BUS605: Strategic Project Management

6a. Plan various communication requirements during project execution

• What is synchronous communication?
• What is asynchronous communication?
• How can a stakeholder register help plan project communications?

Communication might be the most important task a project manager faces. Keeping stakeholders informed can be critical to the presumed success of the project. However, it's important to know who needs to know what information and the medium in which they prefer to receive the information. This is where communications planning is important.

A communications plan can identify the key individuals that need to be informed about the project, what they need to know, how often they need to know, and how they prefer to be informed. Using a communications matrix, the project manager learns the information that needs to be communicated in the preferred format and frequency.

While developing the communications plan, uncovering the exact nature of the information to be communicated should be the goal. For example, the project sponsor may wish to see several key performance indicators (KPIs) related to project performance on a weekly basis. The project sponsor may prefer the information delivered in a written report via email or may wish to meet with the project team.

Synchronous communication strategies involve methods that are in real-time with the receiver and sender. For example, meeting face-to-face or through virtual platforms would constitute synchronous communication. However, asynchronous communication means that the receiver and sender are not communicating at the same time. An example of asynchronous communication includes email, where information is sent to the receiver and the receiver reviews the information at their convenience. Several methods of communication may be required during project execution, and the communications plan can be used to capture these preferences.

Regardless of requirements, learning the needs of stakeholders and making attempts to meet those needs will go a long way to demonstrating project success.

To review, read Communication Planning and watch Project Communications Planning.

 

6b. Compare actual progress to plans, update information, monitor implementation of project and changes

• What is a change control board?
• What are the options for managing constrained resources?
• What is resource loading?

Project managers work hard during the planning stage of the project to prepare for smooth project execution. However, as a project moves through the execution phase, problems can occur or changes can be made. Therefore, it's important to compare the original plans to the actual execution progress to help steer a project back on track. For example, a project that is running behind schedule because of increased scope may require additional resources to help get the project back on track.

Another time when plans need to change may be the result of formal project changes approved by change control boards. When project changes are formally approved, there may be changes to the schedule, budget, or scope that need to be documented. Project software may need to be corrected with new or revised tasks, new or revised resources, or new or revised costs.

Project managers actively monitor the progress of projects during execution. They gather data on task completion, risks, and quality in order to prepare detailed project reports. Careful monitoring allows for fast and accurate corrections should problems arise. Project managers are constantly looking at the current state of the project (as is) and comparing it to where the project should be (to be). Corrective actions may come in the form of requesting more resources, extending task schedules, or even seeking alternative vendors, depending on the findings.

To review, read Allocating and Managing Constrained Resources and Project Monitoring, Analytics, and Control.

 

6c. Apply metrics and reporting techniques to monitor and control a project

• What are key performance indicators?
• Who should determine the metrics that are reported for a project?
• How do metrics help control the project?

It has been said that what gets measured gets managed. By that, we mean that what is important we need to pay attention to. There are several ways in which a project manager can track important aspects of a project. One technique is to work with key stakeholders and define appropriate metrics or measurements with which to watch. Thresholds should be set for metrics that define when action should be taken and what action may be appropriate.

Project key performance indicators (KPIs) typically revolve around four areas: timeliness/schedule, budget/cost, quality, and effectiveness. Some schedule KPIs include time spent on task vs. time planned, resource capacity, and resource conflicts. Some budget KPIs include budget variance, planned value, and cost performance. Some quality KPIs include the number of errors, customer satisfaction or loyalty, and the number of customer complaints. Finally, some KPIs to measure effectiveness include project milestones completed on time, the number of change requests, and the number of canceled projects.

Using metrics, earned value management, and other tools can help stakeholders during gate reviews. Gate reviews often occur when a significant amount of project work is completed and the stakeholders meet to review the work. During gate reviews, stakeholders are concerned that the project is progressing as planned. Projects that are significantly over budget or behind schedule will be evaluated to decide if the project should continue.

To review, read Effective Status Reporting Practices.

 

6d. Identify variances and tolerances to set the boundaries for acceptable results

• What is a cost variance?
• What is a schedule variance?
• How does a project manager use variance information to take corrective action?

It's important to understand how to calculate both cost and schedule variance within your projects and understand what the data means. Luckily, the calculations are not difficult. Numbers greater than one or positive numbers are good (ahead of schedule or under budget), and negative numbers are bad (over budget or behind schedule). To calculate accurate numbers, a baseline that identifies the scope, schedule, and costs for the project needs to be available. A baseline of the project represents the project information at a point in time.

• Cost variance - a cost variance means there is a difference between the planned cost and the actual cost of the project. This can mean that the project has cost more or less than anticipated.
• Schedule variance - a schedule variance means that there is a difference between the amount of work that was planned to be completed and the actual amount of work completed.

Variances alone won't tell a project manager why the project is behind schedule or over budget. Digging deeper and analyzing the data is required. However, active monitoring of variances allows the project manager to take control and make corrections as quickly.

To review, watch Calculating and Understanding Cost Variance and Calculating and Understanding Schedule Variance.

 

6e. Evaluate the use of earned value analysis to complete work performance reports

• How does earned value compare actual work performed to planned work performed?
• What does a negative SPI tell us about the project schedule?
• What does a negative CPI tell us about the project budget?

Earned value management is an analysis tool that can be used to determine if a project is on schedule or on budget. Several calculations are needed to define the indexes used. However, the calculations are simple and the data is readily available in most project software.

Earned value compares the actual work completed with what should have been completed at a given point in time to determine if the project is on schedule or on budget. This requires the project manager to accurately record work completed in project software. The data is then used to calculate how much work should have been performed against how much was actually performed, telling the project manager if the project is on schedule, ahead of schedule, or behind schedule. Cost data for tasks are recorded and then used to tell the project manager if the project is on budget, under budget, or over budget.

Some important earned value indices include:

Schedule Performance Index (SPI) - SPI = EV / PV. Used to indicate if a project is on schedule, behind schedule, or ahead of schedule. A value less than 1 indicates that the project is behind schedule. A value greater than 1 indicates that the project is ahead of schedule.

Cost Performance Index (CPI) - CPI = EV / AC. Used to determine if a project is on budget, over budget, or under budget. A value less than 1 indicates that the project is over budget. A value greater than 1 indicates that the project is under budget.

To review, read PMI Earned Value Management Terms and Formulas and watch Earned Value Management (EVM).

 

6f. Determine if a project is on schedule or on budget using project software reporting features

• Can you identify several reports available in project software that can help a project manager report a project's status?
• What report(s) will tell the project manager the work already completed?
• What report(s) will tell the project manager where costs are over budget?

Project software, such as Microsoft Project or SmartSheet, can produce reports that help the project manager deliver the project status to interested stakeholders. Reports such as burndown charts, and cost overviews can tell what work has been completed and the costs incurred for individual work items. Additionally, project software can provide graphs and charts that help display a visual picture of the project.

In order to make use of the project software fully, several items of data must be captured regarding project tasks. Some data include accurate resource assignment and costs of resources, actual work completed on the tasks, and the project baseline set.

• Burndown chart - will show the planned work, completed work, and remaining work left for the project.
• Cost Flow - shows a project's total costs, planned, costs, and remaining costs.
• Cost Overruns - shows both task cost variances and resource cost variances.
• Resource Cost - shows the total costs of resources to date.
• Earned Value Management - provides earned value indices.
• Critical Tasks/Late Tasks/Slipping Tasks - shows tasks that are critical to the project and need to be monitored, tasks that are late and/or slipping and need to be addressed.

To review, watch Reports For Tasks And Resources In Microsoft Project.

 

Unit 6 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• CPI
• Earned Value Management
• EVM
• KPI
• project software
• SPI