IncreasIng OrganIzatIOn capacIty IntrOductIOn Course outline • This course provides an overview of the strategies and tools necessary for the development of effective, long? lasting organizational capacity in project management. Topics covered include project management skill development, related skills, and organizational arrangements for effective project management, organizational learning, project management communities of practice, effective processes and tools for project management, and building the business case for project management initiatives. Module Flow • PMBoK • Tools • Change Management • Delivery Method • Assignments • Exam
Increasing Capacity Page 1 What Is a Project? 1. There are two types of work performed by organizations: operations and projects 2. A proposal, scheme or design. A task requiring considerable or concerted effort (The Collins Dictionary) 3. We all have projects:E. G. Find a job, buy a car, and buy a house Then, if we want to change anything – we work out a scheme, finance it, and carry it out ???????? A PROJECT 4. Our project needs : CONTROL – Otherwise there may be problems 5. How do we control a project? Project Management and the Manager 1. The discipline of organizing and managing resources [e. . people]. 2. to complete within – Scope/Quality/Time/Costs 3. One? time Endeavour ? not a process 4. Delivery within constraints 5. Control of resources in summary ? Control and Organization. Quality Increasing Capacity Cost Time Page 2 History of Project Management • • • • • Ancient Times Industrialization / Mechanization 1900’s Modern Times CLIENT, SPONSOR AND STAKEHOLDERS The Project Manager • Qualifications? – are they important? • Formal qualifications – helpful? Relative qualities: • In? house ? local, familiar, contactable • External ? independent, authority The Project Manager
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Role of the P/M – – Organize, manage, monitor and chase progress. – Responsible for correct and organized work programmes. – Responsible to sponsor/stakeholders for reporting progress. – Manage and control flow of funds – variations. Ourselves as P/M’s • How are we involved? • Are we stuck in the middle of it all? Increasing Capacity • How do we manage to be involved but not perceived to be interfering? Page 3 Methodology • Visual plans: – Graphics – display task/time/resource/cost – Give a “timeline” to visualise progress – Indicate important events – milestones – Ease the deduction of critical paths and timetables.
Software tools Some examples: • Microsoft Project ? ubiquitous, easy to use • Prince2 ? Projects IN Controlled Environments ? OGC • Critical Chain ? theory of constraints – Goldratt Methodology Increasing Capacity Page 4 How do they work? Help to: • Focus • Organise planning and meetings • Manage schedules and work programmes Gantt chart –developed in 1920’s Time line – view progress, critical path, milestones. Project Preliminaries Ask a few questions: • What is required? • How long have we got? • How much is it going to cost? • Who is involved? [The Team] • Who is the P/M? What are the threats/consequences of failure? Constructing a Project • Project brief • Deadlines • Legal issues • Surveyors • Disputes Increasing Capacity • Budgets • Architects • Local authorities • Progress? Checks? Meetings • Handover – review Page 5 Project Brief • • • • • • Discuss details with sponsor Describe clearly ALL, ALL the details of the project. Include any drawings or sketches. Spend time in designing the project. Ensure that nothing is omitted. “Freeze” drawings. Budgets • • • • • • • • • • How are they set? How are they controlled? How likely to be inadequate?
Initial funding Criteria List all work elements. Place common elements together. Assign costs to each element. Add any likely professional fees. Add contingency. Deadlines • Carefully consider all possible deadlines. • Ensure agreement by all parties • Don’t forget that environmental issues – noise, dust, scaffolding etc. could affect timetables. Architects • If an architect is involved they will be able to deal with awkward queries. • They will be able to meet with all parties and release drawings, details and estimates for the work programme. Page 6 Increasing Capacity Progress Checks Meetings P/M will keep records [minutes] of all meetings • Small projects – require even more care with record keeping. • Mail – electronic and letter, filed and be available for review. Handover • ALL PROJECTS MUST END • A handover meeting or other arrangement MUST be done to ensure that everything is completed to the satisfaction of all parties Understanding Project Management Basics • Although it might overlap with other types of management, project management is a specific management process. What Is Project Management? • Project management is the coordinating effort to fulfill the goals of the project. The project manager, as the leader of the project team, is responsible for this effort and its ultimate result. Project Management Practices • • • • • • • • Scope Human resources Quality Time Procurement Risk Cost Communications Page 7 Increasing Capacity Understanding Project Management Processes 1. Initiating and planning the project 2. Executing the project 3. Controlling the project 4. Closing the project Programme Management • Programmes combine projects and deliver benefits Increasing Capacity Page 8 The Value Path • Projects create deliverables. • Programmes combine deliverables to create capabilities.
The organisation utilizes the capabilities and gains BENEFITS Increasing Capacity Page 9 strategey (FOrmulatIOn & ImplementatIOn) Outline • Strategy Formulation – Views (Product, Market, Resources) – 3 “C”s • Strategy Implementation – Who implements strategy? – Problems – Strategic Drift – Change Management What is Strategic Management? • Strategic Management is about achieving success for organisation… • Vision alone is not enough… • Need to quantify what the organisation is trying to achieve… • Need a concrete plan of action… • Ultimately Strategy is about people” • Someone somewhere has to do something!!! the Increasing Capacity Page 10 Strategic Management SM = Formulation + Implementation “Use energy to find solutions, not fight battles” Strategy BCG Matrix Increasing Capacity Page 11 Strategy Formulation Definition Clever Vs Creative Effective Strategists Good Communication: • Listening ? Making your conversation concise and clear • Saying what you mean ? Making your conversation personal ? ` seeking clarification Mutual Respect: • Respect from all people for each other • Can be undermined by status, prejudice, lack of self? onfidence, lack of respect for difference, lack of understanding Personal Safety: • An environment where people feel valued for themselves and for their contribution • Able to take risks, make mistakes and learn without fear of blame and humiliation • Emergent thinking Support: • Means different things to different people • Context dependent ? comes through understanding • Susan Clayton ‘Developing Strategy’, 1997 communication and Increasing Capacity Page 12 Views of strategy: Strategy can be viewed in terms of: • Products (customer focus) ? Levitt. Markets (competition focus) ? Porter. • Total organization perspective (resources focus) Ohmae. Strategy as products: • Based on Levitt’s ideas that firms are in business to create and keep customers. Four layers to the “product: • The Generic Product: the core of what the firm is currently offering. • The Expected Product: customer’s minimum expectations of the product. • The Augmented Product: what does the firm provide that goes beyond customer expectations? • The Potential Product: What might the firm easily offer in the future (assuming no restrictions on cost, etc. ? What is our vision of the firm in the future? Strategy as markets: • Based on Porter’s views about Competitive Advantage: • Ultimate aim of corporate strategy is for firm to gain and maintain competitive advantage… • Firm seeks to dominate markets by being so good at delivering its ‘product’ that others find it difficult to compete. Increasing Capacity Page 13 Strategy as resources (capabilities): • Based on Ohmae’s ideas that strategic advantage comes from better matching organizational resources (capabilities) and customer needs. Differentiation is more than simple price and service definitions; it extends to all functional capabilities and competences of the firm • (Porter’s value chain? ) • 3 core strategies… Strategy as resources 3 core strategies: 1. Customer? Based Strategies: • Firm’s strategy is designed to satisfy a • Well defined customer base. 2. Corporate? Based: • Firm’s strategy is designed to harness its specific capabilities and competences over a number of customer bases. 3. Competitor? Based: • Firm’s strategy is driven by a need to outperform its competitors. The Strategic 3 C’s (Ohmae) 1. CUSTOMERS 2.
CORPORATION 3. COMPETITORS • Value • Segments • Product/Service Increasing Capacity • Multiple Markets • Target • Differentiation Page 14 Strategic Analysis Tools • Brainstorming, Directional Policy Matrix, Scenario Planning, internal & external environment influencing factors, Mackenzie 7S, financial performance evaluation, BCG and SWOT. • Nokia is marketing its products as Music/Video players that can make calls • To know what a company is doing strategically Aim & Objectives Aim: Streamline, centralize, synergies Increasing Capacity Page 15 Gillette wave of products Gillette’s Products • $8. bn + in worldwide sales • Top 10 of Fortune 500 over past decade on total return to investors: • ROA +29% • ROE + 54% • Net Profit Margin +14% Increasing Capacity Page 16 Diversified consumer products: • • • • • • Blades & Razors (sensor excel, D) Braun (electrical goods) Oral Care (dental hygiene) Personal Care (toiletries & cosmetics) Stationary (Parker pens, etc) Duracell (batteries) Share common – traits: • No. 1 in their worldwide markets • Profitable and fast growing • Anchored by a strong technological base (40%+ of sales come from new products introduced over past 5 years). Merger with Duracell (world’s largest producer of alkaline batteries • Duracell had yet to penetrate overseas markets where • Gillette had an established presence • Strategic fit – synergy Strategic Implementation • “Our moral responsibility is not to stop the future, but to shape it… • To channel our destiny in humane directions and to ease the trauma of transitions” Alvin Toffler Who implements Strategy? • More diverse group than those who formulate strategy; • Everyone who is employed by the organisation ? inked to concept of hierarchy of strategy; • Changes in the organization’s mission, objectives, strategies and policies and their importance need to be clearly communicated to all operational managers; • Everyone needs to be involved and on board; concept of ownership Increasing Capacity Page 17 What must be done? • Action plans for SBUs and functional areas of business; develop programs budgets, • Procedures in order to implement strategy; • Managers need to work to achieve synergy between SBUs and across functional areas; • Aim is to establish and sustain company’s distinctive competencies; e. . Glaxo: Generic Strategy = Differentiation; Direction = Product Development; Method = Internal (in-house R&D) plus acquisition (take-over of welcome); Glaxo chose take-over as best strategy for growth, i. e. by acquiring Welcome it purchased a portfolio of drugs; To integrate welcome with Glaxo’s existing activities had to develop various programs. Glaxo Welcome • Integration required restructuring programme (focus on cost reductions): Rationalization of R&D activities. Rationalization of sales, marketing and distribution. Rationalization of production activities and process operations.
Restructuring resulted in disposal of some assets and job losses: economies of scale; avoid duplication. Increasing Capacity Page 18 Problems of Strategy Implementation 1. Implementation slower than planned; 2. Unanticipated major problems; 3. Ineffective co? ordination of activities; 4. Competing activities and crises that distracted attention; 5. Insufficient capabilities of involve employees; 6. Inadequate training and instruction; 7. Uncontrollable external environmental factors; 8. Inadequate leadership and direction; 9. Poor definition of key implementation tasks and activities; 10.
Inadequate monitoring of activities by Information Systems. Phases of Strategic Drift Incremental change: • Organisation responds to changing environment within existing paradigm – encapsulates experience of those in the organisation. Strategy may fail to keep pace with environmental • Change, e. g. Kodak, development of new film products chemical based. Flux Strategic Drift: increased or radical environmental change; • Organisation not sure how to respond due to constraints of existing paradigm lack gap g of clear strategic direction, e. g.
Kodak, technological change and emergence of digital cameras. Strategy in state of flux performance declines; Increasing Capacity Page 19 Transformational change: • Organization needs to undergo radical change if it is to respond to changing environment – new paradigm. Likely to require new leadership, e. g. Kodak recruited new ceo from Motorola ? in touch with technological developments; Decline: • Organization fails to respond to changing environment. • Strategic change then may require change of leadership ? new ideas, new vision, new momentum. Fear of Change… “It’s not so much that we’re afraid of change or so in love with the old ways, but it’s that place in between that we fear… • It’s like being between trapezes. It’s like lines when his blanket is in the dryer… There’s nothing to hold on to. ” M Marilyn Ferguson Successful strategy implementation • Research in US manufacturing has shown that performance is a result of a company’s capability to carry out and implement their chosen strategy. • Concept of the 80:20 Rule • 80% of organizations performance is predictable • (I. e. strategic Analysis). • 20% of organizational performance due to management & implementation process. Successful implementation depends on ability to motivate and inspire people. Page 20 Increasing Capacity Key Factors for Successful Implementation 1. Understanding; 2. Commitment; 3. Resources; 4. Measuring and Monitoring; 5. Climate of Accountability. Strategy is a skill not a formula – make it one of yours References • Garrat, B. , ‘the Rots from the Head (The Crisis in our Boardrooms: Developing the Crucial Skills of the Competent Director), Harper Collins, 1997. • Grundy, T. , ‘Implementing Strategic Change’, Kogan Page, 1994. • Hamel, G. & Prehalad, C. K. , ‘Competing for the Future’, Harvard Business School Press, 1996. Luffman, G. , et al, ‘Strategic Management – An Analytical Approach’, Blackwell, 1996. • Moore, J. I. , ‘Writers on Strategy and Strategic Management’, Penguin, 1992. • Kotter, J. P. , ‘Leading Changes’, Harvard Business School Press, 1996. • Ohmae, k. , ‘The Mind of the Strategist’, Penguin. • Pascale, R. T. , ‘Managing on the Edge’, Penguin, 1991. Increasing Capacity • Porter, M. , ‘Competitive Advantage’, Free Press, 1985. Page 21 • Thurbin, P. , ‘Playing the Strategy Game’, Financial Times, 2001. • Wheelen, T. L. & Hunger, J. D. , ‘Strategic Management and Business policy’, Addison Wesley, 9/E, ISBN 0131421794, 2003. • Garratt, B. ‘Developing Strategic Thought’, Profile Books, 2nd Edition, 2003. • Finlay, P. , ‘Strategic Management: An Introduction to Business and Corporate level Strategy’, FT Pearson, ISBN 0201398273. • Judson, A. S. , ‘Making Strategy Happen ? Transforming Plans into Reality’, Blackwell. • Johnson, G. & Scholes, K. , ‘Exploring Corporate Strategy: Text and Cases’, Prentice Hall. • Thompson, J. L. , ‘Strategic Management – Awareness & Change’, Thompson. • Edward de Bono, ‘Thinking Course’ and ‘Serious Creativity’. • Cole, G. A. , ‘Strategic Management’, DP Publications. • Colenso, M. , ‘Strategic Skills for Line Managers’, Butterworth. Eccles, T. , ‘Succeeding With Change: Implementing Action Driven Strategies’, McGraw Hill. Increasing Capacity Page 22 change management Outline • • • • • • • Definition Models of Change Why Change Fails? Change & Communication Successful change requirements Communication approaches Communications stages Change Management • Change & Management are not two words that easily fit together. • Next to each other they conjure up the visualization of trying to corral chaos. Increasing Capacity Page 23 Definition • Change is required. There is a process for change just as there is a process of manufacturing or for growing wheat.
How to change is the problem. » W. Edwards Deming Models of Change Kurt Lewin D. Nadler & M L Tushman • • • • • Tasks People Structure Culture The Congruence Model Why Change Fails? • • • • • • • • • Being too complacent about the need to change Lack of cohesive “lead” Poor vision Failure in communicating the vision properly Forgetting how changes will make pal. Feel Not planning thoroughly Allowing blockages, setbacks and resistance to prevail Understanding the power of short term wins Stopping too soon Increasing Capacity Page 24 Change & Communication • • • • • Example of stake holder concerns Financial Institutions ?
ROI Employees ? Job Security Customers ? Service standard Regulators ? Impact of competition Honesty Ability to craft words Analogy and examples Repetition Clarification Successful change requirements • • • • • • Understanding • Simplicity • Multiple vehicles • Leading by example • Involvement Communication Approaches • • • • Tell: Provide instructions Sell Explain Participate Share ideas Delegate Turn over responsibility Communication Stages • • • • Denial Resistance Consideration Commitment Conclusion • The greatest cost of any project is the opportunity cost of not executing it in a timely fashion Increasing Capacity Page 25
Reading: • • • • Making Change irresistible: K Hultman, Davis Publishing 1998 Why Change does not work: H Robbins & Michael Finley, Orion Publishing 2001 Great communication secrets for great leaders: J Baldoni McGraw Hill 2004 • Strategic communication in Business and the Professions: Dan O’Hair, Gustav W Fredrich, Dixon Houghton Mifflin • Communicating Change: Winning Employee support for new business goals – Sandar Larkin, McGraw Hill Trade 1999 • Corporate Communication – Paul A. Argenti, McGraw Hill/Irwin 2004 Increasing Capacity Page 26 cOurse WOrk 1 Objectives of Session
By the end of the session you will: – Know the submission dates – Understand the process and steps required – Start thinking about your project scope • Strategic analysis is based on assessing the effectiveness and efficiency with which a firm’s business strategy meets the requirements of its competitive marketplace. Evaluate Business Strategy • The business strategy definition provides the basis for its evaluation. • Internal assessments are based on the firm’s functional and process capabilities and financial resources. • External assessments are based on the key success factor that have been identified. Tools • • • • • • BCG SWOT Balanced? score boards Five forces 4 Ps Gap analysis PEST Increasing Capacity Page 27 Identify critical issues • The combination of strengths, weaknesses, opportunities, and threats must be ranked by priorities so that action can be planned in a manageable way. Since managers have limited time and resources, it is important that actions be taken in order of importance. Recommendations • Finally, recommendations must address the critical issues for management actions in the short and long term. We are seeking to improve the effectiveness of competitive strategies and the efficiency of their implementation.
Assignment outcome • Develop a strategic analysis review for your (a) company using any of the known tools to display the current situation, and address business gaps that could be covered by running specific projects to accomplish the intended strategic outcome ? 1,000 ? 3,000 words ? Submit by 30th April 2009 Assignment approach • • • • What is the stated vision and mission statements? What has been achieved so far from them? What is the gap? How to fill the gap? Increasing Capacity Page 28 BeneFIts management understandIng prOject management BasIcs • PMBoK Model • Plan – Do – Check –Act • Input s – Outputs
What Is a Project? • A project is a temporary endeavor undertaken to create unique product, service, or result • Development cycle What Is Project Management? • Project management is the coordinating effort to fulfill the goals of the project. • The project manager, as the leader of the project team, is responsible for this effort and its ultimate result. The fish rots from the head PMO • Developing strategic thought • Implementation • Risk Profile Increasing Capacity Page 29 Programme Management • Programmes combine projects and deliver benefits Left Brain Modes of Thinking Verbal: using words to name, define, describe but minimal connection with words • Analytic: Figuring things out step by step and part by part • Symbolic: Using a symbol to stand for something • Abstract: Taking out a small bit of information and using it to represent a whole thing • Temporal: Keeping track of time; sequencing one thing after another, doing first things first, second things second and so on • Rational: Drawing conclusions based on reason and facts • Digital: Using number as in counting Logical: Drawing conclusions based on • logic: one thing following another in logical order • Linear: Thinking in terms of linked ideas, one thought directly following another, often leading to convergent conclusion. Page 30 Increasing Capacity Right Brain Modes of Thinking Non-verbal: showing an awareness of things • Synthesis: Putting things together to form wholes • Analogic: Seeing likenesses between things: understanding metaphoroc relationships • Concrete: Relating to things as they are at the present moment • Nontemporal: Being without a sense of time • Nonrational: Not requiring a basis for reason of facts: willing to suspend judgement • Spatial: Seeing where things are in relation to other things and how parts go together to form a whole • Intuitive: Making leaps of insight, often based on patterns Left brain profession • The focus of the left brain is on analysis, rationality, linear sequencing and logic • This is mapped in the (Western) approach to management sciences in general and project management in particular.
Irrelevance of PM • PM is considered to be an execution, implementation only discipline • It needs to be seen as also covering project definition, and program management. Organisation Structure Types • Functional – A traditional hierarchical organization sometimes thought of as resembling a pyramid, with top management at the fulcrum, direct workers at the bottom, and middle managers in between Increasing Capacity Page 31 • Projectized – A type of organization structure where people from different functional backgrounds work with each other throughout the lifetime of the project • Matrix – A type of organization structure which typically crosses unctional design (on one axis) with some other design characteristic (on the other axis) Organizational Influences • Culture – Assumptions, values, norms and tangible signs of organization members and their behaviors • Structure – Functional – Projectized – Matrix • Project Management Office (PMO) Organization Structure Comparison Increasing Capacity Page 32 Increasing Capacity Page 33 Outcomes • Outcomes may include achieving a policy goal, meeting targets, improving service delivery or responding to the Efficiency Review – this list is not exhaustive. • Any programme of change requires a constant focus on the intended benefits if it is to deliver value and remain aligned with business goals Benefits Management • Programmes are concerned with outcomes, whereas projects focus on outputs or deliverables • Benefits realisation typically requires business and organizational understanding more than specific project management technical skills. Effective transition management (embedding change in operational business) requires that the anticipated benefits and measurement approach must be agreed with stakeholders from the earliest point and confirmed in the business case, while actually realising the benefits normally extends beyond the formal, closure of the programme itself. Alternative approaches – RAD – develop software faster – CBD – develop software cheaper – CMM – develop software better Benefits Management • Benefits Management is therefore a process that starts prior to project initiation and continues until the planned benefits are delivered to the organisation and/or its stakeholders. • In this context project management becomes a key success factor within a formal end-to-end process of benefits management. Page 34 Increasing Capacity End-to-end Benefits Management Delivering Value • Delivering value begins with defining the expected high? evel outcomes before a programme is approved and continues through the identification, profiling, tracking and embedding of benefits. • This could lead to reprioritising or revising the scope of some projects, or terminating them. It can also provide an opportunity to re? deploy resources freed up through the efficiencies being delivered, to derive new benefits in flight and to minimise unwanted side effects. • This also involves assessing risk against the proposed outcome to confirm how value can best be achieved. Increasing Capacity Page 35 rIsk management I Outline • • • • Definition Risk Analysis Risk Management Types of Risk Increasing Capacity Page 36 Definition ? PRINCE2 ? (PMBOK), 1987) “The chance of exposure to the adverse consequences of future events” • “The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. ” Investment Risk • Risk is commonly thought of as the probability of a loss. In investment terms, it is the probability or likelihood of getting or not getting your expected return. A low risk investment has a high likelihood of giving you the positive return you expect. Increasing Capacity Page 37 Risk Principles • Risk tolerance (risk appetite) • Risk responsibilities ? escalation • Risk ownership ? who should keep an eye on it Risk Management Activities Risk Management Cycle Increasing Capacity Page 38 Risk Analysis Risk Identification • Risk Estimation • Risk Evaluation – Action types » Prevention ? countermeasures » Reduction – limit impact » Transference – insurance policy » Contingency – actions as and when risk occurs » Acceptance – Project board Risk Management • • • • Planning Resourcing Monitoring Controlling Balancing the risk Increasing Capacity Page 39 Types of Risk • Business Risk – Legislative changes – Political factors – Impact on the customer – Risk of end result meeting requirements but not fulfilling expectations • Project Risk – Supplier issuers – Organisational factors » Skill shortage » Staff responsibility, alongside project work Risk Log or Risk Register
The Risk log, in relation to a specific activity or plan (e. g. project), lists all the identified risks and the results of their analysis OGC Suggested content: • • • • • • • • • • Risk identification number (unique within the log) Risk type (where indication helps in planning responses) Risk Owner Raised by (person) Date identified Date last updated Description Cost if it materialises Probability Impact Proximity Increasing Capacity Page 40 • • • • • • • Possible response actions Chosen action Target date Action owner/custodian (if differs from risk owner) Closure date Cross references to plans and associated risks and may also include Risk status and Risk Action Status Risk Profile
Further considerations • Risk Analysis & Risk Management must be treated separately, to ensure that decisions are made objectively and based on all the relevant information • Budgeting for risk management • Relationship between benefits and delivery risks • Internal versus external risks • Interdependences ? Projects /prorgammes Increasing Capacity Page 41 rIsk management II MoR: Risk can be defined as uncertainty of outcome (whether positive opportunity or negative thereat). Some amount of risk is inevitable if the project is to achieve its objectives The PMI® PMBoK® Guide says that “A risk may have one or more causes and, if it occurs, one or more impacts”.
The PMBOK® Guide 2000 Edition, defines Project Risk Management as; “the systematic process of identifying, analyzing, and responding to project risk. ” Risk Management Approach Increasing Capacity Page 42 Risk log Risk Risk identification (categories): – Technology/technology change • NASA/Rolls Royce (known tech vs. risk) • New technology is risky – Complexity and integration • Integration of many components adds more risk – Changes • Requirements change (misunderstanding) • Business pressure change – Whatever you do not know is a source of risk Increasing Capacity Page 43 Risk assessment Increasing Capacity Page 44 Risk Where should we concentrate our effort? – Likelihood or impact?
Risk actions – Avoidance actions • stop it while you can – Mitigation actions (if you can’t stop it) • use good reputable people • assess contractors closely • make high penalty clause (bonus in case of in-house) • be aware secondary risks as results of mitigation actions Risk management planning and control – As project proceeds nature of risks changes • Predicted risk • predicted risk • Non-predicted risk materialised risk non-materialised risk materialised risk – Risk management is an ongoing process – Better to develop a risk register (ref. no. , title …) – For high risk make more formal risk plan Increasing Capacity Page 45 Risk metalanguage • A formal description with required elements to provide a three-part structured “risk statement”, as follows: “As a result of , may occur, which would lead to . • Risks must be identified if they are to be successfully managed. But risk is not the same as uncertainty, and risks must be separated from their causes and their effects. We must be clear about what we are trying to identify. Uncertainty • The key is to realise that risk can only be defined in relation to objectives. The simplest definition of risk is “uncertainty that matters”, and it matters because it can affect one or more objectives. Risk cannot exist in a vacuum, and we need to define what is “at risk”, i. e. what objectives would be affected if the risk occurred. • A more complete definition of risk would therefore be “an uncertainty that if it occurs could affect one or more objectives”.
This recognises the fact that there are other uncertainties that are irrelevant in terms of objectives, and these should be excluded from the risk process. Risk Management Maturity Model (RMMM) • • • • Level 1 Ad Hoc (Worship The Hero) Level 2 Initial (Try It Out) Level 3 ? Repeatable (Plan The Work, Work The Plan) Level 4 – Managed (Measure The Work, Work The Measures) Increasing Capacity Page 46 Tools • Net Present Value • Internal Rate or Return • Return on Investment • Cash Flow analysis • Currency Analysis • Decision Trees • Critical Path Analysis • Risk Map (probability & impact grid) • Cause and effect diagram Increasing Capacity Page 47
BusIness prOcess management Session objectives • Form a bridge between strategic ideas and action • Create a strategic roadmap for converting vision into value • Develop a practical and comprehensive strategy framework for any organisation and leadership team • Possess the capacity and knowledge to deliver strategy in live, dynamic situations • Understand how to formulate and implement a breakout strategy A project is: • “A management environment that is created for the purpose of delivering one or more business products according to a specified Business Case. ” • From Managing Successful Projects with PRINCE2 Increasing Capacity Page 48 “Fast track business growth”
These strategic scenarios are: • The newly formed company that from nothing creates something of significance within the space of a few years (Taking by Storm) • The established company that after languishing for years in the doldrums, revivified by new leadership and a new strategy, turns from laggard to leader in its field (Laggard to Leader) • The established company that seizes a transformational new business opportunity and in the process turns itself into a near completely different kind of company (Shifting Shape) • The company that from a national base reaches outward to become a major player on the international scene (Expanding Horizons) A robust strategy development and delivery framework.
Strategy making is depicted as iterative and ongoing, embracing four main processes thinking, defining, aligning and enacting ? and yielding four main products: • A succinct yet multidimensional organizational vision. • A clearly articulated, defensible and customer focused value proposition. • A business model capable of delivering the organization’s value proposition. • A defined set of projects and programs to deliver the organization’s strategy. Feedback & unintended consequences Increasing Capacity Page 49 Workflow • Business rules • Business architecture – view model • Business process modelling – Zachman Framework Zachman Framework Increasing Capacity Page 50 Increasing Capacity Page 51 Business process re engineering Transforming Business Processes
Evolving direction and definitions • The language of business change evolves as our understanding improves • Business Process Re-engineering (BPR) failed to deliver – a profound imbalance in approach (an obsession with technology and a lack of strategic context), together with its takeover by the corporate downsizers, killed its appeal and effectiveness • BPR gave way to Business Process Management (BPM) but again technology dominated – IT get the blame but when business management lacks clarity in its strategy and a disinclination to commit to specific business requirements then IT had little choice but to fill the vacuum • The demeaning of the term has reduced its effectiveness – people call it BPM to mask cost cutting, to make change projects sound Increasing Capacity Page 52 trendy, because it is ‘flavor of the month’, or to sell software if used by vendors • Furthermore, the term does not describe the nature or extent of the work involved in creating truly process? centric organizations • So, we evolve into… “Business Process Transformation” “Business Process Transformation” • Transforming business processes has two distinctive but overlapping phases – transformation, from functional silos to end-to-end processes, led by senior management, delivered by the business change professionals – anagement of the newly created processes by operational specialists whose involvement starts during the mid/ later stages of the transformation process: process managers are engaged in design, implementation and drive the operational processes, taking over from the business change professionals • Business Change Professionals need clarity and consistency in an organization’s language and approach to process? centric change – continuously illuminate, educate and remind people as to what BPM/ BPT is and rebuke any misuse of the term – don’t let ambiguity confuse and distract Increasing Capacity Page 53 The End Game – Vision & Delivery Mechanism (1) • The Vision ? enterprise? wide, end? to? nd business processes • Many of the challenges facing organizations today, private and public sector, are forcing them to make changes for which they have no existing delivery mechanism • These changes often place corporations between the proverbial “rock and a hard place,” caught between external change forces and internal change barriers • Faced with the need for radical change many organizations end up with localized compromises – they need both the vision and a mechanism to deliver the End Game; enterprise? wide, end? to? end business processes “a deliberate and collaborative approach to systematically managing all of a company’s business processes. This is enabled by business process thinking and ? centric process information technologies. BPM applies equally to top-down enterprise businesses processes as well as the sub-processes contained within functional groups and specific departments.. ” (Andrew Spanyi – 2003) Increasing Capacity Page 54 The 8 Omega Frameworks: Origins and Evolution
Early 1990’s BPR failures exposed Value Creation and Process Management “… There is simply no “silver bullet”, no one set of management practices, capital investments and strategies that lead to success. The alignment of strategy, technology, HRM, and capital investments with appropriate delivery processes appears to be the key to efficiency ……” Wharton School Center for Financial Institutions, University of Pennsylvania Increasing Capacity Page 55 Strategic Focus – The Missing Link “Strategy is a race to one ideal position” • “Strategy is the creation of a unique and valuable position, involving a different and unique set of activities” Michael Porter, What is Strategy? , HBR 1996 Omega Framework addresses 4 key perspectives for organisational success: • (Strategy , People, Process and Technology) giving equal attention to all 4 • These key perspectives are then leveraged through a long-term proven improvement cycle that ensures high adoption of new processes and systems. Page 56 Increasing Capacity What is a business model? • A simplified representation of a company’s business logic. • Describes: What a company offers its customers How it reaches them and relates to them Through which resources, activities and partners it achieves How it earns money • Made up of a set of nine building blocks. Customer segments: Our groups of customers with distinct characteristics.
Value proposition: The bundles of products and services that satisfy our customer segments’ needs Distribution channels: The channels through which we communicate with our customers and through which we offer our value propositions. Customer relationships: The types of relationships we entertain with each customer segment. Revenue streams: The streams through which we earn our revenues from our customers for value creating and customer facing activities. Key resources: The key resources on which our business model is built. Key activities: The most important activities performed to implement our business model. Partner network: The partners and suppliers we work with. Cost structure: The costs we incur to run our business model. Increasing Capacity Page 57 What is business modeling The process of modeling – such as a business model – helps in identifying and understanding the relevant elements in a specific domain and the relationships between them. • The use of formalized business models helps to easily communicate and share the understanding of a business among stakeholders. • Mapping and using business models as a foundation for discussion facilitates change. • Business model designers can easily modify certain elements of an existing business model. • A formalized e? business model can help identifying the relevant measures to follow in a business. • Business models can help simulate businesses and learn about them.
This is a way of doing risk free experiments, without endangering an organization. A company’s business model Increasing Capacity Page 58 Conclusion • A central theme is that strategy does not need to be jumbled complexity – the impression so often created by academic research findings, consultant reports, and the voluminous outputs of corporate planning teams. • Simple strategy is the most effective over time. Consider how the most successful companies lead with a straightforward, easy to understand value proposition – but one backed up with robust and finely tuned business models. • Successful retailers like Walmart and Ikea illustrate the point perfectly, as do the best budget airlines like Southwest and AirAsia. The same is true of seemingly more complex organizations such as Microsoft and Fidelity, which, despite their global reach, embrace a focused approach to leadership, strategy making and implementation. Increasing Capacity Page 59 ngO/npO Session Outline • • • • • Where money comes from Fundraising’s Big Picture Investment dynamics Fundraising strategy The cornerstones of fundraising NGOs/NPOs • What do we mean by these terms? ? There are already NGOs that charge fees for their activities • Why NGOs? • Respond to perceived needs • Inability/inefficiency of the public or • private sector to address such needs • Address the ‘root’ cause of a problem • (’empowerment of the powerless’) • WHY THE NEED FOR NGOs?
NGOs have different views of politics and the influence of money View of Government/Political Parties < ?????????????????????????????????????????????????????????????????????????????????????? > Basically Trust Government Basically Distrust Government Orientation to Social Problem Solving Government Regulation Free Market Increasing Capacity Page 60 View of Effect of Source of Funding on NGO Mission Business/ Private Foundations Members Government Strengths of NGOs • • • • • Grassroots orientation Field? based expertise Access to marginalised groups Flexibility/innovation Professionalism Limitations of NGOs • • • • • • ‘Stop? gap’ activities Funding dependence Amateurism Perceived as representing vested interests Small? scale (‘Small is beautiful’) Poor macro orientation WHY ARE NGOs DIFFERENT FROM GOVERNMENT? Government Leaders, Business Leaders, and NGO Leaders are each responsible for and accountable to different groups • Even if government/business had the “greenest” leaders, they still have to meet other responsibilities when they are in that position • NGOs can focus on one goal or the interests of one group purely Increasing Capacity Page 61 Questions for Consideration 1. Should every cause (e. g. , environmental protection, women’s rights, and labor rights) have an NGO? 2. How do you regulate an NGO to make it a “good” NGO? Or, what should government do to promote NGOs? 3. Imagine all the very best environmental NGO leaders became the leaders in government and business. Then would we still need environmental NGOs? Types of NGOs • • • • • Grassroots/local level groups National level organisations Regional/international level organisations NGO consortia Activist/lobbyist groups NGOs fundamental values • People? centered • Animal rights • Ecosystem? entered Based on different values, they might advocate different solutions to the same problem WHY NGOS NEED SPACE FROM REGULATION • Paradox: To be an effective NGO, it might need independence from government regulation. • Activities and Mission of NGO naturally change over time (e. g…) • Credibility of research and analysis depends on independence • Ability to raise questions about and challenge status quo requires independence Increasing Capacity Page 62 WHY NGOS NEED SPACE FROM REGULATION • Who will protect the public from “bad” NGOs? • Internal mechanisms of responsibility, transparency, and accountability ? Independent Board of Directors and other governance structures ?
Open financial records • Oversight by Funders • Media supervision • Government supervision of financial honesty, as completely separate from evaluation of value of NGOs’ activities Legal background for financial sustainability • We have good legislation related to NGOs but it is not used • NGOs can obtain Public Utility Certificates/Exemptions and will not pay duties/customs WHAT SHOULD GOVERNMENT DO? • Government can make it easier for NGOs to raise money Tax breaks for nonprofit, charitable activities Tax breaks for contributions to nonprofit, charitable, activities ? examples of fund? raising events and sales; membership drives; business consultancy • Direct government support Tricky – Rust v.
Sullivan (abortion counseling by private clinics) LSC v. Velasquez (raising challenges to laws/regulations in general not to application of general, laws in particular case) WHY ARE NGOS DIFFERENT FROM GOVERNMENT? • Imagine the Kyoto Protocol if only Government and Business Leaders participated in writing it… Increasing Capacity Page 63 NGO-Business Cooperation • Social Responsibility is promoted in the society by international donors • There is a low trust (29,8%) or awareness level related to NGOs activity (24,8%) • The fiscal system makes it difficult to contribute • Low communication level between NGOs and businesses NGO Financial Sustainability NGOs generally lack funding for their activities and rely primarily on international donors for financial support • Other sources of funding, including fees for services, state support, and income from economic activities, remain low, but are increasing • The leading NGOs are more active in diversifying their funding sources • Many NGO social service organisations provide fee? based services Increasing Capacity Page 64 (1) Where money comes from • Government • Philanthropy • Fees (2) Fundraising’s Big Picture • Long? term process • Relationship? building is critical • Data management is key • Diff’rent strokes for diff’rent folks! • Brand? building (3) Investment dynamics • What do donors want? • Why do donors give? • What happens when they don’t get it? • Ongoing acquisition • “The Fundraising Store” • Donor involvement and cultivation The (4) Phases of Fundraising Investment = Legacy Involvement = Upgrade Interest = Renewal Identification = Acquisition Increasing Capacity Page 65
Why do donors give? • “I believe in your cause. ” • “I want to make a difference. ” • “Your work responds to my spiritual needs. ” • “I feel good playing a part in your work. ” • “I know you – or I know your leader. ” • “I have benefited from your services. ” • “You said ‘thank you’ the last time I gave. ” • “You asked me! ” Why do donors not give? • • • • • • • • “You didn’t ask me. ” “I don’t have enough money right now. ” “I don’t trust your organisation. ” “Your organisation doesn’t use money very well. ” “I don’t share your values. ” “You asked me the wrong way. ” “I give to other charities. ” “I was in a bad mood. ” Research shows that donors’
Desire #1 is: a) Free gifts b) A personal visit from the chief executive c) Prompt acknowledgement of their gifts d) Newspaper ads listing their names e) Invitations to special donor parties Desire #2 is: a) Newspaper ads listing their names b) Personal visits from board members c) Free gifts d) Information about how their gifts were used Increasing Capacity Page 66 So, what do donors want? • • • • • Treatment as human beings, not statistics Kindness and courtesy in all contacts Appreciation for their contributions Recognition that they are virtual partners Information that inspires their trust (4) Fundraising strategy • Are strategic priorities clear? • Is there a strategic plan for fundraising? • Are goals and objectives clearly differentiated? • Are tactics subordinated to strategy? What strategy is not? • • • Not how to meet your funding target Not just “a way to do things” Not techniques such as advertising, direct mail, special events Techniques are tactics What strategy is • Strategy vs. tactics Strategy = “win the war” Tactics = “win the battle” No strategy = muddle • The concern of the commander? inchief, not captains and majors • How to deploy all your resources • The Big Picture, not the small stuff (5) Cornerstones of fundraising • Transparency • Accountability • Ethics Stewardship • Donor? centeredness Increasing Capacity Page 67 Essentials of strong fundraising 1. Clear and consistent message 2. Flexible database 3. Newsletter 3+ times/year 4. Annual fundraising calendar 5.
Annual donor or member renewal. 6. Diversified funding techniques 7. Donor? centred orientation 8. Focus on benefits, not needs 9. Say thank you often 10. Deliver results information Ask not what your donors can do for you. Ask what you can do for your donors. The Challenges • For Institutional bodies: how to chart an effective way to involve NGOs in its activities • For Governments: how to facilitate NGO participation in programs • For Donors: how to support NGOs in their activities • For NGOs: how to bring services to all customers, particularly those from marginalized groups. Increasing Capacity Page 68 prOject cycle management (pcm) Project Management What is Project? Objective • Activities Outputs • Duration • Budget (Input) • Resources (Input) An undertaking for the purpose of achieving established objectives, within a given budget and time period. What is Project Cycle? • • • • • • • • Project identification Project formation Appraisal Implementation Monitoring Plan revision Evaluation Feedback Increasing Capacity Page 69 PCM Project Design Matrix( PDM) Increasing Capacity Page 70 PDM Vertical Logic • Project Purpose: Objectives that the project should achieve within the project duration • Overall Goal: Direction that the project should take next • Outputs: Strategies for achieving the Project Purpose • Activities: Specific actions taken to produce Outputs • Important Assumptions: Conditions important for project success, but that cannot be controlled by the projects.
Whether these conditions develop or not is uncertain. PDM Horizontal Logic • Objectively Verifiable Indicators: Standards for measuring project achievement. • Means of Verification: Data sources from which indicators are derived. • Inputs: Personnel, materials, equipments, facilities and funds required by the project. • Preconditions: Conditions that must be fulfilled before a project gets underway Characteristics of PCM Increasing Capacity Page 71 Development of PCM Method • Late 1960s Logical Framework (USAID) ? International Agencies introduce the Logframe • Early 1980s ZOOP (GTZ) Objectives-Oriented Project Planning ? European countries adapt the ZOPP • Early 1990s PCM(FASID) ?
JICA begins full-scale introduction of the PCM Project stakeholders Increasing Capacity Page 72 PCM Workshop 8 Rules 1. Write down your own statement on a card. 2. Write only one idea on a card. 3. Make your statement specific. 4. Express your statement in a concise sentence. 5. Stick to the facts and avoid abstractions and generalizations. 6. Make it a rule to write cards before beginning discussions. 7. Do not remove a card from the board before a consensus is obtained. 8. Do not ask who wrote a particular card. Increasing Capacity Page 73 7 Steps in PP Analysis Stage Working together Increasing Capacity Page 74 STEP 1 Stakeholders Analysis Identify the issues, problems, and current conditions of the target area through analyzing the area and local residents targeted for assistance, related groups, related organizations and agencies. Focus on people and organization. Tentatively select a target group. STEP 2 Problems Analysis • Problems Analysis visually represents the causes and effects of existing problems in the project area, in the form of a Problem Tree. It clarifies the relationships among the identified problems. STEP 3 Objectives Analysis • Objective Analysis clarifies the meansends relationship between the desirable situation that would be attained one problems have been solved and the solution for attaining it. This stage also requires an Objective Tree. STEP 4 Project Selections Project Selection is a process in which specific project strategies are selected from among the objectives and means raised in Objectives Analysis, based upon selection criteria. STEP 5 Formation of the PDM • The project design Matrix (PDM) is formed through elaborating the major project components and plans based on the approach selected. The format of PDM is similar to that of the Logical Framework, and therefore can be commonly used worldwide. Increasing Capacity Page 75 STEP 6 PDM Appraisals • The PDM Appraisal is conducted by an aid agency to ensure the project plan. It is composed of the following stage: (1) Examination of the details of the PDM elements; (2) Review of the PDM formation process; (3) Examination from the perspective of the five evaluation criteria. STEP 7 Plans of Operations The Plan of Operation is prepared by the project implementers, based on the PDM and other information. It is an effective tool for project implementation and management, and provides important data for monitoring and evaluation of the project. Rules for Writing Problems 1. Write in a Sentence. Make Clear “Subject and Object”. 2. Avoid “No Solution”. 3. Avoid Generalization. – Be Specific. 4. Don’t Write a Cause and Effect in One Card. 5. Be Specific Whose problem. Example: Format of Plan of Operation Increasing Capacity Page 76 Monitoring and Evaluation • The Five Evaluation Criteria 1. Efficiency 2. Effectiveness 3. Impact 4. Relevance 5. Sustainability • Efficiency The productivity in project implementation.
The degree to which Inputs have been converted into Outputs. • Effectiveness The degree to which the Project Purpose has been achieved by the project Outputs. • Impact Positive and negative changes produced, directly or indirectly, as a result of the Implementation of the project. • Relevance The validity of the Overall Goal and Project Purpose at the evaluation stage. • Sustainability The durability of the benefits and a development effects produced by the project after its completion. Project Design • The PMBOK is a collection of processes and knowledge areas generally accepted as best practice within the project management discipline. Increasing Capacity Page 77 The PMBOK is an internationally recognized standard (IEEE Std 1490- 2003) that provides the fundamentals of project management that are applicable to a wide range of projects, including construction, software, engineering, government, etc. • PMBOK recognizes 5 basic process groups and 9 knowledge areas typical of almost all projects. The basic processes 1. Initiating 2. Planning 3. Executing 4. Controlling and Monitoring 5. Closing The nine knowledge areas 1. Project Integration Management. 2. Project Scope Management, 3. Project Time Management, 4. Project Cost Management, 5. Project Quality Management, 6. Project Human Resource Management, 7. Project Communications Management, 8. Project Risk Management, and 9.
Project Procurement Management. Project IN Controlled Environments Increasing Capacity • PRINCE2 is a project management methodology complete with welldefined processes and strong project control features. It is the de facto standard project management methodology in the UK and other European countries. • PRINCE2 is a process-driven project management method, it defines 45 separate sub-processes and organizes these into eight processes as follows: • Starting Up a Project • Planning • Initiating a Project • Directing a Project Page 78 • Controlling a Stage • Managing Product Delivery • Managing Stage Boundaries • Closing a Project Benefits to Organisations: Good project management helps to ensure that risks are identified and managed appropriately, and objectives and benefits are achieved within budget, within time and to the required quality. • A common, consistent approach that provide regular reviews of progress against plan, which allows management control of any deviations from the plan with flexible decision points • The involvement of donors, beneficiaries and stakeholders at the right time and place during the project life cycle • By using a “common language” the project ensures good communication channels between the project stakeholders and the rest of the organization • A means of capturing and sharing lessons learned and a solid foundation to increase the project management skills and competences of the organizations’ staff at all levels Increasing Capacity Page 79
OperatIOnal management Session Objectives • By the end of this session, you will be able to: o Understand the design function o Know the stages involved in the design of products and designs o Appreciate the importance of the design function in the production of products or services o Use simple flow charts, process flow charts, and customer processing framework and method study techniques o Identify a manufacturing or service operation by its production type o Understand the procedure of a facilities layout decision o Identify the type of layout(s) within a given operation Increasing Capacity Page 80 The Design Process Operations Design Product Design Definition To satisfy needs of the customer • Applies to both products and services • The design activity is a transformation process – Starts with concept and ends in a created product or service • Provide products and services which will – satisfy customer’s wants and needs – In a cost effective and efficient manner Increasing Capacity Page 81 • Product designers g will seek to create things that: – satisfy needs – meet expectations – are aesthetically pleasing – perform well – are reliable – are easy to manufacture and deliver – Operations managers tend to focus on the design of the transformation process Elements of Design • Quality • Dependability • Cost • Speed • Flexibility • Why Important – Involves a lot of money – Decision process happens infrequently – Sets limits of operation’s capability
Increasing Capacity Page 82 Design As a Transformation Process Product or Service Concept Generation Increasing Capacity Page 83 The Design Process • • • • • Idea generation Feasibility study Preliminary design Final design Process Planning A good design • • • • Meets customer requirements Is simple to make Can be rapidly developed into production Few modifications are required during the development phase Design for Manufacturing • If a product is easy to make it will be economical to produce • It is important to consider the manufacturability early in the design phase • Integrate product design with process planning and design Concurrent design • • • Integrated product and process design Simultaneous decision making by design teams Design function needs to be more decentralized Needs careful control- Project Management Characteristics of Service • • • • • Intangible High customer contact Easily copied Perishable Not able to store or stock Increasing Capacity Page 84 • De-centralized • Each delivery is unique Service Design PERFORMANCE SPECIFICATION DESIGN SPECIFICATION DELIVERY SPECIFICATION A Well Designed Service system • • • • • • • Customer friendly Flexible Easy to maintain Cost effective Robust Quick to respond Consistent with the company’s strategy Increasing Capacity Page 85
The Product Life Cycle The most appropriate method (particularly in cost terms) changes with time The Facilities Layout Decision Flow of transformed resources Increasing Capacity Page 86 Volume vs Variety Process Types (Products) Increasing Capacity Page 87 Process Types (Services) What is layout & flow? • Layout – deciding where to put all the facilities, machines, equipment & staff in an operation • Flow – the way in which transformed resources travel through the operation Why is layout design important? • Require substantial investments of resources • Involve long term commitments – not easily changed • Impact on the cost & efficiency of short term operations
Increasing Capacity Page 88 Fixed Position Layout • Transformed resources remain stationary • Transforming resources move as necessary • Effectiveness is governed by:• Scheduling of transforming resources • Reliability of transforming resources – Shipbuilding, – Construction projects, – Some surgery, – Restaurant Process Layout • Similar processes (or with similar needs) are located together • Utilization of transforming resources is improved • Transformed resources move through the operation according to their needs • Different products ? different needs ? different routes • May be very complex – Supermarkets – Some machine manufacture Cell Layout Machines or services grouped into cells • Cells determined by the process requirements of the family of product/services they transform • Could be considered mini product layouts • Can simplify a functional/process layout • Flexible Increasing Capacity Page 89 • Duplicates some resources – Buffet restaurant – Disco Product Layout • Locates the transforming resources entirely for the convenience of the transformed resources • Transformed resources follow a specified route • Flow is clear, predictable, and easy to control – Car assembly – Paper manufacture – Self-service cafe Advantages and Disadvantages Increasing Capacity Page 90 What makes a good layout? • Safety • Clarity of flow • Management coordination • Space utilization • Length of flow • Staff comfort • Accessibility • Long term flexibility General Process Layout Design Method • • • Gather data on work centre’s & the flow between them Design schematic of work centre’s & flows Adjust schematic for spatial constraints Draw layout showing actual work centre areas & distances resources/people must travel. Calculate effectiveness measure • Attempt to improve effectiveness, through relocating work centre’s Advantages of long-thin layouts • • • • Controlled flow Simple materials handling Lower capital requirements More efficient operation Advantages of short-fat layouts • • • • Higher mix flexibility Higher volume flexibility Higher robustness Less monotonous work Increasing Capacity Page 91 exercIsIng cOntrOl Learning outcomes To be able to discuss ways in which the balance and aims of a project might influence the development of corrective actions • To be able to list and critically appraise the value of different corrective actions, proposing scenarios where each might be appropriate Exercising control • Book? keeping v monitoring only vs. vs. management v taking corrective action • elements of exercising control • monitor progress • evaluate progress • assess possible control actions • select and implement appropriate action Monitoring and control cycles Increasing Capacity Page 92 Evaluating current situation • • • • • Use info. gathered through monitoring compare with plans Is there a problem? how big is it? look at work plan relate to critical path (slack/float time) In evaluation consider balance between: Possible corrective actions • • • • • • • • • • • Doing nothing! dd more staff add different skills reassigning tasks increasing individual supervision finding improved methods and skills streamlining procedure changing resource priorities re? planning the project changing phasing of deliverables encouraging team Increasing Capacity Page 93 • introducing incentives • subcontracting parts of the work • negotiating specs changes Implementing corrective actions • Make sure everyone knows about changes and implications to project • circulate revised plans and work instructions • meetings to present and discuss • evaluate whether changes have had desired effect • monitoring may show further adjustments are necessary. The End Thanks Increasing Capacity Page 94