B713_1 Fundamentals of senior management

Preparing a project

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Contents

- Introduction

- Learning outcomes

- 1 What is a project?

- 1.1 A definition

- 1.2 What is expected from projects?

- 1.3 Examples of projects

- 2 Why projects fail – the dimensions of failure

- 3 Where do projects come from?

- 3.1 The idea

- 3.2 Mind mapping

- 3.3 Task breakdown chart

- 4 Project inputs and outputs

- 5 Setting aims and objectives

- 6 The stakeholders and their interests

- 7 Will it work?

- 7.1 Consider the purpose

- 7.2 Feasibility studies

- 7.3 Risk and contingency planning

- 7.4 Risk assessment and impact analysis

- 8 A basis for action and the project brief

- Conclusion

- Keep on learning

- References

- Acknowledgements

Introduction

Many managers find that they are required to manage projects. In this unit we aim to help you to take an overview of the features
of a project and the issues that arise in managing a project. Once you have identified a piece of work as a project, you are
able to use a number of management approaches that have proven effective in managing projects. A project is a one-off, non-repeated
activity or set of tasks that achieves clearly stated objectives within a time limit. Most projects are goal-oriented with
clear beginnings, middles and ends, have constraints that limit and define the process, and outcomes that can be measured
in terms of performance against agreed indicators. Other features of a project include the purpose, goals, resources, constraints
and quality requirements.

All of the matters listed in the Learning outcomes below need to be considered before the detailed project brief or definition
document can be drawn up. The project brief is an important document because it details the agreement that guides all the
subsequent stages of a project.

Having completed your study of this unit, you should be able to prepare a project brief or definition document so that agreement can be obtained with the project sponsor. This document will provide a blueprint for the planning phase
of the project which you can study in OpenLearn unit Planning a Project.

This OpenLearn course provides a sample of postgraduate study in Business

Learning outcomes

After studying this course, you should be able to:

- identify the main features of a project

- explain the importance of the key dimensions of budget, time and quality

- identify the links between a project's scope and definition and a sponsor's strategic and operational objectives

- agree the objectives of the project in sufficient detail to enable it to be planned effectively

- assess the feasibility of a project and to negotiate any necessary amendments with the sponsor to ensure that the goals can
be achieved within the constraints of the project.

1 What is a project?

1.1 A definition

One definition is

‘A project is a one-off, non-repeated activity or set of tasks which achieves clearly stated objectives within a time limit.’

Most managers work on projects, often small or short-term projects, rather than large ones that take several years to complete.
Size or length of time do not indicate that one project is more important than another – often small projects pave the way
for major improvements to be made. A project is often about creating something new or implementing a major change that can
be viewed as a complete event.

1.2 What is expected from projects?

- The project may be expected to deliver financial benefits to the organisation.

- In the public sector projects are usually expected to lead to social, economic and political outcomes.

All projects are different. The level of complexity differs and the context in which a project exists will affect it. There
is no single right way to manage a project. All projects have customers.

There are three key dimensions to a project:

1. budget

2. time

3. quality

and these have to be balanced to manage a project successfully.

Figure 1 The balance of project dimensions

These three dimensions are interlinked and each of the dimensions will probably receive particular attention at different
stages in the project. The model is useful in reminding us of the tensions that may arise in attempts to keep each of these
dimensions progressing according to plan. Traditional approaches to management of projects have focused on the technical aspects
and often paid less attention to the influence of people on the project. People commission and sponsor projects, people are
stakeholders in projects and people plan and carry out projects. In managing a project, the leadership, motivation and management
of the people involved are as important as using appropriate planning, control and monitoring techniques. Again, there is
a balance to be achieved. There will be people who want the project to succeed and people who are antagonistic towards it
for some reason – for example, not everyone benefits from a new road, shopping centre or airport. There are also people involved
in completing the project. The project team will have a range of different attitudes towards the project and may or may not
want it to succeed! It would therefore be useful to draw up a communications matrix in order to see the stages of the project and who needs to be contacted.

The communications matrix

A communications matrix is a way of noting who needs to be consulted and at what stage. It can be a formal chart or rough
notes, but its purpose is to help minimise the problems that arise when people feel they have not been consulted. The communications
matrix below shows an example of a communications matrix for putting a new building unit into use.

A communications matrix

Stages

Operations Director

Area Manager

Site Manager

Marketing Director

Equipment Suppliers

Fittings Suppliers

Initial plan

After first site meeting

Operation of unit agreed

On-site work nearing end

Start operations

1.3 Examples of projects

- A project might involve establishing a new product or service, developing an existing product or service or discontinuing
a product or closing a service that is no longer required.

- A project might arise from recognition of new needs of customers or service users or from an opportunity that is expected
to deliver benefits to the organisation.

- Projects might also arise from a new organisational requirement, for example, as a response to a change in legislation that
requires changes in employment systems or in health and safety procedures. In such a case, the project could be investigating
the extent of change necessary and reporting recommendations to a decision-making body or the implementation of the change
to the point where routine working could be resumed. (The routine work that followed the change would no longer be a project.)

Activity 1

0 hours 5 minutes

The quiz will open in a new window – simply close the window once you have completed the quiz to return to the unit.

Open quiz now...

2 Why projects fail – the dimensions of failure

Unfortunately, projects are not always completely successful and the consequences of an unsuccessful project can be significant
politically, financially and socially for organisations and for the people who carry out the project. Considering the key
dimensions of a project (budget, time and quality) there are three obvious ways in which one might fail:

- it might run over budget (or have to stop before the goals are achieved because of insufficient funding)

- it might take much longer than planned to achieve the goals (or might have to stop when time runs out before the goals are
achieved)

- it might be completed within the time and budget available but fail to meet the quality requirements (and so be of lower value
than expected).

There are other things that lead to the failure of a project:

1. the project objectives were not clear to the team;

2. it was not clear to the team what the outcomes of the project should be;

3. the project was over budget;

4. the project activities ran late;

5. certain outcomes of the project have not been achieved;

6. the users were not consulted about their needs;

7. the training needed to get people to work differently has not been considered. (If a project is supposed to lead to successful
implementation of a new way of working, the training needs of staff are an essential consideration.

Problems such as these lead to the failure or abandonment of many projects.

Activity 2

0 hours 10 minutes

From your experience, make a list of the most important factors that have contributed to the success of any projects in which
you have been involved. Which three factors would you rank as most important?

View answer - Activity 2

3 Where do projects come from?

3.1 The idea

Essentially, any project begins with an idea. The idea is often one about how to do something that seems to be needed. Transforming
ideas into projects begins with recognising the nature of this driving force:

Projects arise in order to meet human needs. A need emerges and is recognized, and the management determines whether a need
is worth fulfilling. If it is, a project is organized to satisfy the need. Thus, needs are the fundamental driving force behind
projects. This seminal aspect of needs makes them important for project management. Their emergence sets off the whole project
process. If at the outset we do not understand a need and its implications, if we incorrectly articulate it, or if we mistakenly
address the wrong need, we have gotten off to a bad start and can be certain that our project will be trouble-filled.

(Frame, 1987)

Frame identifies three phases in the identification of needs:

- Needs emergence – all sectors face the continual emergence of new needs in a changing organisational environment. Needs can evolve both from
within and from outside an organisation. All stakeholders have interests in anticipating and predicting needs and responding
to them proactively.

- Needs recognition – recognising a need requires organisations to make use of existing data and expertise both from inside and out, and to collect
additional data in order to consult stakeholders and to identify the implications of changing conditions. In project management
terms, this phase is concerned with shaping an emergent need into the goals that will begin to define the outputs or outcomes
of the project.

- Needs articulation – this phase involves clarifying the understanding of a need by describing its characteristics more precisely. This enables
managers to identify the most appropriate way of meeting the need, it enables stakeholders to contribute to the developmental
process, and it leads to a precise statement of what must be done or provided to meet the need – the project definition.

Sometimes the strategic need for a project is determined by senior managers and the project goals are determined before project
managers and staff are involved. For example, if an organisation decides at board level that a new headquarters building is
to be commissioned and sited in a new location, staff may not be consulted until the decision has been made. However, it is
not unusual for project goals to be identified by those working within a changing setting, particularly if these people might
be considered to be very familiar with the needs that are to be addressed by the project.

In clarifying a project's scope, information needs to be collected about:

- who the stakeholders are and what their interests are in the project;

- the project's aims and objectives and how the project is going to achieve them within appropriate resource and time constraints;

- the opportunities offered by the project and the threats to its success.

There are also tools that can help to get a better understanding of the project. These include mind mapping and a task breakdown chart.

3.2 Mind mapping

The term ‘Mind mapping’ was devised by Tony Buzan for the representation of ideas, notes, information, etc., in radial tree-diagrams
– sometimes also called ‘spider diagrams’. These are now very widely used. Try a web search on ‘Buzan’, ‘mind map’ or ‘concept
map’. Alternatively, you could try Compendium. This is open source software that allows you to create a variety of mind,
concept or knowledge maps. For more information, please refer to our tools FAQ page.

3.2.1 To draw a mind-map (manually)

- Put your paper (ideally a large sheet) in landscape format and write a brief title for the overall topic in the middle of
the page.

- For each major sub-topic or cluster of material, start a new major branch from the central topic, and label it.

- Each sub-sub-topic or sub-cluster forms a subsidiary branch to the appropriate main branch.

- Continue in this way for ever finer sub-branches.

- You may find that you want to put an item in more than one place. You could just copy it into each place. Alternatively, you
could draw in a cross-link.

- You may find that you want to show relationships between items on different branches. You can do this by coding them using
colour, type of writing, etc.

- You may find that it helps to bring the map to life if you identify particular branches, items, etc., with drawings, etc.

(Source: Buzan, T. (1982) Use Your Head, London, Ariel Books)

There are several mind mapping software packages, such as Compendium, available. They make it very much easier to edit and
rearrange the map, they can sometimes hold notes and documents, etc. associated with labels (so that they can act as filing
systems), and some can convert between map and text outline formats. Figure 4 shows an example of a Compendium created mind map.

Figure 4 Mind mapping tool

You may be thinking that if the factors for success are well known, why do projects still fail? Managers often have to manage
projects alongside their other tasks. The time and effort needed to plan the project may seem too great when other tasks are
pressing. There is little to show in the planning stages and managers are often tempted to start on something where the action
can be more visible.

3.3 Task breakdown chart

The task breakdown technique is a very logical approach to identifying the tasks involved in a project. Some people may find
it suits them better than using mind maps; other people may find the techniques complement each other.

To do a task breakdown chart, first draw a box at the top of a page with the project title inside it. Then mentally identify
the main elements that go to make up the project as shown below.

Figure 5: Starting the task breakdown chart

A further degree of task breakdown has been indicated on item C, and could have been shown for elements A and B as well. In
general terms it is for the individual to decide the level of detail to which they wish to go.

The example in activity 3 relates to the erection of a temporary building and is a simplified chart in order to illustrate
the technique.

Activity 3

0 hours 15 minutes

Try to complete the task breakdown chart below, that outlines the potential tasks required to erect a temporary building.
The chart has also been attached as a pdf for your convenience.

A sample answer is provided – your results may not be identical – it is a matter of interpretation.

Chart (PDF, 1 page, 0.06MB)

Chart

View discussion - Activity 3

4 Project inputs and outputs

A project involves the transformation of inputs into an output or product. For example, people's mental and physical efforts,
bricks and mortar, equipment or materials might be transformed into a new road, a municipal park or an advertising campaign.
Or perhaps transformed into a stream of outputs or products, for example, attendances at a conference or exhibition, state
school places or data from a new in-house costing system.

The output or outputs might be used within the organisation (for example, a credit sales and debtors collection system) or
it might be used by the general public (for example, a road might be used by pedestrians and motorists). The output might
be sold as a one-off immediately after the project is complete (for example, a new hotel building) or used to gain income
at some time in the future (by operating the hotel and accommodating guests).

The input-output questions run along the lines of:

- what resources will we require and what will they cost the organisation?

- what products will be produced, in what quantity and of what quality?

Other questions depend on the type of organisation:

- For what prices can our for-profit organisation sell these products and how much revenue will they generate?

- How much must our non-profit organisation charge users for these products if these charges are to cover resource costs?

- In producing these products, how much economic, political and/or social value will our governmental organisation confer on
their direct beneficiaries, and on other citizens and other taxpayers generally; and by doing so, what private costs will
our governmental organisation impose on citizens and other taxpayers?

- What cost savings will accrue to our organisation from these products or what fines/penalties will our organisation avoid
by producing these products?

5 Setting aims and objectives

‘If you don't know where you're going, you might end up somewhere else.’

(Casey Stengel, New York Yankees, quoted in Beckhard and Harris, 1987)

Aims are broad goals and can encompass an organisation's mission and values, whereas objectives define more precisely what
a project is trying to achieve and how success will be recognised. The SMART principle is often applied to objectives. They
should be:

- Specific – clearly defined with completion criteria

- Measurable – you will know when they have been achieved

- Achievable – within the current environment and with the skills that are available

- Realistic – not trying to achieve the impossible

- Timebound – limited by a delivery date based on real need.

This provides a useful checklist, but it is not always possible to achieve objectives with all of these details established
at the outset and it may be necessary to revisit them as the project progresses. It is also possible to develop groups of
objectives to deal with different aspects of the project. For example, there may be process objectives that identify ways
in which the work will be carried out as well as the more usual outcome objectives to identify the details of outcomes required.

6 The stakeholders and their interests

Anyone in the organisation, or outside it, who has or might have a legitimate interest in the project and its outputs or outcomes,
is a stakeholder. You need to identify these people and groups so that you can make sure you meet their expectations and manage
the influence they may wish to exert over the progress of the project. Particularly important among the stakeholders will
be:

- the project sponsor – the person or group who set up the project, authorised the resources and put you in charge of it;

- the project team – the group of people who are going to carry out the tasks and activities;

- functional managers and others who control resources you will need or whose expertise may be useful;

- influential individuals or groups who are likely to be affected by the project and its outcomes.

Depending on the nature of the project, many other groups or individuals may have a stake in it, such as:

- consumers, customers, users of services or products;

- other staff in the same or other departments;

- managers and staff of partner or collaborating organisations;

- the senior management team of your organisation;

- shareholders or their representatives;

- elected members (if you are working in a local government context);

- trustees (if the project involves a charitable trust);

- members of the public (especially if you are managing a high-profile project involving a new service or a new building);

- media representing public interest;

- competing organisations.

Each of these stakeholders is likely to have different expectations of the project and thus different criteria for its success.
These may be overt or covert, and they may conflict with one another. You need to ensure that, as far as possible, the goals
and objectives of the project take all these criteria into account, because this is how your success will be measured.

Activity 4

0 hours 10 minutes

Consider the different views each of these stakeholders might have of the three key dimensions of a project. Put a tick to
indicate which dimension(s) each stakeholder might think is the most important from their personal perspective.

View discussion - Activity 4

7 Will it work?

7.1 Consider the purpose

A project that meets an important need for your organisation will contribute towards meeting wider organisational targets.
Consider the purpose – what will the project contribute that will further the goals of the organisation? It is often useful
to discuss this with the project sponsor and to align the project objectives with the strategic objectives of the organisation.
If the ‘fit’ of the project with the organisational direction is considered at an early stage, it might be possible to use
the project to address a slightly wider set of concerns and to increase the available resources in recognition of the increased
value of the project outcomes. Consider the questions that will help to determine the value of the project to the organisation:

- what is the business case for carrying out this project?

- how exactly will the project contribute to achieving any of the organisation's stated objectives?

If you ask these questions of the project and find that it does not contribute directly, the feasibility of the project should
be considered as doubtful because the use of resources will be difficult to justify.

7.2 Feasibility studies

For some projects, particularly large or innovative ones, it may be appropriate to carry out a feasibility study before beginning the detailed work of planning and implementation. Alternatively, or in addition, it may be possible or desirable
to try out an idea on a small scale, as a pilot project, before the main project begins. It may also be appropriate to carry
out a feasibility study when there are still a number of options that would all appear to offer appropriate solutions to the
problem addressed by the potential project. A feasibility study can help to clarify which option or options would achieve
the objectives in the most acceptable way.

The purpose of a feasibility study is to determine whether the required outputs or outcomes can be achieved with the available
resources. It should ensure that the concerns of all the stakeholders are considered. The key issues to be addressed will
be:

- Financial – comparing the costs of resourcing the project with the benefits it may bring and the costs that may arise if the project
is not implemented.

- Technical – establishing how any new system will mesh with existing systems, fitness for purpose, whether the organisation and staff
have competence to work with the new technology, how to manage the transition.

- Environmental and social – stakeholders’ concerns about environmental impact, impact of project on local environment and local social conditions.

- Managerial – examining the implications for work practices, including any need for new staff or training for existing staff, changes
to terms and conditions of employment, and implications for equal opportunities.

- Value-related – investigating motivational and cultural issues to make sure that the project will win support, both for the processes used
and for the intended outcomes.

A feasibility study may be a relatively brief activity. For a large project, however, it may have to be very comprehensive
and could be regarded as a project in its own right, as in Example 1: A feasibility study.

Example 1: A feasibility study

Managers in a public library decided that its members, as well as a wider constituency of citizens in their town, would benefit
from a directory of all services relevant to leisure pursuits and informal learning opportunities. The local council indicated
that it might assist with publication and supported the idea.

The group conducted a feasibility study to consider whether:

- similar projects have been successful elsewhere in terms of benefits to the local community;

- the proposed project manager, who is a senior librarian, has the time and expertise to manage the project;

- the support required from other agencies in the area for data collection is likely to be forthcoming;

- the time and money are available to complete initial publication and make the directory available to the public;

- statutory agencies or other voluntary organisations will provide funding in the long term to keep the directory up to date.

7.3 Risk and contingency planning

Risk in projects may be defined as ‘an event or situation … which can endanger all or part of the project’

(Nickson and Siddons, 1997).

Risk management is fundamental to project management and has an impact on estimates of time and effort required for the project.
It is concerned with assessing the kinds of risk associated with trying to make something happen, for example the possibility
of delays in the schedule caused through staff sickness or materials not being available at the appropriate time. Risks in
a project can be both internal – arising from within the project – and external – arising from the context or environment
of the project.

Example 2: The potential cost of failing to identify a risk

In the late 1960s, our New York sales office sold a 707 charter to Mr Harold Geneen, then chairman of ITT, for an executive
meeting in London. We had 28 of the most senior ITT executives all on one plane, all at the same time. The charter was the
first American Airlines flight to London for about 20 years. The ultra-First Class service contained the finest wines, thousands
of dollars in gourmet meals, five movies and the best cigars. Our chief pilot was captain, our executive chef from the general
office worked the galley, and we had a doctor, nurse, and a security guard on board. Our New York sales office even sent a
senior representative to coordinate all the details. Every detail was taken into consideration, or so we thought.

When we landed at London Gatwick, we taxied to the terminal and our captain asked Ground Control for fuel. We were horrified
when a disturbed looking Exxon supervisor came on board and informed us that because we had forgotten to obtain a credit standing
for Exxon in Europe, they would not fuel our plane. In the face of a complete disaster with ITT, our sales rep calmly took
out his personal automobile Exxon credit card, studied the back (which contained no credit limit), handed the card to the
fuelling supervisor and said, ‘Fill it up.’

Exxon billed the personal card for more than $10,000, and our representative saved the day.

(Kay Muller, Flight Attendant Dallas/Fort Worth in Pizzicato, 1998)

Risk in a project is generally limited to the possibility of different hazards impacting on the project, not risk in any form
in which it might affect the organisation in which the project is located. There are four stages to risk management:

1. identifying the risk – determining which risks are likely to affect the project and documenting the characteristics of each;

2. impact assessment – evaluating the risk to assess the range of possible outcomes in relation to the project and the potential impact of each
of these;

3. developing plans to have in reserve to reduce the impact of the most likely risks and to ensure that these plans are implemented when necessary;

4. ensuring that the risks are kept under review and that appropriate plans are developed to meet any changes in the type or likelihood of adverse impact.

Contingency plans indicate what to do if unplanned events occur. They can be as simple as formalising and recording the thought processes when
you ask ‘what if …?’ and decide which options you would follow if the ‘what if?’ situation happened. The key points in contingency
planning can be summarised as follows:

- Note where extra resources might be obtained in an emergency and be aware of the points in your plan where this might be required.

- Identify in advance those dates, which if missed, will seriously affect your plans, e.g. gaining financial approval from a
committee that meets only once every six weeks.

- Know your own plan very well; probe for its weak points and identify those places where there is some ‘slack’ which only you
know about …

- Keep all those involved (including yourself) well informed and up-to-date on progress so that problems can be addressed before
they cause too much disruption.

- Recognise the key points in your plan where there are alternative courses of action and think through the possible scenarios
for each one.

- Learn from experience – sometimes the unpredictable peaks and troughs in activity follow a pattern – it's just that we have
yet to recognise it.

The following suggestions for dealing with contingencies were all made by practising managers:

- Break key tasks down to a greater level of detail to give better control.

- Be prepared to overlap phases and tasks in your plan in order to meet time-scales, but give the necessary extra commitment
to communication and co-ordination this will require.

- Spend time at the start in order to pre-empt many of the problems.

- Learn from experience, e.g. develop a list of reliable contractors, consultants, etc.

- Try and leave some slack before and after things which you cannot directly control, to minimise the knock-on effect of any
problems prior to, or during, such tasks.

- Pull tasks forwards if possible: one less thing to worry about!

In many projects, these four stages are considered almost simultaneously, but in large-scale projects each stage might warrant
considerable attention. The main categories of risk can be summarised as:

- physical – loss of, or damage to, information, equipment or buildings as a result of an accident, fire or natural disaster

- technical – systems that do not work or do not work well enough to deliver the anticipated benefits

- labour – key people unable to contribute to the project because of, for example, illness, career change or industrial action

- political/social – for example, withdrawal of support for the project as a result of change of government, a policy change by senior management,
or protests from the community, the media, patients, service users or staff

- liability – legal action or the threat of it because some aspect of the project is considered to be illegal or because there may be
compensation claims if something goes wrong.

Where a risk can be anticipated, contingency plans can be implemented if the risk materialises, thus reducing its impact.
Contingency planning can generate a range of possible responses to potential crisis situations. For example, you may prepare
a list of temporary staff or agencies that you can call on in the event of a major flu epidemic among staff. Planning for
risk at an early stage also means that the identified risks can be shared with stakeholders when plans are approved and potential
costs can be built into the budget.

Activity 5

0 hours 10 minutes

Imagine that you are managing a project that relies on services provided by one supplier over a six-month period. Make a list
of the possible risks associated with that supplier.

View discussion - Activity 5

7.4 Risk assessment and impact analysis

Risk assessment involves measuring the probability that a risk will become a reality; impact analysis involves measuring the sensitivity of the project to each identified risk. The key questions are:

- What is the risk – how will I recognise it if it becomes a reality?

- What is the probability of it happening – high, medium or low?

- How serious a threat does it pose to the project – high, medium or low?

- What are the signals or triggers that we should be looking out for?

A risk assessed as highly likely to happen and as having a high impact on the project will obviously need closer attention
than a risk that is low in terms of both probability and impact. Each risk can be allocated to one of the cells in Table 1
– risk probability and impact.

Table 1 Risk probability and impact

Low impact

Medium impact

High impact

High probability

Medium probability

Low probability

The top right-hand box is the most dangerous area. If you place a risk statement in this box, you think it is very likely
to happen, or you are very uncertain about it, and the consequences for your project would be very severe. Risks that fall
into the bottom right-hand box may seem unlikely to happen but you are judging that the effect if they do makes them a danger
area for the project.

Strategies for dealing with risks in project management include:

- risk avoidance – for example, where costs outweigh benefits, you may decide to refuse a contract;

- risk reduction – for example, regular reviews can reduce the likelihood of an end-product being unacceptable;

- risk protection – for example, taking out insurance against particular eventualities;

- risk management – for example, making use of written agreements in areas of potential disagreement;

- risk transfer – passing the responsibility for a difficult task within a project to another organisation with more experience in that field.

A risk log should be started for the project at an early stage. This is a list of all the identified risks, together with
an assessment of their probability and impact, and contingency plans for dealing with them should they become a reality. A
risk log – or risk register – will look something like Table 2 – format for a risk register. It provides a framework for necessary
actions to be taken and decisions to be made, and should be amended and added to on a regular basis as the project proceeds.

Table 2 Format for a risk register

Risk

Impact

Probability

Action

Funding

High

Low

Secure funding base prior to start of project

etc.

For each of the scenarios below, identify which categories of risk are likely to be most significant and suggest appropriate
strategies for dealing with them.

Activity 6

0 hours 20 minutes

Case 1

A voluntary organisation providing accommodation and resettlement services for homeless people is proposing to extend its
activities into another town where there is an established need. Local authority financial support has been offered verbally
but no firm offer of funding has made in writing. Moreover, previous attempts by another organisation to do similar work met
with resistance from a residents’ association. Staff in the organisation are keen to support the proposal, but the manager
who would be responsible for the project is on long-term sick leave.

View discussion - Activity 6

Activity 7

Case 2

A personnel manager set up a pilot project to test the practicalities of an anticipated change in the law involving the employment
of people with disabilities. There were questions about whether the manager was wasting money and time by running the pilot
because it seemed possible that the legislation would not proceed through Parliament without substantial changes being made
that might change requirements placed on employers.

View discussion - Activity 7

Activity 8

Case 3

A contracts manager for cleaning services in an office block set up a project to develop a quality monitoring system based
on performance indicators developed from the office users. She was concerned about the timing of the change: contracts were
about to be retendered, so new contractors would not know the performance indicators when they applied to deliver the service.
There was also concern about whether there would be sufficient staff to monitor contractors’ performance and how long it would
take to train them to do the job.

View discussion - Activity 8

8 A basis for action and the project brief

Once the initial discussions about the purpose and feasibility of the project have confirmed that the project is worth carrying
out, it is essential to establish the basic agreement as a document. The document will provide the reference point for all
future work on the project and will be the basis for all judgements about whether the project is finally successful or not.
This document is sometimes called the terms of reference, but usually incorporates some additional information in the form
of a detailed project brief. The project brief becomes the basis for all subsequent decision making and planning.

The project brief is usually drafted by the person managing the project, but it is essential that it is discussed with all
sponsors, and often with key stakeholders as well. The brief should be agreed as the basis for future work, since it is the
record of agreement about the main aspects of the project:

- the expected outcomes

- the resources that will be invested to arrive at those outcomes

- the time that it will take to achieve the outcomes.

The project brief should be a concise and clear document because it will be used throughout the project. For example, the
monitoring arrangements will be derived from the agreement in the project brief. Monitoring might be carried out by a number
of stakeholders in review meetings, when the agenda would be to assess whether progress met the scheduled objectives within
time and budget estimates. If the initial feasibility plans and outline estimates have been fairly accurate, there may be
no difficulty in keeping the project ‘on track’. However, often either the initial thinking was not thorough enough or conditions
change during the progress of a project, so it is important to make arrangements in the initial agreement for changes to be
made as the project progresses. Again, these decision-making arrangements should be part of the project brief so that there
is no misunderstanding about the procedure that should be followed.

The project brief should be concise and clear. It is usual to use headings and subheadings and to list the main points. Remember
that it provides a record in summary of the agreements on which the project is based and so represents the justification for
expenditure of time and effort. A checklist of the headings is provided below.

Project title

Name of sponsor and main contact for project approval

Locations – address of sponsor, project location, contact address

Name of person managing the project and possibly their organisation if different from that of the project sponsor

Date of agreement of project brief

Date of project start and finish

Background to the project and purpose with goals outlined

Key objectives with quality and success criteria

Details of how achievement of these will bring benefits to the business or sponsoring organisation

Scope of the project and any specific boundaries

Constraints

Assumptions

Timescale of the project

Deliverables and target dates (milestones)

Estimated costs

Resourcing arrangements

Reporting and monitoring arrangements

Decision-making arrangements – level of authority and accountability held by manager of project and arrangements for any necessary
renegotiation

Communications arrangements

Signature of sponsor with date, title and authority

Conclusion

The project brief is a summary of previous discussions and research. If there is earlier documentation, the project brief
can refer to these documents and summarise the key points rather than repeat everything. For example, there may have been
previous documentation outlining the business case for the project so that commitment could be gained in earlier stages of
the decision-making process. Similarly, there may be documentation that outlines the background to the project and the reasons
for investing in the work. The key objectives should be given alongside the purpose and goals of the project, but detailed
objectives will be produced during the planning stage of the project.

You may find it useful to remind yourself of the learning objectives outlined at the beginning of this section and to consider
some of the main issues associated with them.

1. You should now be able to identify the main features of a project. A project is a one-off, non-repeated activity or set of tasks that achieves clearly stated objectives within a time limit.
Most projects are goal-oriented with clear beginnings, middles and ends, have constraints that limit and define the process,
and outcomes that can be measured in terms of performance against agreed indicators. Other features of a project include the
purpose, goals, resources, constraints and quality requirements.

2. You should be able to explain the importance of the key dimensions of budget, time and quality. Much of the work in managing a project is in keeping these three dimensions in balance.

3. You should now be able to identify the links between a project's scope and definition and a sponsor's strategic and operational objectives.

4. You should be able to agree the objectives of the project in sufficient detail to enable it to be planned effectively. The importance of setting clear objectives was considered because these contribute to both the delivery and the evaluation
at the conclusion of the project. Objectives can also be used to ensure that the outcomes of the project contribute as intended
to the strategic and operational direction of the organisation.

5. You should also be able to assess the feasibility of a project and to negotiate any necessary amendments with the sponsor to ensure that the goals
can be achieved within the constraints of the project.

All of these matters need to be considered before the detailed project brief or definition document can be drawn up. The project
brief is an important document because it details the agreement that guides all the subsequent stages of a project. Lastly,
you should now be able to prepare a project brief or definition document so that agreement can be obtained with the project sponsor. This document will provide a blueprint for the planning phase
of the project.

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References

Frame, J.D. (1987) Managing Projects in Organizations: How to Make the Best Use of Time, Techniques and People, San Francisco, Jossey Bass.

Buzan, T. (1982) Use Your Head, London, Ariel Books.

Acknowledgements

Except for third party materials and otherwise stated (see terms and conditions), this content is made available under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 Licence

Course image: photosteve101 in Flickr made available under Creative Commons Attribution 2.0 Licence.

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Activity 2

Answer

You might have identified sufficient time and resource, especially if you have been involved in urgent projects. You may also
have identified the importance of clear objectives – particularly if you have experience of working with unclear objectives
and of the misunderstandings that can arise from initial confusion.

Factors that have been identified as important to the success of projects include:

- Making sure that the objectives are clearly defined

- Having senior management support

- The allocation of sufficient time and resources

- Skills of the project manager

- Good communications

- Advance planning and monitoring methods

- Communicating with stakeholders

Back

Activity 3

Discussion

Here is one approach to the task breakdown chart.

Back

Activity 4

Discussion

The sponsor usually focuses on the budget and the outcomes – what return is achieved for the investment? What financial risks
are involved and is it achieving value for money? As the outcomes are produced, the focus of a sponsor may change to concern
about the quality, about ensuring that the outcomes are well received by customers or users. The sponsor is less likely to
be interested in the schedule as long as the overall timescales that were agreed are met.

A functional expert is likely to be focused on the quality of work, both of the work associated with the project and with
the impact of the project requirements on any other work in progress. Thus the functional expert will be concerned to balance
the quality of outcomes with the schedule and will want to have sufficient time to achieve high quality results.

A line manager is likely not to be directly involved in the project, but to be responsible for staff who are members of the
project team. This manager's interest will probably be to ensure that the project schedule will not be too disruptive of other
work. The staffing resource will usually need to be agreed with any line managers of people that you would like to include
in the project team.

Suppliers and contractors are required to fit in with the schedule to provide whatever is contracted at the right time and
place. Their concern is usually to ensure that the budget has allowed them to make a profit and that they are able to provide
the required quality of goods or services within the schedule allowed. Thus suppliers and contractors have to balance these
three dimensions but also to ensure that the agreement represents value for their business.

Customers and end users often want the outcome quickly and may apply pressure to speed up the schedule, but once the outcomes
are delivered the focus from this perspective moves to the quality. If the project has been scheduled tightly to meet the
expectations of customers it will still be essential to meet the quality requirements if the project is to be considered a
success.

The project manager has to balance all three dimensions and to accommodate the different priorities put on each by different
stakeholders at different times.

Back

Activity 5

Discussion

The relationship with this key supplier will obviously be very important. Organisations will usually issue contracts with
conditions about quality, frequency and process of supplies. Costs will be agreed at an early stage. However, things can go
wrong. The supplier might fail to provide an acceptable service in price, quality or quantity. The supplier might go out of
business during the period of the project. The supplier might fail to obtain sufficient staff or materials to be able to deliver
as agreed. You might also have thought of the possibility that the project estimates were wrong and the contract with the
supplier was inadequate for the needs of the project.

Back

Activity 6

Discussion

In Case 1 the main risks relate to staffing (labour) and to political and social factors. These issues could be addressed by:

- meeting with community leaders to explain the importance and value of the new service (risk management)

- dealing with the staff sickness problem by allocating responsibility for the new house to a different team in the interim
(risk reduction)

- making sure that the contract included a clause allowing the organisation to withdraw if adequate funding was not made available
(risk avoidance).

Back

Activity 7

Discussion

In Case 2 the risks fall into the political and social category with technical aspects. The project could be refocused slightly to
enable the organisation to review its current employment practices for disabled people and to make recommendations about how
improvements could be made that would benefit the organisation. This would provide information that would enable them to take
action very quickly once the legislation details were confirmed. The organisation would then be in a position to conform with
the legislative requirements whilst ensuring that changes that were made were of benefit to it in a number of ways.

Back

Activity 8

Discussion

In Case 3 the principal risks are in the labour, liability and technical categories. These risks could be reduced by close consultation
with all concerned, particularly new contractors. If it is decided that the potential benefits outweigh the risks, the project
could go ahead, allowing six months to develop a first draft of the performance indicators. Support for the appointment of
an additional member of staff to carry out the monitoring could be agreed.

Back