PROJECT MANAGEMENT

16 Marks
PROJECT PORTFOLIO PROCESS
1.
2.
3.
4.
5.
6.
7.
8.

Building a centralized View of Projects:

Eliminating unhealthy, low value and duplicate projects.
Dividing the projects into 3 groups; operational, incremental and strategic.
Determining each strategic projects return on investment (ROI).
Publish a portfolio performance snapshot.
Establish executive business leader governance.
Investment Evaluation
Automating the PPfM process

TYPES OF PROJECT SELECTION MODELS

There are two types of project selection models are
1. Non numeric models
2. Numeric models
1. Non-numeric models:
Does not use numbers as input for decision making. The types of non-numeric models are;
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a) The Sacred Cow:

In this case the project is suggested by a senior or powerful official in the organization. The
project is sacred in the sense that it will be maintained until successfully concluded, or until
the boss, personally, recognizes the idea as a failure and terminates it.
Element enjoys acknowledged senior manager protection, whose endorsement provides the
trigger to create the project
b) The Operating Necessity:
If a flood is threatening the plant, a project to build a protective dike does not require much
formal evaluation, is an example of this scenario. If the project is required in order to keeps
the system operating and if the system worth saving the estimated cost of the project, project
cost will be examined to make sure they are kept as low as is consistent with project success,
but the project will be funded. Crisis, maintaining operational functionality more important
than costbenefit exercise.
c) The Competitive Necessity:
Although the planning process for the project was quite sophisticated, the decision to
undertake the project was based on a desire to maintain the companys competitive position
in the market. Few businesses willing to sacrifice Market share after great cost and time
spent. Competitive threat, a quick and decisive response can bypass more independent
evaluation processes.
d) Product Line Extension:
In this case, a project to develop and distribute new products would be judge on the degree to
which it fits the firms existing product line, fills a gap, strengthens a weak line, or extends
the line in a new, desirable direction. Products and services appeal ultimately starts to
diminish over time
e) Comparative Benefit Model:
For this situation assume that an organization has many projects to consider. Senior manager
would like to select a subset of the project that would most benefit the firm, but the projects
do not seem to be easily comparable. Suited to those organisations tackling with multiple
projects. Selection is made by a team of managers who collectively decide to pursue those
projects that offer the greatest value.
2. Numeric Models:
Numeric models are classified into two heads these are namely- Profitability and Scoring
a) Profitability:

In this process checks only single criteria, i.e. financial appraisal of the project. These are as
follows:
i)

Payback period: The payback period for a project is the final initial fixed investment in the

ii)

project divided by the estimated annual cash inflows from the project.
Average Rate of Return: The ARR is the ratio of the average annual profit to the initial or

iii)

average investment in the project. This method has also some merits and demerits.
Net Present Value Method: It is the summation of the PV of cash inflow in each year

iv)

minus the summation of PV of new cash out flows in each year.

Internal Rate of Return: It is the rate of results that a project earns. It is defined as the

v)

discount rate (r) which makes NPV zero.

Profitability Index: It is known as benefit- cost ratio, the PI is the net present value of all
future expected cash flows divided by the initial cash investment. I f this ratio is greater than

1.0, the project may be accepted.

b) Scoring Models:
i)
Unweighted 0-1 Factor Model: A set of relevant factors is selected by management and
usually listed in a preprinted form. One or more rates score the project on each factor,
depending on whether or not it qualifies for an individual criterion. The raters are chosen by
ii)

senior managers.
Un-weighted Factor Scoring Model: The disadvantage of unweighted 0-1 factor model
helps to evaluate another model that is un-weighted factor scoring model. Here the use of a
discrete numeric scale (5-1 is used 5 being more weight and 1 being least) to represent the

iii)

degree to which a criterion is satisfied is widely accepted.

Weighted Factor Scoring Model: When numeric weights the relative importance of each
individual factor are added, we have a weighted factor scoring model.
ROLES AND RESPONSIBILITIES OF PROJECT MANAGER

Planning
Organizing
Controlling

Skill sets required

Leadership ability
Ability to develop people
Communication skill
Interpersonal skill
Ability to handle stress
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Problem solving skills

Time management skill
Delegation
Manage change

STAGES OF PROJECT TEAM BUILDING

a. Forming: This stage is usually characterized by some confusion and uncertainty. The
major goals of the group have not been established. The nature of the task or leadership
of the group has not been determined. Thus, forming is an orientation period when
members get to know one another and share expectations about the group. Individuals are
often confused during this stage because roles are not clear and there may not be a strong
leader.
b. Storming: In this stage, the group is likely to see the highest level of disagreement and
conflict. Members often challenge group goals and struggle for power. Individuals often
compete for the leadership position during this stage of development. This can be a
positive experience for all groups if members can achieve cohesiveness through
resolution.

c. Norming: This stage is characterized by the recognition of individual differences and

shared expectations. Hopefully, at this stage the group members will begin to develop a
feeling of group cohesion and identity. Cooperative effort should begin to yield results.
Responsibilities are divided among members and the group decides how it will evaluate
progress.
d. Performing: Performing stage occurs when the group has maturity and attains a feeling
of cohesiveness. During this stage of development, individuals accept one another and
conflict is resolved through group discussion. Members of the group make decisions
through a rational process that is focused on relevant goals rather than emotional issues.
e. Adjourning: Not all groups experience this stage of development because it is
characterized by the disbandment of the group. Some groups are relatively permanent.
Reasons that groups disband vary, with common reasons being the accomplishment of the
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task or individuals deciding to go their own ways. Members of the group often
experience feelings of closure and sadness as they prepare to leave.
EFFECTIVE PROJECT TEAM

A clear understanding of project objective.

Clear Expectations of each persons role and responsibility.
A results orientation
High degree of collaboration and cooperation.
A high level of trust.

BARRIERS OF EFFECTIVE PROJECT TEAM

Unclear goals
Unclear roles and responsibilities
Lack of project structure
Poor communication
Poor leadership
Turnover of project team member
Lack of commitment

RISK MANAGEMENT PROCESS

Risk: A risk is a potential problem it might happen and it might not
Two characteristics of risk are
a) Uncertainty the risk may or may not happen, that is, there are no 100% risks.
b) Loss when the risk becomes a reality and unwanted consequences or losses occur.
Risk Management Process
1. Identify possible risks; recognize what can go wrong.
2. Analyze each risk to estimate the probability that it will occur and the impact that it will do if
it does occur.
3. Rank the risks by probability and impact. The impact may be negligible, marginal, critical,
and disastrous.
4. Develop a contingency plan to manage those risks having high probability and high impact

Types of Risk
a. Project risks: They threaten the project plan. If they become real, it is likely that the project
schedule will slip and that costs will increase.
b. Technical risks: They threaten the quality and timeliness of the software to be produced. If
they become real, implementation may become difficult or impossible
c. Business risks: They threaten the viability of the software to be built. If they become real,
they jeopardize the project or the product.
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Market risk: building an excellent product or system that no one really wants
Strategic risk: building a product that no longer fits into the overall business strategy for
the company
Sales risk: building a product that the sales force doesn't understand how to sell
Management risk: losing the support of senior management due to a change in focus or a
change in people
Budget risk: losing budgetary or personnel commitment
Known risks: Those risks that can be uncovered after careful evaluation of the project
plan, the business and technical environment in which the project is being developed, and
other reliable information sources (e.g., unrealistic delivery date)
Predictable risks: Those risks that are extrapolated from past project experience (e.g.,
past turnover)
Unpredictable risks: Those risks that can and do occur, but are extremely difficult to
identify in advance

Known and Predictable Risks

Product size risks associated with overall size of the software to be built
Business impact risks associated with constraints imposed by management or the
marketplace
Customer characteristics risks associated with sophistication of the customer and the
developer's ability to communicate with the customer in a timely manner
Process definition risks associated with the degree to which the software process has been
defined and is followed.
Development environment risks associated with availability and quality of the tools to be
used to build the project.
Technology to be built risks associated with complexity of the system to be built and the
"newness" of the technology in the system.
Staff size and experience risks associated with overall technical and project experience of
the software engineers who will do the work.
RESOURCE LOADING AND LEVELLING
Resource Loading is the amount of specific resources that are scheduled for use on specific
activities or projects at specific times. Usually it may be a list or table.
Resource Leveling is a technique in project management that overlooks resource allocation and
resolves possible conflict arising from over-allocation. When project managers undertake a
project, they need to plan their resources accordingly. This will benefit the organization without
having to face conflicts and not being able to deliver on time. Resource leveling is considered
one of the key elements to resource management in the organization. An organization starts to
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face problems if resources are not allocated properly i.e., some resource may be over-allocated
whilst others will be under-allocated. Both will bring about a financial risk to the organization.
Example:
A company has taken a contract for landscaping of a plot of land. The job would require workers,
supervisors, excavators, tractors and a variety of trees, bushes, shrubs beside stones in various
color and shape. In order to simplify the matter, we presume that only labour would be required.
Given below are necessary details of activities, their duration and labour requirements.
Activity
A
B
C
D
E

Days
2
5
1
4
2

Workers
2
2
2
2
2

Precedent
A
A
B, C

A total of 4 workers are available. Can we complete the job with only 4 workers?
Solution
For this purpose, we draw a Gantt Chart as below:

Resource Loading
The B & E activities are on the critical path. Moving them would increase the total duration
beyond seven days. Hence its marked with red. We can now insert labor and get the following
picture:

Resource Levelling
It is evident that on third day, we would experience shortage of two workers while on the last
day, two workers would be surplus. If we can make necessary adjustment, we would level or
smooth out the excesses and shortages.
Obviously, activities B & E cannot be moved. Moving A would not solve the problem as its shift
would affect start of linked activities C & D. Even if there was no such linkage, moving A would
not make any difference. This leaves C & D. We can move C for two days as there is free float
for the same period. But it would result in increase of labor requirement for the subsequent
period. So moving D for one day is cure-all. The revised Gantt Chart would appear as follows:

CAUSES AND CONSEQUENCES OF CONFLICT

Cause of Conflict
a) Managerial Expectations
It is the job of an employee to meet the expectations of his manager, but if those expectations
are misunderstood, conflict can arise. Managers need to spend time clearly communicating
their goals to employees and then confirming those goals in writing. A manager should also
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encourage her employees to ask questions about their goals, and hold regular meetings to
discuss the goals and how best to reach them.
b) Breakdown in Communication
If a department requires information from another department in order to do its job, and the
second department does not respond to the request for information, a conflict can arise. Some
interdepartmental disagreements might trigger a nonresponsive attitude that can quickly
become an internal conflict. Another way of creating this sort of conflict is when people or
departments are late in responding to information requests, or they are withholding
information on purpose, it is best to address the situation immediately with a personal
meeting with both sides to resolve the situation.
c) Misunderstanding the Information
One person may misunderstand information, and that can trigger a series of conflicts. In
order to deal with this kind of situation, it is best to have the person admit her
misunderstanding and work with the affected parties to remedy the situation. For example, if
the production manager misunderstands the product manufacturing goals, then the sales
manager may not have enough products to sell. Taking responsibility for a mistake can
quickly defuse a potential organizational conflict.
d) Lack of Accountability
Organizational conflict might arise from frustration. One source of frustration is a lack of
accountability. If something has gone wrong, and no one is willing to take responsibility for
the problem, this lack of accountability can start to saturate throughout the entire company
until the issue is resolved. One way to combat a lack of accountability is to have anyone who
comes into contact with a document sign his name to it and include the date.
e) Lack of planning

Lack of planning often means an organisation moves from one crisis to the next. This sense
of disorganisation and lack of direction can be stressful and can create many problems
including misunderstandings. The time spent in planning will be recouped many times over
in the more efficient use of workers' time, and in real and long-term benefits to clients.
f) Poor staff selection
Inappropriate selection of staff can result in ill-feeling and conflict. Feelings of ill-will may
be increased by dismissing staff members. While staff conflict problems can never be entirely
avoided, they can be minimised with good staff selection procedures. Considering existing
staff views when approaching staff selection will help minimise conflicts in the workplace.
g) Frustration, stress and burnout

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When people become frustrated or stressed they are more irritable and more likely to create
conflicts than at other times. It is important to recognise the signs of stress in people's work
situations in order to prevent burnout. Try to help people identify the causes of work related
stress, and take steps to change these factors or, better still, try to anticipate possible causes
of stress before they arise.
Consequence of Conflict
a. Negative Outcomes:

Mental Health Concerns

Conflict within an organization can cause members to become frustrated if they feel as if
theres no solution in sight, or if they feel that their opinions go unrecognized by other group
members. As a result, members become stressed, which adversely affects their professional
and personal lives. Organization members may have problems sleeping, loss of appetite or
overeating, headaches and become unapproachable. In some instances, organization members
may avoid meetings to prevent themselves from experiencing stress and stress-related
symptoms.

Decrease in Productivity
When an organization spends much of its time dealing with conflict, members take time
away from focusing on the core goals they are tasked with achieving. Conflict causes
members to focus less on the project at hand and more on gossiping about conflict or venting
about frustrations. As a result, organizations can lose money, donors and access to essential
resources.

Members Leave Organization

Organization members who are increasingly frustrated with the level of conflict within an
organization may decide to end their membership. This is especially detrimental when
members are a part of the executive board or heads of committees. Once members begin to
leave, the organization has to recruit new members and appoint acting board members. In
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extreme cases, where several members leave or an executive board steps down, organizations
risk dissolution.

Violence
When conflict escalates without mediation, intense situations may arise between organization
members. Its unfortunate, but organizational conflicts may cause violence among members,
resulting in legal problems for members and possibly the organization.

Inspire Creativity
Fortunately, some organization members view conflict as an opportunity for finding creative
solutions to solve problems. Conflict can inspire members to brainstorm ideas, while
examining problems from various perspectives.

Share And Respect Opinions

As organization members work together to solve conflict, they are more willing to share their
opinions with the group. Conflict can also cause members to actively listen to each as they
work to accomplish the organizations goals.

Improve Future Communication

Conflict can bring group members together and help them learn more about each other. From
learning each others opinions on topics relevant to the organizations growth to
understanding each members preferred communication style, conflict within an organization
can give members the tools necessary to easily solve conflicts in the future.

Identify New Members

Within organizations members actively participate in each meeting, enjoy serving on multiple
committees and have an opinion on each topic the group discusses. There are also members
who seemingly contribute little to the group and observe more than talk. Conflict within an

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organization can inspire typically silent members to step up and demonstrate their leadership
skills by offering meaningful solutions to the problem the group is facing.
b. Positive Outcomes

Group conflict does not always lead to negative consequences. The presence of a dissenting
member or subgroup often results in more penetration of the group's problem and more
creative solutions. This is because disagreement forces the members to think harder in an
attempt to cope with what may be valid objections to general group opinion. But the group
must know how to deal with differences that may arise.

True interdependence among members leads automatically to conflict resolution in the group.
Interdependence recognizes that differences will exist and that they can be helpful. Hence,
members learn to accept ideas from dissenters (which does not imply agreeing with them),
they learn to listen and to value openness, and they learn to share a mutual problem-solving
attitude to ensure the exploration of all facets of a problem facing the group.

Intergroup conflict between groups is a sometimes necessary, sometimes destructive, event

that occurs at all levels and across all functions in organizations. Intergroup conflict may help
generate creative tensions leading to more effective contributions to the organization's goals,
such as competition between sales districts for the highest sales. Intergroup conflict is
destructive when it alienates groups that should be working together, when it results in winlose competition, and when it leads to compromises that represent less-than-optimum
outcomes.

TEAM METHODS FOR RESOLVING CONFLICT

1. Be Aware That Conflict Occurs: Knowing that conflict may and will occur is the first step
to resolving it, especially if you know that certain team members may disagree with each
other. By recognizing that there will be conflict, a project manager knows what to expect.
2. Set the Ground Rules: At the beginning of the project set some ground rules in the first
meeting. Be sure to address what process will be taken to address conflicts, as they are bound

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to rise and will need to be taken care of before they spiral out of control. Tell team members
that everyone's ideas are valid and that they shouldn't be dismissed, even if you do not agree
with them.
3. Learn About Destructive Conflicts: Conflict becomes destructive when no resolution is
insight or the issue cannot be resolved. A psychological model for explaining destructive
patterns is the persecutor-victim-rescuer triangle. The persecutor would be the bad-guy or
bully in this scenerio, but the rescuer is also placing him or herself in a position of superiority
over the supposed victim. Stop yourself if you see yourself slipping into any of these roles
and also try to recognize it in your team.
4. Stop Conflict When it Happens: Conflict should be addressed immediately before it can
grow. If a discussion grows heated during a meeting, do not wait until the next meeting to
address the issue. Instead, discuss the issue while in the meeting; even if members disagree,
they are still able to see each other's points of view.
5. Get the Whole Story: Be sure you understand the perspectives of every person involved.
Conflicts arise when there are differences of opinion, but also due to miscommunication or
misunderstanding. As the project manager, you should get all the information you can in
regards to the conflict so that you can resolve it efficiently and effectively.
6. Meet for Resolutions: If the conflict can't be resolved during the initial meeting, set up a
separate meeting with those that are having the conflicts, so that a resolution can be reached
without getting the other team members involved and picking sides.
7. Discuss Both Sides of a Perspective: Even if you are inclined to agree with one side of the
conflict, do not make a final judgment until each person has had their say. Ending a
discussion without hearing each person out can escalate the problem. Explain the pros and
cons of both ideas, so that both people can consider the opposing view.
8. Make Compromise a Goal: Compromising between parties is helpful, as it can allow for
both conflicting parties the ability to use their ideas. Most times, points can be combined in
order to make a better idea or solution.
9. Avoid Falling into Groupthink: Groupthink is when a group suppresses the opposing views
of members in order to create harmony. While it is always good to maintain harmony within
a group while working on a project, this idea of keeping opposing viewpoints at bay because

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they will disrupt the norm will end up doing more harm than good. To avoid this, make sure
that there is one or two members that bring up constructive criticism to ideas.
10. Don't Try to Change a Team Member: This final tip might be the most important. Just as
in any type of relationship, do not try to change a member of your team. They are an
individual person with unique ideas and forms of expression. Trying to change their feelings
or viewpoints will only lead to resentment. You can propose to them alternatives, or list
benefits of other ideas, but in the end you may just have to accept that they will disagree with
an outcome.
Sometimes conflict can be productive by bringing ideas up from different people; sometimes
it can be detrimental to the overall productivity of the group and its members. Allow people
to express their ideas, even if they differ.
PROJECT EVALUATION, AUDITING AND TERMINATION
PROJECT EVALUATION
Project evaluation is a process of collecting, recording and organising information about
project results and lessons learned for future projects which are captured during the Closure
phase.
Project Evaluation Techniques
1. Structured Interviews: Structured interviews require that all interviewees be asked the same
questions, in the same order. Structured interviews can be conducted in person, and are also
often used in surveys and opinion polls. Interview questions must be selected carefully as
there is no room to change the questions once the process has commenced. The way
questions are constructed can also introduce bias into responses, and expert advice should be
sought if you wish to undertake a conclusive interview.
2. Semi Structured Interviews: Semi-structured interviews are informally guided. Some
questions are predetermined and new questions are developed from the discussion. Questions
are mainly open, providing an opportunity for the respondent to provide an opinion. Semistructured interviews are used to understand an interviewees experiences and impressions.
3. Questionnaires: Questionnaires can be conducted in person, by telephone, or by mail. They
are used to quickly obtain information from a wide variety of people. Questionnaires are
typically inexpensive, can be completed anonymously, and are easy to compare and analyse.
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It is possible to involve many people, although it may only appeal to a certain section of the
community, and responses from certain sections of the community may be limited.
4. Evaluation stories: Evaluation stories are based on collecting and reviewing stories of
significant change associated with the activity or action being evaluated. Stories are collected
from those most directly involved in the project. Example question before the project: What
is the proposed project area like at the moment? How could the project area be improved
5. Photographic history: A photographic record of the site can be used to evoke memories of
what a place use to be like and what it is like today, and prompt comments and discussion
useful for evaluation. Recording may be in the form of an evaluation story or benefit an
interview situation.
6. Direct measurements: Direct measurement of an aspect of the site is considered objective
and less prone to bias as it physically exists (or doesnt exist). Direct measurements can be
combined with other evaluation information. Examples of direct measurements are:
plant survival rates
increased number of local volunteers working in the area
a reduced incidence of vandalism
reduced presence of weeds
evidence of trespassing in fenced areas
reduction in the level of sand blow
7. Participant observation: Data is collected by listening, watching, and documenting what is
seen and heard. Through asking questions, and by noting comments, behaviours and
reactions, useful information is provided to the evaluation process. The participant
observation method gathers accurate information about how a group and project operates in
the field.
PROJECT AUDIT
Project Audits is a thorough examination of the management of a project its methodology
and procedures, its records, its properties, its budgets and expenditures and its degree of
completion. It may deal with the project as a whole or only a part of the project.

Types of Audit

Project audit
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Scheduled audits

Unscheduled audits

Subcontractor and vendor audits

Quality audits

Project safety audits

Project Audit Life Cycle

Audit Initiation

Project Baseline Definition

Establishing an Audit Database

Preliminary Analysis of the Project

Audit Report Preparation

Project Audit Termination

Levels of Auditing

General Auditing
Detailed Auditing
Technical Auditing

PROJECT TERMINATION

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Termination decision should be made by board based committee of senior managers. The
termination process should be specified in project plan. Termination manager should be
appointed.

Types Of Project Termination

a. Termination by Extinction: The project is stopped. It may end because it has been successful
and achieved its goals: The new product has been developed and handed over to the client;
the building has been completed and accepted by the purchaser; or the software has been
installed and is running.
The project may also be stopped because it is unsuccessful or has been outdated: The new
drug failed its efficacy tests; the yield of the chemical reaction was too low; there are
better/faster/cheaper/prettier alternatives available; or it will cost too much and take too long
to get the desired performance. Changes in the external environment can kill projects, too. It
is also called Project murder.
b. Termination by Addition: Most projects are in-house, that is, carried out by the project
team for use in the parent organization. If a project is a major success, it may be terminated
by institutionalizing it as a formal part of the parent organization. Institutionalization is
transfer of project assets and functions. Hence the resources are transferred to the newly born
division.

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c. Termination by Integration: This method of terminating a project is the most common way
of dealing with successful projects, and the most complex. The property, equipment, material,
personnel, and functions of the project are distributed among the existing elements of the
parent organization. The output of the project becomes a standard part of the operating
systems of the parent, or client.
d. Termination by Starvation (Lack of Budget): There is forth type of project termination,
although strictly speaking, it is not a termination at all. It is slow starvation by budget
decrement. Cutting the projects budget sufficiently to stop progress without actually killing
the project. The resources of the project are taken away. When the organisation does not want
to invest any more in the current project..
FINAL PROJECT REPORTS
The Project Final Report should consists of following reports.
a) Project Performance Report: A key element of the report is a comparison of what the project
achieved with what the project tried to achieve. This comparison may be quite extensive and
should include explanations of all significant deviations of actual from plan. A final earned
value discussion can also be helpful. Because the final report is not a formal evaluation, it
can reflect the best judgment of the Project manager on why the triumphs and failure
occurred.
b) Administrative Performance Report: The substantive side of the project usually gets a great
deal of attention, while the administrative side is often ignored until administrative problems
occur. The administration of the project cannot solve technical problems, but it can enable
good technology to be implemented. Administrative practices should be reviewed, and those
that worked particularly well or poorly should be highlighted. It is important, when possible,
to report the reasons why some specific practice was effective or ineffective.
c) Organizational Structure Report: Each of the organizational forms used for the projects has
its own, unique set of advantages and disadvantages. The final report should include
comments on the ways this structure aided or impeded the progress of the project. If it
appears that a modification to the accepted from the project organization or a change to a
different basic organizational form might be helpful for project management, such a
recommendation should be made. Recommendations should be accompanied by detailed
explanations and rationales.
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d) Project and Administrative Teams Report: On occasion, individuals who are competent and
likable as individuals do not perform well as members of a team when a high level of
interpersonal communication and cooperation is required. A confidential section of the final
report may be directed to a senior personnel officer of the parent organization,
recommending that such individuals not be assigned to future projects. Similarly, the
individuals or groups who are particularly effective be kept together on future projects.
e) Techniques Report of Project Management: The outcome of the project is so dependent on
the skill with which the forecasting, planning, budgeting, scheduling, resource allocation and
control are handled that attention must be given to checking on the way these tasks were
accomplished. If the forecast, budgets, schedules were not reasonably accurate,
recommendations for improved methods should be made. The techniques used for planning,
control, and risk management should also be subject to scrutiny.
SUCCESS AND FAILURE FACTORS OF A PROJECT TERMINATION
Success Factors
1. Project Mission: Initial clearly defined goals and general directions.
2. Top Management Support: Willingness of top management to provide the necessary
resources and authority /power for project success.
3. Project Schedule/Plan: A detailed specification of the individual action steps for project
implementation.
4. Client Consultation: Communication, Consultation and active listening to al impacted
parties.
5. Personnel: Recruitment, selection and training of the necessary personnel for the project
team.
6. Technical tasks: Availability of the required technology and expertise to accomplish the
specific technical action steps.
7. Client Acceptance: The act of selling the final project to its ultimate intended users.
8. Monitoring and Feedback: Timely provision of comprehensive control information at each
stage in the implementation process.
9. Communication: The provision of an appropriate network and necessary data to all key
actors in the project implementation
10. Trouble shooting: Ability to handle unexpected crises and deviations from plan.
Failure Factors

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1. A Project Organization Is Not Required: The use of the project form of organization was
inappropriate for this particular task or in this particular environment. The parent
organization must understand the conditions that require instituting a project.
2. Insufficient Support from Senior Management: Projects invariably develop needs for
resources that were not originally allocated. Arguments between functional departments over
the command of such resources are very common. Without the direct support of a champion
in senior management, the project is almost certain to lose the resource battle.
3. Naming the Wrong Person as Project Manager: This book is testimony to the importance of
the PM. A common mistake is to appoint as PM an individual with excellent technical skills
but weak managerial skills or training.
4. Poor Planning: This is very common cause of project failure. In the rush to get the substance
of the project under way, competent planning is neglected. In such cases, crisis management
becomes a way of life, difficulties and errors are compounded, and the project slowly gets
farther behind schedule and over budget. In-deed, careful planning is associated with success
in almost all empirical research on project success. Not only is proper planning often cited as
a success factor, lack of planning is cited as a cause of failure.

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REASONS TO TERMINATE A PROJECT / WHEN TO TERMINATE A PROJECT

a. Expensive or does not meet companys goal: Make an estimate of the total cost of the
project in the planning stage itself. A few thousand dollars here and there are manageable, but
when you see the figure going way over your approximate value, it is better to put an end to
the project right in the initiation stage. Also, if the project does not go well with the strategic
plan of the company, it should not be given the green signal. It also called sunk cost
approach as the organisation is not willing to invest time and cost required to complete the
project.
b. Your competitors are doing a better job: As a project manager, you may be motivated to
prove your mettle and take your company ahead in the market, but think logically and
determine if it is possible. Many a times, you may be motivated at the start of the project but
once you begin with it and have to face grave challenges one after another, the positive drive
may fizzle out and you may be left with a project that is going nowhere. Even if you realize it
midway on the project, do not hesitate to pull the plug.
c. Project gets out of control: When operations get way beyond control or when damages
cannot be repaired anymore, you know it is time to terminate the project.
d. Important or priority project comes up: Businesses take up several projects simultaneously.
However, there are some projects which need more time, energy and resources. If a certain
project is stopping you from allocating the required resources in a bigger, important project,
it is better to let go of the smaller project.
e. Failure in testing process: It is sad to see a project fail during testing. However, if the team
members gave it all that they could and the project still could not succeed, putting an end to
the project is a sensible choice rather than spending twice the energy and resources on it
again.
FORMAL ORGANISATION STRUCTURE
Organization is a social entity that has a collective goal and is linked to an external environment.
The purpose of an organization to coordinate the efforts of many to accomplish goals.
Organization Structure represents the management hierarchy.
Types of Organization Structure
Formal Organisation Structure

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Formal Organisation is a organisation with fixed set of rules, procedures and structures. Formal
structure is primarily concerned with the relationship between authority and subordinate. A
typical organization chart illustrates the formal structure at work in a company or part of a
company. The hierarchical organization begins at the top with the most senior leader and then
cascades down to the subordinate managers and then subordinate employees below those
managers. There are job titles, financial obligations and clear lines of authority for each box on
the organization chart.
Informal Organisation Structure
Informal structures typically develop around social or project groups. Because informal
structures are based on camaraderie there is often a more immediate response from individuals.
This saves people time and effort, thus making it easier to work with in informal structures.
People also rely on informal structure if the formal structure has stopped being effective, which
often happens as the company grows or changes but doesnt reevaluate its hierarchy or work
groups.
Types of Formal Organization Structure
1. Functional Structure
2. Project Structure
3. Matrix Structure
PROJECT CONTROL
Project controls are the data gathering, management and analytical processes used to predict,
understand and constructively influence the time and cost outcomes of a project or program;
through the communication of information in formats that assist effective management and
decision making.
The project Control Process
Hold meetings: The objective of conducting meetings during the course of a project is to
assemble and manage an effective project team that is able to accomplish defined goals and
objectives. At a meeting the project manager should provide an overview of work at the moment,
describe current goals and issues, and establish effective communications with the team.
Every meeting starts with an agenda. The project manager needs to write a meeting agenda and
then share this document with all participants of the meeting.

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Perform quality control: By controlling project quality it is possible to confirm that the product
is complete and developed in line with expectations. Quality control involves business and
technical staff in a range of activities such as defining technical standards, setting business
expectations, establishing product requirements, others. Quality control starts when a project is
initiated and lasts throughout the entire project lifecycle until the product is developed and
handed over to the customer. It aims to ensure that activities and tasks at any given stage of the
lifecycle can be signed off so that the project can continue developing.
Track work progress: This step in controlling a project refers to monitoring, measuring and
controlling progress on the project. The purpose is to ensure that project work is being done as
scheduled. The project manager needs to track work progress at any given stage to make sure the
project goes towards right direction.
Respond to changes: The goal of controlling changes is to define and implement the addition of
work into a given stage. By effectively responding to changes the project manager is able to
ensure that the scope, schedule and cost remain relevant to current situation.
Manage issues: As a process, issue management aims to resolve any issues affecting the success
of a project. This process takes a range of steps which are to identify issues, asses their impact,
develop resolution actions, take those actions and track progress on issues. A project manager
needs to manage issues in order to ensure that the project is carried out as planned.

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