1 ,.# 1Éswot analysis open 3.4 open 3.6 project costs certified project officer institute of...

FIVE D A Y W O R K S H O P

C O P Y R I G H T I N S T I T U T E o f P R O J E C T M A N A G E M E N TA L L R I G H T S R E S E R V E D

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CERTIFIED PROJECT OFFICER

DAY 1.1INSTITUTE OF PROJECT MANAGEMENT

Certified Project OfficerDay 1: Project Initiation

Course structure

Day 1: Initiating projects

Day 2-3: Planning projects

Day 4: Project leadership

Day 5: Project delivery & close

Attendance register

Active participation

Assessment portfolio

https://open.institute.pm

OPEN x.x



Initiating projects

Project frameworks

Projects v operations

The project lifecycle

Project methodologies

Opportunity definition

Concept canvas

Risk profile

Stakeholder identification

Stakeholder engagement

Defining stakeholders

Stakeholder prioritisation

Engagement approaches

The business case

Identifying options

Analysing impacts

Multi-criteria analysis

Project frameworksProjects v operations

The project lifecycle

Project methodologies

OPEN Unit 1: Project frameworks



What is a project?

A temporary endeavour

undertaken to create

a unique product, service or result

OPEN 1.1

ProjectsOperationsOPEN 1.2



Projects

Routine / cyclicTemporary / unique

DISRUPTIVE CHANGE O

RGANIC CHANGE

Established relationshipsNew & complex relationships

Routine planningSignificant planning

Based on precedentUncertain performance

Self-financingUp-front finance

Operations

OPEN 1.3

Project lifecycleOPEN 1.5



Activity 1.1

Reflect on a project you have recently contributed to

How well did you (or the project team)…

…test the project concept with stakeholders?

…plan the project?

…manage change during project delivery?

…capture and communicate lessons learned?

The cost of changeOPEN 1.6



The triple constraintsOPEN 1.7

Discussion

Can a project have too much time or money?

OPEN 1.7



Activity 1.2

In your opinion, why do projects underperform or fail?

OPEN 1.10

Discussion

What are the benefits of a project methodology?

OPEN 1.8



Opportunity definitionConcept canvas

Risk profile


OPEN Unit 3: Choosing the right project

Project initiation

Doing theright project

Doing theproject right

OPEN 3.0



Initiation process

OPEN 3.1

Opportunity definition

OPEN 3.1



Current v ideal state Link to the objectives of the organisationpaying for it

What outcomes / benefits do we need to have?

What outcomes / benefits would be nice to have?

What is out of scope?

OPEN 3.2

Upgrade office technology Improve efficiency and customer service

Improve productivity

Be scalable for growth

Integrate with existing technology

Enable new service channels

Reduce energy costs

Office furniture

Telephones

12 24

now March

40,000 75,000

50,000

Jane S.

Wendy Q.1,000 10

✔ ✔Don J.

OPEN 3.2



Activity 1.3

There are 100 project managers in our organisation

Our CEO wants to recognise and reward high performing PMs

Prepare a project concept canvas for this opportunity

Brainstorm benefits before you decide whether they are ‘must’ or ‘might’ have outcomes for your solution!

https://open.institute.pm/free-project-management-resources/

OPEN 3.2

Discussion

What are the risks to the organisation of this opportunity?

The risks to project delivery are analysed in the project plan

OPEN 3.8




Activity 1.4

Run the risk profile tool over your opportunity


Who is a stakeholder?

An individual, group or organisation who…

…can influence, AND/OR

…is impacted by, AND/OR

…is (or would be) interested in

…a decision, activity or outcome of the project

OPEN 2.0



Stakeholder management processOPEN 2.1




Activity 1.5

Who are the stakeholders in the case study opportunity?

Project stakeh

olde

rs

OPEN 2.2–2.4



Stakeholder engagementDefining stakeholders

Stakeholder prioritisation

Engagement approaches

OPEN Unit 2: Project stakeholders

Stakeholder prioritisationOPEN 2.6



Activity 1.6

What do stakeholders expect of their project manager?

What can stakeholders do for their project managers?

Are all stakeholders equal?

OPEN 2.7

OPEN 2.6



OPEN 2.6

OPEN 2.6



OPEN 2.6

-4

Resident

OPEN 2.6

+9

Supplier



OPEN 2.6

+20

Project team

OPEN 2.6



Activity 1.7

Prioritise your stakeholders using the power / interest matrix

AB

E

H

F

D

C

G

OPEN 2.6

Stakeholder engagementOPEN 2.7



OPEN 2.7

Discussion

What information should we document on our stakeholders?

OPEN 2.10




Activity 1.8

Complete detailed stakeholder register entries for one or more key stakeholders in the case study project


The business caseIdentifying options

Analysing impacts

Multi-criteria analysis

OPEN Unit 3: Choosing the right project



OPEN 3.3

Options identification

Creative thinking

Options identification

Generating ideas

Reflection

Brainstorming

Secondary sources

Organising ideas

Lists

Mind-maps

Flowcharts

Critical thinking

Options analysis

Threshold feasibility

Is this something people want?

Is this something we can do?

Is this something we can afford?

Is this something we are allowed to do?

OPEN 3.3



Activity 1.9

Identify five (5) ways to realise the outcomes identified in the project concept canvas

OPEN 3.3

OPEN 3.4

Feasibility analysis



Relative feasibility

Questions to ask…

Do people want Option A more than Option B?

Is it easier for us to produce Option A than B?

Is Option A more affordable than Option B?

Other methods to use…

Pros and cons

SWOT analysis

OPEN 3.4

OPEN 3.6

Project costs



Estimating project (output) costs

Source data

Commercial norms

Market / catalogue prices

Similar, past projects

Independent cost assessment

Quantity surveyor

Estimation method

Consensus method

Statistical methods

Mean, median, mode

PERT three-point estimates

Pro rata (parametric)

Advanced statistics

OPEN 3.6

Ownership (outcome) costs

Operating costs

Infrastructure

Rent, power, telecoms, water

Labour and materials

Routine maintenance

Interfaces (eg IT)

Compliance and insurance

Strategic costs

New user training

Major repairs

Upgrades / scalability

Decommissioning

OPEN 3.6



Activity 1.10

A new car costs $20,000 to purchase and $5,000 per year to operate

A second-hand car costs $5,000 to purchase and $10,000 per year to operate

Which is the better option over two (2) years?

Which is the better option over four (4) years?

OPEN 3.6

Net financial impact

Post-project revenue less ownership (outcome) costs

Profit / loss

Annualise – if possible – to enable comparison

What is the useful life of each Option?

OPEN 3.6



Discussion

Why is it important to accurately estimate financial costs and impacts?

What are the potential consequences of under-estimating?

What are the potential consequences of over-estimating?

How accurate do we need to be in the business case?

OPEN 3.5

Other impacts

IntangiblesKnowledge / skills

Stakeholder relationships

Brand / reputation

Corporate culture

Competitive advantage

Community well-being

Who is impacted?Our organisation

Our clients

The community

The environment

How can we measure these benefits?

OPEN 3.7



Activity 1.11

What non-financial metrics might you use to baseline and measure…

…improved productivity?

…customer satisfaction?

…employee health and safety?

…corporate culture?

…environmental impact?

OPEN 3.7

OPEN 3.9

Recommendation



Multi‐criteria analysis

Compare options across common criteria

Use standard scores for each criteria

Best score wins!

Criteria should be clearly defined by the organisation

Criteria can also be weighted by the organisation

OPEN 3.9

Multi‐criteria analysis (MCA)OPEN 3.9



Discussion

What criteria could you use to evaluate the options identified in the case study project?

OPEN 3.9

Sample recommendation

It is recommended that detailed planning commence on Option B.

A complete project plan is to be presented for Board approval in four (4) weeks time

The plan should continue the assumptions made in the business case, and include a detailed WBS, schedule, budget, stakeholder and risk registers and any other documentation deemed relevant by the PMO

The PMO should also immediately appoint a suitably qualified project manager and project steering committee

If the assumptions of the business case are invalidated by the planning process, the Board should be duly advised and a new course of action recommended

It is proposed that a budget of $15,000 be allocated to planning the project

OPEN 3.9



Other recommendation detail

Planning constraints

Time – key milestones

Cost – high-level budget

Scope – key deliverables

Quality – acceptance criteria

Critical success factors

For example…

Resource availability assumptions

Other project dependencies

Key stakeholder relationships

Known project risks

OPEN 3.9


Project charter

The project charter authorises project planning

The project plan authorises project delivery

Stipulates planning constraints

See the business case recommendation as an example

Stipulates high-level project constraints

Scope requirements

Target milestones (schedule)

Expected budget range

Can be stand-alone; best embedded in concept canvas / business case

OPEN 3.10



Project sizingOPEN 8.9

Go / no go decision points

Activity 1.12

What will project success look like for our case study project?

1 ,.# 1Éswot analysis open 3.4 open 3.6 project costs certified project officer institute of...

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