UNIT-5
A project management information system (PMIS) can be a framework to guide the progress of a project and help to increase its success rate. It brings accurate and relevant information to management within the required time frame, and helps to speed up the decision-making process and any action necessary to ensure that the project is on track in terms of time, budget and objectives.
The Right Approach
A PMIS must basically identify the information that is needed and its relevance to the project and its implementation. It must be able to compare the present state of affairs on a project to the aims laid down and analyze the differences so that corrective or remedial action can be taken. A PMIS should not lead to any loss of control because of the analysis of the information that has been gathered. There has to be some method of integrating the scope of the project, its quality objectives, and the time and cost that it requires. There should be no duplication of information as this only leads to a waste of scarce resources in terms of time and manpower.
Planning the Information
The information that is gathered has to help the project management team to plan, organize, and control the project. It must have sufficient information which can be of interest to all the people who have a stake in the project. If there is any linkage to other projects within the same organization or out of it, it must have information on the connected milestones so that it provides the right interlinking. It must have a system where any slippages in time or money are highlighted and analyzed so that corrective action can be taken. The information available must not be data alone and must have a relevance to any decision-making that is required for project implementation or monitoring. Unnecessary detailing must be avoided so that any decision-making is not bowed down by the sheer weight of the information given.
Benefits and Expectations
The PMIS should enable a project team to pinpoint the variances in terms of time, money and resources and see if they can find the reason why these have occurred. It should enable the team to track the status of each part of the project and assess the work that is completed and the work that remains to be done. When this information is available the project team will be able to reallocate the necessary resources to see that each part of the project contributes to the success of the project. It should be able to help the project leaders to assess the impact on the project from any future risks caused by time and cost overruns, and also to ensure that the quality of the project does not suffer. It should help the team to understand which of the parts of the project require revised guidelines and how they are to be implemented.
A Project Management Information System (PMIS) is one or more software tools used for a project’s information storage and distribution.
There are many types of PMIS, and equally diverse ways of applying these types of systems for optimal benefit to the organization.
The components of a project management information system are:
Scheduling
Estimating
Resources
Project documents and data
Portals and dashboards
Collaborative work management tools
Social media
Project control
Scheduling
Because schedules are such a core component of project management as a whole, almost all project management information systems contains scheduling tools. The project schedule is communicated to stakeholders and forms the baseline for project control, that is, the project is continuously measured on the basis of its adherence to the schedule.
In project management, the development of a project schedule contains 5 steps:
Divide the project into tasks
All of the project management functions are based on the division of the project into constituent tasks, for example,
Estimating the task duration
The duration of each task must be estimated to determine a realistic project schedule.
Determining the task dependencies
Each task is related to at least one other task, else it would not be part of the project. For example, Task 200 cannot start until Task 100 is 50% complete.
Developing the Network Diagram and Gantt chart
Once the durations and dependencies are known, the network diagram is used to determine the critical path, that is, the tasks which must complete on time or they will affect the overall project completion date. Once the critical path is determined, the gantt chart is the most useful and intuitive tool to the project manager.Resource leveling
The network diagram and gantt chart do not take into account resource usage. In this last step, resources are assigned to each task and the schedule is adjusted to accommodate the availability or cost of resources.
It is rare that the project schedule is not one of the most important aspects of project success. Therefore, software scheduling tools are a critical component of project management information systems as they allow the scheduling function to be performed quickly and efficiently. They also allow for easy projection of the impact of potential schedule changes mid-project. But we know that never happens!
In addition, a strong function of a PMIS is the ability to track actual vs. planned completion dates. This can then be analyzed to determine the likelihood of future project delays using earned value analysis indicators like the Estimate at Completion (EAC), Variance at Completion (VAC) or To Complete Performance Indicator (TCPI).
Estimating
Project estimating involves assigning a price to each of the project tasks. Each task is then rolled up into an overall project estimate. In a perfect world, the actual project cost will always fall within the estimate, but we know that is only an ideal to be strived for.
Each project task should have a budget, for example:
A good project management information system will track the estimated cost of each task as well as the justification for the estimate. For example a parametric estimate based on a unit rate taken from an industry source, or an analogous estimate from another project. The estimator can enter the information so that it can be referenced later.
Even better is an information system that tracks all tasks throughout all of the organization’s projects, so that it is very easy to call up and compare past actual data with new estimates. Many project-based organizations or programs (series of many projects) track data this way:
Resources
Almost all tasks require resources for their completion. The simplest tasks often have only a project team member for a specified period of time, but that is still a resource that needs to be available and managed in order to complete the task.
Hence, a good project management information system will allow the assignment of resources to tasks. These resources should also come with meta data such as their cost per unit, efficiency rate, or maintenance requirements.
This allows for ease of project tracking when the project management team must acquire the resources to ensure the task completes on its expected end date. It also ensures the resource requirements are adequately planned into the project, for example maintenance requirements or efficiency rate.
More sophisticated project management information systems can utilize components such as resource calendars, which specify when a resource is available, or resource breakdown structures, that specify a hierarchical matrix of resources which can be chosen from and coordinated with other projects.
Project Documents and Data
Virtually all projects produce documents as part of their scope, for example design reports or product documentation. Most projects also import documents and data for use in project work, for example databases. Still other projects have a reference library data set that is consulted by the project. For these reasons, project document control has become a specialty in and of itself.
Every document tracked by the project is cataloged and the requirements are defined. Variables used to track documents include:
Owner
Storage location
Format
Scheduled dates: Creation, approval, and submission
Actual dates
Review / Approval team members
Status
Large projects like engineering or industrial projects utilize comprehensive project document control software systems run by dedicated document control staff. However, for most small and medium sized projects, a smaller document control system will suffice consisting of a web based portal that allows the upload and tracking of project documents.
Portals and Dashboards
There are many web based project management software tools that provide a centralized dashboard for the project. Their features includes many of the other categories, like scheduling, documents, and project team messaging. This technology is becoming relatively advanced and provides strong feature sets without major investments in software training.
In addition, project stakeholders often require information dissemination tools such as web sites and project portals. For example, governmental regulatory agencies often have department-specific document upload and project information sites, which are then communicated to the stakeholder group on the other side who’s needs are being balanced with the project.
Collaborative Work Management Tools
Nowadays many projects utilize internal communication tools like project chat rooms, messaging apps, and so forth. This technology allows project team members to quickly and confidentially record critical project communications with other members of the team.
Often these software tools are located within larger web based project management tools, but they can also be standalone apps.
Social Media
Many project also use social media to communicate with stakeholders. This technology is very easy to set up and use, and most stakeholders already know how to navigate the software.
For example, project facebook pages or twitter accounts can be used to rapidly communicate project information to stakeholders, but they are dependent on the stakeholder checking for new messages.
Hence, critical messages should probably be communicated via a “push” method rather than social media, which is a “pull” method.
Project Control
Project control refers to the tasks undertaken by the project management team to measure the project’s progress and ensure it conforms to the project management plan. Usually project control is dominated by the two uber-important factors of schedule and budget. But there are other, smaller aspects.
Project control involves the following components:
Schedule: Ensure the project is on track to complete on time.
Cost: Ensure the project is on track to complete within its budget.
Scope: Ensure the scope has not changed, and that additional, unauthorized work is not being performed.
Quality: Ensure the quality of the products being produced is according to the specifications within the plan.
Resources: Ensure the resources are still available and they are not overextended.
Procurement: Ensure the required subconsultants, suppliers, and materials are still available and are performing their work as planned.
Risks: Ensure the risks to project success are still being adequately mitigated.
Communications: Ensure the stakeholder communications are conforming to the communications plan.
An effective project management information system provides a place for the project manager to track these items, thereby ensuring a project that sticks like glue to its project management plan.
Because a project is defined as temporary and unique, the first two (schedule and cost) are virtually always a central consideration in project success. They are tracked using a system called earned value management. In this system, the budget and schedule status are calculated based on the percent complete of each task. This status is calculated and reported in the following four variables:
Schedule Variance (SV): The amount that the project is ahead or behind schedule expressed as a project budget, for example, SV = $1,000 means that the project is ahead of schedule.
Cost Variance (CV): The amount that the project is under or over budget. For example, CV = $1,500 means that the project under budget by this amount.
Schedule Performance Index (SPI): The schedule efficiency, or the amount that the project is ahead or behind schedule as a percentage of the overall project size. For example, SPI = 1.1 means the project is 10% ahead of schedule.
Cost Performance Index (CPI): The cost efficiency, or the amount that the project is under or over budget as a percentage of the overall project size. For example, CPI = 0.8 means the project is 20% over budget.
There are several other variables that are used to extrapolate the current project performance to determine the projection of final project schedule and budget, for example the Estimate to Complete (ETC), Estimate at Completion (EAC), Variance at Completion (VAC) and the To Complete Performance Index (TCPI).
It is possible to track project progress without using earned value metrics. But a project management information system that follows well established project management industry standards will feature the calculation of these values. And the project manager using them will need to know what they mean to present them to upper management or stakeholders.
Project Management Information Systems in the PMBOK
The Project Management Body of Knowledge (PMBOK) defines a project management information system like this:
An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes
As you might expect, the use of a PMIS is woven throughout the project management profession, and it is also quite interwoven with each knowledge area, hence it appears as a tool & technique for many processes:
Project Integration Management
Tool & Technique of the Direct and Manage Project Work process (PMBOK 4.3.2.2)
Project Schedule Management
Tool & Technique of the Sequence Activities process (PMBOK 6.3.2.4)
Tool & Technique of the Develop Schedule process (PMBOK 6.5.2.7)
Tool & Technique of the Control Schedule process (PMBOK 6.6.2.3)
Project Cost Management
Tool & Technique of the Estimate Costs process (PMBOK 7.2.2.7)
Tool & Technique of the Control Costs process (PMBOK 7.4.2.4)
Project Resource Management
Tool & Technique of the Estimate Activity Resources process (PMBOK 9.2.2.6)
Tool & Technique of the Manage Team process (PMBOK 9.5.2.2)
Tool & Technique of the Control Resources process (PMBOK 9.6.2.4)
Project Communications Management
Tool & Technique of the Manage Communications process (PMBOK 10.2.2.4)
Tool & Technique of the Monitor Communications process (PMBOK 10.3.2.2)
Project Risk Management
Tool & Technique of the Implement Risk Responses process (PMBOK 11.6.2.3)
EARNED VALUE ANALYSIS
Earned Value Analysis is a project management tool that monitors the amount of work accomplished and compares this to the original plan to help determine if a project is on track.
EXAMPLE: Build a House
Suppose you wanted to build a house. After securing funds, you might go find a piece of land and just start building, adding on a bit more every day. This might work out if you are both conscientious and lucky, but without paying attention to what you are spending, you are just as likely to get part way through your construction project before running out of funds.
You would definitely have part of a house on your land, but it would be much less valuable than what you had originally intended.
A more realistic approach would be to create a plan of work and assign a budget to each of the tasks in your plan. In project management, using Earned Value Analysis (EVA) provides a useful way to then monitor how well you are doing against your overall plan and budget over time. This analysis can help you make critical decisions that will affect the value you ultimately receive from your efforts.
The Earned Value Analysis Baseline
Once a project gets approval to begin work, using Earned Value Analysis starts with the creation of a Work Breakdown Structure, commonly referred to as the WBS. The WBS comprises a list of tasks and milestones that you will use to monitor the progress of the project.
A simple example of a WBS in our house construction example might look like this:
Buy land
Clear land
Build the foundation
Build the exterior framework
Rough in the utilities
Finish the exterior
Finish the interior
Furnish and decorate
Once the WBS is created, each entry is assigned a value that attempts to quantify the cost of delivering the item. In some cases the value will be directly tied to the project budget by assigning a percentage of the overall budget to each WBS item.
Value can also be biased by other factors though. For example, if you want your house to be on a lake front, you might consider the value of obtaining the right property to be much greater than simply what it will cost.
Once values are assigned, they are combined with the estimated schedule delivery dates. The cumulative value plotted over time forms a baseline for the subsequent analysis portion of the EVA process.
Completing Work Items
As work progresses, the value of the completed work items are considered to be earned, and can be accumulated and plotted against the EVA baseline. This comparison of value planned to actual value delivered provides the basic measure of the cost and schedule performance of the project delivery.
Note that in assessing earned value some work items may simply be Yes/No answers indicating whether or not the work was entirely completed. Other work items might require interim milestones, or may need to be broken into finer detail in the work breakdown structure.
For example, imagine the house you are building is at the end of a long and steep access. In this case you might expect to accumulate a partial credit for clearing the land for the access road itself, even though everything else might not be cleared.
It is important to obtain agreements on how value will be earned and accumulated prior to starting work, particularly when working with contractors or if someone outside your own organization is financing the project. The earned value needs to be quantified against specific, measurable completion criteria in order to avoid disputes about the value calculation.
Quantifying and accumulating earned value makes this process different than simply comparing budget and costs measured over time. It provides a way to communicate the progress of a project in terms that more accurately reflect actual work completed.
There are a few common queries that you’ll deal with as a project manager. Most of the time, it will be about the status and progress made on the given project how much work you have completed, what is remaining, etc.
Clients are not interested in daily reports. They need broader information to help them visualize the money spent on the project and the value of the work completed.
Earned Value Management (EVM) is your aid in this. It helps you find the project’s status, its progress, and its performance.
What is Earned Value Management (EVM)?
In the past, project managers used to have two parameters: planned expenditures and actual expenditures.
These two variables help the project manager compare planned spending with actual spending. However, this is not enough information to get the whole picture; the information was incomplete. It was not possible to understand the relationship between the completed work and the money spent.
Getting the cost performance of the project was not possible.
This is where Earned Value Management (EVM) comes in. It helps project managers overcome the shortcomings of traditional project management methods.
Earned Value Management was developed in the sixties when the US Air Force started using it in their programs. Since 2005, it has become a part of general federal project risk management. These days Earned Value Management is a requirement for US government contracts.
Earned Value Management vs Traditional Project Management
Earned Value Management has several advantages.
The traditional method focuses on planned and actual expenditures, while Earned Value Management focuses on actual accomplishments and gives you an insight of the project.
Earned Value Management helps in analyzing the cost performance, schedule performance, cost variance, and schedule variance.
According to the PMBOK Guide, “Earned Value Management (EVM) in its various forms is a commonly used method of performance measurements. It integrates project scope, cost, and schedule measures to help the project management team assess and measure the project performance and progress.”
Elements of Earned Value Management
Earned Value Management has three essential elements:
Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)
You can call them primary data points as well.
Planned Value
Planned Value is the scheduled cost of work planned in a given time. It is also called Budgeted Cost of Work Scheduled (BCWS). The total Planned Value of the project is the Budget at Completion (BAC).
Earned Value
Earned Value is the amount of money earned from the completed work at a given time.
Simply put, you can say that the Earned Value will show you the value of the completed work if the project was terminated today, which is also called Budgeted Cost of Work Performed (BCWP).
Actual Cost
Actual Cost is the money spent to date. It is also called the Actual Cost of Work Performed (ACWP). This is the easiest element of Earned Value Management to identify; it just takes one look at the question.
Visit: Earned Value, Planned Value, and Actual Cost
You can calculate the following variances and performance indexes with the help of these three elements:
Schedule Variance
Cost Variance
Schedule Performance Index
Cost Performance Index
Variances
You have two variances in Earned Value Management: Schedule Variance and Cost Variance. These help you track project performance in dollars.
Schedule Variance
Schedule Variance is the difference between Earned Value and Planned Value. It lets you know how much you are ahead or behind schedule in terms of dollars.
Schedule Variance = Earned Value – Planned Value
SV = EV – PV
You are behind schedule if the Schedule Variance is negative, you are ahead of schedule if the Schedule Variance is positive and on schedule if it is zero.
Cost Variance
Cost Variance is the difference between Earned Value and Actual Cost. It lets you know whether you are under or over budget.
Cost Variance = Earned Value – Actual Cost
CV = EV – AC
You are over budget if the Cost Variance is negative, you are under budget if it is positive Zero means you are on budget.
Visit: Schedule Variance and Cost Variance
Indexes
Like variances, indexes help you compare the planned progress with actual progress. This helps you understand how efficient your progress is. You have two indexes in Earned Value Management: Schedule Performance Index (SPI), and Cost Performance Index (CPI).
Schedule Performance Index
This is the ratio of Earned Value and Planned Value.
Schedule Performance Index = (Earned Value) / (Planned Value)
SPI = EV / PV
If the Schedule Performance Index is greater than one, you have completed more work than planned to at this time or you are ahead of schedule. If the opposite is true, you have completed less work than planned and you are behind schedule. Lastly, if the Schedule Performance Index is equal to one, you have completed the work as planned and are on schedule.
Cost Performance Index
This is the ratio between the Earned Value and Actual Cost.
Cost Performance Index = (Earned Value) / (Actual Cost)
CPI = EV / AC
You are earning less than what you are spending or are over budget if the CPI is less than one. If it is greater than one, you are earning more than you are spending and are under budget. If the CPI is one, the cost spent is equal to the cost earned; you are on budget.
Visit: Schedule Performance Index and Cost Performance Index
Variance and performance indices are examples of derived data points.
Earned Value Management in Forecasting
Earned Value Management helps you to forecast the following:
Estimate at Completion
Estimate to Complete
Variance at Completion
To Complete Performance Index
These tools serve as an early warning sign.
Estimate at Completion
Estimate at Completion is the project’s total expected budget.
This is the price tag of the project at the end.
You can calculate the Estimate at Completion in four different scenarios. Please refer to my blog post on Estimate at Completion for further detail.
Estimate to Complete
Estimate to Complete lets you know the expected cost of completing the rest of the work.
You can calculate the Estimate to Complete in three different scenarios. Please refer to my blog post on Estimate to Complete for more details.
Variance at Completion
Variance at Completion tells you how much you will be under or over budget when the project is complete. It is the difference between the Budget at Completion and the Estimate at Completion.
Variance at Completion = Budget at Completion – Estimate at Completion
VAC = BAC – EAC
You have spent more than you planned to if the Variance at Completion is negative. You have completed the project within the planned budget if the difference is positive.
To Complete Performance Index
The To Complete Performance Index (TCPI) is the estimate of the cost performance required by the project to meet the budgeted goal. Please note that Cost Performance Index is the past performance while the To Complete Performance Index is the future cost performance.
You can calculate the TCPI by dividing the remaining work by the remaining funds.
TCPI = (Remaining Work) / (Remaining Funds)
There are two cases in which you can calculate the TCPI.
Case I: under budget
TCPI = (BAC – EV) / (BAC – AC)
Case II: over budget
TCPI = (BAC – EV) / (EAC – AC)
So, you can see how Earned Value Management helps you analyze the project’s performance and forecasting.
Benefits of Earned Value Management
Earned Value Management offers immense benefits to project managers, sponsors, clients, and organizations.
Here are a few benefits of Earned Value Management:
Greater control of project constraints.
Improved planning processes and correlates time-phased budgets to the project tasks.
Shows the project’s status and progress.
Any deviations from the baseline can be found early.
Measures the project’s cost and schedule performance.
Tracks your project’s performance.
Gives clients a better understanding of the project’s progress.
Improves communication and project visibility, which helps prevent scope creep.
Keeps an eye on deviations from any performance measurement baselines.
Finds the potential risk areas.
Increases clients’ confidence in your project’s success.
Summary
Earned Value Management helps analyze the project’s performance and predict the forecast. It provides you with quantitative data for decision making. Earned Value Management is an excellent communication tool for project stakeholders because it helps them understand the project’s insights.
Many PMP aspirants find EVM concepts difficult because of the mathematical calculations. However, these calculations are easy if you understand the concepts.
I have written seven blog posts on Earned Value Management and project forecasting. In these, I explain EVM concepts in simple language with examples. This blog post is the first blog post in a series of seven on Earned Value Management.
Project Termination
Project termination is one of the most serious decisions a project management team and its control board have to take. It causes frustration for those stakeholders who sincerely believed - and in most cases still believe – that the project could produce the results they expected, or still expect. The project manager and his or her team members, very important stakeholders of the project as well, will feel that they personally failed. They also will be scared of negative consequences for their careers; their motivation and consequently, productivity will decrease significantly.
In contrast to that, we are convinced that conscious project termination at the right time, based on clear and well communicated criteria, profoundly discussed with the whole project management team, and finally mutually decided, is one of the boldest actions the involved or affected members of an organization can take.
What can we do to avoid those negative consequences? Here, we list what we hear in our training, consulting, and coaching sessions, together with our own experiences:
A clearly communicated strategy of the organization
Clearly communicated reasons why and how the project supports that strategy, and under what conditions it does not
Clearly set and communicated project success criteria (in terms of scope, schedule, and budget), if possible clearly set and communicated termination criteria
High level management attention, even for smaller projects, and even then when everything still seems to be on track
Periodical review meetings with the control board
Open discussions with the control board about problems and possible solutions or alternatives, including termination
In case the project has to be terminated, a clear commitment of the control board and high level management towards the project management team in order to enable the team to follow the project closure procedures
Upon successful termination, similar rewards and incentives for the project manager and his or her team as with regular project closure
Reasons why project termination becomes necessary
Technical reasons
Requirements or specifications of the project result are not clear or unrealistic
Requirements or specifications change fundamentally so that the underlying contract cannot be changed accordingly
Lack of project planning, especially risk management
The intended result or product of the project becomes obsolete, is not any longer needed
Adequate human resources, tools, or material are not available
The project profit becomes significantly lower than expected, due to too high project cost or too low project revenue
The parent organization does not longer exist
The parent organization changes its strategy, and the project does not support the new strategy
Force majeure (e.g. earthquake, flooding, etc.)
Necessary conditions disappear
Lack of management support
Lack of customer support
When ever - along the life cycle of a project - it becomes clear that we have to terminate it, there will be achievements we need to document. The least achievement is new knowledge and experience about what does not work. We need to document this so that the organization does not run into a similar situation again. Therefore, we emphasize again that it is vital to run the regular project closure procedures for a project we have to terminate. As such, adequate project termination marks successful project management.
Project Termination (aka "project close-out" and "project finalization") is a situation when a given project is supposed to be closed or finalized because there’s no more need or sense for further continuation. Project termination is managed under a respective procedure that requires the management team to examine current state of the project work, review progress of goals and objectives, evaluate the project against success criteria, and check status of deliverables.
The procedure of terminating a project is usually carried out in 8 steps, including:
Close outstanding agreements with suppliers
Transfer any responsibilities (if necessary)
Dismiss or re-assign the team
Release all remaining resources
Close the project book (resolve all accounting and finance issues)
Document lessons learned
Accept (reject) the product
Install and use the product.
Failure and Success are two basic reasons for terminating projects. In order to determine which of the reason is relevant to a project, first the team needs to understand criteria for success and failure and then evaluate the project against those criteria. Here’re some tips on this point:
Success: a project reaches success when its goals and objectives are accomplished on time and under budget, deliverables are produced as expected by stakeholders, and the final product is accepted by and handed over to the customer (end-user).
Failure: a project is regarded as failed when its requirements are not met; the customer refuses accepting the product; there’re some technical issues that can’t be resolved by using existing tools and technologies; there’s an unanticipated loss or lack of human, funding and other valuable resources; the project effort become
Top 10 Main Causes of Project Failure
Life is 10% what happens to you and 90% how you react to it, Charles R. Swindoll. You agree? When you want to step up your game in project management, there’re a lot of tips, resources, and guidelines. There’s an endless selection of how to lead better, communicate better or simply just be better.
However, when examining the flip-side, failure, we sometimes cringe at the fact that it could happen to us. Perhaps this is why it seems to be one of the least discussed topics. Who wants to admit to their failure – certainly not to your boss or company head. Yet failure still happens. We could even say that it’s rampant especially when it comes to ill-defined projects. That’s why it’s so important to evaluate your project at the start. Closely examine all, road-blocks, hurdles, hills, detours, potholes, manholes or even an angry flock of birds. I think you get the point. Before starting your project, knowing exactly what lays ahead lets the project manager, team, and client mitigate associated risks.
10 causes of project failure. Knowing about these will help you prepare for your next PM job:
1. Poor Preparation
You need to have a clear picture of what you’re going to do, in advance – as much as possible. Otherwise, you may find yourself up stream without a paddle. You need to know what project success looks like at the beginning and don’t loose focus of it. Hence, if you don’t have a clear focus at the at the earliest stage of the process, you are making things harder on yourself. Have a meeting, even if it is lengthy, with stakeholders to discuss their expectations on cost, time and product quality. Know how you will execute your tasks in order to meet everyone’s expectations.
2. Inadequate Documentation and Tracking
This is the responsibility of the project manager. Tracking milestones is how you are going to know whether you are meeting expectations. Proper recording and monitoring lets the PM identify where more resources are needed to complete a project on time.
3. Bad Leadership
When we see this word, leader, we usually think, the project manager. However, the people at each management-level have a responsible to ensure that the project is successful. Management should not micromanage but provide support to ensure that the PM can follow through with the expectations placed upon them.
4. Failure to Define Parameters and Enforce Them
When you’re a leader, PM, it’s imperative that you’re able to work well with your team. If and when tasks or goals are not met to standard, there should be ramifications. Rank tasks by priority and assign them to the most proficient individual.
5. Inexperienced Project Managers
A project manager has a lot of responsibility. You need to assign people to management roles who have matching education and experience. In some cases, and perhaps more often than not, inexperienced managers are given projects. They may be very capable of managing projects, but the key is to keep them at a level where they can succeed. Otherwise, you will set them up for failure. On the other hand, there’s nothing wrong with a challenge, just don’t make it beyond their reach.
6. Inaccurate Cost Estimations
There may be times when your cost estimates are completely off. As you know, when resources run-out, the project stops. Prevent this by identifying the lack of resources early on.
7. Little Communication at Every Level of Management
Whether it’s between upper management, middle or with the team, it’s disastrous to have poor communication. Everyone should feel free to come forward to express their concern or give suggestions. When everyone is on the same page and there’s transparency, workflow is at an optimum level.
8. Culture or Ethical Misalignment
Company culture must be comprised of competence, pro-activeness, and professionalism. If it isn’t, team members will not be motivated to do their best. Basically, everyone involved must be invested in their part of the project to successfully complete it.
9. Competing Priorities
When there’re not enough resources, there’s bound to be competition between personnel resources and funding. Having good cost estimations at the start will eliminate this problem.
10. Disregarding Project Warning Signs
When a project is on the verge of failing, there will have always been warning signs. Taking action immediately can save the project. Otherwise, the whole endeavor goes down the drain.
Well there you have it, reasons for project failure. This is the time when you should consider ways to prevent this failure. Adequate employee training, project management software and management transparency will lead you to project success. Finding the right project management software is one of the easiest steps to take so that you’re on right track – the successful project track. A tool such as these eliminates project failure. They serve to easily manage tasks like time tracking, cost tracking, cost estimations and more. Here are a few that can set your project on the road to success.
How about looking for a tool to eliminate project failure?
The points made above all demonstrate different aspects to how project failure can occur, including lack of communication and poor tracking. There exist many tools/apps that can help in many of these and should be considered. Here are two apps that might set your projects on a successful path.
TYPES OF PROJECT TERMINATIONS
Imagine the despair when the project you initiate with lot of hopes and hard work, fails miserably. However sad it is, many projects miss the mark completely and lead to waste of time as well as efforts. It also comes out as a major blow to the project manager and shakes the confidence of all the team members involved in the project.
However, often team members can sense signs, which communicate that something is not right, that the project may not transform into what was envisioned. Sometimes the signs are clear and at times they are hidden. However, no matter which project you are working on, there are few alerts which shout out loud that it is in the best interest of the team and the company to terminate the project. Here are the red flags you should watch out for:
Expensive or does not meet company’s goal
Make an estimate of the total cost of the project in the planning stage itself. A few thousand dollars here and there are manageable, but when you see the figure going way over your approximate value, it is better to put an end to the project right in the initiation stage. Also, if the project does not go well with the strategic plan of the company, it should not be given the green signal.
Your competitors are doing a better job
As a project manager, you may be motivated to prove your mettle and take your company ahead in the market, but think logically and determine if it is possible. Many a times, you may be motivated at the start of the project but once you begin with it and have to face grave challenges one after another, the positive drive may fizzle out and you may be left with a project that is going nowhere. Even if you realize it midway on the project, do not hesitate to pull the plug.
Project gets out of control
When operations get way beyond control or when damages cannot be repaired anymore, you know it is time to terminate the project.
Important or priority project comes up
Businesses take up several projects simultaneously. However, there are some projects which need more time, energy and resources. If a certain project is stopping you from allocating the required resources in a bigger, important project, it is better to let go of the smaller project.
Failure in testing process
It is sad to see a project fail during testing. However, if the team members gave it all that they could and the project still could not succeed, putting an end to the project is a sensible choice rather than spending twice the energy and resources on it again.
PROJECT TERMINATION PROCESS
When it comes to project management, closing out a project isn’t just a matter of executing deliverables. Though the process may seem tedious or overly administrative, a formal closure phase ensures all loose ends are tied up, documentation is signed and approved, contractors are paid, and everyone is on the same page.
The closing phase also gives you the opportunity to review and evaluate the project’s success (or failure), which is crucial for planning and executing successful projects in the future.
Here’s how to navigate the project management closure process.
PMBOK Process Groups (Click on image to modify online)
Project Closure
The project lifecycle consists of five groups:
Initiating process group
Planning process group
Executing process group
Monitoring and controlling process group
Closing process group
The closing phase of project management is the final phase of the project lifecycle. This is the stage where all deliverables are finalized and formally transferred, and all documentation is signed off, approved, and archived.
The project closure process ensures that:
All work has been completed according to the project plan and scope.
All project management processes have been executed.
You have received final sign-off and approval from all parties.
The project management closure process also gives the team the opportunity to review and evaluate the project’s performance to ensure future projects’ success.
Importance of closing a project
At first glance, it might seem like completing the first four phases of the project lifecycle would be all you need to do to tie up your project and call it good.
However, without a formal closing process, you risk letting crucial details fall through the cracks, which can result in confusion, a never-ending project, dissatisfied clients, and even liability issues.
Project closure helps avoid:
Repeating mistakes on future projects and objectives
Having final products or deliverables without dedicated support and resources
Failing to identify the team or individuals who will own and maintain the solution following final delivery
Creating liability issues resulting from incomplete payments, contracts, or deliverables
Following a clear project closure plan helps you properly transition your solution to the client or end-user. This process ensures the final stakeholders have the information, resources, and training to successfully manage and use the end product.
The project closure process also ensures the project is formally completed and is no longer considered a project, allowing you to hand the reins over to the correct team in charge of managing and maintaining the project’s outputs.
By officially closing a project, you minimize risks, increase client satisfaction, and ensure all parties are on the same page. In other words, project closure is a process you can’t afford to skip.
7 steps to closing a project
The closing phase of project management involves several steps. Work through the following checklist to ensure your project is successfully completed.
1. Formally transfer all deliverables
The first step to closing out your project is to finalize and transfer the project deliverables to the client. Go through your project plan to identify all deliverables and make sure they have been fully completed and handed off.
2. Confirm project completion
Next, confirm the project is complete. It’s not enough to declare a project done yourself. Each person involved needs to agree on the project’s completion before you can formally close it out and move on.
If you skip this step, you may continue to receive (and be charged for) change requests by the client.
To confirm the project’s completion, you will need to obtain approvals for the project deliverables (i.e., all stakeholders must agree that you delivered on all parts of the project plan) with official sign-offs from the project stakeholders.
Be sure to document this step so you have proof that the project close was formally signed off.
3. Review all contracts and documentation
Once you have completed the project hand-off and received approvals from the clients, you can begin closing out your contracts.
Review all the project documentation to ensure all parties have been paid for the work and there are no outstanding invoices.
4. Release resources
Formally release resources from the project, including suppliers, contractors, team members, and any other partners. Notify them of the end of the project, confirm any final payments or obligations, and officially release them so they are free to work on other projects.
5. Conduct a post-mortem
A post-mortem or project review is one of the most valuable steps of the project closure process. This is a time to review the successes, failures, and challenges of the project and identify opportunities for improvement going forward.
As you begin your post-mortem, conduct a performance review of the project. In other words, calculate the project’s performance in terms of cost, schedule, and quality.
Consider these questions:
Did you stay on budget?
Did the team members involved manage their time wisely?
Were there issues with the quality or compromises along the way?
Next, conduct a survey or hold a meeting with the project management team to get feedback on how the project went. These individual answers will help paint a more comprehensive picture of the project’s performance. (If you follow scrum methodology, your team should conduct a sprint retrospective to gather this information.)
Have your team consider the following questions:
What went well?
What were the challenges or failures?
How well did the team communicate?
Did the team follow the outlined processes and plan?
Was the client satisfied with the results?
What would you change or improve for future projects?
With the project performance and feedback in mind, you can then identify lessons learned and opportunities for the future.
Pro tip: Visuals can help you better analyze team performance as well as any roadblocks along the way, so you can execute projects better and faster in the future.
The Project Definition Rating Index (PDRI) is a methodology used by capital projects to measure the degree of scope definition, identify gaps, and take appropriate actions to reduce risk during front end planning. PDRI is used at multiple stages in the front end planning process. As a project progresses, identified gaps will continue to be addressed until a sufficient level of definition (measured using the PDRI score) is achieved for the project to successfully proceed to detailed design and construction.
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