Role or Responsibilities of Project Manager for Project management.

1. Outline Planning.
It is a skim planning of the project it involves selection of project sponsor and project manager. Identifying stakeholders, SWOT analysis, cost/benefit analysis, feasibility, objectives, time, cost and scope of the project. It contains all the planning necessary to obtain project approval.


2. Detailed Planning.
Establishing role and responsibilities, control procedures, risks, assumptions, constraints, key activities, interdependencies of activities, resources required.


3. Obtaining Resources.
Majority of the project resources are already available and procured. But it is possible to anticipate all the required resources. Project manager must ensure that resource are available when they are needed to complete the project within time and cost without compromising on scope and quality.


4. Teambuilding.
Project manager should manage conflicts, motivate and get the work done by using his/her leadership skills.


5. Communication.
Project manager should facilitate communication among team members and able to communicate his/her messages in appropriate format in a timely manner. Project manager should be available for team members to whenever problems arises and provide guidance to resolve them.


6. Coordinating.
Project manager should manage activities to ensure that they are done in harmony and as planned. Each activity should be completed on time so that subsequent activities can be carried out.


7. Monitoring.
Project manager should establish formal procedures for monitoring and controlling project performance. Control procedure should be measureable so that it can be compared with initial planning to keep the project on track and assist in evaluation of project success.


8. Problem Solving.
Project manager should deal with problem not initially indentified and arises during the course of the  Project. Projects are usually involves non routine activities which can not anticipated so project manager should be able to deal with unforeseen problems on unplanned basis.


9. Quality control.
Project manager should understand the standard of quality required by the project. Quality is the major determinant of level of project success. Project should try to achieve required quality within budget time and cost or make best trade-off to complete project on time and cost.


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Project Initiation Document (PID) Contents for Project Management.

 

WHAT IS PROJECT INITIATION DOCUMENT (PID)?

Project initiation document is important point in project management. It gathers information from other documents like risk register, business case, communication plan, terms of reference and project plan etc. it is detailed action plan to successfully complete the project. It gives guidance to team workers and customers (internal or external) on what is expected of the project and how the expectation can be satisfied. It is not one time activity performed before starting the project it should be continuously adjusted to reflect the changes in key variables and new information obtained. Normally, project initiation document contains information on the following, but there is no precise format and contents of the project initiation document and it depends on project to project.

 

CONTENTS OF PROJECT INITIATION DOCUMENTS (PID).

• Objectives.

Specific and measurable business objectives are defined. Objectives can be defined in terms of benefits expected on completion of the project to business executing the project. Performance measures designed to measure the achievement of objectives.

 

• Scope.

Areas and stakeholders affected by the project. Number and type of activities needed to successfully achieve the business objective. Defining the scope make clear to the team workers what activities are part of their project and what are activities are beyond it. Thus helps reduce misunderstandings which can be costly and delay the project delivery.

 

• Business Case.

Business justification of undertaking a project. Cost benefit analysis are performed and projects monitored for its benefits, costs and feasibility to decide continue or abandon the project. Control procedures are established to monitor costs and the benefits like to receive from the project. Other factor that can change the project benefits are change in strategic planning and business objectives so the project no longer reflect what the business needs to achieve.

 

• Project Deliverables.

Deliverables are tangible product arises at the completion project in the form of report and good or services. Quality standards are established to make ensure project activities comply with these standards and activities are evaluated for quality.

 

• Resources.

Resources are the economic factors necessary to perform the project. Resources needed could be measured in terms of material, person, equipments and finance. Identification of resources enables the project manager to ascertain the feasibility of the project in delivering business benefits.

 

• Roles & Responsibilities.

Each team worker is assigned a role suitable to his capabilities and held responsible for his performance. It ensures that no area of project is neglected and team workers are aware of the contribution expected of them. In the event of problem person expected to solve his problem can be identified and information can be communicated to the targeted person.

 

Project sponsor, project manager, team workers across functional departments are identified. Projects organization structure is created with communication lines developed to communicate issues and whom to report on their work done. Contact information of each participant is recorded.

 

• Risks & Assumptions.

All the anticipated risks are analyze for its impact and likelihood and assumptions are made in the absent of information necessary for planning or uncertainty exists. It ensures the fluent operation of the project. Risk strategies are decided like drawing a contingency plan, establishing control procedures. Risk & assumptions are actively reviewed and amended in the light of new information available as project progresses.

 

• Constraints.

Variable affecting the projects are analyzed for it scarcity so that variables such as time, cost and quality, limiting the project scope are closely monitored and effectively utilized to achieve project objectives. Changes in constraints are actively reviewed and amended in the light of changes in objectives, scope and deliverables.

 

• Project Schedule.

Dates of meetings and stages of project deliverables and important activities are decided. In addition timing of each activity and their dependencies on other activities are decided. Whether activities should be performed side by side or one after one and order in which these activities are performed. Control procedures are established to monitoring the project performance and amendments are made throughout its life where necessary.

 

 

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Project Management Skills For Project Management Success.

• Leadership Skills.

Project management involves dealing wide variety of people from different backgrounds and functional departments. Project manager have to motivate, direct and control team workers get things done.

 

• Political Skills.

Project manager should be flexible enough to consider other view points, take criticisms constructively, negotiate and maintain good relationships with team worker and stakeholders and adapt to changing circumstances.

 

• Communication skills.

Project manager is center of information. Project manager needs to be able choose appropriate medium to communicate information in a timely manner.

 

• Change Management skills.

Most of the projects aim to change existing processes. Project manager should be able to identify the existing culture and take actions to implement required cultural changes.

 

• Knowledge Management.

Ability to preserve knowledge gained from the project, so that it can be applied to subsequent projects. Knowledge are treated as an asset.

 

• Financial Skills

Project managers should be able to understand the financial reports and budgeting information to complete the project within cost limits and ensure cost does not exceeds benefits.

 

• Information Technology Skills.

Project manager needs to know software applications necessary to prepare Gantt chart. Project team structure diagrams and establish relationships between various activities.

 

• Risk Management Skills.

Ability to apply risk management frameworks, analyze risks and uncertainties and deciding appropriate strategies to mitigate risks. Managing risk ensures the project completion without any distractions.

 

• Time Management Skills.

Time is the key variable in project management. Project needs to be completed on time if benefits is to be derived from the projects. Delay in project delivery can lead to financial and reputation loss resulting in loss of subsequent work from clients.

 

• Conflict Management Skills.

Project receives inputs from the team workers having their personal goals and desires different from each team worker and project objective. Project manager needs to ensure that team worker direct their effort to project objectives.

 

• Stakeholder Management Skills.

Ability to indentify key stakeholders that can impede project performance and managing stakeholders having opposite views and reconciling the differences.

 

• Procurement Skills.

Project manager may needs to procure material relevant to project. He should be able to decide what, how much and when to order materials, so that materials are available when it is needed and with in budget.

 

• Legal Knowledge.

Project manager needs ensure legitimacy of activities and deliverables of the project. Project manager may have adhere to minimum quality standard and safety procedures to comply with in achieving project deliverables.

 

• Decision Making Skills.

Projects are associated with activities having non routine activities. Decision needs to be taken in exceptional circumstances on ad hoc basis.

Project Initiation Document: Benefits,Purpose,Uses.

 

• Objectives of the project are determined. These objectives are the same as define in business case document. This can help team workers understand what kind of benefits are expected from their work, so that they can direct their effort towards these objectives.

 

• Scope of the project are determined. This gives details on business process affect, degree of change, stages of project completion and activities need to be performed. It helps in the identification of key resources, time, quality and skills need to produce deliverables of the project to realize business benefits described in the form of objective.

 

• Show the viability of the project and its benefits to the business to secure the necessary resources or commitment from project sponsors or steering committee.It ensures the project are undertaken for a reason and it will make best use of resources against other available options. It also makes sure that project will contribute to strategic success.

 

• It provides benchmarking against which project performance can be measured, deviations identified and corrective actions can be taken to successfully complete the project within required time and cost. Original version of project initiation document needs is secured to evaluate the project performance at closing stage.

 

• It communicates the team workers and stakeholders what kind of performance is expected in advance, so that quality expected to be delivered by the project can be maintained.

 

• Constraints affecting project are determined resulting in better resource allocation. emphasis can be given over variables such as time, quality and cost to exercise close control and activities can be scheduled overcome these constraints.

 

• Risks and challenges faced by the project are identified, so that resource and attention can be direct with respect to their expected value (average financial impact). Being aware of the risk and challenges in advance helps in controlling project performance.

 

• Roles & responsibilities are clearly identified. Each team worker is assigned suitable roles and held responsible for their actions. So there will no question arises on who will do what. It ensures that no area of project left undefined for responsibility.

 

• Stakeholders are identified which can support or resist the project completion. Supporters can provide inputs to the project in terms of finance and knowledge, while resistance can be overcome by communicating the benefits of project to them. Reports can be send on project progress.

 

• It provides a platform where all information needs to be communicated to team worker necessary to complete the project successfully and changes required to the project are documented to ensure that team worker gets the up to date information on all areas of project management.

 

 

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What’s Project Management Methodology, Activities and Documents?

 

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What’s Project Management Methodology, Activities and Documents?

Stages	Activities	Documents
Initiating a project	Project is assigned to project manager by project sponsor or steering committee. Project manager is appointed and team workers are selected from various departments. Project manager gathers details of the projects. Project sponsor approves the project based on details provided by project managers.	Planning Brief.  It provides information on suitability, acceptability and feasibility of the project to the business.
Planning a project	define the objectives of the project. What the project needs to achieve to provide benefits to the business defines the scope of the project. Scope means giving description of project in terms areas affect, speed and extent of work required to complete of project. Project deliverables (desired benefits) are set. Project interdependencies (projects depending on each other) are indentified. Resources are secured necessary for successful completion of the project. Key variables such as cost, time, quality and can be others are identified. Activities necessary to complete project are determined and scheduled. Roles & responsibilities are established. Each activities related to project are assigned to individual or team having suitable skill to undertaken them.	Business Case(extension of planning brief). It defines benefits of the project to the business, risk and uncertainty, assumptions and constraints. Gantt Chart. It help in project scheduling. It considers two variable time and activities. Project Initiation Document(PID). It is the formal detail document contains planning information extracted from other sources such as business case, communication planning, risk register, Gantt chart etc. It contains all information necessary for execution of the project.
Executing a project	Project plan now implemented. Project may be revised to due change in circumstances or requirement of the project in the light of new information available. Monitoring also take place concurrently throughout the execution stage, deviations from schedule in determined and corrective action are taken to finish the project within time, cost and quality. Reporting is essential so that progress of the project can be determined and activities can be performed in harmony toward the project objectives within time and cost. Stakeholders (sponsors, team workers, customers) needs to be informed to gain their support.	Reports. It can take many form (electronic or manual) and formats (formal or informal)according to the stakeholders and time limits.
Building on project. (combining the project deliverables with business processes).	Testing of project against acceptability from the eyes of client (internal or external) for quality Training are provided where necessary to equip those who are expected to use the project deliverables. Apply the project outcome in business context. So that benefits can flow to the business.
Monitoring and controlling project	Monitoring is explained with executing a project. Some text books describe monitoring separately while others are not.	Reports
Closing a project	Evaluating the success of the project by comparing the project benefits expected with actual benefits achieved. Documenting any skill learned from the project. Decommissioning resources engaged in the project to their respective places or where they are needed. Archiving project planning documents for future use. Reviewing performances of team workers for their contribution in project success and for rewarding them. Celebration (optional)

 

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Project Initiation Document: Benefits,Purpose,Uses.

 

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What is Mintzbergs Organizational Structure?

Mintzberg, proposed that traditionally organizations (profit making or not for profit) can be divided into five components. In practice organizational structure may differ from proposed model. Factors influencing organizational structure are industry norms,  size, experience, culture, external forces (competition, inflation, minimum wage legislation etc). Components identified by Mintzberg is useful for understanding the  workflow of organizations.

Strategic Apex.

Strategic  apex is the most senior level in the organization. Management working at this level is referred as board of Directors (chairman, CEO, executes and non executive directors). They set the objectives (increase sales by 10% in one year) and strategic direction (new product and markets developments) of the organization. They take major investing (takeovers) and financing (Shares issue)decisions. They are not involved in day to day operations of the business. They do not deal with customers and suppliers except in exceptional cases (dealing with complaints). They represent the organizational face to external stakeholders (person have interest in the organization like government). Integrity of organization can be judged by integrity of its board of directors.

Middle Line.

Middle line managers interprets objectives and strategies of the strategic level management into feasible plans and standards to get the work done through operational managers (see below). They set budget, receives reports from management accountants, monitors performances and take corrective actions where necessary. They often take investing (purchase an equipment) and financing (Trade payable and overdraft management) decision to the extent of authority given by strategic level management. They synchronize works of individual departments so that all departments works in single direction towards the achievement of organizational objectives. Making 20000 units of a product by production department does not help achieve organizational objectives if sales department can not sell them.

Operational Core.

Operational core manager often referred to as operational managers are involved in day to day running of the organizations. They are the personnel who actually achieves organizational objectives under the guidance of senior managers. They deals with external stakeholder (Customers and suppliers etc). They are responsible for quality and efficiency of the organizational results. They provide important information in deciding strategic directions and budgeting by senior managers, as they now better what is practicable due their operational experience.

Technostructure.

Personnel work in technostructure are employees and managers just in the same way as chain command runs from strategic apex to operational core. Difference is they do not involved in any revenue generating or core (for which organization exists) activity. They only assist managers at all levels performing core activities to perform it effectively and efficiently and report whenever corrective actions needs to be taken to achieve the performance targets and objectives. What activity or functional department is considered under technostructure depends on industry like in banking sector accounting is considered a core activity, while in supermarket accounting is optional activity because supermarket will not closedown if accountants get absent, they just provides information on inventory, debtors and creditors information.

Support Staff.

Support staff is of least importance to the organization as their absence does not directly affects the performance of organization. Organization still spends on supporting activities because it provides good working environment and facilities (peon) to core employees to prevent down time. Departments like canteen, cleaning and maintenance comes under this heading. As like technostructure, what is considered supporting activities depends on the industry.

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ACCA APM (P5) Exam Techniques and Tips

Exam format:

Section A	1Q = 35-40 marks, 2Q = 25-20 marks.
Section B	2 Questions out of 3 = 20 marks each



Reading time: 15 minutes (you may mark the Question paper only, during this time).
Total time: 3 hours and 15 minutes.


Read the exam rules at the back of exam attendance paper.
Listen to the invigilators instruction carefully lack of obedience may disqualify a candidate for exams.
Have your script checked by the invigilator for completeness of details.
Feel free to ask invigilators for any information necessary to comply with exam standards.


Exam technique and Tips for ACCA paper APM (P5) (also useful for PM-F5).
1. Read the question requirements of all questions. This will give you an idea of what questions and its parts you answer with confidence and discarding the question you do not answer properly.
2. Read the scenario slowly and thoroughly, at the same time marking any key dates, figures, stakeholders and problems faced by the business. It may not be possible for you to read all the questions within fifteen minutes. I advice you to read the question last, which you have planned to answer first, so you do not have to re-read the question and this will save your time.
3. Avoid use of punctuations, articles, adverbs, adjective and conjunctions excessively and unnecessarily. This will not earn you marks but it will take time.
4. Devote as much time as necessary to read scenarios and requirements. If necessary read questions again until you thoroughly understand the meanings behind each sentences. Each sentence is written for a reason and will help you to earn marks. You will get nothing if you spend lot of time answering the question but not answered what is asked.
5. Allocate your time with respect to marks available for each parts of the question. Allocate 1.5 minutes per mark, it leaving 30 minutes panic and checking time. You should focus on gaining 1mark in 1.5 minutes, no matter from where it comes. This 1.5 minutes including reading and writing time both. If you have spent more time on reading you to balance this increasing your writing speed. Use this flexibly some questions may take more than allocated time and some will take lesser time. You should aim to earn marks rather than completing the paper.
6. Do not hesitate writing what you think might be writing, there is no negative marking. So remember there is no one right answer. Marker are instructed to reward every logical answer to the question set.
7. Break the complex requirements into bits of separate requirements. Assume equal marks if requirement  is allocated separate marks. Look for the magical word "and". Example. Explain and evaluate the appropriateness of key critical success factors used the business XYZ.
8. Look at the requirements again while writing answer if you have doubt on what is asked? Frequently looking at the requirements help you write answers relevant to the requirement.
9. Do not try to produce perfect answers last marks are difficult and time consuming to achieve. Try to write good answers and points you are confident for its relevance to the question. You can come back to the question, if you have spare time left at the end.
10. Look for professional marks where available, you gain this by simply presenting your answer in the format asked by examiner, look for the person to whom your communication is addressed. Use technical jargons and details and style of presentation by considering the position, knowledge and experience of the person involved. In P5 this person will be the internal manager of any level in the organization.
11. Present your answer in the context of the organization. While some questions may ask for knowledge.
12. Look for verbs like explain, analysis, discuss etc, industry, past experience, culture and objective of business, external factors (PESTEL), SWOT, nature of material, labor, machinery, problems facing and proposed strategies, analysis financial information to use in your answers like trends, other information that would be useful but not given in the scenario. All these information will form the basis of your marks earning points.

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What is mission, goals, Objectives, Strategy and Budgets purposes?

Business Documents	details	Duration	Nature	Examples	Origin
Mission or vision statement	Sets purpose, stakeholders, culture and ethical values. Frame work for other documents.	Unlimited	Narrative	Mission of ACCA is to promote Accountancy profession and safe guard its members interest and society at large. The way exams are taken reflects culture and ethics like invigilator uniforms and enforce security in the premises.	Top level like board of directors.
Goal	Sets direction. Motivating.	Unlimited	Narrative	Goal is the dream comes in the mind of the entrepreneur like "I want to be the best accountant in the world"	Dream of organizational leader such as CEO.
Objective	Sets future position & Practicable based on business position in the macro environment: PESTEL	Long term normally 1 to 5 yrs.	Specific Measureable Attainable Relevant Timely	Objectives are rational decisions like "I have to pass two per session". This is set after taking account for various factors like time available, energy limitations, IQ levels, money to pay fees etc.	Top level managers aware of external influence affecting the business.
Strategy	Way to achieve future position. Strategy is the thoroughly considered option among various alternatives based on  SWOT analysis	Initially equal to objectives. Subsequently revised to due to changing conditions.	Narrative.	There are following options available. Option 1. distance learning. Option 2. Go to tuition provider. Option 3. Study with other students. Strategy I chose is distance learning (option 1) based on my SWOT analysis.	Top level may be same as those involved in objectives setting.
Budget	Breaks strategy into small bits of targets. It identifies and allocates resources and challenges to implement the strategy.	Normally 1 yr May be made quarterly.	Quantitative financial data.	Amount of fees I need to pay and its time. Exam dates of papers chosen. Cost of learning material to buy. Time needed to read the material. Setbacks likely to take time due to illness, traditional occasions.	Top level by imposing the budget. Participation of operational managers. Negotiating with low-level managers.

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Michael Porter's five forces Model for Competitive Position of Business

 

 

Michael Porter's five forces model is used in assessment of competitive position of the business in  macro environment. Porter has identified five positions which give competitive benefit and limitations to businesses. There are five  interrelated factors.

 

• Bargaining Position of Suppliers.

  Bargaining position of suppliers can be assessed in terms of their size relative to the business. Availability of raw materials and services used by the businesses, shortage of raw material and services to the business gives suppliers strong bargaining position. Competition among suppliers also influence their bargaining positions. If competition is fierce among suppliers than business can negotiate discount with suppliers more easily.

   

• Bargaining Position of Customers.

  Bargaining position of customers can be assessed in terms of their size. Large customers can invite tenders so that they can purchase from the business offering lowest prices and favorable terms like credit period and after sale services. Competition among businesses gives considerable benefits to customers. If business is providing some unique product like blue diamonds which are few in the world, found in south Africa, than customers bargaining position is relatively weak.

   

• Competition and Rivalry.

  Competition and rivalry leads to increase in costs for the business as more marketing expenditure will be required to create brand loyalty and business reputation. Prices may have to be decreased to maintain and  increase market share. Research and development expenditure have to be increased to devised new products to cope with actions taken by competitors. Competition and rivalry also forces business to work efficiently and provide better quality product to obtain an edge over competitors. Managers will be forced to unnecessary costs like wastage and idle time to increase their PRP (profit related pay) because profit making through increase prices may not be possible.

   

• Barriers to Entry.

  Barriers to entry can be assessed in terms of licensing requirement by the law and initial capital expenditure required to initiate the business. Some businesses like telecommunication requires both licensing and capital expenditure to install communication networks. These thing provides deterrent to businesses specially small business which do not have know how of legal requirement and money to invest in such resources. Fierce competition may also act as barrier to entry because the potential business find it difficult to create market share to achieve sales growth.

   

• Threats from Substitute Products.

  Threats from substitute products can be judged in terms of number of alternative products that customer can use instead of using existing product. Like glass mugs and steel mugs if glass mugs are getting higher in prices than customers can used steel mugs. Another thing to consider is switching cost of the product to the customer. Some products are like above can be easily switched but some products which require training and have lack of resale value are difficult to switch. Ex, if buses fare increases it will be difficult for travelers to switch to different mode of transport like purchasing their own vehicle because it involves substantial invest which everyone cannot afford. if electricity gets expensive, customer normally have no alternative but to reduce electricity consumption.

   

  Related posts:

• What is Michael Porter’s Generic Strategies for Business Success?
• What is Michael Porter’s Diamond Model for Competitive Advantage of Business?

 

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Outsourcing- Benefits and Limitations in Business Management.

Benefits of Outsourcing in Business Management.

 

1. Economies of Scale.

   Outsourcing organization carries out activities on full time basis and at possibly at much larger scale than their clients. They may have economies of scales and have specialist able to bargain discounts and work efficiently better than their client. Some extent of these benefits they may passed to their clients to gain business.

    

2. Planning and Budgeting.
   Cost can be known in advance reduces uncertainties in planning and budgeting. Future cash flow requirements can be better anticipated.

    

3. Realization of Surplus Assets.
   Outsourcing can make some asset idle which can be used deployed elsewhere or can be sold to realize cash flow which contribute towards the improvement of liquidity position.

    

4. Elimination of Limiting Resources.
   Outsourcing organization may have larger capacity which can be used in line with other activities of the business.

    

5. Reduced Overhead Costs.
   Outsourcing organization may be ready to provide services  based on variable charges hourly or per unit basis.

    

6. Experience and Expertise.
   It is possible that outsourcing organization has specialist knowledge; skills and equipment enable them to provide better quality services.

    

7. Focus on Core Activities.
   It will reduce managerial workload allowing them to focus on core competencies and delegate areas on which they lack competencies and resources to some competent  outsourcing organization.

    

   Limitations of Outsourcing in Business Management.

    

8. Loss of Control.

   Outsourcing organization may be remote from business current location, frequent visits are not possible and communication through reporting are not sufficient to exercise control. Core activities should not be outsourced unless impracticable to do in-house. Any incompetency identified by market can be threatening to the reputation of the business.

    

9. Lack of Independence.
   Business may became dependent on outsourcing organization, because of loss of competency and resources in the business due to employees being redundant or deployed elsewhere and assets are sold which now require more investment to buy again. In case of breach, it will be difficult to setup activities immediately. Delays to setup activities again can damage reputation and cash flows.

    

10. Employee Morale.
    Employee may lost their skills overtime and resentment can happen if outsourcing leads to forced redundancy. It can seriously impact productivity because their will be little motivation regarding promotion and growth. In extreme cases it may end up with strikes.

     

11. Cost May Exceed Benefits.
    There may be cost associated with employee redundancy payments, early termination penalties of existing contracts and disposal cost of property, plant and equipments. Benefits determined from outsourcing are future expectations which may not come true. Like savings in step fixed costs of energy and supervisory costs due to reduced activity level.

     

12. Reaction of Stakeholders.

    Stakeholders may react positively or negatively depends how they perceive the impact of outsourcing on their interest in the business. Some stakeholders may become happy while some may become sad.  

    These include shareholders who may sell their shares can affect the share price, financers who may demand repayment of the capital, customer who may take their business elsewhere and supplier who may change their business terms depending upon their perception of business future risk.

     

13. Legislation.

    Legislation may limit dealing in foreign countries to protect its currency value or dealing with rival countries. It may protect some stakeholder rights by enforcing legislation e.g. imposing high import duty to protect home industries or by imposing licensing requirements to business operating in  particular industry requiring some activities or standards which are pre-requisite to get a license.

     

     

    Related posts:

    Process/Strategy Matrix for Outsourcing Decisions in Business Management.

     

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