Chapter 6 Project Management and Project Cycle Management

Content of the lecture What is a project? How does project management benefit you? Project cycle management (PCM) PCM tools Project managers

Learning objectives After this lecture participants will understand the basics of project management, know the role of project manager and principles of project cycle management

A project What is a project –Defined start and end, specific scope, cost and duration –A temporary endeavor undertaken to create a unique product, service or result –A series of activities aimed at bringing about clearly specified objectives within a defined time period and with a defined budget (EU Aid delivery methods)

Benefits of project management Project management was developed to save time by properly planning a project and considering all relevant factors which may affect its outcome The benefits have been proven - it saves time and money - and generates a more successful outcome …. if guidelines are followed

How does project management benefit you? You will have goal clarity and measurement Your resources will be coordinated Your risks will be identified and managed You will increase the possibilities of time savings You will increase the possibilities of cost savings You will increase the possibilities of achieving the agreed outcome You will increase the possibilities to deliver projects successfully

Improved quality Decision-making routes and processes are clearly defined Deadlines, costs and resources are controlled systematically –All processes in the project management activity chain are coordinated to ensure they remain in harmony with one another The result will help you to get: –more speed –greater flexibility –improved quality

What project management helps you to achieve Plan tasks in project Avoid dependencies problems Reduce risks Track progress accurately Organize project process and timeline Improve stakeholder - staff communication Improve management of stakeholders ’ expectations Complete within budget and on time

Project success factors Stakeholder involvement Executive management support Clear statement of requirements Proper planning Realistic expectations Smaller project milestones Competent staff Ownership Clear vision and objectives Hard working and focused staff

The triple constraint Quality Time Cost

Project Cycle Management (PCM) PCM –Is a methodology for the preparation, implementation and evaluation of projects based on the principles of the logical framework approach –It describes management activities and decision- making procedures used during the life cycle of a project (key tasks, roles and responsibilities, key documents and decision options)

Is useful in designing, implementing and monitoring a plan or a project A clear concise visual presentation of all the key components of a plan and a basis for monitoring It clarifies: –How the project will work –What it is going to achieve –What factors relate to its success –How progress will be measured Project cycle management (PCM)

Programming Implementation Formulation Evaluation Identification Financing decision The project cycle

The three PCM principles Decision making criteria defined at each phase The phases in the cycle are progressive Project identification part of structured feedback

PCM requires the active participation of key stakeholders and aims to promote local ownership PCM incorporates key assessment criteria into each stage of the project cycle PCM requires the production of good quality key documents in each phase to support decision making PCM is result based

PCM helps to ensure that Projects are part of the country policy objectives Projects are relevant to the real problems of target groups / beneficiaries –Clearly identified stakeholders (primary target groups and final beneficiaries) Projects are feasible (objectives are realistic) –Clearly defined coordination, management, financing arrangements, monitoring and evaluation Benefits generated by projects are likely to be sustainable

PCM tools The logical framework approach Quality assessment criteria Institutional capacity assessment Economic and financial analysis Promoting participatory approaches

Time management Defining project activities Activity scheduling Create and controlling the project activities An inch of time cannot be bought for an inch of gold." - Chinese proverb An inch of time cannot be bought for an inch of gold." - Chinese proverb

There's an old joke when it comes to project management time: 'The first 90 percent of a project schedule takes 90 percent of the time. The last 10 percent takes the other 90 percent of the time' Time management grid

Managing the scope of the project Project scope management constitutes 'the processes to ensure that the project includes all of the work required, and only the work required, to complete the project successfully.‘ Project scope has several purposes: –It defines what work is needed to complete the project objectives –It determines what is included in the project –It serves as a guide to determine what work is not needed to complete the project objectives –It serves as a point of reference for what is not included in the project

Role of a project manager The role of a project manager is affected by the one-shot nature of the project The role of a project manager is difficult when team members are still linked to their permanent work areas –Members may be assigned to several projects simultaneously Managers must rely on their communication skills and powers of persuasion

Project manager attributes Leader & manager Facilitator, coordinator Communicator Credibility: Technical/ Administrative Work under pressure Goal-oriented Innovator Versatilist Knowledgeable about the organization Political sensitivity Conflict: sense, confront, resolve Can deal with stress, chaos, ambiguity Planning and follow- through Ethical dilemmas

Project manager attributes Specialist Generalist Versatilist X

Project manager duties Reports to senior management Communicates with users Plans and schedules Obtains and allocates resources Controls risks Manages people Coordinates Implements quality assurance Controls the budget Delivers results

Project teams Diversity of knowledge needed Cross-functional Self-directed Often ad-hoc or temporary Often distributed (geographically) Start and end dates

Project personnel skills Technical Political Problem-oriented –(vs. discipline-oriented) Goal-oriented Flexibility, adaptability High self-esteem –can handle failure, risk, uncertainty, unexpected –can share blame and credit

Governmental projects Legal constraints on government projects –Laws, statutes, ordinances, directives, regulations, budgets, and policies Accountability to the public –Accountable to legislative & judicial bodies, interest groups, the press and the public Utilization of public resources –Objective is not higher ROI, but public good

Project governance Risk planning –Balancing risk avoidance and risk acceptance Life cycle management –From concept to replacement Strategic change –Balancing the solution and the ability to utilize Value management –Adopting consistent processes, building in quality and adding value

Project management methodology scope What is a methodology –The way we do things around here ! –Communication, consistency, understanding, accountability Project management vs. other activities This way project management uses the same approach for all situations

Group Discussion Questions Evaluate Addis railroad project based on the project cycle Management and principles of Project cycle management. What is the socio-economic impact of the project? What experiences we can learned from this project?