

Tip

If the work begins to tail off while you are in the closing phase, it might be worthwhile to
begin another project at the same time; however, beware of not finishing what you
started in the best possible way. Complete formal handovers of deliverables; ensure
client satisfaction; lead the project until it is done; be there to take credit for a well-
managed project.

Finalise the project general overview

All activities of the project team are finalised as part of the project closure phase.
This activity should be completed as soon after implementation and handover as
possible. The project team will inevitably disperse, and contract staff may leave. You may
need to assign team members to new roles. You should act to ensure this transition is as
seamless as possible. You may wish to meet individually with your team members to
thank them and debrief. It is also important to seek their views before they leave on the
project experience and on your performance. Treat the feedback as an opportunity to
grow as a leader and manager.

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Finalise all tasks

The project handover report summarises what the project has delivered, including the
following.

Scope The project deliverables are validated through the quality control
process and the completion of the project is verified against the scope
of objectives to ensure that all have been achieved.

Quality This gives an overview of whether or not the project was able to deliver
on what it set out to achieve at the level of quality expected.

Costs This summarises the costs involved with the project and whether or
not the budget was adhered to.

Schedule This identifies whether the project schedule was met and if anything is
yet to be completed.

Identify follow-on actions

With some projects, there may be follow-on actions required. These may be important for
providing ongoing support to the project outcomes or deliverables or for the purposes of
repeat business.
After all, if you do the project well, you want to get the opportunity to do it again!

Review with the project team

Convene the project team and review the lessons learned. This may include discussing
the following questions.
Did the delivered project meet the requirements and objectives?

Was the client satisfied?

Was the project schedule met?

Was the project completed within budgeted cost?

Were the risks identified and mitigated?

What could be done to improve the process?

Document the lessons learned

Document and distribute the lessons learned from the project. A combination of
individual interviews, workshops and surveys can be used to identify:
what worked well and can be repeated in the future

what didn't work well and how it could be done better next time

how well the project outcome was received

how the objectives of the project were fulfilled.

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When gathering information, consider the following methods.

Individual interviews are better for getting unbiased information but will usually
present contradictions which need to be resolved.
Workshops tend to give a group view that is subject to hierarchical influences and
can be dominated by a vocal minority.
Surveys are ideal for reaching a large number of people, but often raise more
questions than they answer unless they are well designed. Piloting the survey is
often a useful tactic. An external market researcher can be useful to help with this.

Acknowledge the successes

Despite what they may say, most people like to have their efforts recognised and
acknowledged.
You may want to organise:
a final presentation

rewards or awards

a party to celebrate the achievements of the project team.

Review with the client/sponsor

Project review
Once a project has been implemented, it is useful to assess the project outcomes at a
specified time after implementation. This process is called post-implementation
review (PIR).
A typical post-implementation review will take somewhere between one and three weeks
to complete, depending on the size of the project and the availability of resources. The
PIR includes holding a meeting and sharing information on how obstacles were overcome,
and what could be done better in the next phase or next project. This process collects and
utilises knowledge learned during a projects implementation with the purpose of
optimising the delivery and outcomes of future projects.
The PIR process is a tool and means of collecting and communicating information. It is
also a comprehensive feedback mechanism designed to assess project outcomes and
how well those outcomes met the expected needs that the project intended to fulfil, i.e.
did the client get what was needed?

How its done

Reviews with the client or stakeholders can be done by:
questionnaires, surveys observations

participant Interviews workshops

observation discussions.

walk-through inspections

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2.6 Closing a Project Student Workbook

Learning activity: Review documentation

Review Appendix 2 of this Student Workbook and identify different forms of project
closing documentation.
Practise completing a template for a previous project of your choice.

A post-project review report typically contains:

project sign-off

staff and skills used

project organisation structure

schedule management

cost management

quality management

client expectation management

lessons learned.

Tip: Project review

It is important to have someone external to the project carry out the post-
implementation review. Someone external to the project without a biased opinion is
usually the best resource to look objectively at the project.

Note: Benefit realisation is not one of the tasks of the close phase. Often benefits are not
realised until some months after the implementation of the projects outcome.
For various reasons, there are some projects that are closed without being completed.

After the review

What will happen with the PIR report?
A list of actions is of no use unless someone is going to manage the completion of
the actions.
Unless there is a clear owner of the actions arising from the PIR, it is pointless to
undertake the work.
The issue of benefit realisation should be discussed with the client prior to the
review taking place. It may be appropriate to include benefits or it may be more
appropriate to pass them over to another area (e.g. internal audit or finance) to
review at some time in the future.

Note: It is not the method of documentation that counts as much as the fact that
documentation exists of the knowledge gained in the project.

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Tip: Five key steps to closing a project

Heres a list of five key actions that a project manager should conduct to ensure proper
closure of a project that has just finished.
1. Ensure all relevant documentation and deliverables have been signed off by the
client/management.
This will help ensure that your project team doesnt have anybody coming back
making requests after the project is over especially if there are any question
marks over work or payments outstanding.
2. Get a final sign-off on implementation/project acceptance.
You may have the best relationship in the world with your client, but dont skip
this step.
3. Carry out a reflection session with your project team on what you have learned
from the project.
The information received from this type of session can be very useful to you as a
project manager going forward, to your client as they go ahead with the
implemented solution, and in identifying any other types of ongoing support
required.
4. Hold an appropriate hand over to any additional ongoing support team (such as
tech support).
Make sure they have all information they need to properly support the client after
the project has been completed.
5. Keep in touch with the client after the project.
You may have an agreement to offer assistance to the client before a formal
transition takes place (for example, a 30 or 60-day agreement to help with any
problems); but dont just drop them at that point keep checking back. Its good
for your project teams reputation with the client and for your companys
reputation. 10

Section summary
You should now understand some of the reasons why the post-project review activity is so
essential. Conducting a post-implementation review enables you to assess the success of
your project and importantly, your project management skills.

10 B. Egeland, 2009, Five key steps to closing down the project, Project management tips, viewed June

2013, <http://pmtips.net/key-steps-closing-project/>.

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Further reading
Egeland, B., 2009, Five key steps to closing down the project, Project
management tips, viewed June 2013, <http://pmtips.net/key-steps-closing-
project/>.
Project Management Institute, viewed May 2013, <http://www.pmi.org>.

Section checklist
After completing this section, make sure that you can:

finalise the project

review the project with the client.

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Student Workbook Glossary

Glossary
Term Definition

Assets Everything of value that is owned by a person or company.

Business case/ A document that defines why the project is required and what
project proposal the change is to be. It should include an outline of the projects
objectives, deliverables, time, cost, technical, safety, quality
and other performance requirements, and the major project
risks and upside opportunities. It might also include
information on the competitive impact, resource requirements,
organisational impacts, key performance indicators and critical
success factors of the project and its outcome.

Deliverable An output produced at the end of a task. Examples of

deliverables are plans, reports, computer programs, policies
and procedures, etc.

Duration The length of time needed to complete an activity.

Feature creep See Scope creep below.

Gantt chart A type of bar chart that illustrates a project schedule. Some
Gantt charts show the dependency relationships between
activities. Gantt charts can also be used to show current
schedule status.

Milestones An event of zero duration that marks a significant point of

progress in a project. Milestones are used to see whether a
project is on time or not. A milestone may be Design is
finished, Sign contract, Project ends, etc.

Objectives A statement of what the project is designed to achieve within

the scope. They should be specific, measurable and identify
business problems that are being solved. They should be stated
with some benefit or end result in mind.

Post-implementation An evaluation of the projects goals and activity achievement as

review measured against the project plan, budget, timelines, and
quality of deliverables, specifications and client satisfaction.
The objective of the PIR is to identify the lessons learned from
the project and to share the information to improve the
performance of future projects.

Project charter The written authorisation for the project manager to proceed
with the project. It is signed by the project sponsor. It often
heads up the project plan.

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Glossary Student Workbook

Term Definition

Resources People, equipment, materials or services needed to complete

project tasks. The quantity of resources affects the scope and
time of a project.

Risk analysis An examination of risk areas or events to assess the probable

consequences for each event, or combination of events in the
analysis, and determine possible options for avoidance.

Scope The processes required to ensure that the project includes all
the work required, and only the work required, to complete the
project successfully (whats in/whats out)

Scope creep The continual extension of the scope of a project, often leading
to a runaway project. As some projects progress, especially
through development, requirements continuously change
incrementally, causing the project manager to add to the
project objectives.

Stakeholders People with a vested interest in the outcome of the project.

Individuals and organisations that are involved in or may be
affected by project activities.

Work breakdown A hierarchical, sequential breakdown of the work to be done in

structure the project.

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Student Workbook Appendices

Appendices
Appendix 1 Max Lionel Realty simulated business

From Max Lionel Realty business plan FY 2012/13

About Max Lionel Realty
Max Lionel Realty was founded in 2008 by property developer Max Lionel. The
company currently employs approximately 100 people, 80 of whom are licensed real
estate agents. Through its client agents, the organisation manages property sales and
rentals (both residential and commercial) on behalf of a range of clients. The
organisation also separately engages in investment activities, such as property and
land development. Max Lionel Realty has been a member of the Real Estate Institute
of Victoria (REIV) since 2008 and proudly follows the REIV Code of Conduct.

Mission:
to achieve the highest returns for our clients and to deliver a client experience
that is second to none in the industry.

Vision:
to establish, within five years, the MLR brand the highest ethical standards
with best-in-breed performance for clients.
Values:
integrity

client-focus

active encouragement of excellence, innovation and continuous improvement

teamwork

recognition of the diversity and expertise of MLR employees and agents.

Strategic directions:
engaging with customers and clients

building goodwill and reputation for integrity

supporting innovative thinking, management and leadership skills.

creating a high-performing, highly profitable organisation.

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Max Lionel Realty organisational chart

Board of Directors
and CEO
Max Lionel

Chief Financial Operations

Officer General Manager
Riz Mehra Kim Sweeney

Manager Manager
Human
Residential Realty Commercial Manager
Resources
(Sales and Realty (Sales and Investments
Manager
Rentals) Rentals) Peter Mitchell
Les Goodale
Sam Lee Pat Mifsud

Max Lionel Realty management responsibilities

Max Lionel, CEO
Max is responsible for working with the Board of Directors to oversee the business, set
overall strategic directions, manage risk, and authorise large financial transactions.

Riz Mehra, Chief Financial Officer

Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz
Is also responsible for overseeing budgets for cost centres and individual projects. At the
completion of financial quarters and at the end of projects, Riz is responsible for viewing
budget variation reports and incorporating information into financial statements and
financial projections.

Kim Sweeney, Operations General Manager

Kim is responsible for the day-to-day running of the company. Kim oversees the
coordination, as well as the structural separation, of the Residential, Commercial, and
Investments centres. Kim is responsible for sponsoring projects which affect operations
of the organisation as a whole. Kim works with the Human Resources Manager to
coordinate systems and projects in order to achieve company-wide synergy.

Les Goodale, Human Resources Manager

Les is responsible for the productive capacity and welfare of people at MLR. With the
Operations General Manager, Kim works to coordinate projects and management
systems such as performance management, recruitment, and induction. Kim will need to
ensure aspects of the recently launched WHS management system, such as risk
assessment, management, consulting, reporting and continuous improvement, are
coordinated with all subsequent activities.

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Sam Lee, Manager Residential Realty

Sam is responsible for the management of all aspects of residential realty. Sam manages
the activities of residential agents.

Pat Misfud, Manager Commercial Realty

Pat is responsible for the management of all aspects commercial realty. Pat manages the
activities of commercial agents.

Peter Mitchell, Manager Investments

Peter is responsible for the management of all aspects investment realty. Peter manages
the activities of investment agents. Peter works with the Operations General Manager to
ensure separation of investment from obligations to residential and commercial clients.

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Appendix 2 Forms and templates

1.1 Initiating
Project purpose and rationale
The justification and validity of the project needs to be confirmed before the project
proceeds. This document is used to clarify the project purpose and justification and to
gain approval to proceed to the next phase.

Project title
Working title

Project purpose
Describe the purpose/need/rationale/feasibility for the project.

Background and strategic context

Explain the background to the project and how it relates to the key strategic plans.

Priority
Note the importance and/or urgency of the project to the organisation.

Related projects
Any other projects that have been undertaken in the past, are currently underway, or
planned for the future that will or may be affected by or simply connected to this project.

Project client/owner
The person who requires the project to be undertaken.

Project sponsor
The person who is providing the funds and has the ultimate authority over the project.

Project manager
The person who has the responsibility to manage the project on a day-to-day basis.

Project status
What has already been decided about the project? What decisions have already been
made? What work has already been done in relation to the project? Any assumptions or
constraints?

Special provisions
Special regulations, ethical considerations, etc.

Project approvals
Add any signatures that are required for approval to proceed to the next phase.

Project Manager Project Sponsor

Project Client/Owner Other

Project Title: Date: File Name:

ProjectPurposeandJustification2007.doc
Project Sponsor: Project Manager: Project Client: Page x of y

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Project scope document

This template is a tool that can be used with key stakeholders to clearly define the logical
boundaries of the project. Ensure that you note any requirements that are OUT of scope
to achieve absolute clarity about what is and is not covered by this project, and to avoid
the potential for problems later on.

In Scope Out of scope Assumptions Constraints

(exclusions)

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

ProjScope.doc

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Stakeholder analysis
Use this template to identify areas, groups or individuals who may participate in, or are
affected by the project. Include everyone who has a vested interest. A useful question to
ask is What will make this project a success for you?

Name Work area Stakeholder type Impact on/by project,

(client, end-user) requirements, success
criteria

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

SA.doc

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Roles and responsibilities

It is important to identify who the major players are on the project. List the major project
roles, responsibilities and the actual people involved. Add in any additional roles as
required.

Role Name/s Responsibilities

Project client/owner
The person who requires the project
to be undertaken.

Project sponsor/project
director/project board
Senior management of the project
accountable for the success of the
project. Has the authority to commit
resources.

Project manager
Person responsible for running the
project on a day-to-day basis within
defined authorities for cost and
schedule as agreed with the project
sponsor/board.

Manager of the project manager

The operational/line manager who
the project manager reports to on a
day-to-day basis.

Project team members

Staff who will be working on the
project.

Steering committee/working party

To provide advice and
recommendations

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

R&R.doc

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Project snapshot
The project snapshot summarises the purpose, deliverables, stakeholders, resources,
risks, interdependencies and success criteria of the project.

Project snapshot

Name of project:

Project purpose:
What are the goals/objectives of this project? Why are we undertaking it? What is the
problem/opportunity?

Deliverables with timeframes Stakeholders

(what, when) (who is the sponsor, project manager,
customers, other key groups who can
impact, or be impacted by, this project)

Resources Risks (resource limitations, deadlines,

(cash flow, people, equipment, facilities, budget, technology, other constraints, etc.)
software, etc.)

Interdependencies Success criteria

(with other projects, groups, system (how we know we are successful)
interfaces, etc.)

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1.2 Planning
Workgroup planning template

Project title

Project aim

Goal 1

Objective 1.1

Action Action
1.1.1

Action
1.1.2

Action
1.1.3

Timeframe

Human
resources

Physical
resources

Financial
resources

Subtotal =

Performance Action
indicators 1.1.1

Action
1.1.2

Action
1.1.3

Objective 1.2

Action Action
1.2.1

Goal 2

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Work breakdown structure

A work breakdown structure (WBS) in project management is a tool used to define and
group the projects discrete work elements (or tasks) in a way that helps organise and
define the total work scope of the project. The WBS is a dynamic tool and can be revised
and updated as needed by the project manager.

Level 1 Level 2 Level 3

Task 1

Sub-task 1.1

Work item 1.1.1

Work item 1.1.2

Work item 1.1.3

Sub-task 1.2

Work item 1.2.1

Work item 1.2.2

Work item 1.2.3

Task 2

Sub-task 2.1

Work item 2.1.1

Work item 2.1.2

Work item 2.1.3

Sub-task 2.2

Work item 2.2.1

Work item 2.2.2

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

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Gantt chart
To use a Gantt chart, list the activities and tasks in column A, select an appropriate time
interval (days, weeks or months), allocate the dates to columns B onwards and plot the
expected time duration (total time from start to completion) under the appropriate
column by selecting shading from the cells. When you wish to provide a status report,
simply colour or shade in black those items that are completed or estimate the
percentage complete. This will give you an immediate visual representation as to whether
or not you are on schedule. You can add extra columns for assignment of responsibilities,
etc.
For small projects, a Gantt chart can be created as a spreadsheet.

Activity/task 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Legend
If there are many tasks or stages in your project, you can identify them with a key
or legend.

Task 1 Task 5
Task 2 Task 6
Task 3 Task 7
Task 4 Task 8
Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

Gantt.doc

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Activities schedule
The activities schedule is a tool used to monitor individual activities against the project
plan. Information recorded on the schedule can be used when providing project status
updates to stakeholders.
Phases & activities

Actually completed

Comment/status
Responsib-ility

Effort (hrs)
Resources

Deadline
Started

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

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Resources and budget

The project budget is a prediction of the costs associated with a particular project. These
costs include labour, materials, and other resources required to complete the project.

Project Name:

Income Inc. GST Ex. GST

Total income

Expense Inc. GST Ex. GST

Subtotal

Contingency (+10%)

TOTAL

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

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Risk register
This template is used to record identified risks associated with your project, analyse the
impact and determine resultant action to be taken.

Risk response
Likelihood Impact
Risk (contingency Responsible
(H/M/L) (H/M/L)
strategies)

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

Gantt.doc

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Risk assessment form

Identified risks are logged on a risk form and a copy is forwarded to the project manager.

Project details

Project Name: Project Name Project name to which the risk relates.
Project Manager: Name of the project manager responsible for mitigating the risk.

Risk details

Risk ID: Number allocated to this risk.

Raised by: Name of person who has raised the risk.
Date raised: Date of completion of this form.

Description of risk:
Briefly describe the identified risk and its possible impact on the project (e.g. scope,
resources, deliverables, timelines and/or budgets).

Likelihood of risk: Impact of risk:

Describe and rank the likelihood of the Describe and rank the impact on the
risk occurring (i.e. low, medium or high). project if the risk occurs (i.e. low, medium
or high).

Risk mitigation

Preventative actions recommended:

Briefly describe any action that should be taken to prevent the risk from occurring.

Contingency actions recommended:

Briefly describe any action that should be taken, should the risk occur, to minimise its
impact on the project.

Approval details

Supporting documentation:
Details of any supporting documentation used to substantiate this risk.

Signature: ___________________________________ Date: ___/___/____

PLEASE FORWARD THIS FORM TO THE PROJECT MANAGER

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Communication plan

What Who Purpose When/Frequency Type/Methods

Initiation meeting All stakeholders Gather information for initiation FIRST Meeting
plan Before project start date.
Distribute project All stakeholders Distribute plan to alert Before kick-off meeting. Project snapshot
initiation plan stakeholders of project scope Before project start date. distributed via hardcopy
and to gain buy in. or electronically. May be
posted on project website.
Project kick-off All stakeholders Communicate plans and At or near project start date. Meeting
stakeholder roles/
responsibilities.
Encourage communication
among stakeholders.
Status reports All stakeholders and Update stakeholders on Regularly scheduled. Distribute status report
project office progress of the project. Weekly is recommended for small-medium electronically and post via
projects. website.

Team meetings Entire project team. To review detailed plans (tasks, Regularly scheduled. Meeting: detailed plan.
Individual meetings for assignments, and action items). Weekly is recommended for entire team.
sub-teams as Weekly or bi-weekly for sub-teams as
appropriate. needed.
Sponsor meetings Sponsor/s and Project Update sponsor/s on status Regularly scheduled Meeting
Manager and discuss critical issues. Recommended biweekly or monthly and
Seek approval for changes to also as needed when issues cannot be
project plan. resolved or changes need to be made to
project plan.

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page: x of y

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Project plan
The project plan is the basis for monitoring and controlling the project. All project
information is consolidated to date, forming the basis for monitoring and controlling once
implementation of the project commences.

Project title:

Project purpose
From project proposal update if required.

Background and strategic context

From project proposal update if required.

Other related projects

From project proposal update if required.

Project objective
From project proposal update if required.

Scope including key deliverables

From project proposal update if required.
In scope
Out of scope

Assumptions

Constraints

Deliverables

Governance
From project proposal update if required. Attach a project organisation chart and
additional information on responsibilities if required.

Project client/owner
From project proposal.

Project sponsor

Project Manager

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Manager of the project manager

Project team members

Key stakeholders
From project proposal update if required. Include a more detailed stakeholder analysis
in the Appendices if required.

Schedule
Using the information you generated in the work breakdown structure, update the
schedule. Include a Gantt chart or additional planning information in the Appendices.

Item Milestone date Responsibility

Resource and cost plan

Resource planning is where you determine what resources (people, equipment and
materials) and what quantities of each should be used to perform activities. Once the
resources have been determined, estimate the project costs. Include a more detailed
resource and cost plan in the appendices if required.

Deliverable/milestone/phase Resource Cost

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Project risk assessment

From project proposal update if required. Include a more detailed risk management
plan in the appendices.

Risk Level Management strategy

(high/medium/low)

Quality management plan

Include a high level quality management plan here. Include a more detailed quality
management plan in the appendices if required.

Item from WBS Agreed quality standard Recovery procedure

Communications and reporting

Include a high level communications plan here. Include a more detailed communications
management plan in the appendices if required.

Stakeholder Information required When required Format

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Controls
Outline how you are going to track, monitor and report on the project. For example:
status reports

exception reports

issues/risk log

variance requests.

Appendices
List the appendices that are attached to your project plan, for example:
stakeholder needs analysis

work breakdown structure

Gantt chart

activities schedule

budget/cash flow

human resource planning schedule

roles and responsibilities

procurement schedule

combined resources and cost schedule

risk management plan

quality management plan

communications management plan.

Future related projects

Project approvals
Add any signatures that are required for approval to proceed to the next phase.

Project Manager Project Sponsor

Project Client/Owner Other

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1.3 Implementing
Change requests
This form is used to assist with recording and management of changes in scope, time,
quality or budget. The change management procedure must be negotiated with the key
stakeholders prior to the sign-off of the project plan.

Change request Project

Issued by

Item affected

Nature of change
requested

Reason for change

Impact on scope

Impact on budget

Impact on schedule

Change authorised: Yes/No Adj. completion Adj. final budget: $

Date:

Signed: Signed Signed Signed

Project Manager Sponsor Client

Date Date Date Date

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

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Issues log
In this template all issues are treated as risks. They should be recorded when they arise,
assigned a number and responsibility, a recovery strategy or alternate path agreed, acted
upon and recorded when closed.

Item Strategy Date logged Date resolved

Signed: Signed: Signed: Signed:

Project Manager Sponsor Client
Date: Date: Date: Date:

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

Gantt.doc

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1.4 Monitoring
Status update
This is one example of a status report. The preferred format should be negotiated with
the project sponsor.

Status report Project

Item Work Milestone Revised/ Budgeted Revised/ Responsible

completed date actual cost actual
to-date date cost

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

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1.5 Closing
Handover report
This template summarises the project as delivered and any agreed changes to baseline
scope, quality, costs and schedule.

Handover report

Initial overall objectives

Agreed changes to
objectives

Final agreed deliverables

Item Budgeted cost Final Schedule Final date

cost date

Total

Issues summary

Item Strategy Date logged Date

resolved

Documents attached

No. Title

________________________ _________________________ _________________________

Project Manager Project Sponsor Project Client
Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

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Post-project review meeting

This template provides a proposed post-project review meeting agenda, detailing items to
be discussed when reviewing the overall project.

Post-Project Review Meeting Agenda

Topic Speaker Time

Brief overview of project: Project 5 mins

Purpose of project, major accomplishments, comments. Manager

Review by team: All 10 mins

Goals, objectives, deliverables, schedule, budget, and
success criteria (were they met, partially met, or
missed?).

What worked/what could have gone better? All 20 mins

Some areas to consider:
project planning
project management
project scheduling and tracking
project estimating
communication (with team, other groups/
stakeholders, sponsor)
risk management
vendor management
issues management
stakeholder management
resourcing
users
development approach:
methodology
analysis and design
development
testing
implementation
training, documentation
technology
overall approach to project (i.e. vendor package,
staged implementation, etc.)
production and operation support.

Lessons learned All 10 mins

Next steps All 5 mins

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Post-project review report

This template can be used to guide you through the process of conducting a post-project
review. This template can be used to document the key learnings in terms of what
worked well and what could have been improved.

Post-Project Review Report

Name of project:
Date and location of meeting:
Names of attendees:

1. Overview by Project Manager:

Brief summary of highlights and achievements, etc.

2. Review by team of goals, objectives/deliverables and schedule as outlined in

project plan
Cut and paste from project plan.

Met Missed Partially Comments

met

Project goal

Objectives/deliverables

Success criteria

Schedule

Budget

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3. What worked well; what could have gone better?

Worked well Could have gone better

4. Lessons learned

5. Next steps / improvement plans

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Project completion
A project completion report is normally distributed to all stakeholders as a means of
encapsulating everything that has occurred during the project and describing anything
that could be done better. This template is a useful format for a small to medium project.

Project Completion Report

Project title:

Project overview:

Project objective:

Agreed changes to project objective

Project outcomes

Deliverable/ Budgeted cost Final cost Scheduled Final

milestone date completion
(from Project Plan) date

Issues and risk summary:

Summarise here the issues/risks that arose during the life cycle of the project and
what action was taken to resolve them.

Lessons learned:
For each project milestone or phase, identify what worked, what didnt work and ways
to improve the process the next time.

Milestone/phase What worked What didnt work Ways to improve

Recommended improvements:
Outline how you will apply the key lessons learned to future projects.

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page x of y

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Appendix 3 Max Lionel Realty Privacy Policy

Max Lionel Realty is committed to protecting your privacy. It is bound by the national
privacy principles contained in the Privacy Act 1988 and all other applicable legislation
governing privacy.
Where appropriate, Max Lionel Realty will handle personal information relying on the
related bodies corporate exemption and the employee records exemption in the Privacy
Act. Our respect for our customers privacy is paramount. We have policies and
procedures to ensure that all personal information is handled in accordance with national
privacy principles.
This privacy policy sets out our policies on the management of personal information
that is, how we collect personal information, the purposes for which we use this
information, and to whom this information is disclosed.

1. What is personal information?

Personal information is information that could identify you. Examples of personal
information include your name, address, telephone number and email address, or more
complex information like a resume.

2. How does Max Lionel Realty collect and use your personal information?
Some of the ways in which Max Lionel Realty collects personal information is when you
send a job application to us or when you email us. These uses are discussed below.

3. What happens if you dont provide personal information?

Generally, you have no obligation to provide any personal information to us. However, if
you choose to withhold personal information, we are unlikely to be able to respond to your
application or query.

4. To whom do we disclose personal information?

We engage third-party service providers (including related companies of Max Lionel Realty
which may be located outside Australia) to perform functions for Max Lionel Realty. Such
functions include mailing, delivery of purchases, credit card payment authorisation, trend
analysis, external audits, market research, promotions and the provision of statistical
sales information to industry bodies.
For our service providers to perform these function, in some circumstances it may be
necessary for us to disclose your personal information to those suppliers. Where
disclosures take place, we work with these third parties to ensure that all personal
information we provide to them is kept secure, is only used to perform the task for which
we have engaged them and is handled by them in accordance with the national privacy
principles.

5. How do we protect personal information?

At all times, we take great care to ensure your personal information is protected from
unauthorised access, use, disclosure or alteration. We endeavour to ensure that our
employees are aware of, and comply with, their obligations in relation to the handling of
personal information.

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Only properly authorised employees are permitted to see or use personal information held
by Max Lionel Realty and, even then, only to the extent that is relevant to their roles and
responsibilities.
Your personal information will not be sold to any other organisation for that organisations
unrelated independent use. Further, we will not share your personal information with any
organisations, other than those engaged by us to assist us in the provision of our
products and services (as described above).

6. What about information you provide in job applications?

If you submit a job application to Max Lionel Realty, we will use the information provided
by you to assess your application. In certain circumstances, Max Lionel Realty may
disclose the information contained in your application to contracted service providers for
purposes such as screening, aptitude testing, medical testing and human resources
management activities.
As part of the application process, in certain circumstances, you may be required to
complete a pre-employment health questionnaire. You may also be asked to undergo a
pre-employment medical assessment. In that case, you will be asked to give specific
consent to Max Lionel Realty to disclose your questionnaire to its service providers for the
purposes of arranging the medical assessment and for the relevant service providers to
disclose the results of the assessment to Max Lionel Realty.
If you refuse to provide any of the information requested by Max Lionel Realty, or to
consent to the disclosure of the results of your medical assessment to Max Lionel Realty,
we may be unable to consider your application.

7. Is the personal information we hold accurate?

We endeavour to maintain your personal information as accurately as reasonably
possible. However, we rely on the accuracy of personal information as provided to us,
both directly and indirectly. We encourage you to contact us if the personal information
we hold about you is incorrect or to notify us of a change in your personal information.

8. How can you access or correct the personal information we hold about you?
Wherever possible and appropriate, we will let you see the personal information we hold
about you and correct if it is wrong. If we do not allow you access to any part of the
personal information we hold about you, we will tell you why.

9. Max Lionel Realtys internet policy

Max Lionel Realty generally only collects personal information from its website when it is
provided voluntarily by you, for example, when you send us an electronic message with a
query about Max Lionel Realty or its products. We will generally use your information to
respond to your query, to provide and market our services to your or as otherwise allowed
or required by law.
For the same purposes, Max Lionel Realty may share your information with other
members of the Max Lionel Realty group (including those who are located outside
Australia) and their respective service providers, agents and contractors. If we do this, we
require these parties to protect your information in the same way we do.

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When you visit this website or download information from it, our internet service provider
(ISP) makes a record of your visit and records the following information:
your internet address

your domain name, if applicable

date and time of your visit to the website.

Our ISP also collects information such as the pages our users access, the documents they
download, links from other sites they follow to reach our website, and the type of browser
they use. However, this information is anonymous and is only used to statistical and
website development purposes.
We use a variety of physical and electronic security measures, including restricting
physical access to our offices, firewalls and secure databases to keep personal
information secure from unauthorised use, loss or disclosure. However, you should keep
in mind that the internet is not a secure environment. If you use the internet to send us
any information, including your email address, it is sent at your own risk.
You have a right of access to personal information we hold about you in certain
circumstances. If we deny your request for access we will tell you why.

10. Use of cookies

A cookie is a small message given to your web browser by our web server. The browser
stores the message in a text file, and the message is then sent back to the server each
time the browser requests a page from the server.
Max Lionel Realty makes limited use of cookies on this website. Cookies are used to
measure usage sessions accurately, to gain a clear picture of which areas of the website
attract traffic and to improve the functionality of our website.
When cookies are used on this website, they are used to store information relating to your
visit such as a unique identifier, or a value to indicate whether you have seen a webpage.
We use session (not permanent) cookies. They are used to distinguish your internet
browser from the thousands of other browsers. This website will not store personal
information such as email addresses or other details in a cookie.
Most internet browsers are set up to accept cookies. If you do not wish to receive cookies,
you may be able to change the settings of your browser to refuse all cookies or to notify
you each time a cookie is sent to your computer, giving you the choice whether to accept
it or not.

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Appendix 4 Project initiation document

XYZ Inc.

Project Initiation Document

Enter name of Institution and Project here

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Document Control

File name Project Initiation Document.docx

Original author/s Mr Smith

Current revision author/s

Version Date Author/s Notes on revisions

1 June Mr Smith Initial release

2013

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Table of Contents
Introduction .................................................................................................................... 157
Project objectives ........................................................................................................... 158
Goals and objectives ............................................................................................... 158
Scope .............................................................................................................................. 159
3.1 Organisational scope .................................................................................... 159
3.2 Logical scope................................................................................................. 159
3.3 Temporal scope/phasing ............................................................................. 159
3.4 Related projects ............................................................................................ 160
3.5 Out of scope .................................................................................................. 160
Risks, Constraints and Assumptions ............................................................................ 161
4.1 Risk management approach ........................................................................ 161
4.2 Risks .............................................................................................................. 161
4.4 Assumptions .................................................................................................. 161
Project Organisation ....................................................................................................... 162
5.1 Project structure ........................................................................................... 162
5.2 Roles and responsibilities ............................................................................ 162
Project Control ................................................................................................................ 163
6.1 Issue control .................................................................................................. 163
6.2 Change control .............................................................................................. 163
6.3 Quality assurance ......................................................................................... 163
6.5 Information management ............................................................................ 163
Reporting ........................................................................................................................ 165
7.1 Reporting within the project team ............................................................... 165
7.2 Management reporting ................................................................................. 165
Stakeholders .................................................................................................................. 166
8.1 Identification and analysis ........................................................................... 166
8.2 Communication ............................................................................................. 166
Planning .......................................................................................................................... 167
9.1 Approach ....................................................................................................... 167
9.2 Milestone plan .............................................................................................. 167

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Introduction
Give some information on the Institution and the context of/background to the Project.
How big is it going to be and what areas will it cover?

What approach will be taken?

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Project objectives
Goals and objectives
An explanation of context of goals and objectives including some detail on how they were
arrived at and who was involved (can append any detailed information if required).
Objectives give detailed support to the goals. An example is shown.

Goals Objectives

The system will improve It will be a tool to help staff do the job they are paid
job satisfaction levels for, not an added source of frustration.
within the Institution
It will ease the administrative burden by allowing users
to work efficiently and effectively thus freeing time for
those activities which add greater value.
Staff will have readily accessible the day-to-day
information they need to do their job.
It will provide greater transparency for decision makers
at all levels.

Critical success factors

How will you judge whether the objectives of the project have been met? Try to think of
measurable improvements associated with each of the objectives. Even an apparently
vague goal such as improve job satisfaction can have tangible and measurable
objectives if you are sufficiently specific about them. If you are not specific about
objectives you may find it hard to assess the value of the project.

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Scope
3.1 Organisational scope
Sets out how the organisation is going to approach the project including details on any
intention to secure the services of a supplier/partner.
Broad explanation of how project will incorporate requirements of the various
stakeholders within the organisation. Also, any available details on to what extent, if any
the organisation may be required to give access to external parties.

3.2 Logical scope

Gives a high level overview when purchasing a system of the areas or processes covered
by the project as well as any interfacing and infrastructure details when purchasing a
system it can be useful to finalise this as part of your invitation to tender. An example
would be key Student Administration processes within a project scope as detailed
below.

3.2.1 Student administration

Applications and Admissions
Academic Program Administration (taught and research activities)
Student Enrolment
Research Students
Student Assessment, Examinations and Progression
Timetabling
Graduation, Leavers and Alumni
Reporting to External Bodies
Management Information Production
Student and Community Information.

3.3 Temporal scope/phasing

This should give an overview of the time constraints and milestones, including start and
end dates where these are known. It will be helpful to break the project down into phases
and identify what is in scope for each phase (even if you cant yet set timescales for all
phases). You may need to think about:
processes locations interfaces
software applications users testing.
hardware infrastructure

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Phase 1 Phase Title

Scope:

Dates/duration:

Deliverables:

Users/locations:

Phase 2 Phase Title

Scope:

Dates/duration:

Deliverables:

Users/locations:

3.4 Related projects

List any related projects (if any) with details of expected completion dates and any
potential for overlap of requirements for support resource as this could have knock-on
effects regarding timescales, etc. Also flag any other potential impacts and identify,
where possible, any requirement for output from the other projects.

Projects Expected
Completion

Workflow mapping: a team is mapping the current processes relating April 2011
to student administration. There is a potential conflict with the system
selection project as some members of the workflow team will be
required to contribute their process knowledge to the system selection
project.

3.5 Out of scope

If any potentially related areas have been defined as out of scope it is worth making this
explicit, e.g. you are implementing a system to undertake course timetabling but not
exam timetabling or you are implementing a personnel system that does not include
payroll.

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Risks, Constraints and Assumptions

4.1 Risk management approach
A description of the approach you are taking can be included here, including
responsibilities for recording risks and implementing appropriate risk management
strategies, as well as communicating such information to the Project Steering Board.

4.2 Risks
In terms of recording identified risks, actions to be taken and early warning signs we
recommend that you use the JISC infoNet Risk Assessment template. This is because you
will need to review and update the risk management document throughout the course of
the project. You may, however, wish to summarise the main risks here or paste in details
from the risk template to give an overview of the risks perceived at the start of the
project.

4.3 Constraints
This section summarises any constraints that affect the scope of your project or how you
carry out the project, e.g. project staff are only available during summer vacation, new
system must interface with another system, requirements of external bodies affect the
extent to which you can alter a process, etc.

4.4 Assumptions
This is a list of assumptions on which the initial project framework and plan are based.
The JISC infoNet Project Management infoKit discusses the sort of assumptions that can
cause issues if not clarified initially. Examples may relate to many areas including:
provision of infrastructure, IT support, resource availability, communication, training, staff
development, working arrangements (and flexibility) and user expertise. Take particular
care in defining what is expected of people outside the project team.

Project Assumption

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Project Organisation
5.1 Project structure
It may be helpful to show the project structure as a diagram (see example below).

5.2 Roles and responsibilities

Direct resource requirements for the project should be detailed here. This should indicate
the numbers and types of staff and their estimated commitment to the project. We
recommend using the JISC infoNet Roles and Responsibilities template to record the
detail of roles and responsibilities as this may need regular updating during the course of
the project. This document could be pasted in or appended to the Project Initiation
Document.

Project role Number of Days per Total days for

people week the project

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Project Control
How will the project be monitored and controlled on a day-to-day basis? How will it be
evaluated? What methods will be used to facilitate effective team working?

6.1 Issue control

This section should define how the project team is going to deal with issues. Project
issues must be identified, prioritised and dealt with swiftly to ensure that dependent
activities are not affected. An issues log is an ideal way of keeping a record of issues as
they arise and also recording how they are resolved. The JISC infoNet Project
Management infoKit provides a template Project Controls Database that contains an
issue log.

6.2 Change control

The change control section documents what happens when someone proposes a
modification to the planned output of the project. Each change request should be
documented (including initiator, reasons and a description of the change required) and
evaluated in terms of its impact. The appropriate actions required to resolve the
requested change can then be determined. Change requests can then be dealt with by
the Project Steering Board, or other agreed person/group supporting the project. The
JISC infoNet Project Management infoKit provides a template Change Request form and
template Project Controls Database that contains a change control log

6.3 Quality assurance

What Quality Assurance measures are planned? Who will evaluate quality and when? Will
an external assessor be appointed? How will deliverables be tested and formally signed
off? Is there an agreed User Acceptance Testing mechanism?

6.4 Financial control

Outline responsibilities for the control of expenditure and budgets. You may wish to
attach the project budget as an appendix to this document but you will need to consider
the confidentiality of such information especially where you are working with third parties.

6.5 Information management

How is relevant project information to be held? There are issues here re quality and
availability of information it may be useful to put in place a central repository or project
library of relevant information and initiate a culture of sharing information throughout the

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project. The importance of information management should not be underestimated it

can be a critical contributory factor to successful achievement of project goals.

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Reporting
7.1 Reporting within the project team
This section should define how and when the project team members report progress.

7.2 Management reporting

This section should define how and when the project manager reports to the sponsor
and/or steering board.

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Stakeholders
8.1 Identification and analysis
It is useful at this stage not only to identify your key stakeholders, but to undertake some
analysis of what their perceptions of your project are likely to be. This will help to show
that you are aware of their views and will help you focus communications. We
recommend that you use the JISC infoNet Stakeholder Analysis template for this purpose
as the document may need regular updating. You may wish to summarise the key
stakeholders here or append your analysis.

8.2 Communication
Appropriate two-way communication with stakeholders is crucial to the success of the
project. This matrix gives examples of how you may start to think about the interested
parties and the suggested communication channels to be used for each group.

Stakeholders Expected Frequency Media

Communications

Project Steering Status reporting In line with Generally, formal

Board project reports to be followed
milestones up by face-to-face
contact where
Issues reporting Dependent on appropriate
timing and
priority

Project team Documentation and In line with plan Central repository,

standards managed by project
administration

Project knowledge Ad hoc, as Group email

necessary
Internal Team meetings
communications

Admin User Informal In line with plan Group email, from

Representatives communication of project office
progress

Discussion of issues Ad hoc, on Formal reports plus

demand informal
Respond to issues communication with
raised project team

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Planning
9.1 Approach
This section should outline your approach to project planning. JISC infoNet advocates the
Sliding Planning Window approach as described in the Project Management infoKit.

9.2 Milestone plan

Insert a copy of the initial outline plan or summarise the key milestones and dates.

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Appendix 5 Communications management plan

Stakeholder What information? Why? When? How? (format/medium) Who is responsible?

Project Sponsor: Version: 1 Project Client:

Project Manager: Date: File Name: Page: x of y

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