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Project Management

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that includes the Logical Framework Matrix (LFM), is the Methodology used by the European Commission (EC) to design , ... The Project Fiche - or Terms of reference; ... – PowerPoint PPT presentation

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Title: Project Management


1
Project Management
  • Public vs Private
  • Project Management

Alberto Gomez MBA, Key Expert EU 2007 PHARE
Project Romania
Bucharest, 30 October 2007
2
Project Cycle Management (PCM),that includes the
Logical Framework Matrix (LFM), is the
Methodology used by the European Commission (EC)
to design , execute and evaluate economic ,
social and regional Programmes and Projects . It
is similar to the one used by all major
Multilateral Institutions (UN,WB, IDB, etc.)
The World Bank
3
Overview of EC Project Cycle Management
  • What is a project?
  • ISO/PMI A series of activities aimed at
    achieving one or more specific objectives within
    a defined time frame and with a defined budget
  • EC A project is an instrument which is used to
    contribute to the achievement of a larger goal
    (e.g. a programme), which will in its turn
    supports the implementation of a broader policy

4
The EC Project Cycle
EC The way in which projects are planned and
carried out it follows a sequence beginning with
an agreed strategy, which leads to an idea for a
specific action, which then is formulated,
implemented, and evaluated with a view to improve
the strategy and define further action
5
The essential PCM principles are
  • use of Logical Framework Approach (LFA) to
    formulate the project and analyse the problems
  • production of good quality key documents in each
    phase to ensure structured and well-informed
    decision making
  • consulting and involving key stakeholders as
    much as possible.

6
The main tools supporting Project Cycle
Management
  • The Project Fiche - or Terms of reference
  • The Project Logframe Matrix- especially to help
    assessing what has been achieved against plan
  • Monitoring reports
  • Evaluation reports- intermediate and final.

7
The main tools supporting Project Cycle
Management
  • The Project Fiche - or Terms of reference
  • The Project Logframe Matrix- especially to help
    assessing what has been achieved against plan
  • Monitoring reports
  • Evaluation reports- intermediate and final.

8
Key documents in the PCM
9
Logical Framework Approach
10
Stakeholders Analysis Matrix
Possible action to address stakeholders interests
Stakeholders and basic characteristics
Interests and how affected by the problems
Capacity and motivation to bring about change
Stakeholder 1
Stakeholder 2
Stakeholder .
11
Problem Analysis
STEP 1 brainstorm on problems considered to be a
priority by the stakeholders STEP 2 select
individual starter problem STEP 3 identify
related problems to the starter problem STEP 4
begin to establish a cause-effect
relationship STEP 5 all other problems are
sorted in the same way (cause-effect) STEP 6
problems are connected with cause-effect arrows
showing the links STEP 7 revise the diagram to
find out if some problems have not been
identified STEP 8 the diagram is revised
accordingly and distributed
A different, yet similar, method for Problem
analysis is the Fishbone diagramme, or
Ishikawa Root-cause analysis
12
Analysis of objectives
13
Analysis of strategies/options
  • if all the problems have to be faced or only a
    selection of them
  • positive opportunities on which we can build on
    (from SWOT)
  • combination of interventions which is likely to
    better achieve the results and ensure
    sustainability
  • which option is best promoting local ownership
  • which is the most cost effective option
  • which option best impact on the needs of the
    poor/most vulnerable groups

14
Logical Framework Matrix
Project Description
Sources of verification
Indicators
Assumptions
What are general Assumptions? or major risks?
How the Overall Objective has to be measured
including Quantity, Quality, and Time?
Overall objective the projects contribution to
policy or programme objectives (impact)
How will the information be collected, when and
by whom?
Purpose (often called specific objectives)
direct benefits to the target groups
How the Purpose has to be measured including
Quantity, Quality, and Time?
If the purpose is achieved, what assumptions must
hold true to achieve the Overall Objective?
Same as above
Results (often called outputs) tangible
products or services delivered by the project
How the Results have to be measured including
Quantity, Quality, and Time?
If results are achieved, what assumptions must
hold true to achieve the Purpose?
Same as above
If activities are completed, what assumptions
must hold true to deliver the Results?
Activities (sometimes referred to Inputs) which
have to be undertaken to deliver the desired
results
15
Activity Schedule
16
Resource and cost schedule
STEP 7 Identify funding source
STEP 8 Allocate cost codes
STEP 9 Schedule costs
STEP 10 Calculate total
STEP 2 Specify INPUTS
STEP 11 Estimate recurrent costs
STEP 3 Put inputs into cost categories
17
Monitoring
Questions to answer
Focus of the analysis
Information needed
Activity schedule Resource schedule Logframe
matrix Project Reports Interviews
Planned vs actual (efficiency)
Is the project doing what was originally planned?

Are the assumptions holding true? Are new risks
emerging?
Risk Assumptions
Risk matrix Logframe matrix
Design (relevance)
Was the project design relevant? Is it still
relevant?
Logframe matrix Stakeholders Analysis (etc LFA)
Project results (effectiveness)
Logframe matrix, Project Reports Interviews
What difference is the project making?
Are the project purposes likely to be sustainable?
Sustainability
Will the project impact on the overall objective?
Logframe matrix
Impact
18
Evaluation
Questions to answer
Focus of the analysis
Information needed
Logframe matrix Stakeholders Analysis, Problem
Analysis, Analysis of Objectives, Analysis of
Strategies (if available) Monitoring Reports
Relevance
Is the project design relevant?

How well the various activities transformed the
available resources into the intended results?
Logframe matrix
Efficiency
How far the projects results were used or their
potential benefits were realised?
Effectiveness
Logframe matrix
To what extent the benefits received by the
target beneficiaries have had a wider overall
effect?
Impact
Logframe matrix Interviews
Are the positive outcomes of the project at
purpose level likely to continue after the
external funding?
Sustainability
Interviews
19
Eco-Fin AnalysisEconomic and Financial
Analysis
  • Economic and Financial Analysis (EcoFin Analysis)
    is one of the relevant forms of analysis of a
    project among others (institutional,
    environmental, political, social, gender, etc.).
    It is not compulsory as is the LogFrame matrix
    and used by EuropeAid mostly in developing
    regions, not so much transition or mid-level
    countries or regions.
  • Financial Analysis focuses on the point of view
    of one entity or group of institutions
    (beneficiary, target group, etc.). This is done
    through Cost-benefit analysis or
    Cost-effectiveness analysis.
  • Economic Analysis on the point of view of society
    at large... or at least the wider environment of
    the project. This is done through the Effects
    Method or the Shadow-pricing method.
  • The philosophy of Eco-Fin analysis is to measure
    the incremental value of the with-project
    situation and the without-project situation.

20
International Private Project Management
Techniques
  • International (public and especially private
    sector) standards of Project Management are
  • ISO 10,006 2003- Quality Management in
    projects, 20 pages of text, is a very general
    standard, only covers quality area, see
    www.iso.org .
  • PMBOK (Project Management Body of Knowledge or
    PMBOK) of the Project Management Institute (PMI),
    425 pages its 3rd - 2004 edition. US-based
    professional association, 170,000 members
    worldwide and 100 chapters, see www.pmi.org.
    Certifies project professionals as PMPs .
  • IPMA , www.ipma.ch , Prince 2 www.prince2.com ,
    Ten Step , www.tenstep.com ,etc

21
Key documents are the Charter, the Scope (similar
to terms of reference) and the Project Plan
22
Comparison Public vs Private PM
  • It is difficult to compare PCM with the
    International Project Management Standards such
    as PMBOK, the I IPMA, ISO 10,006- Project Quality
    , the British Prince 2, or other private
    methodologies (Ten Step, etc)
  • .
  • The origin, vocabulary, areas of knowledge, tools
    ,sections ,procedures and other general aspects
    that are very different among standards
  • Nevertheless , a brief comparison will help us to
    better understand the Key different
    Methodological aspects on how to manage Public
    International Projects vs Private funded ones.

23
Stakeholders analysis in Private PM
  • In private PMI standards there is no specific way
    to analyze the stakeholders. There is no template
    or specific technique recommended , although the
    need to do so is mentioned .
  • Neither ISO 10.006 nor Prince2 specifically
    mention the stakeholder analysis nor the method
    to do so.

24
Problem Analysis and Objectives in Private PM
  • The Problems referred to in the PCM are not on
    the Project Management , but on the
    beneficiaries, and other Project stakeholders, or
    on the surrounding social ,economic environment
    which the project wants to solve or tackle
  • In the International PM Standards these problems
    have their definition and scope and strategies in
    their different sections in the Project cycle of
    the PMBoK . Scope definition and strategies, and
    product definition and analysis , are also
    treated in the ISO, IPMA (ICB Level4) and Prince
    2 ones.
  • But a difference exists with the International
    Standards ,since none establishes a specific tool
    or methodology to carry out the problem or
    objectives analysis of the target group, as the
    PCM does (Logical Framework Approach, LFA)

25
Monitoring and Evaluation in Private PM
  • PMBoK deals with monitoring and evaluation ,but
    it does not differentiate specifically between
    Monitoring (integrated change control) and
    Evaluation (a project snapshot by an outside
    observer).
  • IPMA covers these two elements in PM General
    Element- 27
  • ISO 10.006 deals marginally about them in
    sub-clause 8.3, but does not differentiate
    between permanent monitoring and static
    evaluation.
  • Prince2 covers the issue about project control
    and process evaluation ,not about the actual
    results evaluation

26
Ecofin in private PM
  • Economic and Financial Analysis (Eco-Fin) PMBOK
  • mentions the feasibility study in the
    chapter Project phase and Product life cycle,
    but not the type of analysis to carry out
  • IPMA ICB has the PM Content Element 3
    Programme and Project Portfolio, but its neither
    the economic justification , not its technique
    are mentioned
  • ISO 10.006 does not deal with the Economic and
    Financial justification , or economic analysis at
    all.
  • Prince 2 talks about the Business Case as a
    prerequisite to approve the project, therefore it
    is part of the process SU 4, as for project
    brief.

27
Conclusions
  • The different objectives of Public and Private PM
    Projects and Programmes , determine the emphasis
    in the Methodology. While in International PM
    ,there are some tools that are obligatory ,in PM
    Private Methodologies the standards are more
    varied and flexible. But certainly they are
    complementary and useful.
  • Some of the tools and templates used in Private
    PM methodologies, are very useful and to a
    certain extent more detailed than the tools
    necessary to manage a Public Project. And that is
    positive ,since the a Manager has to use those
    tools that in her/his mind are more appropriate
    to achieve the Project deliverables.

28
Conclusions
  • There some areas that in the PCM are not covered
    in depth it is the human resources, quality ,or
    risk and alternative strategies during the actual
    problem.
  • PCM does not go very deep in time management , or
    critical path, network diagram , or project
    management office ,PMO . Which is necessary in
    large and complex projects.
  • A important aspect of PCM is the fact managers do
    not deal just with the quantitative issues , but
    with people perceptions of varied stakeholders
    with sometimes, different interests and agendas.

29
Conclusions
  • A Methodological comparison shows that PCM
    manages the Project Cycle (design ,plan
    .execution , monitoring, evaluation, budgeting
    and indicators) very well, compared with other
    Private methods such as PMBOK, or IPMA-ICB, ISO
    10,006,or Prince2 .
  • The stakeholders, Contracting institutions,
    implementing institutions and beneficiaries
    issue ,which is more complex in International PM
    is also a key difference. Experience in
    International PM and people management, is a good
    help for that.
  • The Private PM methodologies deal with some other
    areas ,such as human resources, team management,
    quality and risk , and complex and long calendars
    in more detail. And they have a technical focus
    principally.

30
  • The right people
  • The right skills
  • The right motivation/incentives
  • The right business environment
  • The right leadership
  • Practice makes perfection !!!!
  • Multumesc !
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