LO6 Planning for Success

Question 1

2 reasons why it is important to manage stakeholder expectations

Answer 1

1. Gain support for the project
2. Ensure project gets support it needs in terms of resources and decisions.

Question 2

3 reasons stakeholder analysis can assist in influencing and engaging stakeholders

Answer 2

1. Understand their interest
2. Understand their influence / power
3. Understand their attitude

Question 3

Benefits Management Plan - Tracking

Answer 3

Progress and measure benefits against metrics agreed in Benefits Plan.
Sponsor monitors benefit owners.
Identify shortfalls and take action.
Seek new opportunities for additional benefits.

Question 4

Benefits Management Plan - Definition

Answer 4

Understand and articulate benefits in a way that can be qualified / measured.
Specific and defined.
Supports confirmation of project success and gap analysis and identifies shortfalls against business case.

Question 5

Business Case - Concept Phase

Answer 5

Justifies investment and progression - ensures only projects aligned with organisation strategy proceed, gets support from business, increased stakeholder confidence, finances in place before too much effort expended.

Question 6

Business Case - Definition Phase

Answer 6

Ensures project viable before implementation by refining costs, risks and timescales - allows BC to be baselined. Agreement between stakeholders and reference point for measuring benefits. Used to develop PMP and basis for benefits management plan.

Question 7

Business Case - Deployment

Answer 7

Forecast of benefits, costs and timescales vs plan informs sponsors and senior management and allows them to make decisions. Changes assessed against business case as may impact success critera.

Question 8

Internal Rate of Return

Answer 8

Discount Rate that makes NPV zero.
Determines profitability of investment and informs decision.
Excludes external factors e.g. inflation and cost of capital.
Simple to interpret and easy for managers to visualise.

Question 9

Net Present Value

Answer 9

Difference between present value of cash inflow and the present outflow of cash over a period of time. Judges value of investment at particular discount rate.
Discount rate shows how value of money decreases over time.
Allows different discount rates to be modelled - best / worst case scenarios.
Used to understand profitability over life of asset.

Question 10

3 reasons it is important to have a business case

Answer 10

1. Project justification
2. To inform decision making regarding changes
3. Provides a baseline against which benefits will be measured

Question 11

2 ways in a linear lifecycle that PMP helps establish deployment baseline

Answer 11

1. Establishes the processes that will be followed.
2. Establishes the scope of the project.

Question 12

PMP plans

Answer 12

Schedule
Comms management plan
Info management plan
Risk management plan
Quality management plan

Question 13

In iterative lifecycle, 2 components of PMP that need to be considered when arriving at deployment baseline.

Answer 13

1. Time / resources
2. Requirements

Question 14

3 reasons for producing PMP

Answer 14

1. Improves chances of project success
   Clear understanding, governance, clarify and communicate aims and strategy, provides certainty - manage conflict, align teams and stakeholders.
2. Provides baseline
   Scope, costs, timescales - starting point. Agreement between stakeholders = increased support and more likely that product accepted. Reduced change requests. Progress can be assessed against baseline.
3. Contract between PM and sponsor
   Obligations = clarity. Time cost quality - accountability. Documents decisions required by sponsor. Avoids confusion.

Question 15

Analogous estimates

Answer 15

Comparative method
Comparison with similar project, adjust for factors e.g. inflation, complexity, location.
Can be done early but relies on data (like for like) - can be used for quick quotes.

Question 16

Delphi Analysis

Answer 16

Team consensus
Group of experts - independently give estimates and assumptions to facilitator.
Group review summary report and update forecasts.
Iterative until consensus made.
Avoids bias and allows opinions to be shared freely.

Question 17

3 reasons for re-estimating through project lifecycle

Answer 17

1. Maintains stakeholder expectations.
2. Improves resource management
3. Helps manage the budget

Question 18

2 ways PM would use EVM to update plans

Answer 18

1. Forecast time and cost outcomes
2. Calculate percentage complete
   Responses:
   Adjust resources
   Adjust scope / requirements

Question 19

3 reasons for contingency planning

Answer 19

1. Provide a back-up plan
2. Increase stakeholder confidence
3. Allows accurate budgeting to be done

Question 20

Two types of contingency

Answer 20

1. Time
2. Money

Question 21

Information management - collection

Answer 21

Planned and controlled.
Know what information is available and where.
Cater for different types, formats and sources.
Security measures to protect integrity.
Clear roles and responsibilities.
Consider reliability of information and source.

Question 22

Information management - storage

Answer 22

Accessible to those who need it.
Consider information security and back-up.
E.g. locked filing cabinet, fire-proof storage, cloud-based storage. Criteria for who can access information.
Well-structured filing system ensures information can be found in a timely manner - minimise delays and ensure evidence is available in conflict situation.

Question 23

Information Management - dissemination

Answer 23

Withdrawal / distribution controlled - records (who, what, when, version)
Provides audit trail - understand implications of changes to information.
Prevents time wasting and confusion.
Distributors should ensure security and confidentiality.
Informed by comms management plan.

Question 24

3 aspects that would be reported on

Answer 24

1. Progress against schedule
2. Quality approvals
3. Stakeholder status

Question 25

3 benefits of using EVM data

Answer 25

1. Supports better forecasting against time and budget.
2. Incentivises suppliers.
3. Allows trends to be understood

Question 26

Estimating techniques

Answer 26

1. Analogous (compare to previous)
2. Parametric
3. Analytical (bottom-up)
4. Delphi

Question 27

Earned Value Management (EVM)

Answer 27

Project control process based on structured approach to planning, cost collection and performance measurement. Facilitates integration of project scope, time and cost objectives and the establishment of a baseline plan of performance measurement.

Question 28

Earned Value (EV)

Answer 28

Measure of progress that expresses costs committed and work achieved.
Current status - Cost Variance, Schedule Variance
Completion forecast - Cost Performance Index, Schedule Performance Index
>1 - positive performance
<1 - negative performance