Learning Outcome 6: Understand planning for success

Question 1

Explain the importance of a Business Case throughout the project lifecycle.

Answer 1

Overview - Owned by the Project Sponsor, outlines the justification for the project in terms of:
Reasons for the project
Expected Outcomes
Costs
Benefits
Risks
Challenges

Question 2

Five reasons for having a Business Case:

Answer 2

Prevents:
1. Scope creep
2. Misaligned objectives
3. Resource miss-allocation
4. Inadequate risk management
5. Lack of stakeholder buy in

Question 3

Five Benefits of having a Business Case:

Answer 3

1. Provides a clear understanding of the project
2. Identifies risks & challenges
3. Improves stakeholder buy in
4. Helps manage costs
5. Guides project decisions

Question 4

The five elements of the Business Case

Answer 4

1. Strategic Case
2. Economic Case
3. Commercial Case
4. Financial Case
5. Management Case

Question 5

What are the five elements of Benefits Management

Answer 5

1. Identification.
2. Definition
3. Planning
4. Tracking
5. Realisation

Question 6

What is meant by the 1. Identification of Benefits

Answer 6

Identification of potential benefits that the project is expected to deliver incl:
Understanding strategic direction of the organisation
How the project links to strategic objectives of the organisation

Question 7

What are the four types of benefits that can be identified:

Answer 7

1. Direct Benefits - Directly attributable to the project, increased revenue, decreased costs.
2. Indirect Benefits - Not directly attributable but resulting from the project, improved customer satisfaction.
3. Primary Benefits - The reason for undertaking the project.
4. Secondary Benefits - Arise as a result of primary benefits.

Question 8

What is meant by the 2. Definition of Benefits

Answer 8

Determined in terms of metrics relating to their expected outcomes

Question 9

What is meant by the 3. Planning of Benefits

Answer 9

Planning - How the benefit will be achieved, progress tracked and the benefit realised. The benefits management plan should include a detailed description of each benefit, and a plan for achieving it. The plan should identify the specific activities that are required to deliver the benefits as well as the resource needed, the timelines, and the risks and uncertainties associated with the delivery of the benefits.

Question 10

What is meant by the 4. Tracking of Benefits

Answer 10

Tracking - should be ongoing through the throughout the life cycle of the project or programme this involves regular reviews of progress against the metrics or indicators, as well as reviews of the risks and uncertainties associated with the delivery of benefits.

Question 11

What is meant by the 5. Realisation of Benefits

Answer 11

Realisation - ensuring that the project or programme delivers the expected outcomes benefits and value and that the benefits are aligned with the organisation strategic objectives.

Question 12

Seven tools for Benefits Management

Answer 12

1. Benefits Mapping - visual representation of the expected outcomes and their relationship to project or programme objectives.
2. Benefits Profiles - description of each benefit, the associated metrics, roles & responsibilities for benefits management.
3. Benefits Dependency Network - helps organisations to understand the inter-relationship between benefits and the impact of change on other benefits.
4. Benefits Realisation Plan - the detailed plan for realising benefits, with timescales roles and responsibilities and metrics.
5. Benefits Register - tracks the progress of each benefit and compares the actual benefits to the forecast benefits defined in the Benefits Profiles
6. Risk Management - Identification and assessment of risks associated with the realisation of defined benefits
7. Stakeholder Management - involves identifying engaging with stakeholders, understanding their needs and expectations, and ensuring they are involved in the delivery of benefits

Question 13

What is the Internal rate of Return (IRR)

Answer 13

Considers the Time Value of Money to assess the profitability of an investment.
The IRR is the discount rate that makes NPV equal to zero
Focuses on the rate of return

Question 14

What is the Net Present Value (NPV)

Answer 14

NPV measures the present value of cash inflows minus the present value of cash outflows
If the outflows are positive it indicates the investment is profitable, a negative outflows that it is not profitable
Focuses on the total value generated by the investment

Question 15

What are the six phases of Information Management

Answer 15

1. Collection - Systematic, timely and consistent process of gathering data and monitoring its quality.
2. Storage - The process of storing it in such a manner that it is secure, easily accessible and protected against loss or corruption.
3. Curation - The process of organising and maintaining information so that it is searchable and readily accessible.
4. Dissemination - The process of sharing information, to ensure that the right data gets to the right people at the right time and I the right format.
5. Archiving - The selection preservation and maintenance of data to ensure it is available if required.
6. Destruction - The secure disposal of data when it is no longer required.

Question 16

What are the six key factors which would typically be reported on to help ensure successful project outcomes:

Answer 16

1. Performance Status - Actual or forecast date of the deliverable against plan.
2. Schedule Status - Estimated Completion date/time for each task.
3. Cost Status - Actual expenditure and committed expenditure to date for each task.
4. Quality Progress Status - Changes that might affect the form or function of each deliverable
5. Risk Exposure - Changes in the status of any identified threats or opportunities
6. Exception Thresholds and Variance Reporting - Predefined triggers that will require the task owner to report variations to time, cost and quality at completion and suggest recovery actions.

Question 17

Explain the relationship between the Deployment Baseline and the development of a Project Plan in linear and iterative life cycles

Answer 17

The Deployment Baseline - Is the start point for measuring progress and the implementation of change control.
In a linear lifecycle the scope, quality, resource schedule is set for the project.
In an iterative lifecycle the baseline resources and schedule are determined but the achievement of scope and quality may vary as teams have the autonomy to re-prioritise and act on new knowledge

Question 18

Explain the seven key benefits of a Project Management Plan (PMP)

Answer 18

The Project Management Plan (PMP) provides a structured approach to project management, the project management plan:
1. Provides a clear scope and objectives for the project.
2. Defines roles and responsibilities for the team members.
3. Ensures effective resource allocation.
4. Establishes Communications and Reporting procedures.
5. Mitigates risks and anticipates contingencies.
6. Facilitates Monitoring & Control.
7. Promotes Accountability & Transparency.

Question 19

What are the the twelve key components of the PMP?

Answer 19

1. Introduction
2. Scope & Objectives
3. Deliverables
4. Schedule & Timeline
5. Budget & Resources
6. Risk Management Plan
7. Quality Assurance Plan
8. Stakeholder Management Plan
9. Communication Plan
10. Change Management Plan
11. Procurement Management Plan
12. Project Closure Plan .

Question 20

What is the purpose of the Introduction section of the PMP?

Answer 20

Introduction - purpose of the project, its goals and objectives, the scope of the project, and the key stakeholders involved including any relevant history or context that informs the project’s goals and objectives. The introduction should also explain the structure of the project management plan, describing the sections to follow and how they relate to one another.

Question 21

What is the purpose of the Scope & Objectives section of the PMP?

Answer 21

Scope & Objectives - a clear description of what the project is intended to accomplish and what specifically will be delivered at the end of the project, the scope describes the boundaries of the project including what is included and what is excluded from the project.

Question 22

What is the purpose of the Deliverables section of the PMP?

Answer 22

Deliverables - specific outputs that will be produced by the project these can include products services reports or other tangible results that would be delivered to stakeholders.

Question 23

What is the purpose of the Schedule & Timeline section of the PMP?

Answer 23

Schedule & Timeline - an essential tool for managing the project to be updated regularly to reflect any changes or adjustments that may be required. By monitoring the project schedule and timeline, the project manager can assume ensure that the project is on track and that all activities are being completed in a timely and efficient manner.

Question 24

What is the purpose of the Budget & Resources section of the PMP?

Answer 24

Budget & Resources - outlines the financial and resource requirements needed to complete the project successfully this section should include a detailed budget that outlines all costs associated with project including labour, materials, equipment and other expenses. This should also describe how the project team will manage and monitor expenses throughout the project lifecycle this may include setting up a budget tracking system, establishing spending thresholds, and coordinating regular budget reviews.

Question 25

What is the purpose of the Risk Management Plan section of the PMP?

Answer 25

Risk Management Plan - should describe the processes and procedures that will be used to identify potential risks assess their likelihood and impact and develop strategies to mitigate or manage those risks the risk management plans should begin with the risk assessment which involves identifying and analysing potential risks that could affect the project success . The risk management plan should be reviewed and updated regularly throughout project lifecycle this will ensure that new risks are identified, and the risk management strategies remain effective.

Question 26

What is the purpose of the Quality Assurance Plan section of the PMP?

Answer 26

Quality Assurance Plan - description of the quality standards that the project team will be expected to meet this may include industry standards, regulatory requirements, or the organisation own quality standards, the project should also identify the quality criteria that will be used to assess the project’s deliverables and describe the processes and procedures that will be used to monitor and control the quality of the project’s deliverables this may include quality reviews, testing, inspections, or audits the quality assurance plan should be reviewed and updated regularly throughout the project lifestyle life cycle.

Question 27

What is the purpose of the Stakeholder Management Plan section of the PMP?

Answer 27

Stakeholder Management Plan - describes the processes that will be used to identify stakeholders, understand their needs and expectations, and ensure that their concerns are in are addressed. The stakeholder management plan should begin with a stakeholder analysis which involves identifying all of the stakeholders who will be impacted by the project the plan should also identify the level of influence that each stakeholder has on the project and the level of interest they may have in the project success.

Question 28

What is the purpose of the Communications Plan section of the PMP?

Answer 28

Communication Plan - describes the methods and channels that will be used to share project information, as well as the roles and responsibilities of the project team members for managing project communication.

Question 29

What is the purpose of the Change Management Plan section of the PMP?

Answer 29

Change Management(Control) Plan - description of the change management process, which outlines the steps that will be that must be taken to request, evaluate, and approve changes to the project, this may include change request form, a change review board, or other change management processes. The change management plan should also describe the roles and responsibility of project team members for managing changes to the project.

Question 30

What is the purpose of the Procurement Management Plan section of the PMP?

Answer 30

Procurement Management Plan - will describe the processes and procedures that will be used to identify, evaluate and select vendors and suppliers for the project.

Question 31

What is the purpose of the Project Closure Plan section of the PMP?

Answer 31

Project Closure Plan - will describe the processes and procedures to be used to close out the project and ensure all project objectives have been met.

Question 32

Explain the reasons for and benefits of re-estimating throughout the project life cycle

Answer 32

Project estimates or often based on assumptions, constraints, and uncertainties that may change as the project progresses, therefore, it is essential to monitor and update project estimates regularly to ensure that their main remain realistic accurate.

Question 33

What are the three key reasons for re-estimating:

Answer 33

1. Re-estimating enables project managers to identify areas where the project is over or underestimating costs, resources, or time and make adjustments accordingly.
2. Re-estimating enables project managers to keep stakeholders including clients, team members, and management, aware of any changes in project estimates, as this can affect project goals, expectations, and decisions.
3. Re-estimating helps project managers to improve the accuracy and reliability of project estimates they can learn from past mistakes, refine their estimation techniques, and improve their ability to predict project outcomes.

Question 34

What are the six benefits of re estimating:

Answer 34

1. Improved project planning.
2. Increased accuracy of estimates.
3. Better decision making.
4. Improved communication.
5. Better resource management.
6. Increased project success.

Question 35

What is the purpose of Stakeholder Analysis

Answer 35

Stakeholder analysis is a crucial tool used by organisations to identify and analyse the individuals, groups, and organisations that can significantly impact or be impacted by the decisions and actions of the organisation, the analysis enables the organisation to identify the needs, interests and expectations of its stakeholders understand their potential influence and develop effective strategies to engage with them.

Question 36

What are the the three steps of Stakeholder Analysis

Answer 36

1. Identifying stakeholders and assessing their influence
2. Mapping stakeholder relationships and power dynamics
3. Engagement

Question 37

What is the process of Identifying stakeholders and assessing their influence:

Answer 37

Identifying stakeholders and assessing their influence: this includes internal stakeholders such as employees and shareholders and external stakeholders such as customers suppliers’ regulatory agencies and community groups. Once they’ve been identified the next step is to assess their influence and level of interest in the pro the organisation activities this involves considering factors such as their level of involvement their ability to influence decision making and their level of support or opposition to the organisation’s goals.

Question 38

What is the process of Mapping stakeholder relationships and power dynamics:

Answer 38

Mapping stakeholder relationships and power dynamics: once stakeholders have been identified and their influence and interest assessed the next step in stakeholder analysis is to their relationships with the organisation and within each with each other. This involves understanding the power dynamics and the level of collaboration or conflict that exists between stakeholders. One way to map stakeholder relationships is through a power interest grid, this plots stakeholders based on their level of power and their level of interest stake holders in the high-power high interest or placed in the top right-hand quadrant of the grid all those with low power and low interested or in the bottom left-hand corner.

Question 39

What is the process of Stakeholder Engagement

Answer 39

Engagement: using a stakeholder mapping tool organisations can prioritise their engagement efforts and develop targeted strategies for building positive relationships with our most important stakeholders this can help reduce conflicts increase stakeholder support and enhance the organisation overall reputation and performance.

Question 40

Why is it important to manage stakeholder expectations of the success of the project

Answer 40

1. Alignment with stakeholder needs and goals, by addressing stakeholder expectations the project can create project plan that as far as possible meets stakeholder needs and minimises potential conflicts.
2. Reduced risk by identifying potential risks and developing a plan to mitigate those risks this can ensure that the project stays on track and on budget reducing the likelihood of days delays cost overruns and scope creep.
3. Increased Stakeholder buy in and support from the project, when stakeholders feel like their needs and expectations are being addressed, they are more likely to support project an advocate for his success. This can help project teams secure necessary resources and funding as well as generate positive publicity for the project.

Question 41

Explain why a Project Manager would use Earned Value Management(EVM).

Answer 41

Earned value management (EVM) is a project management technique used to measure the progress and performance of the project against its planned objectives, it provides a comprehensive and objective way to measure the actual work completed the time taken to complete it and the cost incurred in the process. EVM provides a clear and accurate picture of project performance at any given time, with EVM, project managers can track project performance in real time, take corrective actions whenever necessary to ensure the project stays on track. EVM is particularly useful for large and complex projects with multiple stakeholders, financial significant financial investment, tight deadlines.

Question 42

What are the three key metrics are used in earned value management:

Answer 42

1. Planned Value(PV): this is the budgeted cost of work scheduled (BCWS), which represents the planned value of work that is scheduled to be completed at a given point in time.
2. Earned Value(EV): this is the budgeted cost of work performed (BCWP), which represents the value of the work that’s being completed at a given point in time.
3. Actual Cost(AC): this is the actual cost of work performed (ACWP), which represents the actual cost of the work that’s been completed at a given point in time.

Question 43

What are the four key performance indicators that can be calculated from the key metrics

Answer 43

1. Schedule Variance(SV): represents the difference between the earned value and the planned value. If SV is positive, it means the project is ahead of schedule, if SV is negative, it means the project is behind schedule.
2. Cost Variance(CV): measures the difference between the earned value and the actual cost . If the CV is positive, it means the project is under budget if, if the CV is negative, it means the project is over budget.
3. Schedule Performance Index(SPI) : is calculated by dividing the earned value by the planned value . If SPI is greater than one it means the project is ahead of schedule if the SPI is less than one it means the project is behind schedule.
4. Cost Performance Index(CPI): measures the project sufficiency in terms of cost performance, CPI is calculated by dividing the earned value by the actual cost. If CPI is greater than one it means the project is under budget , if CPI is less than one it means the project is over budget.

Question 44

What are the five benefits of using the interpretation of Earned Value Data:

Answer 44

1. Improved decision making: through providing project managers with real time and accurate data on project performance enabling project managers to prioritise tasks, allocate resources, and identify any issues or risks that may impact project performance.
2. Early detection of problems: this allows project managers to detect problems and issues before they escalate enabling them to take timely corrective action to keep the project on track and avoid any delays or cost overruns.
3. Improved forecasting: which helps the project manager to make more accurate and reliable prediction, which improves stakeholder confidence and trust.
4. Improved resource management: by monitoring project performance against planned objectives, project managers can identify any resource constraints and reallocate resources accordingly.
5. Enhanced stakeholder engagement: with a standardised method for reporting project performance to stakeholders this improves stakeholder engagement and buy in which is essential for project success.

Question 45

Explain the role of Contingency Planning in projects

Answer 45

Contingency planning is the process of creating a Plan B or backup plan to address potential risks or uncertainties that may arise during the course of a project. It involves identifying and analysing potential risks and developing strategies to mitigate or avoid them, the goal of contingency planning is to ensure that the project can continue even if unforeseen events occur and minimise the impact of these events on the project’s timeline, budget, and overall success.
In project management, contingency planning is an essential component of risk management, that involves anticipating potential risks and developing plans to respond to them, should they occur.
Contingency plans can include alternative approaches, work arounds , and fall-back strategies that allow project to continue even when the unexpected happens. By planning for contingencies, project managers can minimise the impact of risks and uncertainties and ensure that the project stays on track towards its goals.

Question 46

What are the four benefits of contingency planning?

Answer 46

1. It helps reduce project risk.
2. It helps project managers to be more protect proactive in managing risks
3. It provides a sense of security and confidence to project teams knowing that there are contingency plans in place to address potential risks and uncertainties.
4. Contingency planning can help project manage to stay within budget and time constraints by anticipating potential risks and developing plans to address them.