3. Understand the situational context of projects Flashcards
3.1 Differentiate
between projects and business as usual (BAU)
Project - A unique, transient endeavour undertaken to bring about change and to achieve planned objectives.
Business-as-usual An organisation’s normal day-to-day operations. Also referred to as steady state.
purpose - P - objectives achieved and then terminate - outputs delivered to client (can sometimes include desired outcomes and benefits); BAU sustain org to achieve business purpose and goals - uses products of project to realise benefits following deployment (not during)
time - P - time limited start and finish - one of triple constraints of TCQ which define the scope within defined tolerance for risk; BAU - ongoing
outcome - P - unique product/service; BAU repetitive, non unique
people - P - temp teams formed across org boundaries - may not be aligned with org structure; BAU - Teams within orgn structure and aligned to suit functional demands
management - P dedicated PM for project duration - may not have line mgmt authority; BAU - long term formal mgmt, direct line authority over functional unit personnel
3.2 Differentiate
between project management, portfolio management, and programme management
- manage discrete packages of work to achieve objectives
- factors include scale, significance, complexity
- distinguishing factor - objectives
- objectives expressed as outputs, outcomes, benefits
- project - lesser scale and complexity
- programme - projects combined with change management
- portfolio - collection of programmes and projects
- combinations of tools and techniques used to describe typical sets of circumstances
- points on a gradual scale of managing effort to deliver objectives
Project management - The application of processes, methods, knowledge, skills and experience to achieve specific objectives for change.
Programme management -The coordinated management of projects and business-as-usual (steady- state) activities to achieve beneficial change.
Programme brief - A description of the capability that the organisation seeks from changes to its business and/or its operations. Delivery of this capability is the end goal of the programme.
Portfolio management The selection, prioritisation and control of an organisation’s projects and programmes in line with its strategic objectives and capacity to deliver.
Portfolio prioritisation process - The evaluation and prioritisation of projects within a portfolio to enable the more important projects and programmes to access the required resources and to move forward in accordance with their plans.
Programme - A unique, transient strategic endeavour undertaken to achieve beneficial change and incorporating a group of related projects and business-as-usual (steady-state) activities.
Portfolio - A collection of projects and/or programmes used to structure and manage investments at an organisational or functional level to optimise strategic benefits or operational efficiency.
Interdependencies - An aspect of programme and portfolio management. The management of dependencies between projects – and projects and business-as-usual activities.
Dependency - A relationship between activities in a network diagram.
Infrastructure - Provides support for projects, programmes and portfolios, and is the focal point for the development and maintenance of project, programme and portfolio management within an organisation.
3.3 Outline
the relationship between programmes, projects and strategic change
Programme - A unique, transient strategic endeavour undertaken to achieve beneficial change and incorporating a group of related projects and business-as-usual (steady-state) activities.
Project A unique, transient endeavour undertaken to bring about change and to achieve planned objectives.
Portfolio - A collection of projects and/or programmes used to structure and manage investments at an organisational or functional level to optimise strategic benefits or operational efficiency.
Strategy The high-level plan that will enable the project to reach a successful conclusion. It describes how the project is to be executed. This is the long-term plan.
Strategic management The identification, selection and implementation of an organisation’s long- term goals and objectives.
3.4 Describe
situations where the use of programme management may be appropriate
Programme management The coordinated management of projects and business-as-usual (steady- state) activities to achieve beneficial change.
3.5 Describe
situations where the use of portfolio management may be appropriate
Portfolio management The selection, prioritisation and control of an organisation’s projects and programmes in line with its strategic objectives and capacity to deliver.
GOAL - balance change initiatives and BAU while optimising ROI
- portfolios are co- ordinating structures to support deployment by ensuring optimal prioritisation of resources to align with strategic intent and achieve best value
- groupings of projects and/or programmes managed at an organisational or functional level to select, prioritise and control deployment in line with strategic objectives and the capacity to deliver
Situations
- ensure delivery of org strategy where this relies on deployment of progs and projects
- used to structure investment decisions
- drive priorities through high level, whole picture view of business and how it reacts to change
- make best decisions using clear information which reflects effect of business drivers
- use of appropriate resources, best results, least wasted effort
Questions
- what P & Ps are needed to deliver strategic objectives - taking account of risk, resource constraints, affordability
- can org deliver effectively and efficiently
- can full potential benefits from orgs investment be realised
Situations
- aligning P&Ps to business objectives (profitability, customer service, growth, reputation, sustainability)
- financial controls, planning and expenditure to P&Ps as a whole
- assurance mix of P&Ps is supporting strategy and taking account of external factors
- identify whether manage activities as projects or non-project operations
- highlight/monitor risk management of project portfolio including risk of corporate failure
- verify P&Ps consistent with orgs capacity and capability
- sustainable portfolio through supplier engagement - shared understanding of risks and rewards
- sustainable portfolio through engagement with customers and sources of finance for projects
- assurance that impact of Project portfoilio is acceptable to ongoing operations
projects = deployment of outputs
programmes = deployment of outcomes and benefits
3.6 Explain
tools and techniques used to determine factors which influence and impact projects (including PESTLE, SWOT, VUCA)
PESTLE - A technique for analysing project context by considering political, economic, sociological, technical, legal and environmental factors.
SWOT (analysis) - A technique used to identify the strengths, weaknesses, opportunities and threats inherent in a project.
Opportunity A positive risk event that, if it occurs, will have an upside/beneficial effect on the achievement of one or more objectives.
Threat - A negative risk event; a risk event that if it occurs will have a downside/ detrimental effect on one or more objectives.
VUCA conditions (volatility, uncertainty, complexity and ambiguity) - A phrase used to describe an organisational context where there is inherent uncertainty that makes it difficult to predict and plan with great accuracy.
Uncertainty A state of incomplete knowledge about a proposition. Usually associated with risks, both threats and opportunities.
Environment is driving force for projects
- external and internal
- understand influence
- impacts on delivery - how, what, who, when
- impact of infrastructure
- impact of physical environment
- mitigating adverse impacts (other projects and projects tech)
- cultural, organisational, social environment of sponsors organisation
- identify and categorise stakeholders interests to reduce risks
Every project is a response to a changing environment:
- problems - minimise threats
- opportunities - exploit
- business needs - address
Influence project environment / change project delivery - to create a better response to the changes from the projects outputs
Projects deliver the beneficial change required to implement, enable and satisfy the strategic intent of the organisation
Achieve through deployment of new:
- assets
- functions
- capabilities
- processes
- structures
- systems
Use established models cautiously
Increasing levels of uncertainty
PESTLE
Consider & understand
** Establish business case options for consideration
Internal and External
Apply all orgn, business areas, project
Identify likely effects
- Political
- Economic
- Social
- Technological
- Environmental
Business areas:
- customers
- competitors
- supply sources
- stakeholders
- time
- technology
- industry/market
- internal capability
- intermediaries
- governance requirements
SWOT
- Established framework
- Evaluation tool to assess project options in concept phase
- Comparative analysis
- Identify S/W of orgn in relation to project
- Isolate T/O in relationship of project with orgn
Strengths
Weaknesses
Opportunities
Threats
VUCA
- inherent uncertainty
- difficult to predict and plan with certainty
- identify emerging opportunities
- respond to new conditions
- address shortfalls
- address differences in outcomes
- understand risks in project situations
- address through learning culture
[failing to process and manage learning one major cause of failing projects]
Two causative factors:
level of confidence in outcome L - H Vertical Axis
level of current knowledge and available data - L - H Horizonal Axis
volatility - R-T - & HH - exposed to high levels of unexpected change. Risk - complacency/exposure to uncontrolled change, costs escalate - stakeholder dissatisfaction
uncertainty - R-B & LH - proceed on basis of current info - subject to change. Risk - not use or absence of lessons learned data to reduce uncertainty
complexity - L-T - & HL - many projects, unique characteristics/tech requirements. Risk - insufficient SMEs to address complexity, day’s, overruns, cancelled
ambiguity - L-B - & LL = lack of clarity of scope / stakeholders have different views on outcomes. Risks - never finish, high costs
3.7 Explain
the impact of the legal and regulatory environment on projects (such as working conditions, risk management, governance and sustainability)
Regulatory A restriction due to the need to conform to a regulation or rule designed to control or govern conduct.
Health and safety risk assessment - A legislative requirement placed on all employers and the self-employed.
Governance - The framework of authority and accountability that defines and controls the outputs, outcomes and benefits from projects, programmes and portfolios. The mechanism whereby the investing organisation exerts financial and technical control over the deployment of the work and the realisation of value.
Sustainability - An approach to business that balances the environmental, social, economic and administrative aspects of project-based working to meet the current needs of stakeholders without compromising or overburdening future generations.
Working conditions
Risk management
Governance
Sustainability
Working conditions
- right working conditions employees
- employment law - rights at work, terms and conditions, discrimination/equalities
- PM determine applicable legislative requirements, training and comms to understand duties of compliance
Risk management in workplace
- risks in area of work - manage
- health and safety legislation
- emprs - protect health, safety, welfare at work of employees and people on premises - temp, casual, S/E, clients, visitors, gen public
- empees - duty of care for own H&S and others affected by their actions
Governance
- sponsor accountable for effective governance
- project delivers objectives to meet identified needs
PM provide assurance to sponsor that work is managed effectively, responsibly, sustainably
- sponsor make informed decisions
PM understand governance framework
PM provide confidence to stakeholders
Sustainability
- balancing env, social, econ, and and aspects of project work to meet current needs of stakeholders without compromising or overburdening future generations
- individual and orgn responsibility - to ensure outputs, outcomes and benefits are sustainable over their lifecycles e.g. sustainable procurement
- bottom up too - travel
- identify, monitor and reward best practice
- PM follow environmental guidelines of commissioning orgn
- PM monitor and report adherence
- PM ensure risk strategy incorporates impacts to sustainability
