Module 3 Flashcards
Stakeholders Involved in Set Up Phase
- Governance
- Project Team
- Project Partners, Vendors, and Contractors
- Program Manager
- Project Beneficiaries
Project Charter
A “living” document that provides a high-level description of the project and which is signed and approved by the project governance.
This document basically acts as a project information sheet, outlining all the important information about the project that can be referenced by the project manager and other stakeholders.
Some of the information to include would be: budget estimates, high-level deliverables, risks, project governance structure, project manager tolerances, project timeline, and a brief project description.
Comprehensive Risk Register
During Setup, the project manager will need to make more concrete decisions as to how the risks will be managed and how frequently the risks will be re-assessed throughout the life of the project.
Stakeholder Engagement Strategy
In the Setup phase, information on stakeholders is further detailed and a strategy is developed for engaging stakeholders is completed.
Decision Gates in Set Up Phase
Decision gates in this phase will revolve around a framework for the management of the project.
There are also going to be a multitude of decisions that the project manager will need to make about how the project will be managed and controlled, which tools and processes will be used, and who to involve and when.
Internal Controls
Internal controls include the processes through which an organization’s resources are directed, monitored, and measured.
Two Key Factors in Assessing Risk
Probability - Risk can be seen as relating to the probability of uncertain future events (as compared to issues which deal with current ones that must be immediately addressed).
Impact - Risk has the potential to impact the project. Most project teams focus on negative risk that has the potential to harm the project (time/calendar, cost/resources, quality, scope, etc.) In general, negative risks are to be avoided. Positive risk, on the other hand, is less widely acknowledged and understood.
Types of Risk Response
- Risk Avoidance
- Risk Transference
- Risk Mitigation
- Risk Acceptance
Risk Avoidance
Do not do (or do in a different way) some portion of the scope that carries high-impact and/or a high probability of risk. For example, a project might choose not to work in a geographic area because there is too much insecurity.
Risk Transference
Shift (or share) the risk for some aspect of the project to (or with) another party. The most common example of risk transference is insurance. For example, insurance policies transfer the risk of vehicle damage and loss to the insurance company.
Risk Mitigation
Act to reduce the probability and/or impact of a potential risk. Take, for example, a project that is concerned about the risk of commodity theft.
Risk Acceptance
If the perceived probability and impact risk is assessed as reasonable, an organization can choose not to take action. For example, a project may acknowledge that it faces the possibility of a late rainy season onset interrupting its agricultural cycle, but the team chooses to live with the risk, and does not act to avoid, transfer, or mitigate it.
Types of Tolerance
Another component of establishing a governance structure is to ensure that tolerance levels of the project manager are clearly outlined and articulated in the Project Charter. These tolerances allow the project manager a framework for determining to what extent he or she can make decisions regarding a project and at what point the decision making needs to be escalated to the governance structure.
- Time
- Risk
- Scope
- Risk
- Quality
- Benefit
Time Tolerance
The amount of time by which the project completion can be later or earlier than the planned date.
Cost Tolerance
The percentage, or a cash amount, by which the project can be over or under the planned budget.
Scope Tolerance
…measured as an agreed variation from the product description, and any potential variation should be documented in the product breakdown structure.
Risk Tolerance
provide a benchmark for which risks you should be escalating to the Project Board.
Quality Tolerance
ranges that define acceptable performance for a product, documented in the product descriptions.
Benefit Tolerance
ranges of acceptable performance of the project at the outcomes level.
Contents of a Project Charter
Project Purpose, Deliverables, High-level project estimates, risks, tolerances, change control
What does a risk management document need to contain?
- Develop an organized and comprehensive risk management plan
- Determine the methods to be used to implement the risk responses
- Plan for adequate resources for risk response.
What does a robust governance structure clarify?
- Authority
- Accountability
- Project Changes
- Oversight
- Supports and Advocates
Three Project Governance Models
Project sponsors
Boards
Steering Committees
What is a project sponsor?
The project sponsor supports the project manager by sharing accountability for the success of the project and by making decisions that are outside of the project manager’s authority.
