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Welcome to

Business and Change Management – Session 1

Project Management

We will start in a few minutes


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Insert image
of trainer here
A bit about me…

… and a bit
about logistics

How can we talk? Chat panel

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Project Management

Identify some examples of projects, if possible that

have recently been implemented in your work place

WB Ref: 5
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Project Management Process: An overview

Gate 0 Strategic
Gate 5 Operations
assessment Gate 1 Business Gate 2 Delivery Gate 3 Investment Gate 4 Readiness
review and benefits
(Programme only justification strategy decision for service
evaluation
review)

WB Ref: 1.2 6
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By the end of the session you will be able to…

 Discuss, evaluate and apply key tools and
techniques to ensure the successful management of
projects

WB Ref: 1 7
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Project management definition

‘a temporary endeavour undertaken to accomplish a

unique purpose’

Or full definition
“…a unique process, consisting of a set of coordinated
and controlled activities with start and finish dates,
undertaken to achieve an objective conforming to
specific requirements, including the constraints of
time, cost, and resources.”

WB Ref: 1.3 8
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Key features of a project:

 Coordinated and controlled – the aim of this workbook is to explain

how this is achieved.
 Start and finish dates – projects should be formally started and
formally closed out. The start of the project should trigger a series of
activities and processes that together achieve success.
 Undertaken to achieve an objective – this is essential – the
organisation must put forward a business case to justify why the
project is needed and ensure that money is only spent on achieving
approved objectives. If the business case is not sufficiently robust
the project should not be undertaken.
 The constraints of time, cost, and resources – it is the impact of
these constraints on achieving a project’s objectives that gives rise
to the need for the coordination and control described above.

WB Ref: 1.3 9
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Tutor led example 1

 The Hartshap Hotel Chain plans to open a new flagship
hotel. Cost £40 million

 Colswell City Council is planning a reorganisation to create

a Social Care and Housing for Older People (SCHOP)
directorate and move into new premises. Cost £200 000

 Cloud Airlines intend to build and staff a new transatlantic

terminal at Tadnow airport. Cost £2.3 billion (i.e. £2 300
million)
Note that the projects are very different sizes but they all
meet the basic definition of a project

WB Ref: 1.3 10
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Project Methodologies
There is no single correct way to manage a project but one well-known management method is PRINCE2.
PRINCE2 is a project management method specifically designed to ensure that projects achieve their
objectives. The name stands for PRojects IN Controlled Environments and the method was established
by the Office of Government Commerce (OGC) in the UK. PRINCE2, now commonly used in practice, is
simply an updated version of the original PRINCE.
PRINCE2 contains:
 clear structures of authority and responsibility
 standard templates for all key documents
 coordination of all people and activities involved in the project
 built in quality controls
 methods for dealing with deviations from plan
The method has attracted criticism suggesting that it:
 creates too much paperwork
 requires too much time to follow every process through
 is not necessary for small scale projects
 is not flexible enough for complex projects.

WB Ref: 1.4 11
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Waterfall methodology – Stages

Project methodologies were first developed in the manufacturing and construction industries
which have a long history of managing complex projects. The most well-known is the
waterfall method which takes a logical sequential approach to running projects.
This traditional approach to project management is known as the waterfall method because
it represents a steady flow of activities down through the project phases with each waterfall
phase completed and signed off before the next one is commenced. The aim to ensure
greater project and deadline control. The structured approach of the PRINCE2 project
management method was designed to work effectively with the waterfall methodology.
 Project start up and initiation: The project team first analyses, then determines and
prioritises business requirements, needs and objectives. The project scope is determined
and fixed so that designs can be based on exact requirements.
 Project planning: The best way to meet user needs is established and project plans are
developed and designed. The logic behind the waterfall approach is that it is essential to
get the design stage right before any plans are implemented, to avoid expensive changes
later.
 Project implementation: The project is commenced. Each stage in the project is
completed and must be signed off before the next one is started.
 Project closure, evaluation and maintenance.

WB Ref: 1.4 12
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Waterfall methodology – Stages

Project start-up and initiation

Project planning

Project implementation

Project closure, evaluation and maintenance

WB Ref: 1.4 13
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Advantages & Disadvantages of Waterfall Approach

Advantages
 Easy to plan because the full project scope is defined in advance.
 Simple to communicate and manage as the project has discrete, easily
recognised phases and clear milestones to progress.
 Well known and understood.
 Emphasis on documentation so that should individual team members leave
the project, no knowledge is lost.
Disadvantages
 The major disadvantage of the waterfall method is that project outcomes are
not seen until the end of each stage.
 The waterfall method is therefore of limited use where the project scope or
detailed requirements cannot be determined in advance.
 In recent years the IT industry has developed an alternative technique known
as ‘Agile’ for managing the software development phase of projects.

WB Ref: 1.4 14
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(1) Project Mandate

What is a project mandate?

• Short document which is approved by Senior Management

Contents

• Basic terms of reference used to initiate project

Includes

• Scope of project
• Hoped for outcomes
• Anticipated timescales
• Available budget

WB Ref: 1.5 15
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Tutor led Example 3 – Project Mandate

The new flagship hotel in the Hartshap chain: A five star standard
200 bed hotel in the capital city in a boutique style but still
reflecting local culture. Hotel to have underground competition
standard 25m indoor pool, health suite and gymnasium plus
parking for 50 cars. The budget is approximately £40 million
opening date May 2018
Project Mandate Hartshap Hotel
Scope of project
Hoped for outcomes
Anticipated timescales
Available budget

WB Ref: 1.5 16
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In your organisation who do you think are the

stakeholders?

WB Ref: 1 17
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Project Startup and Initiation

To convert a project from an abstract idea to a series of practical
activities designed to achieve the project objectives, requires a clear
plan of approach which explains what is to be delivered, when it should
be delivered by, and how the promised outputs should be achieved.
The aim of the project start-up and initiation phase is to define this
planned approach. At the end of this phase, the following details should
be clear:
 The project governance structures
− Identifying who is doing what – the project stakeholders.
− Identifying other stakeholders with an interest in the project.
 The project details − The business case.
− The expected outputs.
− The criteria for success.

WB Ref: 1.6 18
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(2)Project Governance Structures - Stakeholders

Project Project Project Project Project

Sponsor Client Customer Manager Team

Makes Responsible
investment for achieving Responsible
decisions overall for achieving
Wants end End user of project project tasks
results project output that make up
(People, overall
Process & project
Product)
Executive
Board

Hotel staff
Guests Head Chefs
CEO Regional
Public Directors IT Developer
Media Building
contractors

WB Ref: 1.7.1 19
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Other Stakeholders in a project

Project Finance External

Accountant Director Stakeholders
Monitoring Project
objectives of Manager
business and identifies
Managing,
determining external
updating and
effects of stakeholders,
monitoring
changes on provides them
budget
anticipated with
financial information for
benefits project

WB Ref: 1.7.2 -1.7.4 20

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Criticism at Project Management

Criticism Defence
Additional Overheads
Project managers are expensive and do not A good project manager should coordinate
themselves produce a tangible outcome but communication and therefore eliminate rather than
coordinate the activities of others. bring about misunderstandings between project team
members
Process orientation
There are many project methodologies and
processes governing the way a project is managed. The advantage of an experienced project manager is
They also introduce an additional layer of that they will understand where using the
communication between management and the methodologies will add value and where a simpler
project team which could mean time delays and approach may be more suitable.
potential misunderstandings when information is
transferred.
Reduction in creativity
The focus on managing resources and delivering The need for creativity was one of the driving forces
within agreed timeframes does not allow for the behind the development of the Agile project
creativity needed to devise new and better methodology discussed in the IT section below. Agile
solutions or alternative ways of achieving the end overcomes the rigidity associated with some project
(and potentially better) result. management methods.
WB Ref: 1.7.1 21
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Now you try

The management team of Builton Hospital have decided to refurbish
and redecorate the reception, TV rooms and corridors of the hospital
which will include commissioning some original murals and other art
work and the hospital board is concerned to minimise disruption during
the work.
Although the redecoration plan has been received with enthusiasm, the
project manager is aware that it will be important to keep all the
stakeholders informed as the project progresses
Requirement
Identify the stakeholder groups likely to have an interest in the project
(other than the project manager), explain their role and the role of the
project manager in ensuring their concerns are met

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(3)Business Case - Tutor led example 4

Reasons for undertaking
the project

Other options considered and

why

Benefits expected

Approximate costs

Approximate timescales

Summary of main risks

Supporting investment
appraisal calculations
WB Ref: 1.8.1 23
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Business Case - Tutor led example 4

Reasons for •New hotel required to be flagship for brand and embody luxury values
undertaking the project customers can expect

Spend more on general upgrades to current hotels– rejected as lacking

Other options considered significant marketing and media impact
Acquire existing hotels and convert to Hartshap brand – rejected as it being
and why likely to create further brand confusion
Do nothing

•Should improve brand awareness and image

Benefits expected •Earn high margins
•Contribute to shareholders wealth

Approximate costs •£40m agreed

•Open by summer 2018. Key milestones:

•Design confirmed – Nov 2016
Approximate •Detailed building plans submitted to planning department – Feb 2017
•Planning approvals granted – Jun 2017
timescales •Contractors appointed – Aug 2017
•Build complete – Apr 2018
•Internal fit complete – Jun 2018

•Opening late causing bookings not to be honoured and bad publicity

Summary of main risks •Massive overspend affects profits and shareholder wealth
•Not high quality intended therefore damages rather than enhances brand

Supporting investment •Expected net present value estimated at £370 million over first six years
appraisal calculations
WB Ref: 1.8.1 24
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(4)Project defined outputs

The specific scope of the project and the outputs or deliverables required must be clearly
identified and agreed. The aim is not to detail every project task but to refine the five or six
major milestones identified in the business case into the main stages or steps required to
achieve them. The use of project stages is discussed further in the section on Work
Breakdown Structures (in coming slides).

WB Ref: 1.8.2 25
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Project Quality Plan

As part of the planning process the quality standard for each process or
output should be determined and agreed. What is meant by quality must
be determined by reference to:
 Any legal or practical requirements for the project and
 The customer’s quality expectations
A project to design a new car will have quality standards governed partly
by relevant legislation surrounding emissions and road safety, and partly
by the specific outputs required – acceleration speeds, fuel economy,
handling etc. However, if the target customer group will also judge the
car’s quality by looking at factors such as the sound made by the engine,
or the design of dashboard displays then this too must be incorporated
into the quality plan.
In order to the minimise the risk of quality failure, the quality control and
audit processes to be applied both to the project management process
and the work of all suppliers should be agreed in advance.

WB Ref: 26
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(5)Measurement of Success
Hard Soft
criteria criteria
Direct monetary
benefits More qualitative
• Quantifiable in financial e.g. customer / user
terms e.g. Cost savings satisfaction
• Revenue generated

Direct non-
monetary benefits
Tangible and measureable
using KPI’s e.g. Fewer
customer complaints,
Improved delivery times

WB Ref: 1.8.4 27
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Now you try Exercise 1.3

For Cloud Airlines suggest appropriate success

measures both hard and soft (in addition to the on
time and on budget targets which can be taken as
read)
Note – aim is to produce targets for the project not
the business

WB Ref: 1.8.4 28
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Exercise Solution 1.3

Cloud Airlines
 Energy efficient - Achievement of appropriate environmental
standards (carbon emissions, use of fossil fuels etc.)
 Innovative - Design awards
 Smooth management:
1. Customer rankings / feedback – from passengers / airlines
during initial phase etc.
2. Queue times during tests at major points e.g. customs /
passports / car parks / runways
 Shops and restaurants – range of businesses signed up

WB Ref: Page 106 29

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Now you try……

Distinguish between hard and soft criteria in the

setting of objectives and explain any problems that
can arise in determining whether they have been met

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Project Initiation Document

Project
Output
See 1.8.2
Business
Quality Plan
Case
See 1.8.3
See 1.8.1

Governance Project Success

structures Initiation Criteria
See 1.7 Document See 1.8.4

WB Ref: 1.9 31
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Detailed Project Planning

 To develop a detailed plan, each of the project milestones must be
further broken down into stages, products or deliverables, and work
packages. A work breakdown structure (WBS) is a tree structure that
subdivides the work needed to achieve an overall project objective
into distinct, definable, measurable chunks. It shows all the steps
which must be taken to achieve the objective. It has four main
purposes:
 To ensure the scope of the total project is defined and organised.
 To help assign responsibilities and allocate resources.
 To permit accurate estimation of time and costs and any potential
risks.
 To allow for monitoring and controlling the project.
Example 7: A product tree for cooking the meal is shown in next slide.
Note that the products are outcomes not activities, i.e. not plan menu
(an activity) but menu planned (a completed outcome):

WB Ref: 1.10 32
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Work breakdown structure (WBS) - Example 7

Meal

Meal
Menu cooked
Shopping
planned and served
completed

Cooking Courses Serving

plan cooked plan
Shopping Shopping Supplier
list visit plan visits

Timings Oven / ring

plan availability
plan

Butcher visit

Grocer visit Tableware Room

First Main acquired prepared
course Dessert Drinks
course
Baker visit

Drink
supplier visit
Main Accompaniments
dish

WB Ref: 1.10 33
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Establishing project dependencies

Before the execution of the project can begin and the project team
commence their work packages, account must be taken of the order in
which activities must be carried out. Some activities are dependent on
another task starting or finishing before they can be completed. Some
project activities can be simultaneous, while others must be in the right
sequence. Two key outputs from this process are:
 Network diagrams.
 Gantt charts
Construction of network diagrams and Gantt charts is not within the
BCM syllabus. However you may be asked to interpret one.

WB Ref: 1.11 34
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Network diagram
To explain how a network is constructed we must first define some key
terms:
 Activity: the individual tasks which must be carried out to complete the
project. Each activity takes time; in other words it has a duration.
 Event: each activity must have a start and a finish. These are called
events. They have no duration; they are points in time. Significant
events, such as those on the critical path, are sometimes referred to as
milestones.
 Critical path: the longest sequence of activities through a project from
the start event to the finish event. The critical path therefore defines the
project duration – the minimum amount of time the project can take.
Activities on the critical path are known as critical activities.
 Non-critical activities: These activities have a float which means the
activity can be delayed by the length of the float without causing a delay
to subsequent tasks.

WB Ref: 1.11.1 35
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Network Diagram - Tutor led example 10

A builder has constructed the frame of a house and is now planning
the next stage of the project – to add the internal fittings.
The following activities have been identified:

Activity Duration Preceding activities

(Days)

A Electrical mains 3 -

B Gas piping 1 -

C Plumbing 2 -

D Plasterboard 4 ABC

E Electrical fittings 1 D

F Plumber’s fittings 1 D

G Carpenter’s fittings 2 D

WB Ref: 1.11.1 36
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Earliest and latest event times

In the diagram above you will have noticed that the event circles contain two additional
numbers in the lower half of the circle. These provide additional information as they identify:
 the earliest event time (EET) shown on the left hand side - the earliest time the event
can start assuming all prior events start at their EET
 the latest event time (LET) shown on the right hand side - the latest time the event can
start if the project is to be completed by the specified time.

WB Ref: 1.11.1 37
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Dummy activities in network diagrams

Sometimes in order to preserve the internal logic of a network diagram a dummy

activity in the form of a dotted or dashed line is added. A dummy activity has a
duration of zero and does not involve any actual project activity.
This can be illustrated by reference to the network diagram below:

WB Ref: 1.11.1 38
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Gantt Charts

A Gantt chart for a project uses exactly the same information as a

network diagram, in terms of activity durations, dependencies, critical
paths and floats. The information, though, is presented in a different
format.
In a Gantt chart the activities are shown as horizontal bars with their
lengths representing how many weeks each will take.
Consider the network diagram and the Gantt chart for the simple
building project side by side.

WB Ref: 1.11.2 39
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Now you try Exercise 1.6

WB Ref: 1.11.2 40
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Can you give examples of communication

channels that you use or are aware of?
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Communications plan - Aim

What is a communication What is the aim of a

plan? communication plan?
• Essential tool for managing • To garner support
stakeholders • Incorporate relevant feedback
• Ensure user’s of project’s
outputs are able to benefit
from them after completion

WB Ref: 1.12 42
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Communication Plan

1. Identify all those parties that will

Need to provide information to Require information from the

project team project manager

2. For each stakeholder group identified, plan should be

developed
Objectives of communication an
How and when information should
key messages which must be put
be supplied
across

WB Ref: 1.12 43
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Features of communication media

The appropriate communication media to use in a given situation will
depend on a number of factors:
 Cost
 Degree of coverage required
 Degree of consistency required
 Speed of feedback required
 Complexity of the message
 Personalisation of the message
 Need for two-way communication
 Need to engender team spirit
 Demographic and expectations of the stakeholders

WB Ref: 1.12.1 44
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A template for a standard communications plan is shown below. The specific relevant
stakeholder groups will need to be adapted to suit the specific context of the project. Continued

WB Ref: 1.12.1 45
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A template for a standard communications plan is shown below. The specific relevant
stakeholder groups will need to be adapted to suit the specific context of the project.

WB Ref: 1.12.1 46
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Tutor led exercise – Communication plan

Using the scenario for Hartshap Hotel, identify the
stakeholders, message you would convey to them and
what communication channel you would use
Stakeholder Message Communication
channel

WB Ref: 1.12 47
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Areas we covered

1 2 3

Project methodologies, governance structures and documentation

Establishing dependencies – WBS, Network diagrams, Gantt charts
Communication plan

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Homework

Now you try Exercise 1.1, 1.7, 1.8 and 1.9

Next session we will continue with Workbook 1,

please read Sections 1.13 to 1.31

WB Ref: 1.12.1 49
Any questions?

What can I help you with?

What topics did you find the most challenging today?
What would you like to go over in a tutorial?