P3 Business Analysis

2 Section F: Project Management F1.The nature of projects F2. Building the Business Case F4. Planning,monitoring and controlling projects F5. Concluding a project Designed to give you the knowledge and application of:

3  Distinguishing features of projects and the constraints they operate in.  Relationship between organisational strategy and project management.  Importance of developing a project plan and discuss the work required to produce it.  Describe the structure and contents of a business case document.  Analyse, describe, assess and classify benefits of a project investment.  Explain the role of a benefits realisation plan.  Role of benefits management and project gateways in project monitoring  Relative meaning and benefits of a post-implementation and a post-project review  ‘Lessons learned’ to future business case validation and to capital allocation decisions F: Project Management Learning Outcomes

4 What is project? Example of projects – Developing products to suit customer needs Setting up a new plant Extension or upgrade of existing factory A project is a series of tasks that will culminate in the formation or completion of some new product, initiative, or activity by a definite date. Unique purpose Often implemented to fulfil a strategic goal Requires various resources Requires primary customer/ sponsor Temporary in nature Features of project

5 What is project management? Is the process of: planning organising managing tasks and resources to accomplish a defined objective Project Management Time Resources Cost

6 Relationship between organisational strategy and project management Strategies are developed to achieve the business vision. From strategies, business objectives are defined. From business objectives, critical success factors are identified. Finally, projects are identified to achieve these critical success factors.

7 Initiation Phase decide whether or not a project should go ahead. Planning Phase define a workable scheme to achieve the overall project goal Executing Phase co-ordinate people and other resources to carry out the plan Controlling phase monitor and measure progress and take corrective action Completing Phase formalise acceptance of the project and bring it to an orderly end Projects can be divided into several phases to provide better management and control. The following phases make up the project life cycle. Project Lifecycle

8 Project planning 3. Develop Milestones, Deliverables and Project Tasks 2. Identify Key Phases 4. Develop and refine the project schedule 1.Define Objectives 5. Resource Allocations Project management tools Project Management Tools PRINCE softwareMicrosoft Project Primavera

9 Project planning tools Project Planning Tools Gantt charts Critical path analysis Used for planning and controlling complex projects Good for small projects 1.Projects are broken down into sequences of tasks 2.The duration of each task is estimated 3.The tasks are arranged in a logical sequence Plan the time scale and resources required for a project

10 Benefits management ensures that the desired business change or policy outcomes have been clearly defined, are measurable, and provide a convincing case for investment Defining the benefits Specifying the benefits Benefits realisation Generic benefits management process Benefits management

11 Business case Business case provides a rationale for investment and as such should support robust analysis and rational decision-making. Typical business case document consists  executive summary  introduction  project scope and organisation  benefit and cost  timing  certain other items Benefits of a project investment  Observable benefits  Measurable benefits  Quantifiable benefits  Financial benefits

12 Benefits realisation Benefits realisation is concerned with tracking whether the benefits are delivered after the project scope has been delivered. Role of the benefits realisation plan  understand the expected strategic outcomes of the project  identify the primary and secondary outcomes expected from implementation of the project  record the initiatives to ensure the delivery of the expected outcomes  identify the major risks that may impact the delivery Benefits delivery plan deals with the delivery of benefits and outlines Project initiation document (PID) forms the basis for gaining formal approval for the project - from the project owner at project initiation.

13 PROJECT GATEWAYS Gateway 1 CONCEPT APPRASIAL Gateway 2 PROJECT EVALUATION Gateway 3 BUSINESS CASE Gateway 4 DELIVERY AND ASSURANCE What we trying to achieve? (Project Idea ) Are we sure it can be done successfully? (Project Initiation Document) Why the project should go ahead? (Project plan) Is the project progressing according to plan? (Project Review)

14 Post-project review Purpose is to :  determine whether the benefits, including those set out in the business case, have been achieved  identify opportunities for further improvement Review is performed to identify  what was done well  what didn’t go well  whether the expected benefits were delivered  whether the cost and time budgets were met  what needs to be done to improve the outcome of the project Product Breakdown Structure (PBS) a PBS is a structure that identifies the products to be delivered by a project and is displayed in a logical hierarchy Work Breakdown Structure (WBS) is a technique that breaks down a project into ‘manageable components’.

15 Lessons learned Capturing lessons learned from projects is essential for any organisation in order to ensure efficiencies over time and development of best practices. Log of lessons learned must comprise of:  How did the lesson arise?  What are the key things learnt from the lesson?  What can other people do to recreate that situation or avoid it from happening? Refer to Test yourself 2 (page 486)

16 Recap  Distinguishing features of projects and the constraints they operate in.  Relationship between organisational strategy and project management.  Importance of developing a project plan and discuss the work required to produce it.  Describe the structure and contents of a business case document.  Analyse, describe, assess and classify benefits of a project investment.  Explain the role of a benefits realisation plan.  Role of benefits management and project gateways in project monitoring  Relative meaning and benefits of a post-implementation and a post-project review  ‘Lessons learned’ to future business case validation and to capital allocation decisions