Week 9

Question 1

what is an audit?

Answer 1

An audit is a formal review (or evaluation) of any aspect of the project. They’re conducted throughout the project’s lifecycle and are used to compare progress and performance of the project against a set standard
-The strengths and weaknesses are identified, and recommendations for current and future projects are made

Question 2

what factors evaluate how ‘successful’ a project is?

Answer 2

1. It’s efficiency at meeting the budget and schedule
2. It’s impact on customer satisfaction
3. It’s impact on business success
4. It’s future potential
5. It’s impact on organisational goals and strategy

Question 3

what are the direct benefits of audits?

Answer 3

1. identify problems earlier
2. improve project performance
3. reduce running costs
4. improve risk management process
5. identify opportunities for future innovations

Question 4

what are the indirect affects of audits?

Answer 4

1. increased PM maturity
2. identify potential future senior managers
3. identify firms strengths and weaknesses

Question 5

what does the audit report focus on?

Answer 5

The audit can focus on the project as a
whole, or a specific aspect of the project
-There is no standard format, so
organisations usually create their own
template which is used for all projects

Question 6

what is the format of typical audit report?

Answer 6

1. Introduction
2. Current Project Status
   – Cost, Schedule, Scope, and Quality
3. Future Project Status
4. Critical Management Issues
5. Risk Assessment
6. Limitations and Assumptions

Question 7

what is the depth of the audit?

Answer 7

• Audits should be very detailed but time and money often constrain the level of depth presented in the report
• Costs of auditing include:
  1. Team members’ time
  2. Management of audit documentation
  3. “Distraction” effect
  4. Poor results lead to low morale

Question 8

what is the timing of the audit?

Answer 8

All important projects must be audited, Larger projects should be audited multiple times
- First audit is usually conducted early in the project lifecycle

Question 9

what must all auditors be?

Answer 9

– Be honest and ethical
– Identify and avoid biases
– Be independent
– Ask for further clarification if required
– Keep information confidential
– Evaluate the effectiveness of the auditing process

Question 10

what is the project auditors responsibilites?

Answer 10

1. assemble team of experts
2. ensure team understands project aims
3. audit the project
4. debrief PM and project team
5. write audit report
6. send report to PM and team
7. check that recommendations have been implemented

Question 11

what are the four types of audits?

Answer 11

1. general audit: brief review of project, used when time and resources are scarce
2. detailed audit: usually as follow-up to general audit,
3. technical audit: conducted by a specialist who investigates a specific part of project,
4. risk audit: asses risk management processes, eg are they working? PM conducts these audits throughout project lifecycle

Question 12

which other times are audits conducted?

Answer 12

1. Feasibility Study: focuses on if firm has technical abilities to do the project
   – Preliminary Plan / Schedule / Budget: used to confirm assumptions made for above
   – Implementation: when project is well underway, here audit checks its working
   – Post Project: once project is done, audits here summarise the project performance and provide key input to final report

Question 13

what is project closure?

Answer 13

Project Closure is the formal process of closing down a project and reporting on its relative success, very complicated
* Closure activities:
– Have limited impact on success or failure of project
– But have a large impact on quality of life after the project ends
– Are different depending on the type of project

Question 14

what are the 5 reasons for closing projects?

Answer 14

1. Project objectives have been met
2. Work on project has stopped / slowed so much that further progress is not possible
3. Project has been delayed for a long period of time
4. Project’s resources must be used by other projects
5. Project team members (including Project Manager) are removed from the organisation

Question 15

what is closure by extinction?

Answer 15

All work on the project simply stops due to:
project achieving/ not achieving goals, Changes in external environment, Politics
- Although project work stops, a large amount of admin work needs to be done

Question 16

what is closure by addition:

Answer 16

• Used on ‘in-house’ projects that are successful eg carried out by staff
  -Closure takes the form of “institutionalisation”, e.g. a new department is created and if successful, this new department can become a new
  business
• Very different to Closure by Extinction, some staff moved to new department, others request to move to new projects

Question 17

what is closure by integration?

Answer 17

• Most common method of closing a successful project
• All assets owned by project are “absorbed” into the organisation
  eg. Organisational practices are changed to mimic those of project, project team moved into established departments
• Can be incredibly complicated as need to consider staff, organisational policies, risks,
  capacity, internal politics

Question 18

what is closure by starvation?

Answer 18

• Involves starving a project of the resources it requires to be successful
• This method is used to “manage out” a project without actually having to officially close it, eg when manager starts a project that fails, instead of admitting failure they reduce the budget
• Very useful method of closing a potentially
  “sensitive” project eg terms like recession/ austerity is often used as a “mask” as it leads straight to budget cuts

Question 19

when should we close a project?

Answer 19

Very little research has been published on how to make the closing decision, but can as Qs such as:
1. does project align with firm goals?
2. is project output useful?
3. can firm afford project?
4. is project still on time/budget?

Question 20

what are the signs a project is in trouble?

Answer 20

1. Vague or incomplete project requirements
2. Incomplete documentation on all stakeholders
3. Vague or incomplete project schedule and /or budget
4. Suspicious Status Reports
5. Poor team morale

Question 21

what are the main reasons projects fail?

Answer 21

1. Lack of top management support
2. Wrong choice of Project Manager
3. Poor planning
4. Refusing to learn from previous projects
5. Project managers of successful projects “won’t let go”
6. Lost interest in the project

Question 22

what is part 1 closing a project?

Answer 22

The Decision:
3 main ways of deciding if a project
needs to be closured down:
1. Assess project against standardised Success Factors
2. Assess project on its Goals and Objectives
3. Assess projects against planned Schedule
= Overall, the decision is made based on whether or not the organisation is willing to continue investing in the project

Question 23

what is part 2 of closing a project?

Answer 23

• Closure should be planned, budgeted, and
  scheduled
  = This ensures better results
• Difficult process to manage, particularly for the project manager
  1. Loss of power
  2. Loose ends to tie up
• For this reason, Closure Managers are
  sometimes used, as they have link to team so can get things done without offending people

Question 24

what are tasks conducted by a closure manager?

Answer 24

Tasks 1-3 normally done by PM before closure is started
1. Ensure project work is completed
2. Notifying the customer of project completion
3. Ensure all paperwork is completed
4. Send out final invoices to the customer
5. Reassign all resources to other suitable projects / departments, most difficult as will want to avoid conflict
6. Close the project’s accounts

Question 25

what is the final report?

Answer 25

This is the history of the project, there’s no standard format or style, but each Final Report should contain information on:
1. Project Performance: what was achieved against what was planned
2. Administrative Performance: how well did HR, IT, do in project and why
3. Organisational Structure: assessment of how firm structure reflected project
4. Project and Administrative Teams: only for snr. managers where it’ll recommend people for future projects
5. Project Management Techniques - describes how PM tasks were conducted
- Each section of the Final Report should include recommendations for improving future projects

Question 26

how to celebrate success?

Answer 26

There must be some form of recognition at the end of the project: eg Thank you notes, Commemorative mug, T-Shirt, Pizza party, Bonuses / Promotions, Bus Tour through the city
- ensures people will continue to perform aids morale and encourages others on different projects to work well.

Question 27

what techniques would you use to address needs of team when closing a project?

Answer 27

1. Keep team members updated
   - Explain the process you are adopting
   - Be open and transparent
2. Help each team member to secure a new assignment
   - eg place on a new project which helps team members feel more secure, and creates goodwill
3. Encourage team members to celebrate
   - Have a party! and Recognise and acknowledge everyone’s efforts.