Posts Tagged ‘budget’

The Modern Rules of Project Management Best Practices

August 11th, 2011

According to WikiPedia, a best practice is a technique, method, process, activity, incentive, or reward that is believed to be more effective at delivering a particular outcome than any other technique, method, process, etc. when applied to a particular condition or circumstance. Best practice can also be defined as the most efficient (least amount of effort) and effective (best results) way of accomplishing a task, based on repeatable procedures that have proven themselves over time for large numbers of people. Best practices can and should evolve to become better as improvements are discovered. It is about developing and following a standard way of doing things. Best practice is a standard approach to follow, that has been proven to work within a business industry or environment and then gets adopted by most people within that specific context.

My work experience has exposed me to working in organizations that have too few specialist resources, lack of sufficient time for projects and inadequate project budget planning or allocation. I have also worked in highly controlled, standardized approach organizations with expert resources where everything in a project is set up to succeed. This means that planning is based on previous similar projects and expert judgement estimates, resources are dedicated to the project for periods when needed, adequate budget is allocated and proper scope and quality management is applied. Even though normal risks and issues were experienced in both type of organization’s projects, the organizations where best practices are applied consistently, have shown more successful projects and satisfied customers, meaning that these projects always had a better chance of being on time, to budget and with the desired quality.

Here you would refer to a person’s natural abilities or talents, learned skills and project management knowledge. In the Project Management Paper: “Still more Art than Science” by Kate Belzer, it has been stated that project management is both an art and a science. Understanding processes, tools, and techniques are the hard skills, also referred to as the science of project management. For successful project delivery,you also need soft skills, referred to as the art of project management. Soft skills help to define the business value, clarify the vision, determine requirements, provide direction, build teams, resolve issues, and mitigate risk. Communication is quite simply the most important soft skill. The ability to apply soft skills effectively throughout the life cycle of a project will enhance the success of a project exponentially!

Often projects fail because of a project manager’s inability to communicate effectively, work within the organization’s culture, motivate the project team, manage stakeholder expectations, understand the business objectives, solve problems effectively, and make clear and knowledgeable decisions. These are the skills that take time to acquire through experience, coaching, and mentoring. In my opinion the art and science of project management requires the intuitive application of your talents, your hard and soft skills, your knowledge and experience in the right combination that is applicable to a specific project situation. To find that kind of balance is an art in itself.

Posted in Project Management

Introduction to Earned Value Management

August 5th, 2011

Earned value Management or EVM is a technique used in management to track costs and schedules. It was devised by the US Department of Defense in the 1960s and was originally intended for use on defense acquisition contracts. Just recently, the criteria for the Cost/Schedule Control Systems have been revised; bringing it to 32 criteria to be used in the Earned Value Management System or EVMS.

While EVM for bigger and more complex projects use more features such as behind/ahead of schedule and over/under budget, EVM can be used in almost any given project regardless of the project type, size and cost. Over the years, its use has spread to other government units and big organizations such as NASA, Project Management Institute and Acquisition Management in the UK. It is also widely used in the private sector; across different fields and industries.

Advantages of Earned Value Management

  • EVM uses primary and derived data to track project performance. The data provides trends and actual figures that PM’s use to compare against what was originally planned. The data will help the project manager assess whether or not the project is on track and can accurately forecast problems such as running behind schedule, going over the allotted budget or not meeting projected profits.
  • Being able to accurately see a project’s progress – the planned versus the actual work accomplished, helps in risk identification and response. It makes for proactive decisions to reduce negative impact or devise contingency plans. If an overrun is forecasted through EVM, it will allow the PM to present the problem to stakeholders and managers at an earlier time. This in turn will help management make educated decisions regarding the project’s budget and schedule constraints.
  • Earned Value Management helps project managers reduce or avoid risks. It also helps in effectively communicating with stakeholders especially when it comes to requesting additional funding for the project or incase the project needs to be stopped or restructured. This is especially so since past performances and trends are very good indicators of whether or not the project is going to be a success.

Disadvantages of Earned Value Management

  • Earned Value Management is a proven and tested method that guarantees almost accurate forecasts. With that said however, it is important to note that needed information is entered manually into the EVM System. Any input inaccuracies can compromise the result. This can translate to a potentially big loss for the stakeholders and project manager.
  • Generally, Earned Value Management and EVMS can be used in just about any type of project. However, it may not be a very good tool for long term projects that involves changes in development paths throughout the course of completion. This is especially true for particularly large projects with complex data points as EVM does not have the ability to measure qualitative performance.

Earned Value Management is just one tool in project management. Limitations to EVM and EVMS are still subjects of active research to further improve its functions in project management. It is imperative for project managers to leverage available tools and techniques to ensure projects are on track in terms of schedules and budget.

Posted in Project Management