BVI Project Management Guidelines
Government of the Virgin Islands (U.K.) Project Management Guidelines
Version 2.0 – July 2009 Publisher & Editor: Project Support Services Unit Ministry of Finance Government of the Virgin Islands (U.K.)
2009 Copyright
BVI GOVERNMENT PROJECT MANAGEMENT
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Preface
Projects – we all get caught up with them in some form or another, as a Project Team member, Project Manager, Project Sponsor or as a Steering Committee member, but why do we conduct some of our business within projects and put as much emphasis on good project management? A project involves a group of inter-related activities that are planned and then executed in a certain sequence to create a unique product or service within a specific time frame. Personally, everyone encounters projects everyday – from career planning to the family vacation. Government projects can be as simple as developing a strategic plan or policy paper to as complex as the construction of the Central Administration Complex. A common misconception when the word „project‟ is heard is that it involves construction but projects and programmes can and do include „soft or non-tangible‟ deliverables such as staffing, training, procedures and technology. National changes in technology, information infrastructure, legislative policy and work processes are being managed through projects. Project management is a formalised and structured method of managing change in a rigorous manner. It focuses on producing specifically defined deliverables by a certain time, to a defined quality and with a given level of resources to achieve outcomes. Project Management procedures would enable the Government of the Virgin Islands to manage and better control the Territory‟s resources on any given activity, within time, budget, and performance constraints in the short term. In the long term, these procedures will allow the Ministry of Finance to enhance its financial management capabilities by providing the information needed to allow for programme budgeting and facilitate a proactive approach to economic planning. The approach is consistent with the objectives set out in the National Integrated Development Strategy (NIDS), which seeks to integrate sector planning into a more interdependent development model – economic, social, environmental, and physical planning. These Guidelines are a collaborative effort of research done into industry best practices and what is applicable to our situation in the Public Sector. The guidelines are not an attempt to provide the definitive answer to project management, as there is none, but a chance to enable organisational learning through drawing on the experiences of others. They identify the Key Elements that exist in all projects no matter what the size and complexity. This still requires a level of judgement and provides an appropriate starting point for thinking of relevant issues and initiating important project management tasks. The Guidelines are designed to be a working reference, a guide, and should not be read as a complete text. The Guidelines are a living document and will be reviewed on an ongoing basis, incorporating responses to issues and concerns raised by those working on Government projects. 2 Version 2.0
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Background
The principal purpose of the BVI Government Project Management Guidelines is to support the efforts of Ministries or Departments to more effectively plan, implement and monitor capital investment projects in a manner consistent with stated national objectives, and within the limits of financial and other resource constraints. A subsidiary purpose is to provide the Ministry of Finance with the capacity for more effective allocation and management of the Territory‟s financial resources. In keeping with Government‟s desire to achieve a more targeted and results oriented expenditure programme, the Guidelines seek to achieve value for money by more consistently realizing project objectives with optimal results.
Development History
Project Support Services Unit in the Ministry of Finance has developed the current version of the BVI Government Project Management Guidelines. Version Date 1.0 1.1 1.2 2.0 November 2004 February 2006 November 2007 May 2009 Reason Draft Initial Release Change in Constitution General Revision Sections All All Section 1 All 3 Version 2.0
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Table of Contents
1. Project Management - The Basics
Project Support Services Policies & Recommendations .................................10
..................................................... From Outcomes to Inputs – the ITO Model
........................................................ Planning and Managing Project Activities
...................................................... A Project Management Governance Model
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Steering Committee Roles and Functions
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4. Organisational Change Management
..................................... Planning for Organisational Change within Projects
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Managing Consultants and Contractors - a Project Manager‟s Perspective
............................. Quality Assurance and Quality Management for Projects
.................................................... The Crucial Role of the Steering Committee 8.8.
......................................................... Closing a Successfully Completed Project
PM010 - Project Proposal Document ..............................................................82
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Appendix III: Steering Not Rowing: A Charter for Project Steering Committees and their Members
Appendix IV: A Charter for Project and Quality Management Advisors
Appendix V: A Charter for Project Management Quality Review Consultants
Appendix VI: Where to Get Additional Help
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Introduction
What is the purpose of this document? This document provides an overview of the essential components of a project management methodology, i.e. the „what‟, „when‟ and „why‟.
As a methodology, this document provides a structured approach to managing projects within the British Virgin Islands Public Service. It does not cover other essential elements for the management of projects, such as developing the skills the Project Manager needs to be able to manage projects effectively. These include common sense, well developed interpersonal skills, a sense of humour, team leadership skills, communications skills (written and verbal), time management skills and so on. These skills are generic management skills, and not specifically related to project management. The idea is to establish a modus operandi within which projects and programs are planned and implemented on the basis of the merit of the project/program. The overall project goals should be clear; scope identified and timeline transparent. The submission of project proposals or programs by Ministries or departments should be done throughout the year to the Project Support Services Unit (PSSU) at the Ministry of Finance, so that proposals can be properly analysed before the budget process starts. The most important benefit from project management is the fact that it gives accountability throughout the life cycle of a project, which enhances the chances of successful completion. The Ministry of Finance would be in a better position to manage the Territory‟s finances with the information that will come out of the project management processes and can therefore plan beyond the typical one-year horizon. The Minister of Finance would also be able to look at the bigger development planning picture and prioritise funding based on data supplied in a multi-year framework How should these Guidelines be used? Most of the principles presented that apply to large projects also apply to smaller projects. However, the extent to which these principles are applied will vary, depending on the complexity of the project. Ministries and departments may adopt a scaled down version of these Guidelines to support the management of smaller projects. These Guidelines have been developed with industry standards in mind and are designed to reflect the requirements of most capital projects. However, they will need to be adapted to precise organisational situations. The general rule of project management is to look ahead and try to plan before acting until the law of diminishing returns sets in. The amount of planning possible in advance is very much dependent upon the nature of the project or the characteristics of the change being undertaken. 7 Version 2.0
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1. Project Management - The Basics
This section of the BVI Government Project Management Guidelines includes: What is a project? What is project management? What are the Key Elements that must be considered no matter what the size and complexity of the project? A generic high-level conceptual view of the life of a project which links the key project management documents to each stage. What is a Project? A project involves a group of inter-related activities that are planned and then executed in a certain sequence to create a unique product or service within a specific time frame. Projects are often critical components of an organisation‟s „business‟ strategy or relate directly to policies and initiatives of the Government. Projects vary in size or complexity, for example they may: involve changes to existing systems, policies, legislation and/or procedures; entail organisational change; involve a single person or many people; involve a single unit of one organisation, or may cross organisational boundaries; involve engagement and management of external resources; cost anywhere from $1,000 to more than a $1 million; and require less than 100 hours or take several years. What are the essential characteristics? The criteria for projects that will be operated under this system are as follows: a) A project has a defined beginning and end, b) A project use resources (people, time, money) c) A project has a unique outcome, 8 Version 2.0
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GUIDELINES d) A project should follow a planned, organized approach to meet its objectives, e) A project always has a unique set of stakeholders. This includes single projects or several projects that are part of a larger programme. Examples of projects are transfer of offices, drainage for roads, creating a new department, Public Service Week, construction of the Central Administration Complex, Postal Development Scheme and Agriculture Infrastructure Development. The majority of government projects are funded from the Capital Fund and does not include single vehicle purchases over $45K, even though the process can be applied on a small scale. However, some purchases may be part of a program plan and should be included as part of the programme budget and not individually. The structure of a project will vary depending on the benefits it is intended to provide. To achieve its objectives, a project may need to be structured into a number of sub-projects. For example as part of the Postal Development Scheme subprojects would be a marketing strategy, operations strategy, new post offices, new equipment and organizational restructuring. What is Project Management? Project Management is a formalised and structured method of managing change in a rigorous manner. It focuses on achieving specifically defined outputs that are to be achieved by a certain time, to a defined quality and with a given level of resources so that planned outcomes are achieved. Effective project management is essential for the success of any business project. The application of any general project management methodology requires an appropriate consideration of the corporate and business culture that forms a particular project's environment. The most important benefit from project management is the fact that it gives accountability throughout the life cycle of a project, which enhances the chances of a successful completion. Project Management procedures would enable the Government of the Virgin Islands to manage and control the Territory‟s resources on a given activity, within time, budget, and performance constraints in the short term. In the long term, these procedures will allow the Ministry of Finance to enhance its financial management capabilities by providing the information needed to allow for programme budgeting and facilitate a proactive approach to economic planning. To enable persons who may not have experience in project planning and management better manoeuvre the Project Management System, standards and policies have been defined as to how things should be laid out in here in the guidelines and also in the BVI Government Project Planning and Management Handbook. 9 Version 2.0
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Project Support Services Policies & Recommendations
The following are Project Support Services Unit policies and recommendations that are to be adhered as Financial Instructions in respect to project management of any government projects. POLICY AREA POLICIES Documentation Project Implementation Status Reporting 1. Project documentation should be submitted according to the standard templates defined by Ministry of Finance. 1. A Project Execution Plan is required for the release of project funding by the Budget Unit. 2. Project work should not commence until the responsible Accounting Officer registers written authorization in the form of a copy of the signed contract(s) with the Ministry of Finance. 1. Status reports should be produced monthly for all projects and a copy submitted to the PSSU/Ministry of Finance. Project Team Meetings Meetings Project Sign-off Project Governance Project Reviews 1. It is recommended that team meetings should be conducted at a frequency to be determined by the Project Manager. Once per month is the minimum recommended. 1. All meetings are to be accompanied by minutes and copies of minutes should be sent to the PSSU/Ministry of Finance. 1. No project should be considered complete until the Permanent Secretary signs off on a Handover Form accepting all deliverables. 1. All government projects should have a governance structure regardless of size. Large complex projects should have a Project Manager and team assigned. On small to medium projects, the Accounting or Finance & Planning Officers are responsible for managing projects as needed. 1. A Project Working Group will evaluate project proposals once per quarter. 10 Version 2.0
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GUIDELINES POLICY AREA Scope Management POLICIES 2. PSSU will conduct a progress review of ongoing projects quarterly with Finance Officers/ Project Team. 1. All projects will use the project scope change mechanisms to manage scope changes. 2. The Client Ministry should approve variation requests before work is executed. 11 Version 2.0
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1.1. The Life of a Project
Project planning should not be delayed until project start-up but should occur as soon as the project concept comes to life. Ideally project initiation results from strategic and operational plans set out by each Ministry as outlined in the chart below. The source of ideas could be the National Integrated Development Strategy and National Integrated Development Plan with the ultimate outcome being the improved quality of life for all Virgin Islanders as depicted in the chart below. The correlation between national development planning, the budget process and project management are shown as information flows from one process to the other.
NATIONAL INTEGRATED DEVELOPMENT STRATEGY (NIDS)
Project Planning & Management Process
MINISTERIAL STRATEGIC PLANS (5 YEARS) Budget Process MINISTERIAL OPERATIONAL PLANS (2-3 YEARS) INITIATION Proposals Recurrent Estimates Capital Estimates PSIP (MULTI-YEAR) BUDGET
OPERATIING PROCEDURES "Value For Money" "Improved Quality of Life"
MANAGEMENT FINALIZATION
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GUIDELINES A high-level project management approach that fits most projects at a macro level is presented diagrammatically in Figure 1. It should be emphasised that this model represents an over-simplification of most projects, but is included to make sense of what can be a quite messy and non-linear process in reality. Figure 1 High-level conceptual view of the generic life of a project Project Management processes can be categorized into a three (3) stage life cycle: 1) Initiation: At this first stage of the project life cycle, a project‟s goals and objectives are defined and documented as well as other project information that will be used to determine whether the project idea is a viable and feasible one. A project proposal is delivered at the end of this stage and is submitted to secure funding for the project. 2) Management: Activities in the second stage of the life cycle can be broken into two (2) sub-categories: a) Planning and b) Implementation. Ongoing management of the stakeholders, risks, quality, resources, issues, and work of the project is indicative of this period in the life of the project and uses most of the project resources. The deliverables during this stage are the project execution plan and project status reports. Management processes focus on “who, how and when” of a given project. 3) Finalization: Projects should be closed out in a formal manner to ensure that the project results meet customer requirements and expectation identified at the beginning of the project. Invaluable lessons learnt during the project are documented in a closeout report and evaluation report for future reference to improve the success rate of government projects. The entire project life cycle is outlined in the Project Management Checklist (Form PM001) and details a punch list of the activities that should be followed on any project from initiation to completion, as applicable. 13 Version 2.0
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1.2. INITIATION STAGE
As previously mentioned, project initiatives may originate directly from Government policy or from a Ministry‟s operational planning processes that are driven by Government policy. New initiatives may also be identified outside these processes, due to changes in Government policy, external factors, or just a good idea or opportunity comes along. Initiation processes focus on the “what” of a project and it cannot be stressed enough how important the early stages of the project are in order to achieve project success. Projects are usually justified in terms of corporate objectives and should be closely aligned to them. This alignment is explored through initial scoping and planning documents such as the Project Proposal, the Feasibility Report and/ or the Project Business Case. A) Initiation Processes include the establishment of goals and prioritization for a project. Documentation: Project Proposal/ Business Case/ Feasibility Study. Refer to Appendix I for the Project Proposal template. 1. Inception: From the moment a project idea is conceptualised, steps should be taken to formalize the idea to see whether it is feasible and aligns with strategic objectives. Ministries should submit a Project Proposal (Form PM010) for each project idea to the Ministry of Finance‟s Project Support Services Unit (PSSU), who will analyse the proposals for consistency with national objectives, and make a recommendation on financial feasibility and viability. 2. Appraisal: Depending on the complexity of the project, further study may be required and a Project Business Case or Feasibility Study 1 recommended before further planning takes place. PSSU will enter proposals into the Project Management Information System (PMIS) for monitoring during the management and finalization stages of the project. 3. If after a project has started, the original budget is forecasted to be over-run, a revised execution plan should be submitted to the PSSU along with the new initiative form requesting additional funding. 4. Proposals with blank spaces in the proposal form will be returned to the responsible Ministry for completion as empty spaces indicate that the project concept may need to be further developed before submission for review. 1 Refer to the Government Project Management Guidelines Chapter 10 for more information on conducting a Feasibility Study. 15 Version 2.0
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1.3. MANAGEMENT STAGE
This is viewed as the most productive and hectic stage that involves planning the project out and the implementation of the plan. Thus, this stage can be broken down into two (2) subsections for simplicity: a) Planning and b) Implementation. Ongoing management of the stakeholders, risks, quality, resources, issues, and work of the project is indicative of this period in the life of the project. The management documents are the Project Execution Plan and Project Status Reports. Management processes focus on “who, how and when” of a given project. A) Planning Processes involve defining the work necessary for the completion of a project, identifying human resources, devising a schedule and developing a budget for a project. Deliverable: Project Execution Plan (PM020). The execution plan is the baseline from which the project is implemented and controlled. It serves as a communication tool amongst the stakeholders. If there is a Project Manager, they are responsible for submitting the Project Execution Plan to the Client Ministry. The project is handed over to the Project Manager for planning by using a Handover Form (Form PM022). Refer to the Finalization Stage for more information on this document. Project Execution Plans can also be planned in the Eclipse Project Portfolio Management System. Contact PSSU for more information. 1. Project Execution Plans should be submitted one month after the approval for funding of the Appropriations Act/ Annual Budget by the House of Assembly. The plan should be submitted to the Project Support Services Unit, Ministry of Finance for review and is required in order for the de-reserving of project funds. Refer to the Appendix I for a Project Execution Plan template. 2. A plan is developed through the following steps using the Project Execution Plan template provided. i. Depending on the size and complexity of the project, it is advisable to have a dedicated Project Manager assigned to develop the Execution Plan for the next stage of the project‟s life cycle. For small to medium size projects the Finance and Planning Officer or Department Head is responsible for writing and maintaining the Project Execution Plan. ii. Create a list of the tasks/activities that will lead to achieving the project goals as outlined in the proposal document. This list of activities will make up the Work Breakdown Structure (WBS) that will be used to create a schedule and budget. Hint: If the activity cannot be scheduled or a cost attributed to it should be re-defined. Refer to Appendix I for an example of a WBS. 16 Version 2.0
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GUIDELINES iii. Once the activities are listed, durations can be attributed to them as well as costs to create the project schedule and budget. These can be created in planning software such as Microsoft Project. For assistance with the creating a project schedule and budget you can contact the PSSU. iv. Depending on the project type (physical, social infrastructure, or economic infrastructure) complete construction plans and Bill of Quantities (BQ) should be developed. For cash flow purposes, the BQ should be laid out with the project budget before a project budget is finalized and submitted for funding. v. The responsible Permanent Secretary for the project should submit a signed copy of the project execution plan to the Ministry of Finance for endorsement and release of allocated funds. 3. Project works are to be contracted according to the Public Tender process outlined in the Financial Regulations and contracts in place before moving onto the Implementation Phase. Refer to Chapter 2 for more details on project planning. B) Implementation Processes involve coordinating and guiding the project team to get the work done as laid out in the approved project execution plan. It also involves measurement of progress towards objectives and taking the necessary action to reduce variations from the desired end results. Deliverable: Project Status Reports /Management Reports (Form PM021) 2 . 1. Governance is key for the successful coordination of a project. The management structure of a project should be defined in the Project‟s Execution Plan and oversight of the project is the responsibility of the Project Manager or whomever the Accounting Officer designates as responsible for the project. The Project Manager should update the execution plan throughout the life of the project. 2. The PSSU will monitor project progress through the project portfolio management system, Eclipse, that consists of project portfolios for each Ministry. The project‟s executing Ministry is responsible for sending regular Project Status Reports to the PSSU, on a monthly basis to input into the project database. Refer to Appendix I for a template of a Project Status Report. 3. Project status meetings, also called progress meetings, are critical for communication of progress to stakeholders. Schedule, budget, quality and 2 Refer to Government Project Management Guidelines Chapter 7 for more information on project status reporting. 17 Version 2.0
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1.4. FINALIZATION STAGE
Closing a project involves the handover of the project outputs to the Project (Business) Owner for utilization. The Project Team or Project Manager documents project performance and lessons learnt in the Closeout Report (Form PM030). A Handover Form is to be completed and attached to the Close-Out Report for review by the Project Sponsor in the responsible Ministry. This stage also involves moving the project from “project” (transformational) activities to the ongoing “operational” (transactional) activities 3 . A) Closing Processes include the shutting down of project site operations, disbanding the project team and documenting the lessons learnt for future reference.
4 A Project Closeout Checklist is included in Appendix I to assist with the closure of a project. 1. The Project Team is responsible for submitting a Project Closeout Report to the responsible Ministry 30 days after the project‟s formal completion date. 2. The Handover Form used to handover the project to the Project Manager in the planning stage, should be completed when the projects are handed back over to the Ministry/Department at the end of the project. It ensures that all documentation is accounted for and formal acceptance of final project deliverables. 3. Once the closeout report is received, the PSSU will compile a Project Evaluation Report (Form PM040) by 45 days and make recommendations for improvements to the system for greater project success. 3 Read the Government Project Management Guidelines Chapter 4 for more information on Organizational Change Management. 4 Refer to the Government Project Management Guidelines Chapter 8 & 9 for more information on Project Evaluation & Project Closure 19 Version 2.0
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GUIDELINES Below in Table 1 is a summary of the Standard Project Documentation at each of the Project Stages. Project Documentation templates and samples can be found in Appendix I and are available in electronic format by request from the Project Support Services Unit . STAGE Document Purpose Owned by Initiate PM010 - Proposal/Brief Project Feasibility Report Project Business Case Converts an idea or policy into the details of a potential project. Project Sponsor (PS) A report that is developed as a result of a feasibility study, to determine whether the initiative has sufficient continue. merit to Project Sponsor (PS) A one-off, start-up document used by senior management to assess the justification of a proposed project, or the development options for a project that has already received funding. Project Sponsor (PS) Produced by Head of Department or Finance & Planning Officer Accepted / endorsed by Permanent Secretary Ministry of Finance Head of Department or Project Manager or Finance & Planning Officer Head of Department or Project Manager or Finance & Planning Officer Permanent Secretary Ministry of Finance Permanent Secretary or Steering Committee Ministry of Finance STAGE Document Purpose Owned by Maintained by Manage Plan PM020 - Execution Plan Project The „road map‟ used by the Project Team to deliver the agreed upon project outputs. Project Manager Implement PM021 Report -Project Status Provides an ongoing history of the project for tracking progress, evaluation and review to key stakeholders, Project Manager Finalise/Close Out PM030 - Close out Report Describes the project performance in meeting objectives Project Manager PM040 Evaluation Report Summarizes the project‟s lessons and trends project performance in the system PSSU PM022 Form -Handover Transitions the project to/from the Project Manager at the Planning and Finalization Stages. Accounting/Finance Officer Project Team Project Team Project Manager PSSU Project Manager 20 Version 2.0
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GUIDELINES Project Manager Finance Officer Accepted / endorsed by 5 Project Sponsor Ministry of Finance Project Manager Finance Officer Project Sponsor Ministry of Finance Project Team Finance Officer Project Sponsor Ministry of Finance PSSU Financial Secretary Accounting/Finance Officer Responsible Ministry Ministry of Finance
1.5. Key Elements in the Project Life
Figure 2 below details the Key Elements that the Project Manager needs to consider no matter what the size or complexity of the project. The extent to which each of these is documented depends once again upon the size and complexity of the project. Many of these Key Elements exist in an embryonic state in the Initiation Phase and are further developed if the project progresses through the other two phases. Planning & Scoping Organisational Change Management Governance Stakeholder Management Risk Management Issues Management Resource Management Quality Management Status Reporting Evaluation Project Closure 5 For all of these documents, the party that accepts/endorses it will be predicated by the size and complexity of the project. 21 Version 2.0
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GUIDELINES Figure 3: Key Elements in the Project Life Below is a brief explanation of each of these Key Elements: PLANNING AND SCOPING No matter how small the project, a clear definition and statement of the areas of impact and boundaries of the project needs to be established. The scope of the project includes the outcomes, customers, outputs, work and resources (both human and financial). For larger projects, this should be fully detailed in the Project Business Plan. For smaller projects, a Project Plan with a brief description of each of these with a timeframe for implementation may be all that is required. (Refer to Section 2: Planning and Scoping and Section 10: Documentation for more details). GOVERNANCE It is important to establish the management structure for the project that identifies the specific players, their roles and responsibilities, and the interaction between them for the life of the project. For small projects, this may only be the Project Manager and the Finance & Planning Officer. For larger projects, it will be necessary to establish a more formalised Governance structure as outlined in Section 3: Governance. ORGANISATIONAL CHANGE MANAGEMENT Organisational Change Management is the management of realigning an organisation to meet the changing demands of its business environment, including improving service delivery and capitalising on business opportunities, underpinned by business process improvement and technologies. It includes the management of changes to the organisational culture, business processes, physical environment, job design/responsibilities, staff skills/knowledge and policies/procedures. Project management methodology is often used to bring about change to the business processes within an agency or organisation. Any project planning activities must consider the amount of organisational change required to deliver the project outputs and realise the project outcomes. For smaller projects, this may not be formally documented, except in any implementation plans developed. For larger projects, planning for this change is closely linked with Stakeholder Management, Communication Strategy and Outcome/Benefits Realisation Planning. Refer to Section 4: Organisational Change Management. STAKEHOLDER MANAGEMENT* Stakeholder Management involves the identification of people or organisations who have an interest in the project processes, outputs or outcomes, planning and how their involvement will be managed on an ongoing basis. This may be done very quickly for a small project, whereas a larger, more complex project will require a formal stakeholder analysis, documentation of a Stakeholder Management Plan and ongoing monitoring and review of progress. This is closely related to Communication Strategy and Planning. 22 Version 2.0
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GUIDELINES RISK MANAGEMENT * Risk Management is the process concerned with identifying, analysing, and responding to project risk. It consists of risk identification, risk quantification, risk response development, and risk response control. For smaller projects, a brief scan and ongoing monitoring may be all that is required. For larger projects, a formalised system for analysing, managing and reporting should be established. ISSUES MANAGEMENT * Issues Management involves monitoring, reviewing and addressing issues or concerns as they arise through the life of a project. If issues are not addressed they may become a risk to the project. For smaller projects, a brief scan and ongoing monitoring may be all that is required. In larger projects, it is advisable to maintain an Issues Register and this should be reported upon regularly to the Steering Committee. RESOURCE MANAGEMENT Planning for managing the people, finances, and physical and information resources required to perform the project activities is vital no matter what the project size or complexity. For smaller projects, this may not be documented, but for larger projects detailed documentation will enable better management of the resources, as well as transparency for the key stakeholders. Formalised monitoring and reporting on progress against budget is an important element in reporting to the Steering Committee in larger projects. Refer to Section 5: Resource Management QUALITY MANAGEMENT Quality Management is the policy and associated procedures, methods and standards required for the management of projects. The purpose of quality management is to increase certainty by reducing the risk of project failure. It also provides the opportunity for continuous improvement. For larger projects, formalised procedures must be in place for issues management, risk management, stakeholder management, resource management, time/task management and formalised project status reporting. These Quality Management procedures need to be planned for by the Project Manager, just as importantly as the actual work of the project. For smaller projects, these procedures may not be formalised, but should be scanned for during the life of the project. Refer to Section 6: Quality Management STATUS REPORTING Formalised regular reporting on the status of the project, with regard to project performance, milestones, budget, issues and risks, is a major requirement for large projects. This is usually to the Business Owner, Project Sponsor and Steering Committee. The frequency of this reporting * These elements will be developed in future versions of the guidelines. * These elements will be developed in future revisions of the guidelines. 23 Version 2.0
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GUIDELINES varies. With very small projects, this may consist of fortnightly consideration of any issues that could affect progress and a regular meeting with the Senior Manager/Project Sponsor. For larger projects, this forms an integral part of the quality management of the project. Refer to Section 7: Status Reporting. EVALUATION No matter what the size or complexity of the project, the measurement of project success against well-defined criteria is necessary. Criteria established will help to determine whether the project is under control, the level of adherence to documented plans, methodologies and standards, and achievement of outcomes. For smaller projects, evaluation might consist of ongoing monitoring through discussions with the „line‟ manager and affected staff, with a debriefing at the end. For larger projects, formalised reviews, both during the project, at the end of major phases, and post completion, are highly recommended. Refer to Section 8: Evaluation. CLOSURE The closing down of a project needs to be planned for. Essentially, successful project finalisation involves formal acceptance of project outputs by the (Business) Owner, an internal review of project outputs and outcomes against the Project Plan, disbanding the team and „tying up loose ends‟. In a large or complex project, an external post-completion review/audit before formal closure by the Steering Committee often occurs. The extent to which procedures for closure are formalised depends upon the nature and size of the project. Refer to Section 9: Closure Table 2 broadly summarises where each of these Key Elements sit within the Life of a Project. Key Element Planning & Scoping Governance Organisational Change Management Stakeholder Management Risk Management Issues Management Resource Management Quality Management Status Reporting Evaluation Closure INITIATE SET UP MANAGE Table 2: Key Elements in the Life of a Project FINALISE 24 Version 2.0
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2. Planning and Scoping
No matter how small the project, a clear definition and statement of the areas of impact and boundaries of the project needs to be established. A project should be achievable within a relatively fixed time frame and with reasonable resource constraints. The scope of a project should take these into consideration. This process of planning and scoping a project is also covered via actions surrounding the creation of initial planning documents. This section of the BVI Government Project Management Guidelines includes: The relationship between inputs, outputs and outcomes A definition of project scope A diagram of the Input-Transform-Outcome (ITO) Model Project classification and the difference between a Business Initiative and an Infrastructure Project Planning and managing project activities Tips from practising Project Managers Project initiatives may originate directly from Government policy or from a Ministry's corporate and business unit planning processes that in turn are dependent on Government policy. Other new initiatives may be identified, outside these processes, due to changes in Government policy or other external factors. Projects are usually justified in terms of corporate objectives and should be closely aligned to them. This alignment is explored through initial scoping and planning documents, surrounding discussions and review. The early stages of the project are the most crucial for later project success. If the project is unfeasibly defined and scoped and not properly linked with the organisational goals and objectives of the Agency, it will probably not be successfully completed. 25 Version 2.0
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2.1. From Outcomes to Inputs – the ITO Model
6 It is useful to initially define a project in terms of the outputs and outcomes the project is to achieve. This helps to link directly the actual outputs of the project (be it a computer system, procedures, policies or whatever) and project activities with the organisational goals and directions of the ministry/department. A project uses inputs in the form of budget and resources. The Project Manager normally controls the process to deliver agreed project outputs. Business unit management transforms the project outputs into the desired project outcomes/benefits, thus providing benefits to key project stakeholders. Key project stakeholders include staff from within the Ministry, staff from other departments, or from the client community. The following Input-Transform-Outcome (ITO) Model diagram illustrates the way the work/components in a project are undertaken – from left to right. Figure 3: Input-Transform-Outcome (ITO) Model diagram However, in initially scoping a project, each component of the ITO Model is considered from right to left. In simple terms, this means that identification takes place in the following sequence: the outcomes/benefits; the customers who will use the outputs to generate the outcomes/benefits; the outputs which the customers need to use in order to generate the outcomes/benefits; the work which is required to produce the outputs; and the resources (human and financial) that are required to undertake the work to produce the outputs. 6 Model adopted from the Tasmanian Government Project Management Guidelines February 2002. 26 Version 2.0
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GUIDELINES These five areas form the scope of the project. By defining each of these areas, the scope of the project will be determined. Project Scope is defined as a clear statement of the areas of impact and boundaries of the project. It is important to not only define what is included within the project boundaries but also to identify what falls outside them. Once the scope has been defined and agreed upon, the details can be documented in the Project Business Plan or, in the case of smaller projects, a Project Proposal/Brief may be all that is required. Once documented, the document should be signed off by the Project Sponsor/Senior Manager to ensure that a formal agreement exists as to the scope of the project. This assists in avoiding project „scope creep‟ - a commonly used term to describe the risk of stakeholders attempting to add extras, such as outputs or outcomes, during the course of the project. If this occurs, the scoping of the project needs to be revisited in order to clearly show the effect these „extras‟ will have on the resources, time, budget, and quality of the project. The ITO model is a method of defining and scoping a project that provides greater confidence that the work undertaken will lead to the achievement of the originally intended outcomes/benefits. An important distinction between outputs and outcomes in this model is that outputs are controllable by the Project Manager, while outcomes are usually not controllable (although they can and should be influenced). These are not to be confused with the outcomes and outputs identified in ministry/departmental Budgets, although they should have a direct relationship. The project outcomes and outputs described here are those that have been specifically identified for the project. Outcomes are the benefits or non-benefits that will be achieved from the utilisation of the outputs delivered by the project. Wherever possible, they should be defined in measurable terms, quantitatively rather than qualitatively. A number of outcomes should be selected as the Target Outcomes for the project. These outcomes include performance information against which the project will be assessed, including: Performance Indicator: The measure that will be used to indicate the level of achievement of the outcome Measure: The actual mechanism for measuring the level of the performance indicator Baseline: Target Level: Target Date: Accountability: The current level of the performance indicator The targeted level of performance The date by when the target levels are to be achieved Who is accountable for the achievement of the targeted outcome and reports on the progress towards the target The identification of the outcomes becomes integral to the initiation of any Outcome/Benefits Realisation Plan developed to plan for the management of the changes brought about by the 27 Version 2.0
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GUIDELINES project, and arrangements for ongoing measurement of achievement against outcomes, once the project is formally closed (Refer to Section 4: Organisational Change Management). Outputs may be produced and outcomes achieved at earlier stages in the project, rather than just in its closing stages. The arrows in the ITO model represent causality rather than a strict chronological sequence. Figure 4 uses the BVI Government Project Management Guidelines as an example to illustrate the difference between project outputs and outcomes.
Project Management Guidelines PROCESS OUTPUTS UTILISATION Project Outcomes
Resources Documentation of Project Management guidelines Guidelines Reading and using concepts from the guidelines to manage projects.
Increased knowledge and understanding of Project Management within Government
Guideline preparation
Organisational learning within Government Resources Organise reviews, workshops, distribution Workshops, List of PMs Attendees at workshops, awareness of guidelines Greater uniformity of Project Management terminology , concept and processes within Government
Guideline promotion
Figure 4: The BVI Government Project Management Guidelines 28 Version 2.0
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2.2. Project Classification
Under the ITO Model, projects can be divided into two general categories defined as: Business Initiative projects Infrastructure projects Business Initiative Project A business initiative is a project intended to realise a specific set of measurable business outcomes (benefits). The scope of a business initiative is wide enough to embrace all project outputs, activities, resources and risks associated with the defined outcomes. Business or functional units sponsor business initiatives. The Business Owner represents senior management of the organisation. He or she is held accountable by the senior management for the delivery of the outcomes/benefits of the project. Infrastructure Project An infrastructure project makes infrastructure available. Outcomes emerge later from future business initiative projects that utilise the infrastructure for the delivery of services. Infrastructure projects are easier to restrict in scope since they produce tangible outputs or deliverables. As a result, infrastructure projects are often sub-projects of business initiatives, and can be effectively used in this way. Genuine large-scale infrastructure projects are rare. Usually, an infrastructure project will be producing outputs within the umbrella of a business initiative - whether this is formally recognised or not. Alternatively, the infrastructure project may provide the basis for a number of subsequent, smaller business initiatives. It is important that these planned business initiatives/projects are recognised. Formal recognition of overarching business initiatives and their outcomes is important in these cases to reduce the likelihood of scope creep within the infrastructure project component. Otherwise, business goals, objectives and tasks required for delivering the „hidden‟ outcomes will inevitably seep into the infrastructure project, leading to time and cost overruns. 29 Version 2.0
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2.3. Planning and Managing Project Activities
Once the project has been properly scoped, it becomes easier to identify the major activities required to produce each of the outputs and to break these down further into phases, which is a major „bundle‟ of work in a project. Activities, tasks, timeframes and milestones can then be identified for each phase, and linked to the delivery of the outputs. Milestones are significant scheduled events that act as progress markers in the life of a project. The result of this initial planning is called the Project Development Schedule. The high level results of this initial planning will be documented in the Project Plan, in the Project Development section, which gives an indication of the major phases, milestones and target dates. More detailed planning of major project phase, activities, milestones, tasks and the resources allocated to each task can be documented through the use of scheduling tools such as Microsoft Project or Eclipse PPM that enable the Project Manager to track progress towards the delivery of each output against identified milestones. Each output is detailed, in turn, with its associated activities, tasks, milestones and timeframes. The interdependencies of the work required to achieve each of the major milestones are also identified. The breaking down of work into related tasks is called the Work Breakdown Structure, sometimes described as an activity decomposition chart. In order to facilitate transparency in tracking a project‟s progress and manage resources, the Bill of Quantities and Work Breakdown Structure has been integrated into a tool that tracks both financial and physical progress by activity. See Work Breakdown Structure Example in Appendix I. Small to medium size projects often use the Project Proposal/Brief, as the management document and support this by keeping day to day project plans such as Gantt Charts, Timeframes and Task Lists etc. Whatever planning tool is selected, it should enable the identification of major milestones and tracking and reporting progress against these. 30 Version 2.0
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2.4. Tips on Planning
Scoping activities precede any other project management activities. For scoping to occur adequately, there needs to be a full analysis of stakeholders and all stakeholders must be adequately involved. With projects that are initiated by edict, active stakeholder involvement is still necessary (though there is a need to facilitate an appreciation of constraints). Express the scope in ways that people understand and appreciate. Make sure the important stakeholders sign off the scope of the project. Be aware of related projects, developments and standards early. Environmental assessment study should be conducted for all projects that have significant impact on the physical environment. Carefully define what is in and outside the scope. Change initiatives do not necessarily have to be translated into single projects. They may be achieved through a series of interlinked projects. Ensure that project activities align with the scope. Be aware that some people may be operating with differing agendas that have not been formally defined in the scope. Continually monitor the scope and project actions in relation to it. There may be a need to redefine the scope to bring the project back on track. Beware of scope creep!!
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3. Governance
It is important to establish the management structure for the project that identifies the specific players, their responsibilities and the interaction between them for the life of the project. Ultimate responsibility and accountability for the project must be clearly defined and accepted at an appropriately high level within the organisation. This section of the BVI Government Project Management Guidelines includes: The objective of project governance The project roles of each position in a project governance structure The roles and functions of a Steering Committee A diagram of a generic project governance model
3.1. Objectives of Project Governance
The objective of project governance is to plan and manage the project throughout its life. This involves the realisation of project outcomes, with high levels of productivity and quality, and with manageable levels of uncertainty (risk). In developing a governance structure for a project, and the roles used within it, there is enormous flexibility. There are also, however, some general principles which should only be ignored in extreme circumstances (i.e. with very large, very small or very unusual projects). One principle is that ultimate responsibility and accountability for the project must be clearly defined and accepted at an appropriately high level within the organisation. The appropriate level is that which has discretionary control over the bulk of the resources that will be expended in the project process. For a large project, this will generally be a member of the senior executive. For smaller projects, a line manager may fill this role. For the purposes of these Guidelines, this role is called the Project Sponsor. It is also highly recommended to include representatives from each government agency directly involved in the decision making process, at least through their inclusion on the project‟s Steering Committee. A Steering Committee member from outside the organisation to provide a „reality check‟ and represent broader Government interests is also recommended. Selecting the right Project Manager The Project Manager is the key person around which the project will ultimately revolve and appropriate selection of a project manager and team, assembling of the team and delegation of authority is critical. 32 Version 2.0
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GUIDELINES For large or complex projects, project management knowledge and experience are at least as important as knowledge of the business area(s) in which the project is being run. However, Project Managers should have or seek to obtain knowledge of the business area in order to be able to effectively communicate with Project Team members and project clients to ensure that business issues and concerns are addressed. A Project Team should include at least one person with an intimate knowledge of the business area, and preferably more. It may also be an advantage if one or more Project Team members are novices or inexperienced in the business area so that fundamental issues are not overlooked or simply taken for granted. Many issues can be uncovered through the process of explaining issues to those with little background in the area. Finding the right combination of people with project management, technical and business area skills, let alone people who are able to function effectively as a team, can be quite a balancing act for those involved in projects.
3.2. A Project Management Governance Model
Figure 5 presents a generic governance model. Not all projects will include all of the entities listed. The model can be modified to allow for diverse corporate cultures and project constraints. For example, for some projects it may be appropriate to collapse or combine some of the entities into a single function, person or document.
Corporate Client Project Steering Committee
Proje
Quality Consultants Reference Groups
Project Sponsor Business Owner
Outcome/Benefits Realisation Plan
Project Manager & Team
Project Execution Plan
Consultants
KEY:
Working Parties Direct relationships that may be managerial or contractual (or both) Indirect relationships that may exist in some circumstances. They may also be managerial or contractual (or both). Figure 5: A Generic Project Governance Model 33 Version 2.0
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GUIDELINES The governance model above indicates most of the possible stakeholders that might be incorporated in a project governance structure, as well as an indication of some of the ways in which they would be most likely to cooperate together. Obviously, for smaller projects such a complex structure would be unnecessarily unwieldy and duplicative. For example, on a smaller project with stakeholders primarily within a single business unit, an appropriate governance structure might be: Project Sponsor – Permanent Secretary or Department Head responsible for Ministry or Department/Unit Project Manager - Manager of Department/Unit Project Team - 2 nominated staff from Department/Unit Reference Group – Departmental/Unit Managers Independent Quality Review – can be an employee from the Internal Audit Unit For multiple related projects, or a large project with multiple sub-projects, a single governance structure may be employed. At a minimum, a core Steering Committee with responsibility for overall outcomes is recommended. The governance structure may be largely stable for all these projects (for example same Steering Committee members, single Reference Group, same Quality Review Consultant across all sub-projects, etc), or be quite different for each sub-project. The set-up in these cases will be largely dependant on stakeholder diversity among sub-projects, project size and the differences or similarities in the nature of the sub-projects. As projects evolve, their model of governance may change. For example, members can be added to the Project Team in later stages of the project as project tasks change and resources are needed. For example: when a project is ready to be executed a contractor is hired and becomes part of the project team. When drawing a project governance model, the temptation exists to attempt to include project relationships as well (for example, sub-project breakdown). While these are useful to document diagrammatically, they should be recorded in a separate diagram as these two facets of project breakdown often have incompatible structures. A project team with the right combination of resource persons is crucial to the success of any project and it is important one is constituted from conception of a project such that stakeholders‟ input is reflected in the planning of the project. This also helps to establish a stable structure for the project to be executed in and facilitates successful completion. At a minimum, there should be a Project Sponsor, a Project manager/team leader and the Finance & Planning Officer or Accounts Officer on a project team. 34 Version 2.0
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3.3. Project Roles
The following list of project roles gives an indication of the type of responsibilities and tasks generally allocated to those involved in a project. As projects vary, the roles required, and even the tasks and responsibilities within those roles, will vary. The same applies to the different requirements of smaller versus larger projects. The information below provides a starting point, which should be discussed with the appropriate groups or persons nominated to fill positions in a project‟s governance structure, and the agreed breakdown of responsibilities documented for larger projects. Corporate Client In a large, complex or politically driven project the Corporate Client is the champion of the project and has ultimate authority. He or she promotes the benefits of the project to the community and may be viewed as the „public face‟ of the project. For example, the Corporate Client may be the Premier, Minister, or Head of Department. In a small, less complex project, the Project Sponsor would fulfil the role of the project champion. Steering Committee The Steering Committee is responsible for policy and resource decisions essential to delivery of project outputs and the attainment of project outcomes. It is also responsible for ensuring appropriate management of the project components outlined in the Project Business Plan. Project Sponsor The Project Sponsor has ultimate accountability and responsibility for the project and is a member of the Steering Committee, usually the Committee Chair. The Sponsor has the delegated authority of the Steering Committee to assist with business management and project management issues that arise outside the formal business of the Steering Committee. The Sponsor also lends support, by advocacy, at senior level and ensures that the necessary resources (both financial and human) are available to the project. The Corporate Client and Project Sponsor may be the same person for some projects. In the Public Service this will be the Permanent Secretary/Financial Secretary for large projects; Heads of Departments for smaller ones. 35 Version 2.0
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GUIDELINES Business Owner (End-Users) Business Owners are responsible for utilising the project outputs and realising the agreed project outcomes. The Business Owner must be satisfied that the project includes all of the outputs necessary for realising the pre-determined outcome. Each output must be specified and delivered fit for purpose. Usually, the Business Owner is accountable to senior management for the delivery of project outcomes. One or more department/ unit representatives are Steering Committee members. During development of the project outputs, the Business Owner will also be required to contribute resources to the project in order to ensure that the outputs are being developed satisfactorily. This involvement is continuous from the early conceptual stages through to reviewing and/or testing the completed products. Quality Consultants Large projects generally engage one or more quality consultants to undertake formal quality reviews of the project‟s processes or outputs. These consultants work independently of the Project Team and can be sourced from Internal Audit Unit. There are two distinct classes of Quality Review: those focusing on the project as a whole in terms of structure, processes and progress toward outputs; and those focusing on the quality of products or services being produced within a project in a technical field (e.g. law, IT, construction). Project & Quality Management Advisor (Project Support Services Unit) The Project and Quality Management Advisor provides an informal ongoing review, both of documentation and application of management processes, in addition to providing project planning and management support to assist the Project Manager and Team. Within this role, the Advisor would also provide written confirmation of significant issues that have the potential to affect achievement of project outcomes. This type of advice is generic across all major projects. For more information see A Charter for Project & Quality Management Advisors included as Appendix III of these Guidelines. 36 Version 2.0
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GUIDELINES Project Manager The Project Manager is chosen by the Steering Committee (or in smaller projects, the Project Sponsor) to deliver the defined project outputs. He or she is responsible for organising the project into one or more sub projects, managing the day-to-day aspects of the project, developing Project Execution Plans, resolving planning and implementation issues, and monitoring progress and budgets. The Project Manager will: Project Team develop and maintain a Project Execution Plan(s); manage and monitor the project activity through detailed plans and schedules; report to the Steering Committee and the Project Sponsor at regular intervals; and manage (client/provider/stakeholder) expectations through formal specification and agreement of goals, objectives, scope, outputs, resources required, budget, schedule, project structure, roles and responsibilities. This individual can be an officer in the Public Service or an external contractor depending on the size and complexity of the project. It is essential that the Project Manager has demonstrated high-level project management skills. A Project Manager cannot lead effectively unless he or she has credibility. For most projects, this means the Project Manager must have knowledge of how the outputs will be created and how they will achieve the outcomes described in an Outcome/Benefits Realisation Plan. The Project Team is led by the Project Manager, working for the successful delivery of the project outputs as outlined in the Project Execution Plan(s). It is desirable that the Project Team includes representatives from the department/unit affected by the project. The composition of the team may change as the project moves through its various phases. The assessment and selection of people with the requisite skills required for each phase of a project is critical to its overall success. The skills should be explicitly identified as a part of the project planning process. The Project Team is responsible for completing tasks and activities required for delivering project outputs. Reference Groups Reference Groups provide forums to achieve consensus among groups of stakeholders. They may already exist, have an indefinite life span and may continue for the life of the project. One may be a general Reference Group delegated by the Steering Committee to monitor or modify the Project Business Plan for approval by the Steering Committee. They may be a group of people with like skills to address a particular set of issues. The trader community would be an example for certain government projects. 37 Version 2.0
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GUIDELINES Working Parties / Groups Working parties (or working groups) consist of small specialist work groups, each dedicated to producing a well-defined output within a specific time frame. A working party has no life beyond the delivery of that output. Working parties probably involve one or more members of a Project Team. Consultants Consultants are employed from outside the organisation to provide specialist or other expertise unavailable from internal resources. The consultants may report directly to the Chair of the Steering Committee (or perhaps the Chair of a general Reference Group). Project consultants typically include: Contractors information technology specialists who define and manage the technological aspects of the project; representatives employed by one or more stakeholders to ensure their interests are represented and managed; specialists who offer expert understanding and experience regarding the project and quality management practices (refer to Appendix 3: A Charter for Project & Quality Management Advisors ); legal advisers who assist in the development and review of the contractual documentation; and auditors who ensure compliance with internal and external audit requirements. Contractors may also be engaged to work as part of the Project Team. Contractors are employed, external to the business area, to provide a specified service in relation to the development of project outputs. Examples include: construction of superstructure; interior design for an office relocation; prepare and deliver training to staff in the business area; develop and deliver marketing programs; develop guides and/or manuals; and develop business application software.
3.4. Steering Committee Roles and Functions
7 For a large project, an effective Steering Committee is crucial for the project‟s success. The primary function of a Steering Committee is to take responsibility for the business issues associated with a project. Members of a Steering Committee ensure these issues are being 7 On small to medium project the steering committee and project team is the same. 38 Version 2.0
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GUIDELINES adequately addressed and the project remains under control. In practice these responsibilities involve five main functions: approval of changes to the project and its supporting documentation; monitoring and review of the project; assistance to the project when required; resolution of project conflicts; and formal acceptance of project deliverables. 3.4.1. Approval of changes to the project and its supporting documentation The Steering Committee is responsible for approving major project documentation. Specifically, the Steering Committee approves: the prioritisation of project objectives and outcomes; the budget; outputs or deliverables; schedule and budget constraints; risk minimisation strategies; and project management and quality assurance methodologies. The Steering Committee is also responsible for any major changes to the project. They should be provided with the following information in support of a proposed change: The nature and reason for the variation; The effect of the change; A revised Project Business Plan, if appropriate; and Recommended actions for the Steering Committee to consider. Changing or emergent issues may require the project scope to be adapted so the project meets the original or modified outcomes. The Steering Committee is responsible for approving or rejecting these changes to the project, and for ensuring that additional resources are provided, if they are required, for incorporating these changes. 39 Version 2.0
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GUIDELINES 3.4.2. Monitoring and review of the project The Steering Committee reviews the status of the project at least at the end of each phase, and determines whether the Project Team should progress to the next phase. The review focuses on major project documentation and any variations in the key components, such as outcomes, risk, costs, returns and output quality. 3.4.3. Assistance to the project when required The Steering Committee assists the Business Owner(s) and Project Manager in completing the project by ensuring the project is adequately resourced and has the backing of people with authority. Steering Committee members should be active advocates for the project's outcomes and help facilitate broad support for it. Perhaps representing the interests of some or all stakeholder groups, Steering Committee members should facilitate their communication of these interests. They may also help illustrate to stakeholders how the project serves these interests. (At times, outside of Steering Committee meetings, the Project Team may also seek the particular knowledge or experience of individual Steering Committee members.) 3.4.4. Resolution of project conflicts Project conflicts can arise from conflicts in resource allocation, output quality, and the level of commitment of project stakeholders and related projects. The Project Manager is generally the first reference point for the resolution of problems and can solve most internal project problems. Problems arising that are outside the control of the Project Manager are referred to the Project Sponsor or Business Owner for resolution, but there may be occasions when the Steering Committee is asked to help resolve such disputes. 3.4.5. Formal acceptance of project deliverables Following review and/or acceptance by the Business Owners, the Steering Committee formally reviews and accepts project outputs. Once these deliverables have been accepted by the Steering Committee, any changes must be formally approved. To achieve this function effectively, Steering Committee members must have a broad understanding of project management concepts and the specific approach adopted by the Project Team. 40 Version 2.0
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3.5. Steering Committee Membership
For Steering Committees to work effectively, the right people must be involved. Steering committee membership should be based on individual skills and attributes, rather than on their formal roles, and members should maintain membership of a Steering Committee even if their role within the organisation changes. However, representatives of important stakeholder groups should also be included. One way of ensuring that the Steering Committee takes responsibility for whole-of-government issues is to include someone from outside the Ministry or Department on the Committee.
3.6. Steering Committee Meetings
A Steering Committee meets regularly throughout the course of a project to keep track of issues and the progress of the project. The Project Manager should attend these meetings to be a source of information for Steering Committee members and to be kept informed of Steering Committee decisions. Ideally, the Project Sponsor should chair the Steering Committee meetings. A Steering Committee meeting may cover the following agenda: Introductory items such as: o o apologies; minutes from last meeting; and o matters arising from minutes. Project Business Plan issues - amendments, revisions or arising related issues. Project management issues, including progress reports and consultants' reports. Important issues at the time of the meeting, such as a budget committee submission, proposed tendering arrangements, sign off of functional requirements, related projects and so forth. Review of actions arising from previous Steering Committee meetings. It may be useful to keep a formal list of these actions in order to track them effectively. Plans for the next meeting. The Steering Committee has responsibility for the project until the project's outcomes/benefits are realised. These outcomes may not be fulfilled until after the Project Manager and Team have completed their involvement. 41 Version 2.0
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4. Organisational Change Management
Any project planning activities must consider the amount of organisational change required to deliver the project outputs and achieve the project outcomes. Planning for this change is closely linked with Outcome/Benefits Realisation planning. This section of the Guidelines includes: A definition of Organisational Change Management The relationship between project management and organisational change management Planning for organisational change within projects A description of the documentation produced The roles and responsibilities for organisational change within projects Definition Organisational Change Management is the management of realigning an organisation to meet the changing demands of its business environment, including improving service delivery and capitalising on business opportunities, underpinned by business process improvement and technologies. It includes the management of changes to the organisational culture, business processes, physical environment, job design/responsibilities, staff skills/knowledge and policies/procedures. However, it is not enough to merely prescribe 'change' and expect it to happen - creating change within an organisation takes hard work and should be structured around what must actually take place to make the change happen. It can sometimes be hard to single out “change,” “project management”, and “change management.” These three components are intertwined in order to deliver a positive outcome to the organisation. Separating out these components will help others define and understand these distinct elements and is a solid step when troubleshooting on a particular project that may not be moving ahead as expected. “Change” - To improve the organization in some fashion - for instance reducing costs, improving revenues, solving problems, seizing opportunities, aligning work and strategy, streamlining information flow within the organisation “Project management” - To develop a set of specific plans and actions to achieve "the change" given time, cost and scope constraints and to utilize resources effectively (managing the 'technical' side of the change) “Change management” - To apply a systematic approach to helping the individuals impacted by "the change" to be successful by building support, addressing resistance and developing the 42 Version 2.0
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GUIDELINES required knowledge and ability to implement the change (managing the 'people' side of the change) Very few projects are carried out in isolation in a department or unit. Overall strategic direction for the management of change within the organisation may have already been established. This Key Element of project management needs to be considered in the light of the overall organisational approach to change management.
4.1. Planning for Organisational Change within Projects
Planning for organisational change is planning for achievement of the targeted outcomes/benefits of the project. In addition to planning for the measurement of the outcomes, this planning prepares the business areas for the new operational environment that will exist once the Project Team has handed over the outputs, the Team has been disbanded and/or the project is closed. The main element of organisational change is Transition Planning, supported by: Communication Planning Training Planning Maintenance Planning Performance Measurement Transition Planning Transition planning involves planning for the new (post project) environment. This can be achieved by seeking the answers to the following questions: What is the current situation? How will the project change this (the new situation)? How will the Business Unit/Department move from the current situation to the new situation (transition arrangements)? Three areas support every business process in an organisation: tools (e.g. IT systems, infrastructure); organisation; and Procedures/policies. To assist in identifying the effect that the project will have on the business processes, it is necessary to examine these processes (pre-project) within the organisation in respect of the three 43 Version 2.0
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GUIDELINES areas outlined above. Planning describes how the transition will occur to enable the business process in the future to be as operational (everyday) as the current process. CURRENT FUTURE
BUSINESS PROCESS
TRANSITION
BUSINESS PROCESS
TOOLS
PROCEDURES POLICIES
TOOLS
ORGANISATION Figure 6: Transition from current to new business processes PROCEDURES ORGANISATION POLICIES This is achieved by comparing the current business process in the three areas, with a basic understanding of what will change in the new business process. For example, does the project deliver a new tool (e.g. such as an IT application), or a re-structured organisation or modified policies/procedures? Transitional planning should include consideration of the following: organisational culture including business processes and how these will be changed; physical environment; job design/responsibilities; 44 Version 2.0
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GUIDELINES skills and knowledge required; and policies and procedures, which need revising or developing. Communication Planning Communication is the most important aspect of leading change. An effective communication strategy contributes to the success of a project. This is closely aligned with Stakeholder Management planning (refer to Section 5: Stakeholder Management). It is vital that a Communication Strategy be central to any planning for the management of organisational change. Training Planning In order to ensure that planned changes affecting business processes are successful, a Training Plan should be developed. This plan should identify: which groups or individuals require training; what are the training requirements; how, where and when it will be delivered; and who will deliver the training? While the project budget may cover the initial training activities, Business Owners will need to be prepared to include ongoing training requirements for new staff within their annual operational budgets. The Business Owner may also need to fund training that falls outside of the scope of the project. For example, in order to utilise a new software application, staff may require training in general computer skills or Graphic User Interface (GUI) training if they are unfamiliar with the environment. Maintenance Planning Where a project involves new business systems and procedures, it is important to develop a Maintenance Plan that identifies the maintenance requirements for the outputs. Example: For new IT systems the following may need to be taken into consideration: service requirements of equipment, applications, infrastructure or buildings system administrator and support manuals for a system development and negotiation of maintenance contracts or service level agreements. Issues that need to be resolved include determining who will be responsible for maintenance and updates, the processes that will need to be put in place to ensure that maintenance occurs on a regular basis, and records management procedures etc. The 45 Version 2.0
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GUIDELINES Business Owner will need to ensure that any maintenance costs, licence renewals or annual contract fees are included in their annual operational budgets. Performance Measurement This is closely aligned with the initial scoping of the project and planned evaluation strategies. It is important to identify the Target Outcomes and performance measures for the project. This will assist with planning for performance monitoring and measurement during and after the project. The Project Business Plan details the Target Outcomes, performance indicators, performance measures to be used, baseline data, target levels, target dates and accountability. These should be used for the Performance Measurement.
4.2. Documentation
An Outcome/Benefits Realization Plan can be developed to generate the desired outcomes/benefits. This plan ideally should become the management document for the Business Owners/Steering Committee of the project in the same way that the Project Business Plan is the management document for the Project Sponsor/Steering Committee. The purpose of Outcome/Benefits Realization planning and documentation is to ensure: the final stages of the project are managed in a satisfactory manner; the utilisation of the projects outputs are linked to the planned project outcomes; that the success of the project‟s outputs are assessed and corrective action performed if required; and the planned project outcomes/benefits are achieved prior to formal project closure. This document captures agreed plans for the management of the change brought about by project implementation. It should be formally signed off by the Project Sponsor and Business Owners, and should be updated on a regular basis to reflect any changes either during the project or after project implementation. For smaller projects, an agreed implementation and management plan may substitute for an Outcome/Benefits Realisation Plan. However, in any project that is classified as a Business Initiative (Refer to Section 2: Planning and Scoping), plans should be in place for the ongoing management of the outputs and realisation of benefits/outcomes before the project closes.
4.3. Roles and Responsibilities
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GUIDELINES they will ultimately reap the rewards of a successful project once the outcomes/benefits are realised. The Steering Committee and Project Sponsor should endorse the Outcome/Benefits Realisation Plan. They are responsible for ensuring an effective Project Business Plan is in place throughout the life of the project that forms the baseline for the Outcome/Benefits Realisation Plan. The Project Manager is responsible for: ensuring that the scoping of the project adequately details the planned target outcomes and performance measures, the customers who will utilise the outputs and how these will be utilised to generate the outcomes, and the fitness for purpose criteria of the planned outputs in relation to achievement of the target outcomes/benefits; continually monitoring the project to identify any changes to the scope which will affect the final outputs delivered; and assisting the Business Owners with the initial development of the Outcome/Benefits Realisation Plan. While the Project Manager‟s responsibilities are completed after the project outputs are delivered and accepted, it is advisable to make sure planning for how the outputs are managed and who will be responsible is carried out much earlier. The other Project Team members can assist with the development of the Outcome/Benefits Realisation Plan, particularly if they are the people who will be involved in the management of the outputs once the project closes. Project Stakeholders should provide input into the Outcome/Benefits Realisation Plan especially if they are members of the Business Unit/Department that will be affected by the changes
4.4. Communication Strategies
Communication is a major component of a successful project. Two leading causes of project failure, as identified by the Gartner Group (1996), were insufficient involvement of stakeholders and infrequent communication with sponsors. The best way to approach communication is to develop a clearly planned approach. Without effective communication, Key Stakeholders could miss out on vital information and may not understand why change is needed. Several important points should be considered in Communication Strategy planning. They are: keep communication as simple as possible; identify every external and internal stakeholder; 47 Version 2.0
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GUIDELINES provide timely information; use credible communicators; try to speak to people in person; listen to people; thoroughly plan presentations/meetings; and have a clear strategy for seeking and acting on feedback. It is therefore imperative that any Project Communication Strategy that is developed defines: Target Audience - think about each stakeholder group and the target audience within them. Key Messages – what are the three or four key points you want stakeholders to understand and act upon? Communication Mechanisms/tools – which method/tool would be most appropriate for them? Priorities – who will be responsible for implementing each action and when? Types of communication to be considered can be categorised under Verbal, Electronic and Written. Verbal Presentations/briefing sessions Networking facilitation Staff meetings Seminars/workshops Stakeholder consultation Events, social gatherings Visitation programs Electronic Personal email Internet/intranet including: Online Forums Fact Sheets Newsletter Web sharing of ongoing project planning Fax stream etc. Written Mail outs of important documentation Advertising Pamphlets and brochures Information in Department newsletters etc. Table 3: Types of Communication 48 Version 2.0
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GUIDELINES Tips from Project Managers Practicing Project Managers identified what they considered to be the three most effective means of communication. These were: email; internet/intranet; and face-to-face meetings It was recognised, however, that not every staff member of an organisation may have email/internet access; every Department/organisation has different communication mechanisms and cultures; and individuals exposed to the same method of communication will respond differently. Marketing/Communication A distinction can be made between marketing and communication strategies in that: the Communication Strategy is aimed at ensuring ongoing commitment and support by all Key Stakeholders for all aspects of the project; whereas the Marketing Strategy is aimed at ensuring customers fully utilize the outputs from the project. While both have an element of „selling‟, marketing is focused upon „selling‟ the outputs of the project to the customers. Communication strategies are focused upon „selling‟ the project to the Key Stakeholders. The Communication and Marketing Strategy may be one and the same, depending upon the nature of the project and its customers.
5. Resource Management
Planning for managing the people, finances, physical and information resources required to perform the project activities, is vital no matter what the project size or complexity. For smaller projects, this may not be documented, but for larger projects detailed documentation will enable better management of the resources, as well as transparency for the key stakeholders. This section will be further developed in future revisions. Areas to be considered are the management of: Financial Resources Human Resources Physical Resources Information Resources 49 Version 2.0
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5.1. Managing Consultants and Contractors - a Project Manager‟s Perspective
Managing consultants and contractors can be an important aspect of a project manager‟s role. The following suggestions are key to this topic: Be rigorous in selection (use previous performance as a guide). Elements of a good contract: o o precise; clear; o well-documented; and o focused on the deliverables/outputs, rather than how they are achieved. Remember: If it is not in the contract, it is not in the deal! Payment details to consider: o when; o o deliverables; penalties; and o how much. Penalty provisions are often not enforced, but are very important and should always be included in the contract. The relationship between the client and vendor is important. Work at maintaining it so that issues can be resolved easily without referring to the contract. The role of the individual is important. The company is only as good as its people, but people can change. Ownership of intellectual property needs to be resolved, and provision for such should be included in the contract. Consider including clauses that cater for the Government picking up individuals/expertise if a company fails. 50 Version 2.0
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GUIDELINES Make your Request for Proposal document as detailed as possible and include contract conditions. This will shorten the negotiation time later. Consider the role of the prime contractor. Assess whether you will get the return for the premium you will pay. In order to maintain a good relationship at the „working‟ level, consider escalating problematic issues to someone or a group with political clout (such as the Steering Committee or an executive manager) earlier rather than later. The resolution of such problems will hopefully then not impact too severely on your personal working relations. Project Managers should have a good awareness of contracts and negotiations. Bring in specialised negotiation expertise as and when required. Make yourself aware of Government policy resources in this area, such as departmental pro forma, Treasury instructions etc. Encourage consultants to work with departmental staff and resources to enable the transfer of knowledge. When dealing with an organisation that you have not worked with before, you need to be aware of the organisation‟s culture in order to work effectively with them. 51 Version 2.0
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5.2. Probity
Probity is essentially the consideration of ethical issues relating to procurement. In practice, it entails not only doing the right thing, but having evidence of processes that promote accountability and transparency which will stand up to scrutiny. Some general principles identified include: ensure best value to the public in monetary terms; ensure fairness and impartiality (determine evaluation criteria in advance); deal with conflicts of interest which could influence outcomes; and ensure accountability (maintain detailed records and support material). It is essential that probity considerations be built in, as they cannot be adequately resolved once problems occur. Security provisions cannot counter conflicts of interest. A probity auditor aims to ensure processes are consistent with policies and guidelines and must be independent. 52 Version 2.0
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6. Quality Management
Quality Management in a project increases certainty and reduces the risk of project failure. It involves a process for the management of changes, problems, issues, and incidents that emerge. The management of this process may vary from project to project. This section of the BVI Government Project Management Guidelines includes: The purpose of quality management in a project Strategies for ensuring Quality Management Project Change Control The pros and cons of interlinking projects
6.1. Quality Assurance and Quality Management for Projects
Senior management may require significant projects to be managed in accordance with a quality management methodology. The purpose of quality management is to increase certainty, and reduce the risk of project failure. It can also provide opportunities for continuous improvement. The project Steering Committee is responsible for determining the level of quality assurance that is needed. It is essential that a Project Manager and team clearly understand the requisite quality requirements when preparing or reviewing project estimates. All projects should include adequate provision for quality assurance activities to meet these requirements, either in the Project Execution Plan (for a larger, more complex project), or other strategic planning documents (small, less complex projects). The role of quality management is to ensure that all projects are carried out on defined baselines. This is achieved by: ensuring that a valid methodology is followed; managing change; ensuring formal review and acceptance procedures are adhered to; ensuring emergent or related issues are resolved; and monitoring the project's progress. 53 Version 2.0
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6.2. Project Change Control
„Change is inevitable - except from vending machines.‟ No matter how well a project is planned, there are likely to be unforeseen circumstances or issues that simply cannot be determined up front. Types of change can be divided into two major categories - planned and unplanned. Unplanned change can be further subdivided into emergent and unanticipated, based primarily on awareness and control of the changing circumstances: Planned - change that is planned and basically implemented as anticipated. Emergent - a proactive response to unforeseen circumstances (for example, additional or conflicting requirements may become apparent and are responded to; Alternatively, circumstances may change). Unanticipated - change that is unplanned and unforeseen (for example, people may use implemented technology in a way that was not intended) 8 . Unplanned change is likely to happen, no matter how competent and prepared Project Managers are. Governments can change or are restructured. New technologies develop and old ones become redundant. People‟s opinions or viewpoints change. Changes that involve negotiation or substantial learning (either organisationally or individually) tend to involve a great deal of emergent or unanticipated change. The outcomes of learning or negotiation can be anticipated but not wholly planned, as they tend to emerge over time. Signs of a need to consider carefully the management of emergent or unanticipated issues include: difficulties in determining project requirements in depth; the facilitation or acceptance of change, by those affected by it, is seen to be a major issue (so indicating a need for major negotiation and/or learning); a high degree of technical or other types of innovation; and a rapidly changing or vague project context. Unplanned change does not have to be unmanaged. Emergent and unanticipated issues can be addressed, either within the scope of a single project or by translating a major initiative for change (a vision for change) into a number of interlinked projects rather than one monolithic one. In practice, dealing with such issues within the scope of a project involves: anticipating and planning for possible changes through risk analysis contingency plans; 8 Section 9.2 – Tasmanian Government Project Management Guidelines Version 5.0 – February 200 54 Version 2.0
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GUIDELINES keeping track of emerging or unanticipated issues through issues management procedures; bringing issues that could have a major impact on the nature or substance of the project to the project Steering Committee so they can re-evaluate the project or make adjustments; and using an iterative process of change within the scope of a single project. An example of such an approach for information systems development projects is Rapid Application Development (RAD). RAD is highly recommended by international consulting groups such as META Group for projects involving innovation or organisational changes, such as data warehousing. In practice, this simply involves recognition of, and planning for desired outcomes on a large scale, strategic level without committing to a particular set of implementation tactics (including the number, nature or scope of projects down the track). Interlinking of projects A series of interlinked projects is less risky than one larger one, for several reasons: Dividing the change initiatives into smaller areas of action reduces complexity. It is easier to produce identifiable outputs and outcomes from smaller projects, which can be used to feed into later projects. Thus, even if the full objectives of the change initiative are not met, identifiable achievements are. It can be easier to respond to changing or unanticipated circumstances as projects lifecycles are much shorter and new or emerging issues can be pursued through the planning stages of future projects. It allows for substantial learning. This is integral to many change initiatives, but is not always well supported. One possible risk of this approach is that those involved with the series of projects may lose sight of the broader objectives of the change or simply not achieve them. It should be pointed out that large projects have a very poor record of success and commonly do not achieve their intended objectives 9 . Carefully coordinating the series of projects, either by linking them by an overarching project, or carefully coordinating them with strategic planning processes, can mitigate this risk. Related projects may be coordinated by relegating them to the status of sub-projects in a larger project. This is suitable when the objectives and tasks involved with each sub-project are 9 Section 9.2 – Tasmanian Government Project Management Guidelines Version 5.0 – February 2002 55 Version 2.0
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GUIDELINES relatively well understood, but is less suitable with projects involving substantial innovation, negotiation or complex issues that are not greatly understood. Alternatively, the projects may be viewed as products of a continued process of strategic planning which is recognised to be an emergent process. This approach is more suitable for projects involving innovation, negotiation and complexity that cannot be adequately anticipated up-front. The strategic planning process should include those involved with the projects and should be a carefully managed and ongoing process that carefully reviews past progress as well as future directions. If strategic planning is viewed as a one-off or periodic exercise for top managers, or focuses only on longer-term time horizons, there can be little relationship between strategic planning and project management processes. Sometimes, major change initiatives are translated into single projects. Project Managers should be aware that this approach is likely to involve substantial problems and are extremely unlikely to be delivered on time and within budget. The approaches outlined above can help mitigate these risks to a degree. The latter approach, focusing on the close relationship between strategic planning processes and projects, can result in the more effective implementation of planned change initiatives. However, strategic planning processes are outside the scope of project management. If these processes are non-existent or not effectively in place, those involved in planning the change initiatives might find it easier to obtain commitment (i.e. funding and resources) if they can define set deliverables, timeframes and activities. In this case, the former tactics would be more appropriate for managing emergent or unanticipated issues. As with many project management decisions, an adequate appreciation of the project context is crucial. 56 Version 2.0
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7. Status Reporting
Formalised regular reporting on the status of the project is an integral part of the quality management of the project. The frequency of status reporting will vary depending on the size of the project, the importance, the organizational strategy and the requirements of the Steering Committee/Project Sponsor. This section of the BVI Government Project Management Guidelines includes: Definition of project status reporting Purpose of status reporting Suggested structure for a project status report Frequency of reporting Definition Project status reporting is regular, formalised reporting on the progress of the project against the Project Proposal/Brief, Project Business Plan or Project Execution Plan. Usually this is prepared and presented by the Project Manager to the Project Steering Committee, Project Sponsor or Senior Manager, depending upon the size and management structure of the project. Status reporting also can be to individuals or committees who are contributing to the work of the project, such as Reference or Working Groups, Quality Consultants etc.
7.1. Purpose of the Project Status Report
Formalised regular reporting on the status of the project is an integral part of the quality management of the project. In order to make appropriate decisions, the Steering Committee, Project Sponsor or Senior Manager needs to be properly informed about the status of the project. The Project Manager should establish this as part of the management activities for the project. Another purpose for the Project Status Report is to provide an ongoing history of the project, which becomes very useful in terms of tracking progress, evaluation and review. Project status reports form part of the project review processes, both during and after completion of the project. The Project Status Report is a document that is used by the Project Manager for formalised regular reporting on the status of the project to the Steering Committee, Project Sponsor/Senior Manager or other key stakeholders. Depending upon the size of the project, the substance of the report is based on: 57 Version 2.0
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GUIDELINES regular review of project progress, against the project plan, at Project Team planning meetings; sub-project status reports to the Project Manager, in the case of large projects; regular review of project progress against the milestones in the approved Project Business Plan; regular meetings with the Project Sponsor/Senior Manager; regular review of the effectiveness of actions as outlined in the Risk Management Plan and their effect on the grading for likelihood and seriousness; regular review of the Issues Register; regular review of progress against budget; regular updating of milestones; and any anticipated changes to the benefits the project will deliver. These status reports should highlight any problems that are occurring, or have the potential to occur.
7.2. Status Report Structure
While the Project Sponsor/Steering Committee should agree to the proposed structure of the Project Status Report, and frequency of reporting to them, the report should include, as a minimum, the following: Status of the project: o o description; milestones for the last reporting period; o milestones for the next reporting period; and o impact of achievement/non-achievement of milestones for the remaining period of the project. Budget Report - with respect to planned expenditure, actual expenditure deficit/surplus, variations and revenue against planned output delivery, if appropriate. 58 Version 2.0
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GUIDELINES Risk Management Report - specifying any changes to the major risks identified since the previous report and modification to the strategies put in place to manage them. Also, any new risks that have arisen since the last report should be reported. Issues Report - including areas of concern, specific problems and any action/decision that needs to be taken by the Steering Committee or Project Sponsor/Senior Manager. Any other general information. Recommendations. It is important to keep the report focused and to report on/against milestones and not percentage of work completed. A milestone can be defined as a progress marker that identifies when significant points in a project have been reached. Milestones are anchored within the timeframe for the project and reflect the critical path towards the final delivery of the outputs. If milestone slippage is occurring this could be a danger sign that the project will not be completed within the specified timeframe. Refer to Appendix I for the Project Status Report template.
7.3. Frequency of Reporting
The frequency of status reporting will vary depending on the size of the project and the requirements of the Steering Committee/Project Sponsor. With very small projects, this may consist of fortnightly consideration of any issues that could affect progress by the Project Manager and/or a meeting with the Project Sponsor/Senior Manager. For larger projects, the status report forms an integral part of the project, as information for the report is drawn from the project management processes in place for the project. In either case, meetings should be regularly scheduled to discuss project status, either verbally or based upon the written status report. The meetings should be often enough that progress could be reported against a number of milestones since the last meeting. Ideally, the timing for the meetings should be linked to key milestone dates (including the end of a phase) and not to a pattern, for example the last Friday in the month. In reality, this is not always possible and depends upon the nature of the project. Prior notification of meeting dates/times should be provided to members via an agreed meeting schedule. In the case of projects with a Steering Committee, it is important that the Project Manager attends Steering Committee meetings, and speaks to the Project Status Report. Usually, the Project Manager does not have voting rights on the Steering Committee, but should be there to answer queries and concerns and to take appropriate action. 59 Version 2.0
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8. Evaluation
Regardless of the size or complexity of the project, a measurement of the project‟s success against well-defined criteria is necessary. Establishing the criteria help with the measurements taken during the project and after the project has finished. These measurements include determining whether key performance milestones are being met, how well managed the project is, and whether the specified project outputs have been delivered and the outcomes achieved. This section of the BVI Government Project Management Guidelines explains: The difference between a Project Output Review and a Project Outcomes Review A definition of a successful project The leading causes of project failure and project success The role of the Steering Committee in achieving success Assessing if a project is under control Examples of performance measurements that may be used to measure the success of projects
8.1. Closeout Project Review
A closeout project review should occur at two points, both occurring near the end of the life of a project. This enables project performance to be assessed and corporate lessons learnt. The former can be termed a project output review while the latter, a project outcomes review. Project Output Review/ Closeout Report Once the project outputs have been delivered, there should be a review of the project involving as many project participants as possible to evaluate the success of the project and document the lessons learnt. The evaluation criteria developed before the start of the project should be used as a baseline when reviewing the project. When listing project management problems as part of the output review, a distinction should 61 Version 2.0
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GUIDELINES be drawn between defects because project management processes were carried out improperly and defects because the project management process itself was flawed. Refer to Appendix I for a Closeout Report template. Project Outcomes Review/Evaluation Report Some time after the project outputs have been delivered, a review of the project is needed to assess if the desired outcomes were attained. The timing of this review will depend on when an assessment can be made as to whether or not nominated project outcomes have been attained. The Outcome/Benefits Realization Plan should include a plan for conducting this review. Refer to Appendix I for an Evaluation Report template.
8.2. In Progress Evaluation
The closeout evaluation will demonstrate the success of the project. By doing the evaluation plan early in the project, it is determined what needs to be evaluated and how, when it will be evaluated, and how success will be measured. Build some evaluation into each phase, rather than leaving it to the end. Reflecting on what‟s going well (or not so well) within the project will help to identify issues that should be dealt with before they become problems or risks. Change the plan as you gain experience and get feedback, and use evaluation to improve the project. Formative evaluation is done during the project to improve the work in progress and the likelihood that it will be successful Summative evaluation is typically done near the end of the project to provide evidence of achievements and success.
8.3. Project Success
A project can be considered successful if: outcomes are realised; project outputs are delivered on time, and to the agreed quality; costs are within those budgeted; and the current requirements of all stakeholders are met. Projects, especially projects involving the implementation of computerised technology, generally have a low rate of success. A 1996 study of 14,000 organisations in the UK found that: 62 Version 2.0
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GUIDELINES 80-90% projects involving the implementation of information technology do not meet their performance goals. Around 40% of development projects fail or are abandoned. Only 10-20% of projects meet all their success criteria. Effective project management can improve the chances of achieving a successful project. If project management skills are so critical to a project's success, why do so few organisations cultivate them? For one thing, project management is often viewed as a black art: seldom discerned and seldom understood. For another, Project Managers are usually so harried that they have no time for proper training in- project management. As a result, few professionals can identify or apply the project management skills that spell project success. In most project initiatives, the Project Manager should communicate regularly about the status of the project and any business-related issues with the Business Owner(s), who in turn has an obligation and a responsibility to stay in tune with the project. Unfortunately, the notion that the Business Owner(s) is ultimately responsible for ensuring utilisation of the outputs is not commonly recognised. A surprising number of Project Managers involved in failed projects say that the Business Owner(s) either declined to speak with them or restricted the time his or her staff could spend on the project to a level that significantly affected the quality of the project.
8.4. Project Failure
Projects that are not considered successful can be quite demoralising for those involved. However, they are generally useful (if expensive) learning exercises. All large sized organisations have some examples of projects that can be considered failures.
8.5. Causes of Success and Failure
Gartner Group research identified that the leading causes of project success are: formal governance and change approval guidelines; Business Owner accountable for project results; training in project management; measurement and feedback systems; formal priorities for requests and changes; regular communication with users; clear tracking of people, skills and time; 63 Version 2.0
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GUIDELINES inventory of skill-based competencies; triangulated project estimates (i.e.: decisions based on several inputs); and automated project management tools. Gartner Group research identified that the leading causes of project failure are: inadequate planning and incomplete requirements; insufficient involvement of stakeholders; infrequent communication with the Business Owner; poor containment of the project's scope; poor management of expectations, roles and responsibilities; ineffective resource management; incomplete hand-offs between groups; no authority to overcome impediments; infighting; poor project estimations; and unclear weighting criteria. The Gartner Group further observed that progressive organisations have established a project management office that acts as a competency centre for significant projects. As a competency centre, it serves as the guardian of the guidelines, metrics, standards and methodologies; offers project management consulting and mentoring; and acts as the hub for project management best practices. Success depends on this centre being a facilitator, not a controller. The Project Support Services Unit, Ministry of Finance, is an example of such a centre in the BVI Government.
8.6. Measuring Success
When you plan the evaluation, think about how you will measure success and what evaluation criteria or performance indicators you will use. In the case of the project, they will probably relate to achieving your objectives. By using SMART objectives/goals (specific, measurable, achievable, realistic, timed), you can demonstrate they have been achieved. Discuss how you will measure success with stakeholders to understand success from their point of view. It is important to note that most criteria for success are qualitative, in that they cannot 64 Version 2.0
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GUIDELINES be definitely measured. Apart from time and cost, which can be measured quantitatively, other criteria are greatly affected by personal judgement and sometimes covert objectives. As far as possible, the planned outcomes should be documented and stated in measurable terms so that their realisation can be effectively evaluated at a later date. For example, if a project is justified in terms of improved efficiency, the precise areas in which these efficiencies will be obtained should be documented. For instance, a project may improve the efficiency of a process by cutting the amount of time taken to finish particular tasks, or could avoid certain tasks. If a project is justified in terms of cost savings, precise areas where these savings will be achieved should be documented so their realisation can be evaluated at a later date. Quantifiable measures include avoided cost, increased revenue and greater or improved efficiency. It is also a good idea to set measurable success criteria throughout the course of the project. Milestones achieved and costs and objectives obtained before the completion of the project are examples of such criteria. More details about measuring projects are included in Project Performance Measures. The identification of such measurable success criteria provides a means to effectively measure the success of a project. If people involved with a project know that success criteria have been precisely defined, they are more likely to ensure the project is adequately scoped and that the resources allocated to the project are justifiable. Those responsible for allocating project resources should ensure precise and measurable success criteria have been set before allocating major project resources. The degree of success for the measures of time, cost and other qualitative measures can be determined right at the end of a project. Others can only be assessed when the project‟s outputs have been utilised for some time and the project‟s outcomes are realised, or it is clear they will not be realised. Project Team members and the Steering Committee should formally and informally assess the project throughout the course of the project. Risk management is a good way to help ensure a project meets its success criteria and to avoid project failure, as it enables the Project Team to focus on issues that could impact on a project before they actually occur. If the risks associated with the project are viewed as significant and likely to occur, it may be worth considering closing the project or re-evaluating its scope. If the risks are viewed as generally manageable, risk management activities should document measures taken to pre-empt the risks or contingency plans if the risks do emerge. Project Performance Measures Project management involves three stages of measurement: pre-project measurements generate the base-line metrics; measurements taken during the project reveal whether key performance milestones are being met; and 65 Version 2.0
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GUIDELINES post-project measurements reveal whether the completed project has delivered the specified project outputs and that outcomes are realised. The introduction of performance measures for project management involves the development of criteria for measuring a project's adherence to the nominated methodology. There are two types of performance measures: one that measures whether the project is under control; and another that measures the project's success. Project control is the process whereby the Project Manager determines the degree to which the project plan is being met. The focus is on: achievement of project tasks on time and to agreed quality; actual project costs are within those budgeted; and resources are being allocated as planned. For this reason, a Project Manager's report to the Steering Committee should always include reporting against the agreed performance measures for the project. Failure to introduce performance measures will result in too little feedback for stakeholders to effectively monitor the project's management and progress. When the Project Manager can demonstrate that the project is truly under control, the progress of the project will be more acceptable to the Corporate Client and/or Project Sponsor. Control can be demonstrated by showing the existence of Project Business Plans, Project Execution Plans or Outcome/Benefits Realisation Plans and the satisfactory achievement of results against these plans. Despite the best of intentions, it is inevitable there will be changes needed during the life of a project. Sometimes there will be valid reasons for including changes. On other occasions, it may be appropriate to defer a change until after the completion of the project. There are also changes that originate from outside the organisation that will affect the project. Occasionally, in urgent or emergency situations, it may be necessary to implement project changes before updating the project documentation and undergoing the necessary approval processes. Until the changed project documentation has been approved, the project is, by definition, out of control. Adequate resources, including project funding, must be available for any project to succeed. Any project that is not adequately resourced to enable its completion should not continue under its original parameters. Occasionally though, regardless of the amount of effort applied, there are circumstances in which a project cannot be brought back under control. Under these circumstances, the Steering Committee may decide to suspend the project and to undertake a 66 Version 2.0
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GUIDELINES project review. This will provide the Steering Committee with appropriate information to support subsequent planning sessions. The following are examples of performance measurements that may be used to measure the success of projects. These will more than likely be related to the ones identified for the strategic initiative the project is connected to. PLANNED RESULT Delivery of Project Outputs DEFINING SUCCESS PERFORMANCE INDICATORS Project outcomes aligned with Department priorities and objectives Project identified as a priority by the Unit(s). Number and % of proposed project outcomes contained within the Business Case that comply with the Department's Corporate objectives and priorities. Project Business Case approved by senior management. Number and % of project Business Cases that obtain Senior management approval. Project funding approved by senior management. Number and % of project Business Cases that obtain corporate funding. Basis for comparison: Corporate Plan Business Unit Plans Project Manager's commitment to deliver the agreed project outputs. Number and % of project initiatives that effectively deliver the agreed project outputs. Business Owner's commitment to utilise the agreed project outputs. Number and % of project outputs effectively utilised by the Business Unit(s). Steering Committee's commitment to oversee the attainment of the agreed project outputs. Number and % of major project milestones signed-off by the Steering Committee Basis for Comparison: Project Business Plan Project Execution Plan Delivery of Project Outcomes Business Owner commitment for realising the agreed project outcomes. Number and % of project initiatives that realise the agreed project outcomes. Basis for Comparison: Outcome/Benefits Realisation Plan 67 Version 2.0
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GUIDELINES Project accredited compliance with project management practice Use of an agreed Project Management Methodology to support the project. Number and % of project initiatives that comply with a project management methodology. Use of a Project Management Quality Review Consultant to perform independent review of the project processes. Basis for Comparison: BVI Government Project Management Guidelines Table 8: Defining Performance Measures
8.7. The Crucial Role of the Steering Committee
The Steering Committee members should realise that, ultimately, the success of the project is their responsibility. Only they can redefine the scope, or decide to close the project if it becomes clear the project objectives are unattainable. They should remember that the Project Manager and team may be too involved with the project to give adequate advice all the time on this issue and they should keep a close eye on the project‟s progress in meeting the success criteria defined above. They should also recognise that they have an important role in defining success measures and that these measures may be assessable throughout the course of the project and not just at the end.
8.8. Evaluation Tips
Focus on a few important factors Set realistic goals that can be achieved within project resources Decide how you will measure success Involve stakeholders Use formative evaluation to improve the project and the programme Build formative evaluation into the fabric of the project Use the results Make sure that the evaluation work is reflected in the work packages. 68 Version 2.0
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9. Closure
Projects can be closed because they are successfully completed, or because it is clear the proposed benefits of the project are unlikely to be attained or are unlikely to be relevant in the organisational context. To gain formal acceptance of project outputs and confirm the realisation of the outcomes, the closing down of a project needs to be planned for. This section of the BVI Government Project Management Guidelines includes: How to close a successfully completed project How to close an unsuccessful project
9.1. Closing a Successfully Completed Project
The final stages of a broadly successful project can be most rewarding. It is at this stage that people can finally see the realisation of plans and objectives. At the same time though, the „tying up of loose ends‟ can be tedious and people can be more motivated to work on new projects. However, it is important that a project is satisfactorily completed. Essentially, successful project finalisation involves: Acceptance of project outputs/deliverables by clients Be it a technical system, a building, or a set of policies, the outputs of the project should be successfully transferred to the project‟s clients or users. This should be planned and preferably, in the initial project plans. It is important to ensure the clients or users will accept the hand over date when the clients are given formal responsibility for the outputs/deliverables. Additionally, the Project Team should ensure there are facilities for ongoing maintenance or improvement of the outputs/deliverables and that the design of the product is adequately recorded. A review of project outputs and outcomes against the formal goals of the project Essentially, the Project Team should be able to illustrate that the project has delivered its planned outputs and that outcomes can reasonably be expected to flow from them. If it cannot, the project will not be completed successfully. For example, the development of a technical system may have been justified in terms of the greater efficiency that would result through the utilization of the new technology. In this case, the project is not satisfactorily complete when the technology is implemented in the organization, but only when these efficiency goals have been attained. These realized benefits should be measurable and documented. In other words, the Project Team should be able to illustrate their work fulfils 69 Version 2.0
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GUIDELINES the planned outputs and enables the planned outcomes of the project. This internal review should be completed before the Project Team is disbanded. Disbanding the Project Team and „tying up loose ends‟ It is important to ensure that all project activities are satisfactorily completed. It may help to produce ongoing checklists of outstanding work. Other means to ensure outstanding work is not forgotten include controlling work at a greater level of detail, holding more frequent Project Team meetings, and/or creating a special taskforce for completing outstanding work. At the end of a project, the risk of delays becomes greater and it is important to track progress more regularly. There should be plans for releasing resources before the project is to be finalized, and Project Teams should be gradually wound down. This should be done compassionately as often people have put a great deal of effort into the project and it will create bad feelings for both this project and the next one if they feel they are treated unfairly at this stage. External post-completion review/audit For large projects, a post-completion review may be a useful way of identifying issues and concerns that may be relevant to other projects. Often projects that have radically gone wrong are audited, but many useful lessons can be gained from successful projects. Formal closure by Steering Committee and disbanding the project Steering Committee The project Steering Committee cannot disband until the projects outcomes are seen as achieved, or the project is classed as unsuccessful. The Steering Committee should ensure that the outputs and outcomes realize the planned objectives of the project. They are the group that formally closes the project. Project completion celebration Whether a formal product launch or an informal gathering for those involved in the project, a project completion celebration is a good way to mark the end of what may have been a significant period for those involved.
9.2. Closing an Unsuccessful Project
It is important to recognise that projects can be closed at any point during their lifecycle. Closing a successfully completed project can be challenging at the best of times, but closing a project that will probably not achieve its objectives can be seriously difficult, especially if considerable resources have already been expended on it. Many unsuccessful projects have not been completed at the appropriate time and were left to „drag on‟. 70 Version 2.0
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GUIDELINES The project Steering Committee is ultimately responsible for closing down a project, whether it is successful or unsuccessful. Signs of an unsuccessful project that may need to be closed before being completed include: The impetus for the project has disappeared or greatly reduced. The Project Team is unable consistently to meet major project milestones. The activities involved with the project do not match with the stated objectives of the project. It is clear the clients will not accept the outputs and/or outcomes of the project. Major project risks are realised, and are unmanageable. Key Project Team members leave the project. It is important to remember the Project Manager will often not be able to indicate if their project is in need of closure. Not only could it be viewed as a severe loss of face, but also they may simply be too engrossed to provide adequate advice. Essentially, the steps a Steering Committee should take for closing an incomplete project include: If there are serious problems with the project, informally discuss the pros and cons of closing it with members of the Steering Committee. Facilitate an independent project review. That is, obtain another opinion from someone without any stake in the project. Discuss the ramifications for closing the project with those who will be affected by the decision. Ensure that any decision to close the project will not be untenable for any major players, especially executive management. Formally discuss the closure of the project in a Steering Committee meeting. Any decision to close or continue with the project should be formally justified, and the reasons for it documented. Facilitate activities involved with wrapping up project activities and removing resources. Facilitate a formal external project review so that lessons can be learnt for future situations. For the Project Manager and team responsible, the decision to close an unsuccessfully completed project can be distressing and demoralising. They should remember that the reasons for project failure can be complex and varied, and that responsibility rarely rests entirely with one or two individuals. In this situation, it is important to ensure that project resources are appropriately 71 Version 2.0
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GUIDELINES redeployed. There should also be debriefing sessions for all those involved with the project and the group as a whole. In some cases, it may be useful to replace the Project Manager and/or other members of the Project Team with new people who can close down the project as quickly as possible. 72 Version 2.0
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10. Documentation
Project management documentation provides both a record of decisions and a means of documenting assumptions on which these decisions are based. Creating the documents can also help the Project Team focus on the tasks required at a particular stage in a project and so should not be viewed as superfluous to the project. Such documentation is usually generated by the Project Manager or Team and approved by the Project Steering Committee. This section of the BVI Government Project Management Guidelines includes: The different levels of documentation The purpose of each of the commonly used project planning and management documents Details for a project feasibility study
10.1. Levels of Documentation
The approach advocated in these Guidelines uses three levels of documentation: A corporate level at which the Steering Committee takes ownership of and responsibility for a Project Business Plan. Other documentation included at this level is a Feasibility Report and/or a Project Business Case and any project funding submissions to senior management. A business level at which the manager of the (business) unit (the Business Owner) takes responsibility for an Outcome/Benefits Realisation Plan and other documentation required to support the testing, training and use of the project outputs to achieve required outcomes. A project level at which the Project Manager and team take responsibility for the development of a Project Execution Plan and various other project documents used to produce the outputs. These three levels are depicted in Figure 10. Note: Those components of project documentation that are the joint responsibility of the Project Sponsor, the Business Owner and the Project Team are shown in the intersection of the three circles in Figure 10. Without consensus on these important components, the Project Manager will be unable to deliver effectively the project outputs. The full set of project documentation defined in these Guidelines, can be a heavy load for a small project. However, small projects also demand a certain level of documentation. The Project Manager should consider which documents are required, based upon decisions regarding the project size and look at using scaled down versions for smaller projects. 73 Version 2.0
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GUIDELINES CORPORATE BUSINESS
PROJECT SPONSOR (Steering Committee)
Feasibility Report Proje ct Business Case Project Business Plan
JOINT Scope Objectives Outputs Outcomes Strategy Quality BUSINESS OWNER
Outcome/Benefits Realisation Plan Acceptance Testing Plan Documentation for: Organisational Redesign; Operational Procedures; and Training. PROJECT TEAM(S) Project Execution Plan Project Status Reporting Documentation for: Functional Requirements and Design; Information Technology & Telecommunications; Tendering; and Contracting.
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Tips from Project Managers:
Canvas all stakeholders for input during document production. Ensure independent review. Don‟t swamp stakeholders with too much documentation at any one time. Documents are only one mechanism by which to communicate with stakeholders. Obtain agreement with the Steering Committee as to what documentation is required by them. Assign responsibility for development, acceptance and maintenance of documents. Don‟t assume the Project Manager has responsibility for all documentation. Documents can provide a knowledge base for future projects. State the purpose/intention of each document. Ask yourself what would happen if we did not have this document. The minimum required documents for a project are a Project Proposal and a Project Execution Plan. Establish a baseline for monitoring and reporting purposes. Formally document decisions and actions from meetings. Clearly define and agree on project governance. Ensure the process for issues management is defined. Establish a consistent structure and approach for status reporting. Minimum reporting to the Steering Committee includes: o milestones; o o risks; issues; and o budget. 75 Version 2.0
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GUIDELINES Ensure that there are resources and time scheduled in the Project Execution Plan to develop, review and maintain documents.
10.2. Description of Documents
The following commonly used project planning and management documents are described in the sections below: Project Proposal/Brief Feasibility Report Project Business Case Project Business Plan Project Execution Plan Outcome/Benefits Realisation Plan Project Status Report Project Closeout Checklist & Report (Project Output Review) Project Evaluation Report (Project Outcome Review) These templates are available from the Project Support Services Unit on CD-ROM. Project Proposal/Brief The Project Proposal/Brief is usually the first document outlining what change is proposed. It is the document that converts an idea or policy into the details of a potential project, including the outcomes, outputs, major risks, costs, stakeholders and an estimate of the resources and time required. The Project Proposal/Brief expands the initial concepts in order to: provide broad details of the objectives, scope, resources, budget, milestones, risks, stakeholders and related projects of the initiative; define the guidelines/standards to be applied throughout the initiative; and gain authorisation to proceed to the next step of the initiative. 76 Version 2.0
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GUIDELINES Feasibility Report The feasibility study phase for a project is optional, but recommended. The purpose of a feasibility study is to assess the viability of a potential project. A Feasibility Report, developed from the feasibility study, is presented to senior management to determine whether the project has sufficient merit to continue into more detailed phases. The results of this phase are used to support the development of the Project Business Case. In most instances, the outcome of a feasibility study is the development of a Project Business Case. Note: As a Feasibility Report template is not yet available, more information is provided under Section 10.3 as a guide for the development of a Feasibility Report. Project Business Case The Project Business Case is used to assess the justification of a proposed project, or to assess the development options for a project that has already received funding. If approved, it confirms senior management support and/or funding for a recommended course of action. For major project initiatives, it may also be used to support a submission to Cabinet and/or its Budget sub-Committee. The project begins once the Project Business Case and associated funding has been approved. Project Business Plan The Project Business Plan is the high-level management document for the project. It is owned, maintained and utilised by the project's Steering Committee to ensure the delivery of defined project outcomes. Once approval is given for the project to proceed, the Project Business Case can be used as the basis for preparation of a Project Business Plan. The plan enables the Steering Committee to effectively monitor the project from start to finish. It also identifies the project outputs and outcomes. It provides an overview of all the project components, and describes the roles and responsibilities of each of the parties. As a complex project proceeds from milestone to milestone, the Project Business Plan will need periodic formal review, even re-creation to document the changed conditions or objectives. The Steering Committee may require the Project Manager or a Project Team member to support the Project Business Plan on their behalf. 77 Version 2.0
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GUIDELINES Project Execution Plan Outcome/ Benefits Realisation Plan Project Status Reporting The Project Execution Plan is the „road map‟ used by the Project Team to deliver the agreed project outputs and it outlines the responsibilities of the Project Team and stakeholders. It expands the Project Business Plan by specifying operational (day-to day) management procedures and control plans including: detailed project plans; resource schedules; quality procedures; output purchasing and development plans; risk management plan; and project budgets. A Project Execution Plan will need periodic review and updating by the Project Manager. Appropriate support within the Project Team is required to administer the plan. The Outcome/Benefits Realisation Plan is used to support the organisational change management process required for effective utilisation of the agreed project outputs in the business unit(s). It assists in ensuring the achievement of the project outcomes described in the Project Business Plan. The Business Owner is responsible for creating and updating the Outcome/Benefits Realisation Plan and for reporting on progress toward the achievement of these outcomes/benefits to senior management and the Steering Committee. The purpose of status reporting is to report to appropriate people on actual progress against planned progress. Status reports should: be concise; report progress to date; list the next steps to be completed; and identify issues of concern. It should also include reporting against the performance measurements for the project, identifying both successes and failures. These reports should be communicated to members of the Project Team, management, and other interested parties as appropriate. 78 Version 2.0
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GUIDELINES Project Closeout Checklist & Report Project Evaluation Report The Project Closeout Checklist provides a list of activities for consideration by the project team when getting ready to wind down project activity. Once the project outputs have been delivered, there should be a review of the project involving as many project participants as possible to evaluate the success of the project and document the lessons learnt. The Project Closeout Report documents the lessons learnt that could be applied to future projects. The Project Evaluation Report documents the review of the project to assess if the desired outcomes were attained. The timing of this review will depend on when an assessment can be made as to whether or not nominated project outcomes have been attained.
10.3. Feasibility Study/Report
10.3.1. Conducting a Project Feasibility Study A project feasibility study either refines a Project Proposal or Business Case by examining the range of possible options and potential issues, or forms a basis for its development. A feasibility study should address issues that could influence the success of a potential project and assess the advantages and disadvantages of each option so they can be ranked. It includes a cost/benefit analysis and results in the development of a Feasibility Report. In many ways, a Feasibility Report can be treated like a mini-project in its own right; its outcome being a decision on how the larger project should be handled. If it is completed as the project is being initiated, one of its outputs could be a preliminary Business Case document. If it is completed after the Business Case has already been developed, it can help refine it. In either case, it should narrow the range of options, assess each of the remaining options, and propose solutions to issues raised. Exploring the options The first step in conducting a feasibility study is to examine all possible options. Each option should be thoroughly reviewed. If it already exists, the project‟s Business Case document should help scope this task, but it should not stifle imagination. Ranking the options The options identified should then be ranked according to the Sponsor‟s goals, project constraints and other external issues. Outlining the way forward The feasibility study should result in a clear definition of future directions. 79 Version 2.0
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GUIDELINES 10.3.2. 1. 2. Steps to initiate a feasibility study Appoint an experienced manager and team, the membership of which depends on the nature of the project. The team should include a range of specialists and should not be dominated by one type of specialist. It should also be as small as possible, as smaller teams are easier to coordinate. The manager of the feasibility study will probably not be the Project Manager for the remainder of the initiative, but it is a good idea that the future Project Manager is a member of the feasibility study team. This will help ensure their ownership of and commitment to the directions established. Examine the scope of the study to assess the work involved and any constraints, such as quality, cost, time and so forth. A resulting work plan should outline the study‟s delivery time, interim and final reports required. 3. 4. 5. Appoint external advisers to supplement team resources, if required. Create a plan for the study. This plan should include a milestone plan and a responsibility chart. The milestone chart/ plan should be robust, but flexible enough to cope with emerging or unexpected issues and adequate time should be allowed for requesting and collecting information, as well as interpreting and analysing the results. Set a timetable and budget for the study. These should be enough to allow options to be explored and thoroughly evaluated. 80 Version 2.0
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GUIDELINES 10.3.3. Managing the study Three main elements need to be managed in relation to the feasibility study: 1. Organisation 2. There should be a clearly focused, but flexible structure built around the milestone plan. Roles and responsibilities should be clearly defined and a responsibility chart or governance structure model is one way of doing this. Communication 3. The manager should maintain good contact with the executive Sponsor/Steering Committee to ensure the study remains on target and any required changes are made. Internal team communication is also important to ensure delays are tracked, duplication is avoided and information is shared, especially between different areas of specialty. Control The manager should ensure milestones adopted are appropriate for achieving the aims of the study and are reached on time. Costs should also be monitored and timing and budget changes made so that the study still meets its aims. 10.3.4. Completing the study and next steps The feasibility study should provide a good foundation to allow early project analysis and design activities to commence in a focused manner. The end product of the study should be a clear, concise report to senior management, which presents the project‟s original specifications and objectives, with conclusions and recommendations for the next stage. This report should highlight the advantages and disadvantages associated with each option and cover issues such as cost, revenue, strategic considerations and so forth. It should provide senior management with a firm basis to determine whether the project has sufficient merit to continue into more detailed phases. It should especially highlight changes made to any existing Project Business Case due to the study. 81 Version 2.0
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Appendix I: Project Documents and Templates
Copies of all the templates are available by request on CD_ROM from PSSU.
PM001 – Project Management Checklist
PM001 Project Management Checklist
PM010 - Project Proposal Document
The Finance Officer or Department Head is responsible for submitting the Project Proposal form for each programme or project. PM010 Project Proposal.xls
Work Breakdown Structure
A principal tool of the earned value system is the Work Breakdown Structure (WBS) also referred to as Project Breakdown Structure (PBS) which provides a common framework and baseline for organizing budgets, cost accounts, schedules and deliverables. When applied to contracts it is referred to as the Contract Breakdown Structure (CBS). The WBS is a hierarchical representation of all the deliverables, sub-projects, elements and work packages that comprise a project or contract. It helps to define total project scope, and breaks a project or contract into progressively lower levels of detail, as shown in Fig 1.2.1 below. Fig. 1.2.1 Workbreakdown Structure
Level of Detail
Level 0 Level 1 Level 2
Name
Project
•
Deliverables
•
Subphases
•
Organizational work
•
Components
•
Process elements Level 3
* * * •
Sub-components (elements)
•
Process sub-elements N
+ +
The WBS rarely has more than 4 levels Some branches will have more levels than others
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GUIDELINES The lowest level of detail in each branch of the WBS is the Work Package, which represents the way in which work will be done. The Work Package contains the cost control account, and represents the point at which actual costs may be accumulated and compared to „budgeted costs of work performed‟. Examples of Work Packages are highlighted in Fig 1.2.2 below.
Fig. 1.2.2 Work Packages
Work packages are at the lowest level of a branch.
= Work package
Functions of the WBS
The WBS provides a framework for establishing detailed work schedules based on technically verifiable product completion. It also provides a basis for detecting the omission and duplication of items in the project plan. Consequently, if an item of work is not identified in the WBS it cannot be included as part of the project schedule or budget without specific authorization either as a recognized omission or as change in project scope. The WBS provides the basis for cost and schedule estimation through bottom-up detailing of project elements and the assignment of resources (plant, materials, labour, time etc.) to work packages. Resources and related costs are never introduced at the higher (summary) levels. This approach ensures that specific items of work/cost can be isolated and identified by “drilling down” from higher to lower levels in the hierarchy. The approach also makes it possible to 83 Version 2.0
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GUIDELINES summarize and aggregate management level project information by “rolling up” from lower levels of detail to higher levels of summarization as required. An example of a WBS with costs assigned at the work package level and rolled up to the summary levels is presented below: - Fig. 2 Level 1- shows the breakdown of activities and costs for the HLSCC Centre for Applied Marine Studies Project. - Fig. 2 Level 2- shows the breakdown for “Measured Works” (a level-1 item extracted from Fig 2).
Bills of Quantities (BQ's)3/1 - 5/4 Measured Works
BQ 3/1-4
Site Clearance
$ 63,088.24
BQ 3/5-9
Substructure
$ 472,724.28
BQ 4/1-25
Superstructure
$ 957,689.83
BQ 4/26-39
Finishes
$ 418,240.45 BQ 4/41-44
Fixt. and Fittings
$ 40,133.04
BQ 4/41-44
Air Conditioning
$ 502,450.00
BQ 4/50-4, 4/52-3
Elec. Installation
$ 738,840.76
BQ 4/54, 4/56-1
Plumb. Drain/ Inst.
$ 310,710.24
BQ 5/1,5/22
External Works
$ 584,879.39
Demolition $ 54,859.62
Site Clearance $ 4858.12
Dewatering $ 3,370.50
Earthworks $ 124,886.86
Piling $ 933,472.70
Concrete Work $ 108,714.75
Reinforcement $92,011.18
Form Work $42,114.97
Block Work $8,960.74
Reinforcement $2,277.40
Sundries $285.66
Frames $ 465,982.52
Walls $ 149,847.05
Staircases $ 57,587.80
Roof $ 114,568.41
Windows & Doors $ 169,704.05
Bathrooms & Partitions $ 7,953.05
Internal Partitions $ 32,872.41
Floor $105,479.01
Walls $ 145,894.92
Ceilings $101,358.12
Paintings & Decorations $ 32,635.99
Bathroom Accessories $ 10,842.47
Benches $ 2,570.22
Cabinet Work $4,861.37
Wood Shelving $ 12,206.57
Appliances $ 1699.36
Equipment $ 481,950.00
Builder's Works $ 20,500.00
Equipment $ 481,950.00
Builder's Works $ 20,500.00
Equipment $ 278,300.00
Builder's Works $ 32,410.24
Site Works $ 286,002.19
Paint & Pavings $ 64,005.84
Retaining Walls $ 57,521.89
Upper Entry Bridge $ 17,634.96
Entrance Area $ 26,544.89
Chiller Compound $ 70,260.19
External Plumbing $ 46,087.64
Planting/ Landscaping $ 16,820.79
Figure 2 Work Breakdown Structure - Measured Works 84 Version 2.0
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PM020 - Project Execution Plan
To be completed by the Project Manger/Finance Officer/Department Head and submitted for evaluation by Ministry of Finance. The plan is required before project funds are de-reserved for spending. PM020 Project Execution Plan.xls
PM021 - Project Status Report
To be completed by the Project Manager or person responsible for project (Finance Officer or Department Head) PM021 Status Report.xls
PM022 - Handover Form
See Closeout Report for instructions. Form should be attached to Project Closeout Report. PM022 Handover Form.doc
PM003 - Project Closeout Checklist
The checklist assists with the completion of the Close-Out Report by Finance Officer and/ Project Manager. PM030 Project Closeout Checklist.doc
PM030 - Project Closeout Report
The Project Manager/Finance Officer/Department Head is responsible for submitting the Closeout Report with the Project Plan, & Project Handover Form to PSSU within 30 days after project closeout. A Technical Detail report can be appended to this form. PM030 - Project Closeout Report.doc
PM040 - Project Evaluation Report
The Project Coordinator - PSSU for the project‟s Ministry is responsible for completing the Evaluation Form and submitting to the Financial Secretary within 45 days after project closeout. PM040 Project Evaluation Report.doc
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Appendix II – Glossary
Acceptance Testing Accepted Authorised Baseline Metrics Benefits Business Initiative Project Business Owner Constraints Consultant Contract Formal testing conducted to determine whether or not a system satisfies its pre-defined acceptance criteria and to enable the customer to determine whether or not to accept the system. The recorded decision or formal sign off by the customer, that an output or sub-output has satisfied the documented requirements and may be delivered to the customer or used in the next part of the process. The recorded decision that a deliverable or output has been cleared for use or action after having satisfied the quality standards for the project. A set of indicators to set as measures against which to judge and report progress or performance. Refer to Outcomes A project with a target of realising a specific set of measurable business outcomes (benefits). The scope of a business initiative project is wide enough to embrace all project outputs, activities, resources and risks associated with the defined outcomes. The main customers of the project who are responsible for utilising the project outputs and realising the agreed project outcomes/benefits. Factors that will limit the project management team‟s options, for example a predefined budget, deadlines, technology choices, scope or legislative processes. An organisation or individual contracted to provide high-level specialist or professional advice to assist decision-making by Department management. The consultant will be expected to exercise his/her own skills and judgement independently of the Department. An agreement for provision of a good and/or service, between two or more parties intended to create a legal obligation between them and to be legally enforceable. 86 Version 2.0
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GUIDELINES Contractor Corporate Client Corporate Goals Cost Benefit Analysis Customers Deliverable Development Plan Document Control Environment Baseline Feasibility Report An organisation or individual contracted to provide a specified service to a Department. A contractor will usually work under the supervision of a Department Manager to provide services that are not readily available in the State Service. The high level champion of the project, who has ultimate authority. She or he promotes the benefits of the project to the community. The goals or objectives identified by an organisation/Department to support the core business of the organisation/Department. The economic and social justification for a proposed project. Those who will utilise the project outputs, and will generate the targeted outcomes (benefits). A tangible, verifiable work output such as a feasibility study, a detailed design, a working prototype, any report, manual, specification, programming or other output developed as part of a project. Description of how the project activities will proceed to create the output(s). All documents, whether electronic or hard copy, need to be uniquely identifiable. In most cases, it is also necessary to track the changes that occur to the document and record its distribution throughout the document‟s development and subsequent revision(s). Document control includes: the use of version numbers on documents (version control); maintaining a history of the development of versions (build status); the use of numbered copies of documents (controlled documents); and maintaining a list of recipients for distributed copies (distribution list). Provides details of the project‟s environment (eg office equipment, software, hardware, communications etc) so as to define a baseline that is then managed accordingly. A report that is developed as a result of a feasibility study, and is presented to senior management to determine whether a project has sufficient merit to continue into more detailed 87 Version 2.0
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GUIDELINES Feasibility Study Gantt Chart Goals Governance Governance Model Governance Structure Implementation Plan Infrastructure Project Input(s) ISO Standards Issue phases. A study to assess the viability of a potential project. It includes a cost/benefit analysis and results in the development of a Feasibility Report . Horizontal bar charts, which can graphically depict the time relationship of tasks, activities and resources in a project. Named after Henry Gantt, an industrial engineer who introduced them in the early 1900‟s. Refer to Objectives The management structure created for the life of a project. Refer to Governance Model and Governance Structure A generic model that indicates the players most likely to be incorporated in a project governance structure. It is also an indication of some of the ways in which the players would be most likely to interact. This diagram indicates the specific players that will provide the management for a particular project, and the interaction between the players (also known as a Responsibility Chart). Describes how the outputs will be delivered to the customer, including any special requirements such as stage implementation or „roll out‟, training and delivery requirements. Delivers agreed project outputs. It has no immediate utilisation component because the project objective is limited to achievement of the project outputs. Outcomes emerge later from future business initiative projects that utilise the infrastructure for the delivery of services. Refer to Project Classification There are two types of inputs: Information – which is not used up through use Resources – which are used up, funds and labour The International Standards Organisation (ISO) has developed a set of international standards that can be used in any type of business and are accepted around the world as proof that a business can provide assured quality. A concern raised by any stakeholder that needs to be addressed, either immediately or during the project. As issues are reviewed during the project, they may become a threat to the project and a mitigation strategy prepared. Refer to Risk Analysis 88 Version 2.0
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GUIDELINES ITO Model Key Elements Key Stakeholder Large Project Maintenance Plan Medium Project Milestone Non-Key Stakeholder Objectives Outcome/Benefits Realisation Plan Outcome(s) The Input-Transform-Outcome (ITO) Model was developed by John Smyrk. It is an effective tool that helps to directly link the actual outputs of a project and project activities with the intended project outcomes, organisational goals and directions of the organisation/Department. These are essential aspects of managing projects that must be considered no matter what the project size or complexity. They are identified and explained in the BVI Government Project Management Guidelines: Section 1.2
. An individual or group whose interest in the project must be recognised if the project is to be successful. In particular, those whose may be positively or negatively affected during the project or upon successfully completing the project. Refer to Stakeholder and Non-Key Stakeholder Refer to Project Size A detailed plan to support the ongoing maintenance of an output once it has been implemented, including the management of a future changes (both enhancements and fixes). Refer to Project Size A significant scheduled event that acts as a progress marker in the life of a project. A milestone is either passed or it is not, the achievement, or non-achievement, of which is monitored and reported. Stakeholders who do not need to be recognised in order for the project to be successful, but who will be identified as a result of the process of identifying all stakeholders. Refer to Stakeholder and Key Stakeholder The goals that define the strategic direction of an organisation/Department and are delivered through the work of projects. These objectives may be found in a Corporate Business Plan, Strategic Plan or Budget Papers. Describes how the project outputs will be utilised by the business unit(s) in order for the benefits of the project to be realised. Also includes strategies to support the change management process, and appropriate methods of measuring and reporting the progress toward achieving these benefits. The benefits and other long-term changes that are sought from undertaking a project. Project outcomes are achieved from the utilisation of the outputs delivered by a project. Not to be confused with Department Budget Outcomes. 89 Version 2.0
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GUIDELINES Refer to Target Outcomes Output(s) Output Plan Management A detailed plan for the management of the changes (both enhancements and fixes) to an output while it is being produced. Performance Measures The services or products delivered to the Business Owner(s) by the project. Not to be confused with Department Budget Outputs. Phase Criteria for measuring a project's success, whether the project is under control; and the level of adherence to documented plans, methodologies and standards. A section or „chunk‟ of work in a project for which there are no measurable outcomes at the end although some outputs may be produced. Post Review Implementation A review of a completed project. This may be a review of one or more aspects of the project. For example, whether the outcomes (benefits) were realised, the „fitness for purpose‟ of the outputs produced, or the project and quality management processes selected and applied. Refer to Project Outcomes Review and Project Output Review Probity Program The consideration of ethical issues relating to procurement. Some general principles include: ensuring best value to the public in monetary terms, ensuring fairness and impartiality, dealing with conflicts of interest which could influence outcomes, and ensuring accountability. A group of related projects that are managed in a coordinated way, usually with an activity that is ongoing. Refer to Project Project Project & Quality Management Advisor Project Brief A project brings about change and involves a group of inter related activities that are planned and then executed in a certain sequence to create a unique product or service (output) within a specific time frame. Projects are often critical components of an organisation‟s business strategy or relate directly to policies and initiatives of the Government. Refer to Project Classification and Project Size This role provides an informal ongoing review, both of documentation and application of management processes, in addition to providing independent advice to assist the Project Manager and Team. Refer to Project Proposal/Brief 90 Version 2.0
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GUIDELINES Project Business Case Project Business Plan Project Classification Project Execution Plan Project Management A one-off, start-up document used by corporate management to assess the justification of a proposed project, or to assess the development options for a project that has already received funding. If approved, it confirms corporate management support and/or funding for a recommended course of action. The high-level management document for the project. It is owned, maintained and utilised by the Steering Committee to ensure the delivery of project outputs and the realisation of defined project outcomes. Under the ITO Model, projects can be divided into two categories, which John Smyrk defines as either Business Initiative projects or Infrastructure projects. Refer to Business Initiative Project , Infrastructure Project and ITO Model The „road map‟ used by the Project Team to deliver the agreed project outputs. It outlines the responsibilities of the Project Team and stakeholders. Project Management is a formalised and structured method of managing change in a rigorous manner. It focuses on achieving specifically defined outputs that are to be achieved by a certain time, to a defined quality and with a given level of resources so that planned outcomes are achieved. Project Management Methodology A pre-defined set of tasks that are designed to provide a guide or a checklist for developing and implementing projects. Project Manager Project Metrics Project Outcomes Review The Project Manager is contracted by the Steering Committee to deliver the defined project outputs. Measures used to indicate progress or achievement of a project. A review of a project, involving as many project participants as possible, to assess if the desired outcomes were attained. Refer to Review Project Output Review and Post Implementation Project Output Review Project Phase A review of a project, involving as many project participants as possible, to evaluate the „fitness for purpose‟ of the outputs, the amount of deviation that occurred from the original specifications requested by the customer and the final result, and how any changes to these specifications were managed and approved. Refer to Project Outcomes Review and Review Post Implementation Refer to Phase 91 Version 2.0
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GUIDELINES Project Plan Project Proposal/Brief Project Schedule Project Size Project Sponsor Project Stage Project Status Report Project Team Refer to Project Schedule The initial document that converts an idea or policy into the details of a potential project, including the outcomes, outputs, major risks, costs, stakeholders and an estimate of the resources and time required. A detailed plan of major project phases, milestones, activities, tasks and the resources allocated to each task. The most common representation of the project schedule is in a Gantt Chart. Refer to Gantt Chart Projects vary in size or complexity, for example they may: involve changes to existing systems, policies, legislation and/or procedures; entail organisational change; involve a single person or many people; involve a single unit of one organisation, or may cross organisational boundaries; involve engagement and management of external resources; may cost anywhere from $10,000 to more than a $million; or may require less than 100 hours or take several years. The methodology does not have a formal process for determining and grading the size of projects. This is left up to the judgement of the Project Sponsor. The Project Sponsor has ultimate accountability and responsibility for the project and is a member of the Steering Committee, usually the Chair. The Sponsor has the delegated authority of the Steering Committee to assist with business management and project management issues that arise outside the formal business of the Steering Committee. The Sponsor also lends support by advocacy at senior level and ensuring that the necessary resources (both financial and human) are available to the project. The Corporate Client and Project Sponsor may be the same person for some projects. Refer to Stage A regular report on the status of the project with regard to project performance, milestones, budget, issues, risks and areas of concern, to the appropriate people. The Project Manager leads the Project Team. The team‟s main 92 Version 2.0
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GUIDELINES Purchasing Plan Quality Assurance Quality Control goal is the successful delivery of the project outputs. Provides a detailed plan of the process for acquiring the proposed goods and services to support the delivery of the project‟s outputs. The application of planned, systematic activities, within a documented management framework, that provides confidence that the outputs from a process meet the customer‟s requirements. The process of monitoring the adherence to documented quality assurance procedures. Quality Management Quality System Management Defined policies and procedures that provide a formal framework describing the way an organisation conducts its core business. The performance of each quality management procedure generates objective evidence by which to measure the performance of the organisation and its management. Quality Plan Quality management is the policy and associated procedures, methods and standards required for the control of projects. The purpose of quality management is to increase certainty by reducing the risk of project failure. It also provides the opportunity for continuous improvement. Rapid Application Development (RAD) Reference Group Summarises the quality management approach and how it will support the delivery of the project outputs. The use of highly structured project planning sessions that entail the use of intensive team-based analysis, design and development sessions. Assists in shortening the IT system development process. Group that provide forums to achieve consensus among groups of stakeholders. Resources Responsibility Chart Risk Analysis The people, finances, physical and information resources required to perform the project activities. Refer to Governance Model and Governance Structure Risk Management Risk Management Plan Undertaking a process to assess identified threats to the success of the project, which results in working papers of the current assessment for each threat (both likelihood and seriousness), a risk grading and strategies for mitigating the risks. The results of this analysis are usually captured in the Risk Register . Describes the processes concerned with identifying, analysing and responding to project risk. It consists of risk identification, risk quantification, risk response development, and risk response control. Summarises the proposed risk management approach for the 93 Version 2.0
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GUIDELINES Risk Scope Scope creep Small Project Stage Stakeholder Management Plan Stakeholder Steering Committee Charter project. Any factor (or threat) that may adversely affect the successful completion of the project. A clear statement of the areas of impact and boundaries of the project. The scope of a project includes the target outcomes, customers, outputs, work and resources (both financial and human). Any modification to the scope of a project that has not been authorised or approved by the appropriate individual or group. Refer to Scope Refer to Project Size . A major segment of a project for which there are outputs and outcomes at the end. For example, the staged introduction of the Government Directory Service into each Department. Identifies and summarises stakeholder involvement including identification of stakeholders for related projects. A person or organisation that has an interest in the project processes, outputs or outcomes. Refer to Key Stakeholder and Non-Key Stakeholder A charter developed for use by Steering Committees of BVI Government projects. This describes the basic role and functions of the Steering Committees both as a collective group, and as individual members. Refer to Steering Committee Steering Committee Strategic Information Systems Plan A project Steering Committee is the key body within the governance structure that is responsible for the business issues associated with the project, which are essential to ensuring the delivery of the project outputs and the attainment of project outcomes. This includes approving the budgetary strategy, defining and realising benefits, monitoring risks, quality and timelines, making policy and resources decisions, and assessing requests for changes to the scope of the project. Refer to Steering Committee Charter The development of this plan is the first phase of the IT System Development Life Cycle, as defined in the APT methodology. It examines future and business process requirements and identifies the infrastructure and applications required. This results in a list of potential business initiative projects that are costed, prioritised and put forward for endorsement by the organisation/Department. Refer to APT Methodology 94 Version 2.0
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GUIDELINES Target Outcome(s) Test Plan Test Specification Testing Threat Version Control Work Breakdown Structure (WBS) Working Parties/Groups The measurable benefits that are sought from undertaking a project. Target outcomes are achieved from the utilisation of the outputs delivered by a project. Stated, identified targets and measures are developed for gauging progress towards their achievement. Refer to Outcomes A detailed plan that addresses all aspects related to the test of an output or sub-output. It should include test scenarios, the test schedule and define any necessary support tools. Describes the test criteria and the methods to be used in a specific test to assure the performance and design specifications have been satisfied. The test specification identifies the capabilities or program functions to be tested and identifies the test environment. It may include test data to support identified test scenarios. The process of exercising or evaluating an output such as an IT system or system component by manual or automated means to confirm that it satisfies specified requirements, or to identify differences between expected and actual results. Refer to Risk A control or identification system for documents, outputs and sub-outputs, enabling stakeholders to readily identify each different release. This refers to the breaking down of the work in a project into related tasks, sometimes described as an Activity Decomposition Chart. Specialist working groups dedicated to the production of defined output(s) in accordance with project plan requirements. 95 Version 2.0
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Appendix III: Steering Not Rowing: A Charter for Project Steering Committees and their Members
The purpose of a Steering Committee is to take responsibility for the business issues associated with a project. A Steering Committee's role is crucial to a project's success. It is responsible for approving budgetary strategy, defining and realising benefits, and monitoring risks, quality and timeliness. Those directly responsible for running a project and managing its stakeholders rely on Steering Committee members for guidance and support in their endeavours. The role of a Steering Committee Without an effective Steering Committee, a project is unlikely to succeed. Collectively, a Steering Committee's role is to: take on responsibility for the project's feasibility, business plan and achievement of outcomes; ensure the project's scope aligns with the requirements of the stakeholder groups; provide those directly involved in the project with guidance on project business issues; ensure effort and expenditure are appropriate to stakeholder expectations; address any issue that has major implications for the project; keep the project scope under control as emergent issues force changes to be considered; reconcile differences in opinion and approach, and resolve disputes arising from them; report on project progress to those responsible at a high level, such as Cabinet; and take on responsibility for any whole-of-government issues associated with the project. Once developed, a Project Business Plan defines the project scope and the Steering Committee, as a whole must own the document. The role of individual Steering Committee members At a minimum, the Steering Committee includes representatives of the Corporate Clients, the Project Sponsor(s) and the Business Owner(s) and perhaps the Project's Manager. Individual Steering Committee members are not directly responsible for managing project activities, but provide support and guidance for those who do. Thus, individually, Steering Committee members must: 96 Version 2.0
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GUIDELINES understand the strategic implications and outcomes of initiatives being pursued through project outputs; appreciate the significance of the project for some or all major stakeholders and perhaps represent their interests; be genuinely interested in the initiative and the outcomes being pursued in the project; be an advocate for the project's outcomes; have a broad understanding of project management issues and the approach being adopted; and be committed to, and actively involved in pursuing the project's outcomes. In practice, this means they: ensure the requirements of stakeholders are met by the project's outputs; help balance conflicting priorities and resources; provide guidance to the Project Team and users of the project's outputs; consider ideas and issues raised; review the progress of the project; and check adherence of project activities to standards of best practice, both within the organisation and in a wider context. See the generic governance model described in Section 3.2 of the BVI Government Project Management Guidelines. 97 Version 2.0
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Appendix IV: A Charter for Project and Quality Management Advisors
The purpose of a Project and Quality Management Advisory Service is to assist the Project Manager with selection and application of appropriate project and quality management methodology and processes. In addition, the Advisor provides a contact for discussion of project and quality management issues, independent from the Project Team. The Project and Quality Management Advisor strives to facilitate project success by assisting the Project Manager to deliver appropriate Outputs and the Steering Committee in achieving the intended Outcomes. Role The role of a Project and Quality Management Advisor is to: advise the Project Manager on the selection of an appropriate project management framework for a project; advise the Project Manager on the selection of an appropriate quality management framework for a project; observe the application of the project‟s management processes and make suggestions to the Project Manager regarding potential for improvement; provide guidance and support to the Project Team on the principles of project and quality management; offer independent opinion regarding project and quality management issues; and raise issues and provide advice to the Steering Committee for consideration. In practice, this is achieved by: regular discussions with the Project Manager; attending management meetings (eg Steering Committee, Project Team); and monitoring the application and effectiveness of documented management processes. Scope The Project and Quality Management Advisor assists with definition and application of management processes, but does not consider the technical suitability of the products delivered through the application of those processes. Advice is focused on future and current activities. The Advisor focuses on processes that directly influence the degree of success in achieving intended business outcomes, such as project planning, issue management and change control. Since these types of activities are common to all projects, the interaction with the Advisor should also be of long-term benefit to the Project Manager. 98 Version 2.0
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GUIDELINES The aim is to assist the Project Manager in developing a project management framework that is suitable for the project‟s technical activities. These activities are project-specific and result in the substantive deliverables from the project. If the Advisor does not have a conflict of interest, then he or she may be asked to undertake the additional role of Quality Review Consultant to the Project. In most circumstances, both roles would only be possible where the Project Manager had substantial experience and required little input from the Project and Quality Management Advisor in establishing a framework for the management processes. Reporting The Project and Quality Management Advisor is appointed by the Steering Committee for the project and is not a member of the Project Team. He or she operates from an independent perspective and advises both the Steering Committee and Project Manager. The Project and Quality Management Advisor acts in the best interests of the project in dealings with both the Project Manager and the Steering Committee. This approach provides a resolution path for the Project Team may be reluctant to raise issues with the Project Sponsor or the Steering Committee. Responsibilities The Project and Quality Management Advisor is responsible for provision of appropriate advice, in respect of management processes, to improve the likelihood the business outcomes being realised. He or she may also report significant risks to the project that become apparent through undertaking the role. Services and Deliverables In practice, the Project and Quality Management Advisor may: consider project management documents in order to identify opportunities for improvement in management processes; attend and offer verbal advice during Project Team and Project Sponsor‟s regular meetings; attend and offer opinion at Steering Committee meetings; and provide written confirmation to the Steering Committee in respect of verbal advice offered. 99 Version 2.0
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Appendix V: A Charter for Project Management Quality Review Consultants
The purpose of a Project Management Quality Review Consultancy is to ensure that the project management activities are appropriate for the project, through identification and reporting of successful project and quality management processes, and those activities where improvements are possible for future projects or phases. It is not intended to be a quantitative exercise that provides approval of the management processes used for a project. The main concern of the Project Management Quality Review Consultant is to provide independent evaluation of the suitability of the management processes employed to deliver the intended outcomes for the project. Role The role of a Project Management Quality Review Consultant is to: review the project management framework for a project; review the application of the project‟s management processes; and report findings regarding the above to the Steering Committee and provide recommendations for future consideration. In practice, this is achieved by: reviewing project documentation and records; and discussing the selection, application and effectiveness of management processes with the Project Team and Stakeholders. Scope The Project Management Quality Review Consultant concentrates on the processes and outputs from the management activity for a project from a historical perspective. The benefits from the Quality Review, therefore, come from application of the recommendations to future projects, or to subsequent phases of the current project. The Consultant focuses on those that directly relate to successful outcomes for the project. These types of activities are common to all projects and are referred to as project management activities. They include tasks such as project planning, issue management and change control. The aim is to ensure that the project management framework was suitable for the project‟s technical activities and to provide recommendations for future improvements. 100 Version 2.0
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GUIDELINES Reporting The Project Management Quality Review Consultant is appointed by the Steering Committee for the project and is not a member of the Project Team. He or she reviews the project from an independent perspective and reports to the Steering Committee. The Project Management Quality Review Consultant is able to raise any issue for the attention of the Steering Committee that he or she feels is important. This function provides a resolution path for the Project Team may be reluctant to raise issues. Responsibilities It is the Project Management Quality Review Consultant‟s responsibility to raise any issue within the scope of the review that may threaten the project in any way. He or she may also suggest improvements in project management activities, as appropriate, for future application. Services and Deliverables In practice, the Project Management Quality Review Consultant may: review project management documents and provide written feedback to the Steering Committee or Project Sponsor; provide written recommendations in relation to historical project management issues; and discuss findings at Steering Committee meetings. 101 Version 2.0
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Appendix VI: Where to Get Additional Help Training
The Modular Approach Training workshops will be designed on three levels for target audiences across the Public Service – from executive management to field officers. Topics will include Initiation and Planning, Contract Management, Risk Management, and Quality Control. The Project Support Services Unit will coordinate the training sessions and a schedule can be obtained by contacting the Unit. 102 Version 2.0
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GUIDELINES BVI Government Project Management Guidelines Version 2.0 – June 2009 Project Support Services Unit Ministry of Finance Government of the Virgin Islands 103 Version 2.0
