Module 3

Question 1

Stakeholders Involved in Set Up Phase

Answer 1

• Governance
• Project Team
• Project Partners, Vendors, and Contractors
• Program Manager
• Project Beneficiaries

Question 2

Project Charter

Answer 2

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.

Question 3

Comprehensive Risk Register

Answer 3

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.

Question 4

Stakeholder Engagement Strategy

Answer 4

In the Setup phase, information on stakeholders is further detailed and a strategy is developed for engaging stakeholders is completed.

Question 5

Decision Gates in Set Up Phase

Answer 5

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.

Question 6

Internal Controls

Answer 6

Internal controls include the processes through which an organization’s resources are directed, monitored, and measured.

Question 7

Two Key Factors in Assessing Risk

Answer 7

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.

Question 8

Types of Risk Response

Answer 8

• Risk Avoidance
• Risk Transference
• Risk Mitigation
• Risk Acceptance

Question 9

Risk Avoidance

Answer 9

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.

Question 10

Risk Transference

Answer 10

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.

Question 11

Risk Mitigation

Answer 11

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.

Question 12

Risk Acceptance

Answer 12

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.

Question 13

Types of Tolerance

Answer 13

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

Question 14

Time Tolerance

Answer 14

The amount of time by which the project completion can be later or earlier than the planned date.

Question 15

Cost Tolerance

Answer 15

The percentage, or a cash amount, by which the project can be over or under the planned budget.

Question 16

Scope Tolerance

Answer 16

…measured as an agreed variation from the product description, and any potential variation should be documented in the product breakdown structure.

Question 17

Risk Tolerance

Answer 17

provide a benchmark for which risks you should be escalating to the Project Board.

Question 18

Quality Tolerance

Answer 18

ranges that define acceptable performance for a product, documented in the product descriptions.

Question 19

Benefit Tolerance

Answer 19

ranges of acceptable performance of the project at the outcomes level.

Question 20

Contents of a Project Charter

Answer 20

Project Purpose, Deliverables, High-level project estimates, risks, tolerances, change control

Question 21

What does a risk management document need to contain?

Answer 21

• 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.

Question 22

What does a robust governance structure clarify?

Answer 22

• Authority
• Accountability
• Project Changes
• Oversight
• Supports and Advocates

Question 23

Three Project Governance Models

Answer 23

Project sponsors
Boards
Steering Committees

Question 24

What is a project sponsor?

Answer 24

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.

Question 25

What is a project board?

Answer 25

The Project Board is made up of a group of project stakeholders who represent multiple perspectives (executive, supplier, user). Together they support 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.

Question 26

Advantages of the project board

Answer 26

1. Improved project manager support. Because the project board includes representatives from a variety of stakeholder groups, the project manager is receiving advice and support from multiple sources.
2. More comprehensive decision-making process. Since project boards make decisions based on multiple criteria perspectives, the data that informs decisions is more robust.
3. Improved accountability. It is recommended that the project boards include representatives from the project end user group, thereby improving the accountability of projects to their target population.

Question 27

MEAL

Answer 27

Monitoring - Monitoring will show whether the project is on time, within scope, and within the desired quality range.

Evaluation - Developing a framework for monitoring and evaluation early is crucial for ensuring that there is a clear direction when project planning takes place. It also sets the stage for accurately estimating what kind of resources (human, monetary, and technological) will be required to effectively implement these tasks.

Assessment and Learning - …are often incorporated into monitoring and evaluation through the MEAL methodology. If accountability and learning will be included, begin to consider during Project Setup what kind of accountability mechanisms will be used and how those mechanisms will feed into the continuous learning in the project.

Question 28

What does a project charter aim to do?

Answer 28

• Officially authorize the start of project activities and the use of resources for project implementation
• Ensure that there is shared understanding of the project parameters among key project stakeholders and sponsors (both internal and external)
• Document a shared commitment to the objectives of the project and the resources/activities required for project success.