Contents

1.0 Case Overview..................................................................................................................................

2.0 Organizational Strategy and Its Relationship with Projects..........................................................
3.0 Project Selection..............................................................................................................................
4.0 What Is Project Failure or Terminate?...........................................................................................
5.0 Project Management Knowledge Areas..........................................................................................
5.1

Project Scope Management.....................................................................................................

5.2 Project Time Management...........................................................................................................

5.3 Project Cost Management............................................................................................................
5.4 Project Quality Management.......................................................................................................
5.5 Project Human Resource Management.......................................................................................
5.6 Project Communication Management.........................................................................................
5.7 Project Risk Management...........................................................................................................
5.8 Project Procurement Management.............................................................................................
5.9 Project Integration Management................................................................................................
6.0 Project Monitoring.........................................................................................................................
7.0 Project economics, initial budgets, comparison actual to budget, analysis of
deviations, corrective actions...............................................................................................................
8.0 Quality management, quality control, rationalizing of processes to optimize
performance, change control, risk management, security.................................................................
9.0 Human resources management, knowledge management, change Management,
leading project teams...........................................................................................................................
10.0 Project key success factors...........................................................................................................
11.0 Reasons for and avoidance of failure...........................................................................................
12.0 Crisis management and contingency planning...........................................................................
13.0 References.....................................................................................................................................
1.0 Case Overview
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This case reveal the classic example of project abundance or a failure and also the
difficulties that project managers are facing when it comes to doubtful terminations
or dilemma of coping to such situation. This case is all the about situation where
Olaf, the project manager of the maximum megahertz project which was a product
development related project in wireless telecom industry, had been facing great
amount of difficulties when the particular project came to abundance.
Having exceeded the cost budget as well as the allotted time, he was in a verge of
demanding more on both constraints. Nevertheless he is still having doubt on the
success of the project. But by killing the project, his six bright project associates
future would be on a stake.
As a sensible approach, he had two options left; consulting a few expert judgment to
make a Yes, No answer and if the answer comes out as Yes; review to the total
project scenario again or if the answer comes No, which indicate that something
were wrong with the project portfolio selection, this has to put forward to the top
management.
Due to the fact that this has to be addressed as critical business importance, the
following case review will be present in order to evaluate the underpinning issues of
failing project and how to put up a mitigation plan to overcome such draw backs
technically and how to safeguard the human assets from the public harassment
resulting from the failures.
2.0 Organizational Strategy and Its Relationship with Projects

Project management is a discipline or tool which has been playing a phenomenal role
in modern management arena. To cope up to the rapid changing and volatile
business environment is common visible fact in recent economic world. Corporate
strategies are facing huge amount of hardship when it comes to the implementation
process. In order to overcome such setbacks and as a prominent solution to the
strategic drift , the project management principles have reshape the way of running
the most modern organizations by being a corporate life saver. In simple terms
strategies are being cascade down to the projecterized elements and project becomes
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the vehicle to drive those strategies. It can curtail expenses by providing a better
defendable cost structure against allotted budget while maintaining the scope, time
and quality parameters as expected which will lead to increasing competitive
advantage towards maximization of shareholder wealth.
3.0 Project Selection

Project selection is being done from the PMO Project management Office or from the
Top Management. It is the most critical point, since wrong selection can be lead to
biggest disaster than not being even attending to the project in relation with impact
placed upon after the failing the project is enormous. Project has to inline with its
existing strategy and structure. The scope compatibility is very much essential. In the
process of project selection it has to be examined whether project financial indicators
are meeting the desired levels. For instance, by evaluating payback period, NPV, IRR
or non financial scoring models has to be placed and reviewed. Followed by the
feasibility study or pilot programs will leverage the further risk components and will
enable to have a faith on the project success. In the process of the selection it has to
be advised to document stakeholder analysis, scope statement, proper charter
document in order to have a tab on the risk factors, uncertainties, assumption made
by and constraints.
It is very much essential that the corporate strategy and the project selections are in
line and has be with incongruence.

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Figure 1 Project Matrix

Nature of the product development projects and its feasibility is briefly elaborated in
above mentioned quadrant. With respect to this, Maximum Megahertz Project can be
placed in an Oyster project due its low technical feasibility though it would deliver
high profit for the organization.
4.0 What Is Project Failure or Terminate?

Though it is a proactive mechanism, it still has its own pitfalls or things which has to
be careful about or would result in failing. Some complex business requirements
always challenge the capabilities of contemporary organizational when the projects
are being introduced. Projectorized environment always demands supporting
structure, sophisticated management skills, better open systems, role and
relationships.
Maximum Megahertz Project is a product development project which has a high risk
component due to it nature of the scope. Projects are being failed or terminate due
to two main reasons. It can be due to the wrong selection of the project which has to
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be a liability of the top management or PMO. Or it can be due to the incompetence of

the project handling which is due to the fact that missing the bit and pieces of the
project management nine knowledge areas.
5.0 Project Management Knowledge Areas

Projects are handled through five managerial phrases. Each Knowledge management
areas must be blend with managerial phases in order to derive the expected result.
Project Phrases are as follows,
1.0 Initiation
2.0Planning
3.0Executing
4.0Controlling
5.0Closing
All the nine project knowledge areas should process via all phrases and non
conformities are leading to the discrepancies or cause of failures.
5.1Project Scope Management

Project scope in the Maximum Magahertz Project means both a product scope
and project scope; which concerns the characteristics, tools and techniques
required by the product and work required for the project completion such as
deployment of all kind of resources.
The project got failed due to;
1.0

Poor scope planning ; (no proper product description, Project

Charter, Project Constraints, project assumptions, Alternative
identification, expert judgment)

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2.0

Not using proper Scope Planning tools and techniques , such as ROI
calculations ,Cost benefit Analysis

3.0

Poor

Scope

Statement(Poor

understanding

of

project

justifications ,requirements, objectives and deliverables)

4.0

Poor Scope Management Process(decomposing the deliverables,

creation of (WBS)Work Break Down Structure, defining work
package)

5.0

Poor Communication Plan (The communication plan has to be

developed and informed and Stakeholders , establishing of frequent
meetings and documentation of roles and responsibilities)

5.2 Project Time Management

Time management is keeping the activities on track and managing the schedule tasks
to ensure that the project is running smoothly. As per the case illustrates, the project
was being held four months and would expect another six more month for the
completion. This can be due to;
1.0 Poor activity definition due to lack of understanding or due to mistake
taken from Scope Management
2.0Weak activity sequence (dependencies are not being identified properly)
3.0Poor Activity duration estimates
4.0Lack of technical knowledge in Network Diagram, Critical Path and PERT
Calculations)
5.3 Project Cost Management

This all about how project budgets are being laid and the costs are being controlled in
accordance. Value engineering techniques and project life cycle costing will be
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applied. Maximum Megahertz project budget was $ 600,000 though they asking
another $ 800,000 on top of the budget line. This can be due to;
1.0 Poor Resource planning
2.0 Inaccuracy in cost estimating(not proper utilization of cost estimating tools, such
as analogous estimating, parametric modeling, so on)
3.0 Inadequate cost management plan
4.0 Miscalculation of cost base line (poor usage of cost budgeting tools and
techniques)
5.4 Project Quality Management
This concern with the identifying quality standards and devising plans to meet and
satisfy those standards. This ensures the project meet the requirements eventually
and there will not be any compromising with this constraints.
1.0 Not being laid out proper quality policy , standards or regulations
2.0Poor utilization of quality planning tools such as cost benefit analysis,
benchmarking, flowcharting, Check List
3.0 No Proper Periodic Reviews, Quality Audits
5.5 Project Human Resource Management
This ensures that human resources which assigned to the project are utilized in
effective and efficient manner. Simply it deals with all the aspects of people
management issues including mentoring, leading, coaching, dealing with conflicts,
performance appraisals, etc.
In this Maximum Megahertz project, it is visible fact that there is no proper
motivation towards the project success throughout the project team.
1.0 Inadequate team building activities (Poor team focus, poor reward and
recognition system, lack of sense of belongings)

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2.0 Poor HR Plan(No proper Role and Responsibilities, Responsibility matrix, Staff
management Plan, Project structure and chart, HR pool description)
3.0 Conflict Resolution mechanism
5.6 Project Communication Management
This ensures the effective exchange of information among the project environment.
All the channels of communication has to be managed in a way to encompass the
desired massage while eliminating the other noises. Project managers are using 80%
of their time and effort on this due its operational importance for effective running
the projects.
Communication plan has to be in line with stakeholder analysis. Project report,
Project records and Project presentations has to properly implemented Project
manager attention should be drawn to the communication skills, information
retrieval,

information

distribution

methods,

Performance

reviews

and

administration closures in order to govern best project management practice which

would lead to the success of the project.

5.7 Project Risk Management

This process include Risk planning, risk identification, quantitative and qualitative
risk analysis, risk response planning and risk monitoring and control which
concerned the identifying, analyzing and planning the potential risk while
minimizing probabilities of risk occurrence in order to sustain or improve project
outcome. Poor understanding of Risk Management areas would be lead to a disaster.
For instances,
1.0 Poor emphasis on risk parameters in Risk Planning(No proper risk tracking or
historical information, No proper risk management policies, undefined risk
responsibilities, poor understanding of stakeholders risk tolerance)

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2.0Under utility of risk assessment tools such as brainstorming, Delphi technique,

Nominal group technique, checklist, assumption analysis,
3.0Poor Understanding of the impact of Risk out puts or triggers
4.0Poor qualitative Risk Analysis(Risk probability analysis, Probability Scale and
matrix, Risk Impact Scale, Risk Ranking)
5.0Poor Quantitative Risk Analysis (Sensitivity analysis, Decision Tree, Simulation)
6.0Poor Risk Response Planning (Mitigation plans, contingency plans)
5.8 Project Procurement Management
The process involved with purchasing goods and services from the outside suppliers,
vendors, contractors. This process includes procurement planning, solicitation,
source selection, contract administration and closure.
5.9 Project Integration Management

This ensures that project activities are coordinating and interacting to perform the all
aspect of project plan. Project plan development, execution and integrated change
control are the key element of this knowledge area.
6.0 Project Monitoring

Project monitoring is the one of the most important aspect in project management
which enables to project activities to be in line with project plan by adjusting its
deviation appropriately. Project monitoring and controlling processes out comes
indicates whether to terminate project early or where it has been gone wrong; which
ultimately put forward via corrective and preventive action plans to back on to the
track again. This is the most important review area when it comes to project
termination or project failure. If there is any significant deviation which not being
managed, would result in failing the project as described in the maximum megahertz
case.
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In order to do proper project monitoring plan, it has to be monitor and reviewed in

regular basis and bench mark performance indicators , variance analysis, trend
analysis, earned value analysis indicators to have comparisons to get necessary
updates and change request should be made timely. Further this requires integrated
change control; verification of scope via inspection, configuration management
blending with project management information system to implement proper
monitoring process and outcome of the process would lead to the corrective action
plan. In the corrective action plan should answer to the question of changing need of
all the knowledge areas for instance scope change control, schedule control, cost
control, quality control, risk monitoring control, so on.
7.0 Project economics, initial budgets, comparison actual to budget,
analysis of deviations, corrective actions

Understanding of project economics and financials are inevitable for the project
success. Cost planning, cost estimating is one of the major cost accounting tasks
which will facilitate to establish proper budget baseline for the project. By using the
costing techniques like vendor bid analysis, value engineering, activity base costing,
life cycle costing , Time value money concepts , the budget will be forecasted which
will known as initial budget. When the activity moves on, deviations can be seen
which has to address by looking to its cash flows and its reserves to cope up gap
created. The budget optimization should practice as a corrective measure and failing
to cope up the deficit would create funding need.
8.0 Quality management, quality control, rationalizing of processes to
optimize performance, change control, risk management, security

This is basically describes how project will perform its quality policy by coping up to
its deviations. This has to be implemented on the process of establishing quality base
line, quality assurance and quality control mechanism. Quality has to define at the
project charter, communication plan, and stakeholder analysis. The cost base line
can be develop in accordance with total quality management(TQM),ISO 9000:2008,
six sigma , DMAIC methodology. Quality assurance can be aligned to PDCA model
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(Plan-DO-Check-Act) by determining what to measure with Data collection, metrics

and flow charts. Quality tools and quality audits are identified lessoned learned
which allow project manager to learn from the mistakes which will further help to
improve the quality.
To optimize the project performances it can be aligned with project balance score
card system. It will review holistic picture of the entire project in four different
perspectives.

Integrated

change

control

mechanism

ensures

that

healthy

effectiveness, highly securing its objectives.

9.0 Human resources management, knowledge management, change
Management, leading project teams
Acquiring the right project members are one of the versatile element of the project
success. Having on board the desired team, it should be further develop to a high
performing project team while negotiating the ground rules with them. In process of
building team capacity demonstration of Project management leadership is very
much essential. By using the project management tools roles and responsibilities
should be assigned while enabling situational leadership as and when it requires.
Creation of team identity, personal responsibility and the respect also very much
needed and Learning Cycle has to be identifies as training and development tool.
Since the project manager is totally depending on this team performance, it is a
needing talent that various forms of power types and leadership styles should be
applied in par with situational demand.
Project manager should always keep an issue log. Lessoned learned from the
mistakes done at the various stages can be elevated to the future problems via
knowledge management framework. Documentation of the all the important
captions and countermeasures taken will add rational foundation for the future
projects.
10.0 Project key success factors

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Top management or senior executive support is one the main success factor.
Project responsibility for funding, budgets, charter requirements, sign off on
risk plans should be shoulder and deviation of the actual results from the
planed status be knowledgeable.

Clients and Users also should have active ownership of the project, by
providing resources, actively involve with project initiative, sign off the
requirement and schedules and concurring with scope changes and risk
management process

Know how in the business process; Project team has to be demonstrated

knowledge in business process

Project should be chosen based on sound business decision which aligned to

its corporate strategy and its risk tolerance level.

Project Scope should be clearly defined and identified in the charter itself.

Effective Change Control process must be exist

Project Drivers must be identified

Limited experimentation with new technology

11.0 Reasons for and avoidance of failure

As stipulated above project will fail or terminate on the basis of two premises. It is
because of the mistake done at project selection or at the project managerial process.
As elaborated above project selection failures has to be addressed to the PMO or top
management and best thing is to prevent such situation rather ending as terminated
abundance. On the other hand, Project fails due to malfunctioning of project
management principles and its knowledge areas. This can be avoided from the
implementing proper monitoring and controlling mechanism which lead to
corrective action plan duly upon.
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12.0 Crisis management and contingency planning

Crisis can be created due to high volatile nature of macro environment. Project
managers should be ready to counter attack such setback in more concise manner by
using crisis management applications. Contingency Plan is one of the tools of the
crisis management. It plans out the activities in advance and are applied to crisis or
risk events by reducing the cost of action plan and opportunity cost. For instance
when the milestone is missed, additional resources that were identified and
estimated in the contingency plan are added to a specific task to get back on track.
13.0 References

1.
2.
3.
4.

A Guide to the Project Management Body of Knowledge, PMI , 2004

Kim Heldman, Project Management Professional Study Guide, BPB Publication 2004
Terri Wagner, Project Management Street Smart, Wiley India,2009
Timmothy J. Kloppenborg, Contemporary Project Management

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