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2 Contents About this Workbook...3 Project Management Ethics and Professional Responsibility...4 Organizational Project Management Maturity...5 The Project Management Office...7 Choosing the Right Project...8 Change Control Process The Project Management Plan Defining the Project Scope Cost Management Earned Value Management Time Management Project Budget Preparation Resource Levelling Quality Management Risk Management People Management Leadership and Interpersonal Skills Communications Management Stakeholder Expectation Management Project Reporting Project Closure Benefits Realisation Organizational Change Management P a g e

3 About this Workbook This workbook is designed to be used in conjunction with a series of workshops on professional project management and also with The Professional Project Manager by Sean Whitaker. This symbol indicates a Key Message of that module This symbol indicates space for you to describe something about your current project management practices This symbol indicates an exercise to be completed This symbol indicates an exercise from the case study or your own experience to be completed. 3 P a g e

4 Project Management Ethics and Professional Responsibility Throughout your professional career you will find yourself in situations that call for you to consistently display ethical and professional behaviour. The following is from the PMI code of ethics: Honesty is our duty to understand the truth and act in a truthful manner both in our communications and in our conduct. Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources. An environment of respect engenders trust, confidence, and performance excellence by fostering mutual cooperation an environment where diverse perspectives and views are encouraged and valued. Responsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result. Fairness is our duty to make decisions and act impartially and objectively. Our conduct must be free from competing self-interest, prejudice, and favouritism. 4 P a g e

5 Organizational Project Management Maturity Exercise: Complete the following questionnaire: 1. Does your organization expect project managers to hold a certification or Yes credential in project management? 2. Does your organization expect project managers to undergo regular Yes professional development through such things as ongoing training? 3. Are project managers in your organization expected to only do project Yes management work and not also carry out technical work? 4. Does your organization appoint a project sponsor for each project? Yes 5. Does your organization have its own, or a proprietary, project management Yes methodology in place and does it require this methodology to be followed in all projects? 6. Does your organization have a standard set of templates to use on each Yes project and require them to be used? 7. Does your organization have a defined process to follow for starting each Yes project and require it to be used? 8. Does your organization have a checklist for closing a project and require it Yes to be used? 9. Does your organization have system in place for reporting progress on each project and require it to be used? Yes 10. Does your organization have a documented and appropriate change Yes control process and require it to be used? 11. Does your organization measure and evaluate the competing demands on Yes people, time and money between projects? 12. Does your organization regularly review its approach to project Yes management and seek to improve it? 13. Does your organization have a Project Management Office (PMO)? Yes 14. If so, what is its function? a. Common reporting of all projects b. A place where all project managers work c. Developing and improving the methodology Yes Yes Yes TOTAL TICKS Number of Ticks 0-4 Level 1 Very low level of OPMM 5-8 Level 2 Low level of OPMM 9-12 Level 3 Medium level of OPMM Level 4 High Level of OPMM 5 P a g e

6 Your Project Management Maturity Next Steps Exercise: What are the top 5 things your organization could do to increase its level of project management maturity? (HINT: look at where you scored a No in the above spreadsheet) P a g e

7 The Project Management Office Key Message: The Project Management Office (PMO) is the centre of excellence in project management in your organization. It will reflect the level of project management maturity that your organization is at. Describe your current project management centre of excellent or PMO Exercise: What sort of PMO do you think your organisation needs now? Describe the current project management roles in your organization 7 P a g e

8 Choosing the Right Project Key Message: Increase your chances of project success by developing a robust business case and only choosing to do the projects that deliver strategic benefit and meet financial or non-financial criteria. Describe the process you currently have for selecting your projects Exercise: What are the key elements that should be incorporated into your project selection process? Exercise: Calculate the following financial selection criteria for projects: 1. Calculate Present Value where your Future Value is $300,000, the interest rate is 10 percent, and the time period is three years. 2. Calculate Net Present Value where the Present Value of Income is $250,000 and the Present Value of Costs is $180, Calculate the Payback Period for a project with an initial cost of $450,000 and annual income of $110, P a g e

9 Exercise: You have been given the following information about 3 different projects and told that you can only do one of them due to resource constraints. Consider the scores out of 10 and the weighting s given to each assessment item and decide which project you are going to do. Strategic Financial Non-Financial RANK Alignment Benefits Benefits (weighting = 5) (weighting = 3) (weighting = 2) Project Alpha Project Beta Project Omega Design your own project selection process. Clearly show how a potential project moves from an initial idea, through selection filters and ends up in your approved portfolio of projects with a priority attached to it. 9 P a g e

10 Change Control Process Key Message: ALL changes to a project must be appropriately documented and assessed. At all times in your project you must be delivering what is documented and only what is documented. Describe your current change control process for requesting and assessing changes Exercise: What are the key elements that should be incorporated into your change control process? Exercise: What are the key elements that should be in your change control document? Design your own change control process. It should clearly indicate the stages that a change request should go through from the time it is first thought of or requested. It should also clearly identify the templates to be used and who will make decisions. It should also include a description of how the approved change will be checked to ensure it has been done as per the approval. 10 P a g e

11 The Project Management Plan Key Message: You know the old saying Failing to plan is planning fail? - well its true, buts it s even more important to do the right level of planning depending on the duration, size, complexity and duration of your project. Describe what type of project planning you currently do Exercise: What are the key elements that should be in your project management plan? Design your own project management plan template. The easiest way to do this is to start with an existing one from the internet and modify it to suit your purposes. Don t forget to involve anyone who will be using it in the development of it to get their input and their advice. 11 P a g e

12 Defining the Project Scope Key Message: All projects should have an agreed description of the work to be done, and not to be done, as part of the project. Describe how you currently define and document both the project and product scope Exercise: What are the key elements that should be in your project scope statement? Complete a comprehensive scope statement for a project you are currently working on or one from the list of brief case studies. Make sure to include what you will do and what you will not do. Also, list your assumptions areas of uncertainty and any approvals that are required. 12 P a g e

13 Work Breakdown Structure (WBS) Key Message: The Work Breakdown Structure (WBS) is the backbone of any good project. It is a graphical representation of all the work to be done on the project. Work not in the WBS in not part of the project. You can use the WBS to support good cost, time and resource estimating What might a typical Work Breakdown Structure (WBS) for your projects look like? Use this blank one or start your own for a project you are currently working on or for one of the brief project case studies. 13 P a g e

14 Exercise: WBS Case Study You have recently been appointed the project manager to successfully manage the construction of a new government office building in the central city. The office building will be the new headquarters of several government departments and you are expected to manage the complete process from initial design, gaining the appropriate consents, successful negotiation of the contract for construction, the actual construction and fit out of the building, and the successful relocation of the different government departments from various points around the city into the new building. The only work done to date on the project is the project charter which outlines only basic information and requirements for the project. Complete a WBS for this project. 14 P a g e

15 Cost Management Key Message: Generally, the more accurate the forecasting or estimating technique is, the longer it takes and the more it costs. However, remember that any process of estimating is simply the process of trying to forecast a future state based on the information we have at hand now. As such, the quality of the estimate is related directly to the accuracy of that information. The more accurate the information you have, the more accurate the estimate will be. Key Message: There are many sources of changes to the project costs, both increases and decreases. It is important that you track, document and record all requests that can have an impact on cost - you may run out of money or may not get your invoices paid! Describe your current methods of estimating costs on a project Exercise: Which estimating techniques do you currently use? Exercise: Which estimating techniques do you think would be of value to you? P a g e

16 Exercise: Complete the following cost estimates: 1. The cost estimate for the design of the project has been determined to be 15% of the total costs of $ What is the cost estimate for the design? 2. You require 20m3 of concrete for your project and your quantity surveyors inform you that concrete costs $150 per m3. What is the cost estimate for concrete? 3. A recent project you managed spent $12500 on hardware upgrades for the computers on site. Your project has twice as many computers on site that need to be upgraded. What is the cost estimate to upgrade the computers? 4. During a brainstorming session with experts on your project you receive consensus on a pessimistic estimate of $1300, an optimistic estimate of $800, and a realistic estimate of $950 for the materials needed for a portion of your project. What is the cost estimate for these materials that you will use? Complete cost estimates using several estimating techniques for a project you are currently working on or one from the list of brief case studies. Make sure to include your assumptions, note the technique being used and any areas of uncertainty. 16 P a g e

17 Earned Value Management Exercise: You are the project manager on a project to build 10 identical offices. You expect to spend $50,000 per office to complete the work and take 20 months to finish. You are 12 months into the work and have completed five offices and spent $310,000 in total. Use this information to calculate the following: 1. Budget at completion (BAC) 2. Actual cost (AC) 3. Planned value (PV) 4. Earned value (EV) 5. Cost variance (CV) 6. Cost performance index (CPI) 7. Schedule variance (SV) 8. Schedule performance index (SPI) 9. Estimate at completion (EAC) 10. Estimate to complete (ETC) 11. Variance at completion (VAC) 12. To-complete performance index (TCPI) 17 P a g e

18 Time Management Key Message: Time estimating uses the same estimating techniques as cost estimating with the same strengths and weaknesses of each. The better the description of the work the better the estimates will be. Describe your current process for developing a project schedule or timeframe Exercise: Which of the estimating techniques from cost estimating would be useful to you for estimating time? P a g e

19 Exercise: Draw a network diagram using the following information Task Name Duration (days) Predecessor A 3 - B 4 A C 7 A D 5 B, C, F E 2 B, C F 4 A G 6 D, F H 3 E I 2 G, H J 4 H K 2 I, J What is the duration of the project? What is the critical path? What is the amount of float or slack on activity G? During the execution of your project you realise that task B will now take 6 days and task H will now take 8 days. What is the revised duration of the project? Has the critical path been affected and if so, how? 19 P a g e

20 Develop a project schedule using your scope statement and WBS, estimate durations for activities for a project you are currently working or one of the brief case studies. Use a network diagram to indicate the interdependencies and relationships between your work packages, then using the durations complete a network diagram to produce a project schedule. Start by listing some or all of your work packages and activities in the following table (if it is quite complex then start using software like MS Project or ProjectLibre): No. Description Duration Predecessors 20 P a g e

21 Project Budget Preparation Key Message: The Project Budget is a combination of individual costs estimates and your project schedule so you need both of these to be able to prepare a project budget. Describe the software and process you currently use to develop and monitor project budgets Exercise: Complete the budget preparation exercise below by adding up total projected monthly spend, cumulative spend and then use a bar graph and a line graph to show the project budget. Develop a project budget using your scope statement, cost estimates and schedule for a project you are currently working or one of the brief case studies. You can do it manually but it s probably better to use software like MS Excel, MS Project, ProjectLibre or any other similar software. 21 P a g e

22 It might help to start by using the table below to put in individual and cumulative costs per time period. You can then draw a bar graph and a line graph to indicate the project budget. $ Forecast Spend Cumulative Spend Time Period ` 22 P a g e

23 Resource Levelling Key Message: It is one thing to forecast which resources you need to complete the project work and another thing to actually make sure they are available when you need them. Describe the way in which you ensure resources are available to do work on projects when you need them Exercise: Complete the following exercise which merges schedule development and resource levelling: You are a project manager responsible for a small construction job requiring the use of labourers. You have been given the following information in relation to the activities to be performed, their duration and the resources required to complete them. Activity ID Activity Description Predecessor Activity Duration (Days) Resources required 1 Site works and set up None 2 4 Labourers 2 Site clearance Labourers 3 Site survey Labourers 4 Site set out Labourers 5 Site excavation Labourers 6 Foundation construction Labourers 7 Foundation completion 2,4,5,6 2 2 Labourers 1. Draw an AON (Activity-on-Node) network of the project. Using the AON network, complete the forward and backward pass, compute each activity slack and identify the critical path. What is the project duration? 2. Assuming all activities start at their earliest times, draw a Gantt chart and a histogram showing period by period resource requirement. 3. Your project sponsor informs you that you can only have a maximum of six labourers at any given time. Perform resource levelling of the project using the following heuristic priority rules in the order presented: minimum slack smallest duration lowest activity identification number Show the Gantt chart along with period by period resource requirement of the levelled schedule 23 P a g e

24 Develop a project resource histogram for at least one of your project resources using your scope statement, cost estimates and schedule for a project you are currently working or one of the brief case studies. You can do it manually but it s probably better to use software like MS Excel, MS Project, ProjectLibre or any other similar software. You can start to visualise what it may look like by entering the schedule resource usage for one resource in the blank table below: No. Resources Required Time Period ` 24 P a g e

25 Quality Management Key Message: Poor quality costs money, reputation, health and safety, and future business - if you aren t worried about quality your competitor will be. Describe your current quality assurance processes Describe how you will carry out audits on your project. Make sure you specific who will do the audit, how often and what sort of questions will be asked. Describe your current quality control processes Describe what tools and techniques you should be using to measure quality of the deliverables on your project 25 P a g e

26 Risk Management Key Message: All projects have elements of risk or uncertainty in them, both negative and positive risk. Being proactive in your approach to risk management allows you to minimise the impact of negative risk and maximise the impact of positive risks. Describe your current risk management processes Exercise: What elements of risk management do you think would be useful to you? Exercise: What are the key elements that you should have in your risk register? P a g e

27 Use the following blank risk register to qualitatively assess actual risks on a project you are currently working on or one of the brief project case studies 27 P a g e

28 People Management Key Message: Successful project management relies on the 5 R s of people management: 1. Recognising who you want and the skills they must have, 2. Recruiting these people when you need them, 3. Retaining them throughout the project, 4. Rewarding them 5. Releasing them. Describe the current way people are assigned to work on projects Exercise: Think about a time that you have been part of a high performing team - what was it about that team the defined it as high performing? 28 P a g e

29 Leadership and Interpersonal Skills Key Message: Your own leadership development is an essential part of your professional development as a project manager. Great leadership enhances the chances of project success and successful projects add bottom line value to organizations. The most important characteristic of a great leader is authenticity. Exercise: Think about a leader who has impressed you - what was it about their leadership style that impressed you? Exercise: What do you hope your followers would say about your leadership style? P a g e

30 Communications Management Key Message: Good communication is key to project success. The absence of communication doesn t mean no communication is happening. If you don t comminute appropriately people will think you are either incompetent or don t care about their needs. In the absence of effective communication gossip, rumour and halftruths will fill the gap. Describe your current preferred methods of communicating with people Exercise: What are some of the communications issues you have had and how would you do things differently? 30 P a g e

31 NAME Contact details What is their interest? What information do they need? When do they need it? How will they receive it? Who will give them the information? Owner Develop a communications register for a project you are currently working on or for one of the brief project case studies. Use the table below as a starting point but you may find it easier to develop your own spreadsheet. 31 P a g e

32 Stakeholder Expectation Management Key Message: A stakeholder is any person, group or organisation who can affect or be affected by your project. The goal of proactively influencing stakeholders and their expectations is to gain their support for the project or to ensure they do not oppose the project. Describe the current way you identify stakeholders and understand their expectations Use the following stakeholder assessment matrix to identify stakeholders in a current project and assess their power and interest upon your project. Which stakeholder is the one you must manage most closely? Stakeholder Name Power (1-10) Interest (1-10) Power x Interest (1-100) Power scores: a score of 1 means they have no power, or ability to influence your project, a score of 10 means that they have a lot of power over your project Interest scores: a score of 1 mean they have no interest at all in your project, a score of 10 means they have an extremely high level of interest in your project. 32 P a g e

33 Project Reporting Key Message: What, when and how you choose to report project progress will depend upon individual stakeholder requirements and the goals of your communications strategy. Describe the way in which you currently report progress on a project Design your project reporting template for a project you are currently working on or for one of the brief case studies. Clearly indicate the frequency, the expected audience and the type of information (i.e. text, numbers, graphs, colours) that will be used. Also indicate who has to approve it before distribution. 33 P a g e

34 Project Closure Key Message: All projects must be closed according to an agreed and documented closure process. Clearly set out the closure process early in the project Describe your current project closure processes Exercise: What additional elements could you incorporate into your current project closure process to improve it? 1. _ 2. _ 3. _ 4. _ 5. _ Design your project closure checklist for a project you are currently working on or for one of the brief case studies. Clearly indicate what tasks ae mandatory and which are optional and how this decision is made. 34 P a g e

35 Benefits Realisation Key Message: Remember all those things you hoped to achieve by doing this project? Well, did you achieve them? Don t confuse outputs with outcomes. Describe the way in which you currently determine if your projects deliver the expected benefits Exercise: What can you do to improve your benefits realisation process? 1. _ 2. _ 3. _ 4. _ 5. _ 35 P a g e

36 Organizational Change Management Key Message: All projects deliver change of some sort - moving from where you are now to somewhere else. People naturally resist change, so part of any good project management plan is how you are going to initiate change, gain support for change, implement the change, measure the expected benefits of the change and then ensure it sticks. Exercise: What can you do to ensure that projects you are working on have a better chance of being accepted and adopted permanently? 1. _ 2. _ 3. _ 4. _ 5. _ 36 P a g e

37 Personal Self-Evaluation and Action Plan These are the knowledge areas and skills that I already understood and had reinforced by this workshop These are the knowledge areas and skills that were new to me. I will be able to use these in my project work These are the knowledge areas and skills introduced in the workshop on which I might need a refresher in order to use comfortably These are the steps I plan to take immediately P a g e

38 These are the steps I want to take within the next six months These are goals related to project management that I want to achieve within the next two years What I have been able to apply since the workshop (describe what tools, techniques, processes or templates you have developed and put in place). Describe how it has worked (i.e. has it improved things or not?) 38 P a g e

39 What I hope to apply in the next 6 months (describe what else you hope to implement to improve your approach to project management) 39 P a g e

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