11 Introduction

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Project Management Toolkit is a practical handbook for both career Project Managers and managersinvolved with projects intermittently throughout their career.

Organizations are realizing the impact that projects, and therefore project management, can have ontheir success.

A project used to be one mechanism that organizations used to deliver benefits, now organizationsare managed by project; this has meant the development of project management competency withinthe organization, the Project Team(s) and the individual Project Manager(s).

This book provides a simple tool based resource for each key ‘value-added’ stage in a project and isintended for use by anybody involved in projects and could form a basis for an organizational projectmanagement system (Figure 1-1).

At the end of each chapter ‘handy hints’ are given as well as details of the specific book in theIChemE project management series where more information can be sought.

STAGE ONEBusiness

case development

STAGE ONE — Business case development STAGE THREE — Project delivery

WHY are we doing this project? Are we delivering this project IN CONTROL?

TOOLS‘Why?’ Checklist Benefits HierarchyBenefits Specification Table Business Case Tool

TOOLS‘In Control?’ ChecklistRisk Table and Matrix Earned Value Tool Project Scorecard

STAGE TWO — Project delivery planning STAGE FOUR — Benefits Delivery

HOW are we going to deliver the WHAT of this project?

Have we delivered the BENEFITS?

TOOLS‘How?’ ChecklistTable of Critical Success Factors RACI Chart Stakeholder Management Plan Control Specification Table

TOOLS‘Benefits Realized?’ ChecklistBenefits Tracking Tool Project Assessment Tool Sustainability Checklist

STAGE TWOProject deliveryplanning

STAGE THREEProjectdelivery

Benefitdelivery

STAGE FOUR

Figure 1-1 Project Management Toolkit overview

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Case studies in each chapter illustrate the use of each tool. Blank tool templates are available viathe internet at www.icheme.org/projectmanagement for the readers of this book to use.

AimsThe primary aim of this book is to develop a practical, usable resource which can be picked up and usedon ‘day 1’. It provides the reader with education, tools and the confidence to successfully manage projects.

Figure 1-2 shows an input–process–output diagram:

Inputs — lists the inputs to the development of this book.Process — summarizes the contents of this book.Outputs — lists the outputs from this book from the perspective of the reader.

Project Management Toolkit introduces:

Simple but effective tools which can be used to support the Project Manager in increasing the‘certainty of outcome’.A pragmatic process to the development of your project, from the early stages of idea developmentthrough to the delivery of the benefits.

Apart from the tools and the processes, this book also aims to define more clearly the role of theProject Manager in today’s projects and the increasing importance of generic project managementcompetency within an organization.

Figure 1-2 This book’s IPO (input–process–output)

Project management principles

A sample of project management tools and

techniques

Case studies

Handy hints

Further reading

‘Starter’ project management toolkit

A set of project management tools thatthe reader can use, adapt and add to

‘Starter’ project management education

Initial entry level education for the reader who is an aspiring Project

Manager

Project successAn increase in reader confidence intheir ability to successfully manage

projects

Project management expertiseInput from Project Managers based on

their successful delivery of projectsover many years

Project management expertiseDetailed case study experiences which

show what can go wrong on projectsand also what makes for a successful

project

Tried and tested project management tools

Project management tools that have been used by many Project Managers

on many different projects

INPUTSTo Project

Management Toolkit

PROCESSProject

Management Toolkit

OUTPUTSFrom Project

Management Toolkit

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Introduction

Although this book is primarily aimed at Project Managers within the process industries it is equallyapplicable to Project Managers in other disciplines because project management is a generic organizationalcompetency which can be used:

Within any type of project — by use of transferable project management skills and knowledge.Within any type of organization — by adding strategic business value to an organization.

Management by projectEach year millions of pounds are spent around the globe delivering projects. Therefore effectiveproject management is critical for today’s organizations.

Consider the organizational impact of:

Delivering a project late.Delivering a project over budget.Delivering a project which doesn’t meet scope requirements.

For some projects the impact of not delivering within these three basic parameters can havedisastrous effects on an organization.

Delivering a project late

Some projects have a defined and fixed target completion date; if this date is missed then theorganization may not be able to realize the benefits. For example a manufacturing facility which willsupport the launch of a new pharmaceutical product for the treatment of respiratory disease needs to becomplete in time for the winter launch of the drug and certainly before the launch of a competitor drug.

Delivering a project over budget

A project budget is a key part of the ‘organizational contract’; the benefits which will be realized aredirectly related to the investment monies approved. For example a project to automate a productionprocess is approved so that the production capacity increases; if the investment is greater thanbudgeted then the organization will not realize the expected benefits.

Delivering a project that doesn’t meet the scope requirements (quantity, quality,functionality)

A project delivers a specific amount of scope at a specified level of quality with certain functionalrequirements; if this is not delivered then the completed project may not be able to deliver theanticipated benefits. For example a project to improve production efficiency if not capable of enablingthe business benefits to be realized, and for those benefits to be tracked, cannot be considered assuccessfully supporting the organization.

Organizational project management

Recent research by the Engineering Construction Industry Association (ECIA) was able to demonstratethe financial impact of good and poor project management:

Effective use of best practice project management yielded an average cost saving of 5–10%.Poor use of project management gave an average cost growth of 10%.

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Apart from showing that the use of best practice project management was able to decrease theaverage percentage cost growth, the data also showed a decrease in variability — the use of bestpractice project management increased the ability to forecast the outcome. It could be said that:

Excellent Project Managers have the capability to bring projects in on time and within budget —average or poor Project Managers may not!

Recent management theorists, and project management practitioners, have proposed a new culturalparadigm that relies on project management competency as a core skill for an organization:

Organizations are moving from managing projects to management by projects.

A change in the way these organizations do business relies on project management competence atall levels in the organization as a key success factor, that is to say within Project Teams and thebusiness management team at all levels.

Organizations are realizing the impact that projects, and therefore project management, can have ontheir success:

A project used to be one mechanism that organizations used to deliver benefits — now projects &project management are integral to normal business operation.

This has meant the development of two further facets of project management competency:

Organizational project management excellence.Project Team excellence.

Therefore the competency of the Project Manager is not the only determining factor. It is suggestedthat if you have a project focussed organization, with excellent technical ability and effectiveteamwork then you still need an excellent Project Manager to achieve an excellent outcome — toexceed your objectives.

Figure 1-3 outlines the various elements that a project-focussed organization should consider:

Organizational support system.Project Manager support system.Project management processes.

ORGANIZATIONAL SUPPORT SYSTEM

CorporateSupportProject Office

KnowledgeFramework

OrganizationCompetencyFramework

PROJECT MANAGER SUPPORT SYSTEM

PROJECT MANAGEMENTPROCESSES

Careerladder

Project managementprinciples and

standards

Teamcompetencyframework

Tools and TechniquesProject Management Community

Competencyframework

Figure 1-3 An organizational approach to project management

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Organizational support system

This is a system to support the management of the organization ‘by project’. It supports thedevelopment of a generic project management competency for all individuals in that organization.

Project Manager support system

This is a system to support the development of project management excellence within thatorganization — within the career Project Managers. Career ladders may be linked to formallyrecognized professional qualifications, to specific education providers or to specific projectmanagement institutions such as the APM (Association of Project Management).

Project management processes

This is a collection of the appropriate project management tools for that organization and is thussupport for the entire organization, including career Project Managers. The overall roadmap for anyproject would be defined here.

This book introduces basic tools and techniques, which could form the basis for the development ofrobust organizational project management processes.

The Project ManagerProject Managers are those individuals who remain accountable for the achievement of the project objectives and who also ensure alignment of the project objectives with the business objectivesvia use of an organizational project sponsor. This role is described in more detail in Chapter 3 (seepage xx).

Traditionally Project Managers have focussed on ‘the project triangle’ and all the tools, techniquesand processes have been about the delivery of this triangle — the management and control of scope(quantity, quality and functionality), cost and time (Figure 1-4).

Figure 1-4 The project triangle

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Now Project Managers need to understand the environment in which the project is to be delivered.As well as having a robust control strategy they must equally have a link to the organization. This haslead to an increasing awareness of ‘benefits management’, which is described in detail in Chapter 3.Therefore Project Managers are considered to be:

Accountable for the achievement of the project objectives (cost, scope and time), for examplethrough an appropriate project management control methodology.Responsible for the delivery of the benefits enablers (the things that allow the benefits to berealized), for example by understanding the link between the project and the business.Responsible for developing the Project Team and managing the project stakeholders (anyoneinvolved with or impacted by the project) — through good people management.

Project management competence can be developed in two ways within an organization (Table 1-1).As organizations become more aware of the importance of projects and project management they

have realized the importance of project management competence.

Table 1-1 Project Managers

Career Project Manager Temporary project involvement

The role Accountable for projects and possibly Line Manager typically delivering one project for programmes of projects and then returning to line management role Developed over a number of years with (project is usually linked to this role)practical project experience Addressing an immediate project need

Potentially has limited project experience but valuable background and understanding of the organizational and/or technical issues

Development needs Structured, progressive continuing Fast introduction to project management training and development processes, tools and techniquesIn-depth expert level training Guidance on ‘where to get help’Potential to have a formal project Coachingmanagement qualification

Main outcome Individual experts available to an Individual basic project management organization for professional understandingproject delivery Improved organizational project management

competence

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