ADVANCED PROJECT
MANAGEMENT
Project Audits
Project Auditing
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A major instrument of project evaluation is the project
audit
A project audit is an inquiry into any aspect of the
project to:
1.
2.
3.
Evaluate if the project delivered the expected benefits to all
stakeholders
Assess what was done wrong and what contributed to
successes.
Identify changes to improve the delivery of future projects
The Project Audit
• The project audit is a thorough examination of the:
• management of a project,
• methodology and procedures,
• records,
• budgets and expenditures and
• degree of completion
• A project audit is highly flexible and may focus on
whatever matters senior management desires
Purposes of audits/reviews
Learning from the project, specifically by:
 Evaluating the quality of project management and improving
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processes for organizing and managing projects
Identifying organizational strengths and weaknesses in
project-related personnel, management, and decision-making
techniques and systems
Improving the way projects contribute to the professional
growth of project team members
Identifying project personnel who have high potential for
managerial leadership
Identifying mistakes, remedy them, and avoid them in the
future
Project audit benefits
• Project audits
• enhance individual and organizational change and
• support a culture that promotes continuous improvement, and
• allow companies to increase their learning capacity with every
project undertaken, using learning tools such as project audits and
‘lessons learned’ databases
Depth of the Audit
• Depth of investigation mainly limited by time and money
(level of detail)
• Also consider indirect costs of the audit, e.g..:
• Accumulation, storage, and maintenance of auditable data
• The self protective activity of team members during an audit
• The potential for project morale to suffer as a result of a negative
audit
Project Management Maturity Model
Audits crucial for an
organisation to move up the
ladder
Outcomes of audits
Evaluated project success
1.
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There are four independent dimensions of success:
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The project’s efficiency in meeting budget, schedule and quality of
deliverables and scope requirements
Customer impact/satisfaction
Meeting business/organisational objectives, e.g., profit
Impact on future potential
Linking of achievement of the project goals into the
parent organization’s goals
Major Tasks of a Project Audit
1.
Evaluate if the project delivered the expected benefits
to all stakeholders
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2.
3.
Was the project managed well?
Was the customer satisfied?
Assess what was done wrong and what contributed to
successes
Identify changes to improve the delivery of future
projects
Project Audit Components
1.
2.
3.
4.
5.
6.
A review of why the project was selected
A reassessment of the project’s role in the
organization’s priorities
A check on the organizational culture to ensure it
facilitates the type of project being implemented
An assessment of how well the project team is
functioning well and if its is appropriately staffed
A check on external factors that might change where
the project is heading or its importance
A review of all factors relevant to the project and to
managing future projects.
Types of Project Audits
• In-process project audits
• Throughout the project
• In the early stages
• At key project stages
• At stages of greater risk
Allow for corrective changes if conditions have changed and
concentrate on project progress and performance
• Post-project audits
• Take a broader and longer-term view of the project’s role in the
organization
• Emphasise improving the management of future projects
Conducting a Project Audit
• Step 1: Initiation and Staffing
• Step 2: Data Collection and Analysis
• Step 3: Reporting
Step 1: Initiation and Staffing
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Assemble a small team of experienced personnel/experts
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Familiarize the team with the requirements of the project
The project audit team must have credibility in the eyes of
the management and also in the eyes of the project team.
They should :
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 Have no direct involvement or direct interest in the project
 Be perceived as impartial and fair
 Be willing to listen
 Have the independence and authority to report audit results without
fear of recriminations from special interests
 Be perceived as having the best interests of the organization in
making decisions
 Have broad-based experience in the organization or industry
Step 2: Data Collection and Analysis
• Audit the project on site
• Sample questions for the organisation:
• Was the organizational culture supportive and correct?
• Was senior management’s support adequate?
• Did the project accomplish its intended purpose?
• Were risks appropriately identified and assessed?
• Were the right people and talents assigned?
• Have staff been fairly reassigned to new projects?
• What does evaluation from contractors suggest?
• Were the project start-up and hand-off successful?
• Is the customer satisfied?
Step 2: Data Collection and Analysis
• Sample questions for the project team
• Were the project planning and control systems appropriate for this type
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of project?
Should all similar projects use these systems?
Did the project conform to plan for budget and schedule?
Were interfaces with stakeholders effective?
Have staff been fairly assigned to new projects?
Did the team have adequate resources? Were there resource conflicts?
Was the team managed well?
What does evaluation from contractors suggest?
Step 3: Reporting
• Produce a written report according to a pre-specified format
• Typical contents:
• Audit Report Content Outline
• Classification of project
• Project type
• Size
• Staffing
• Technology level
• Strategic or support
• Analysis of information gathered
• Project mission and objectives
• Procedures and systems used
• Organization resources used
• Recommendations
• Corrective actions
• Lessons learned
• Appendix
• Backup data
Step 3: Reporting
• Distribute the report to the project manager and project
team, debrief the project’s management
• Step 4? Follow up to see if the recommendations have
been implemented?
Key Points in Conducting Project Audits
• Have automatic times or points when audits will take
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place. Surprises should be avoided
Conduct audits carefully and with sensitivity
Audit staff must be independent from the project
Audit reports need to be used and accessible
Audits should support organizational culture
Conduct individual and team evaluations separate from
project audits
Project close-out activities
During project close out activities, some form of
audit should be carried out in step 4
1. Finalize testing, training, and preparation of user
manuals
2. Conduct a final project deliverables acceptance review the product deliverables, project processes
and project team performance
3. Conduct final contract review, close the contract,
close accounts and ensure all bills are paid, etc
Project close-out activities
4.
5.
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Conduct internal project post-mortem meeting
– on project successes, problems, issues,
“lessons learned”, and future process
improvement recommendations
Transfer project documentation (e.g. design,
documents, technical manuals) to the Project
Manager
Release or reassign resources, project team
members
Evaluating the project team, project team
members, and the project manager.
Perform a self-assessment as a Project Manager
- 360-degree feedback survey is best