Project Management
By the application of defined Project Management processes and procedures superior outcomes can be achieved. The first step is to recognise and segregate projects from normal or repetitive business processes. Here are definitions prepared by the key professional organisations in Australia (AIPM & PMI):
Project: A project is a temporary endeavour undertaken to create a unique product, service, or result in order to achieve an outcome.
Project Management: Project management is a formalised and structured method of managing change in a rigorous manner. It requires the application of knowledge, skills, tools and techniques to project activities to achieve the required project outcome.
Program Management: Program management is the centralised coordinated management of a program to achieve the program's strategic objectives and benefits.
The project is broken down into distinct units for management, as below.
(Note: These definitions are at the Project Director level of responsibility):
Unit 1 - Direct and Control Scope
- Definition: The scope of a program/ project comprises a combination of the business planning process and its outcomes, the end products of the program/project and the work required to deliver the program/project deliverables required using systems thinking to ensure the definition and delivery of the required program/ project outcomes. Scope management involves the initial justification of the program/ project through the strategic planning process, the development of the business case, management of the initial program/ project start-up activity followed up by the ongoing definition of the deliverables within program/ project objectives and constraints. Program/ project scope forms the foundation of the program/ project plan, the basis from which all other program/ project specific plans are developed and is the focus for an overall systems approach to program/ project management.
Unit 2 - Manage Overall Program Schedule
- Definition: Management of program/ project time, through the management of planning and scheduling activities, relates to the activities associated with development, analysis, monitoring and control of program/ project schedules. Meeting program/ project objectives within the identified time frame is a critical factor in determining program/ project success along with capability, cost and quality.
Unit 3 - Direct and Manage Costs
- Definition: The management of cost, cost estimating and program/ project budgeting includes the processes required to identify, analyse and refine program/ project costs, program/ project billings and program/ project cash to produce a program/ project budget which is then used as the basis upon which to monitor and control program/ project accounting. Cost management and budgeting are factors critical to the success of the program/ project, along with capability, time management, planning and scheduling and quality.
Unit 4 - Direct and Manage Quality
- Definition: Program/ project quality management comprises the activities required to optimise the implementation of the current quality policy and the required processes for the program/ project. Quality management applies objective standards and processes to achieve the largely subjective goal of customer satisfaction through the continuous application of quality planning, quality control, quality assurance and continuous improvement throughout the project life cycle.
Unit 5 - Direct and Manage Human Resources
- Definition: The process of Human Resource Management (HRM) involves the development of individuals into a cohesive project team with the common purpose of meeting program/ project objectives. HRM includes determining the resources required to manage project tasks, both within the core project team and the broader organisational matrix. Staff recruitment, selection, performance management, training and development are conducted to accommodate change throughout the project life cycle.
Unit 6 - Direct and Manage Communication
- Definition: Program/ project communications management provides a critical link between people, ideas and information at all stages in the project life cycle. Program/project communications management ensures the timely and appropriate generation, collection, dissemination, storage and disposition of program/ project information via formal structures and processes to aid the achievement of program/ project objectives.
Unit 7 - Direct and Manage Risk
- Definition: Risks are factors that might affect program/ project outcomes. The Risk management process consists of seven steps: communicate and consult; establish the context; identify risk; analyse risk; evaluate risk; treat risk and monitor and review in order to maximise opportunity and minimise the consequences of adverse events. The risk management process is completed through review of the plan and recording of lessons learned
Unit 8 - Direct and Manage Procurement
- Definition: Program/ project procurement management involves the management of contracting activities from formation, such as product and contract definition, market analysis through the tendering process up to contract formation, to contract performance, management and administration after contract award. Program/ project procurement management concludes with contractual aspects of the program/ project finalisation processes. Procurement activities are normally defined and planned early and refined throughout the project lifecycle to ensure changing project objectives are met. Whether involvement in the procurement process is as the client, the prime contractor, or as a sub-contractor, may influence the perspective from which the procurement activities are addressed, however similar project management processes would normally apply.
Unit 9 - Direct and Manage Program/ Project Integration
- Definition: Integration is the management of the overall program/ project scope, within internally and externally mandated business rules and governance and stakeholder requirements, contextualised by project specific schedules, budgets, risk and other contractual obligations with the aim of the establishment of agreed baselines for supplier/client requirements. Integration involves the management of the other eight functions of project management, making trade-offs among competing objectives and alternatives in order to meet and/or exceed project objectives throughout the project life cycle ensuring at all times that the program/ project is on track to meet desired strategic objectives established within the strategic business plan.
Bob Sterling CPPD
Certified Practising Project Director
References:Professional Competency Standards for Project Management - Australian Institute of Project Management (AIPM)
Project Management Body of Knowledge (PMBOK) - Project Management Institute (PMI)