Project Management: Tools & Techniques LESSON 3

The 4-D model D1 – Defining the project D2 – Design the project process D3 – Deliver the project D4 – Develop the process

…and the 4 procedures …

Developing the project …. Mechanisms Human resources Knowledge Experience Capital Tools- Techniques IT NEED/WILLING Constraints Economical Legal Logical Time-dependent Environmental Qualitative etc Project COVER THE NEED

Interested Parties (or Stakeholders) People or groups interested in the performance and/or success of the project affected or constrained by the project Project Manager: identify the parties, their interests, and sequence both in order of importance to the project Influence the project directly or indirectly interested parties interests project management practices organizational project management maturity standards, issues, trends

Interested Parties (or Stakeholders) Project Sponsor Project Manager Project team Project organization Programme organization Regional, national and international legislative and regulatory agencies Users, Customers, ….. Suppliers Community or special interest groups Politicians…..

Interested Parties (or Stakeholders) Elements that affect perception of interested parties Responsiveness the speed of reply to requests for information or changes Communication How readily the project team provided information Competence / professionalism The apparent ability of the project organization to deliver the outcomes Courtesy The style of treatment received by stakeholders Accessibility The ease with which individuals could be identified and contacted when information was required Maylor page 48

Identify Stakeholders Stakeholder analysis Step 1: Indentify all potential stakeholders Step 2: Indentify the potential impact or support each stakeholder could generate Step 3: Assess how key stakeholders are likely to respond in various situations and plan your reaction PMBOK Guide, 4th edition, 2008

Identify Stakeholders (Outputs) Stakeholder Register Identification info, Assessment info, Classification Stakeholder Management Strategy Stakeholder Analysis Matrix PMBOK Guide, 4th edition, 2008

The problem The city of XYZ has several bus companies. During the last years the frequency of bus accidents has gone up significantly. This has caused much delay and inconvenience for the passengers. There have also been several serious accidents in which passengers have been killed. The newspapers have taken a particular interest in the problem, and some of the companies that have had more than their share of bad publicity have registered a reduction in the number of passengers. Much of the problem is technical: the buses are old, and are in bad condition because of a persistent lack of spare parts. But the human factor is also important: many accidents have been caused by high-speed driving on bad roads. Assignment: Suppose that you are acting as the manager of one of the interested bus companies. Your task is to implement the Logical Framework Approach (LFA) in order to decide upon a project that will address above problem.

Participation Analysis On the basis of the available information, the first task is to develop a comprehensive picture of the interest groups, the individuals and institutions involved. Present these groups in the cells of the matrix shown in the following slide.

Hints to perform Participation Analysis: From the given problem information, think about the following involved stakeholders: Bus company Passengers General public Mass media Drivers Bus owners Categorize the above groups / stakeholders into three classes: Institutions Interest Groups Others

Make a more detailed analysis of the most important groups Select as most important groups: Passengers, and Bus Companies Make a more detailed analysis of these groups, i.e., identify for each group the following: Problems: The main problems affecting or facing the group Interests: The main needs and interests as seen from the group's point of view Potentials: The strengths and weaknesses of the group Linkages: Main conflicts of interests, patterns of cooperation or dependency with other groups Present your findings in the cells of the matrix shown in the following slide.

Hints to identify problems, interests, potentials and linkages: Consider the following findings: 1. Economic losses caused by busses out of service 2. Sufferings for victims and their families 3. Economically viable operations 4. Able to directly influence the problem 5. Can choose other bus companies if necessary 6. Delays caused by accidents 7. Reduced number of passengers 8. Dependent upon the passenger’s cooperation 9. Safe, expedient and cheap transport 10. Boycott the only means to influence the problem 11. Economic losses caused by payments to victims Categorize the above findings into four classes: Problems Interests Potentials Linkages and identify the group (Bus Companies or Passengers) each finding is more relevant / valid

Problem Analysis Suppose that you decided to give priority to passengers’ interests Set as “focal problem” for passengers the following: frequent bus accidents Identify the causes / effects of the focal problem Construct the “problem tree” You can complete the problem tree presented in the following slide Hints to perform problem analysis: The substantial and direct causes of the focal problem are placed parallel underneath it The substantial and direct effects of the focal problem are placed parallel on the line above it Causes and effects are further developed along the same principle to form the problem tree

Complete the Problem Tree

More hints for Problem Analysis: Consider the following factors : Drivers are not careful enough People arrive too late Insufficient maintenance Economic losses for passengers Bad condition of vehicles Loss of confidence in the bus company Bad condition of roads Passengers are hurt or killed Vehicles are too old Categorize them into cause and effect factors of the focal problem (“frequent bus accidents”) Place each factor accordingly in the problem tree

Objectives Analysis Suppose that you have decided to add "training of drivers" as a means to make drivers more responsible Construct the objectives tree by rewording problems in the problem tree into objectives (positive / desirable conditions)

Hints to perform Objectives Analysis The problem tree is transformed into a tree of objectives (future solutions of the problems) Working from the top downwards, all problems are reworded, making them into objectives (positive statements) The focal problem is similarly transformed into an objective Difficulties in rewording may be solved by clarifying the original problem statement If the statements make no sense after being reworded from problems, write a replacement objective, or leave the problem unchanged Check that meeting objectives at one level are sufficient to achieve the objective at the next level Problems: "If cause A, then effect B" Objectives: "Means X in order to achieve end Y“ Caution: Every cause-effect relationship does not automatically become a means-end relationship. This depends on the rewording Working from the bottom upwards, ensure that cause-effect relationships have become means-ends relationships Finally, draw lines to indicate the means-ends relationships in the objectives tree.

How the Objectives Tree is developed Reformulate all elements in the problem tree into positive (desirable) conditions Review the resulting means-ends relationships to assure validity and completeness of the objective tree If necessary: Revise statements Delete objectives which appear unrealistic or unnecessary Add new objectives where necessary Draw connecting lines to indicate the means-ends relationships.

Reformulate “Problems” into “Objectives” Economic losses for passengers Loss of confidence in the bus company Passengers are hurt or killed People arrive too late Frequent bus accidents (focal problem) Drivers are not careful enough Bad condition of vehicles Bad condition of roads Vehicles are too old Insufficient Maintenance Complete the objectives (cells of the 2nd column) in the table: Add “Drivers are better trained” as a means to make drivers more responsible

Complete the Objectives Tree Cause Effect Complete the Objectives Tree

Alternatives Analysis Three steps: Eliminate the objectives which cannot be achieved Identify two possible alternative options (means-end branches in the objectives tree) which could become possible projects These means-end branches constitute the alternative options Number and label thee alternative options Evaluate the two alternative options (and their combination) with respect to the following viability criteria: Cost Chance for success Cost/Benefit Time horizon Social risk

Alternatives Analysis: 1st Step Determine and eliminate the objectives which cannot be achieved

Alternatives Analysis: 2nd Step Identify two possible alternative options (means-end branches in the objectives tree) which could become possible projects These means-end branches constitute the alternative options Number and label thee alternative options Show these options in the objectives tree

Re-design the Objectives Tree

Alternatives Analysis: 3rd Step Evaluate the two alternative options (and their combination) with respect to the following viability criteria: Cost Chance for success Cost/Benefit Time horizon Social risk Select one of the options (option 1, option 2 or their combination) as the appropriate project strategy for the bus company

(Option 1 & Option 2 combined) Complete the Comparison Table Use linguistic terms (Low/High, Short/Long etc.) to evaluate the options Justify your evaluations Option 1 Option 2 Option 3 (Option 1 & Option 2 combined) Cost Chance for success Cost/Benefit Time horizon Social risk

Compete the Project Matrix (PM)

Complete the Project Matrix (PM): 1st Step (1/2) Identify main project elements for the selected project strategy Use the objectives tree to identify the main project elements Start at the top of the objectives tree and work downwards If necessary, reformulate the wording from the objectives tree to make them more accurate

Complete the Project Matrix (PM): 1st Step (2/2) Transfer the project elements into the first vertical column of the project matrix (Goal, Purpose, Outputs, Activities) The goal describes the anticipated long term objective towards which the project will contribute The purpose describes the intended effects of the project (project purpose) for the direct beneficiaries as a precisely stated future condition. There should be only one immediate objective The outputs are expressed as objectives which the project management must achieve and sustain within the life of the project. Their combined impact should be sufficient to achieve the immediate objective Activities are expressed as processes. Avoid detailing activities Main inputs for the activities can be expressed in terms of funds, personnel, goods etc.

Complete “Goal”, “Purpose”, “Outputs”, “Activities” and “Inputs” cells in the PM matrix

Complete the Project Matrix (PM): 2nd Step Identify assumptions Assumptions describe conditions that must exist if the project is to succeed but which are outside the direct control of the project management Start from the bottom of the objectives tree and work upwards Examine whether the inputs are sufficient to undertake the anticipated activities or whether additional events must also take place outside the project (assumptions) Some assumptions can be derived from elements in the objectives tree which were eliminated

Complete “Assumptions” cells in the PM matrix

Complete the Project Matrix (PM): 3rd Step Determine indicators The indicators specify how to verify the attainment of objectives and outputs. Some indicators can be derived from the objectives tree (an indicator, for example, can specify exactly how much the frequency of bus accidents should be reduced and by which date)

Complete “Indicators” cells in the PM matrix