Project Management Framework: A Structure for All Organisations
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About this ebook
the successful delivery of projects still remains elusive in spite of the ongoing development of project management frameworks / methodologies and the plethora of project planning tools and techniques. a contributing factor to this issue is the absence of a set of clearly defined parameters that will aid the organizational coordination of projects whilst providing the flexibility to customize these parameters to meet the evolving needs of the organization and their projects.
acknowledging both the project management body of knowledge (pmbok®) and projects in controlled environments (prince2®) project management methodologies, this framework aims to collaboratively with these leading project management methodologies for the benefit of project management practitioners. built on the knowledge of current project management principles, processes and practices and experience from project execution across a diverse range of industries, this framework will guide the user through the more complex aspects of project management in order to assist project management practitioners and organizations establish, and embed, an organizational project management framework.
the project management framework has been established to assist users undertake a critical evaluation of an organization's project management requirements in order to established a customized framework that will suit their industry, organization and project approach. the key aspects of project management are discussed using single use terminology so as to aid the formation of a structure that is suitable for organisations that require a robust framework to identify, evaluate, initiate, plan, execution and analyze their project performance; now and into the future.
Rodney Watton
Hi I’m Rodney (Rod) Watton, a professional project management practitioner with theoretical knowledge and extensive practical experience. My qualifications include a Masters of Project Management and Prince2 Practitioner Certification. I am passionate about life-long learning and thrive on supporting others progress on their learning journey. I enjoy working in a knowledge environment and seek opportunities to mentor and support others in the achievement their personal and professional goals.
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Project Management Framework - Rodney Watton
PROJECT
MANAGEMENT
FRAMEWORK
A Structure for All Organisations
2017 © PMF Management Solutions
The Copyright Act 1968 of Australia allows for a maximum of one chapter or 10% of this book, whichever is greater, to be copied in any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) under the Act. For details of the CAL licence for educational institutions contact: Copyright Agency Limited, vie telephone on (02) 9394 7600, or email: info@copyright.com.au
All rights reserved. No part of this publication may be reproduced, recorded, or otherwise copied without the written permission of the publisher.
Editor:
Jerod Watton
Publisher:
PMF Management Solutions
Shailer Park, 4128 Qld
Website: pmfmanagementsolutions@gmail.com
Email: admin@pmfmanagementsolutions.com
ISBN 978-0-9874716-7-3
Rod Watton trading under PMF Management Solutions and has undertaken self-publishing of this work to ensure all intellectual property rights are maintained by the author. Every effort has been made to trace and acknowledge copyright. However, should any infringement have occurred, the publisher tender their apologies and invite copyright to contact the publisher.
Dedication
All those Project Management practitioners and students who have challenged my thinking along the way
&
My family, close friends and colleagues for their contribution, patience and support of my commitment to this edition of the Project Management Framework
About the Author:
Rod Watton is a professional project management practitioner with extensive theoretical knowledge and practical experience across a variety of industries including: business, property development, education and local government. Rod holds a Master of Project Management, Master of Learning and Development, Bachelor of Business and is a Certified PRINCE2 Practitioner. Further than holding these formal qualifications Rod is actively engaged in the progression of Project Management through continued research and education within Australia.
As a university lecturer and practising project management specialist Rod found it necessary to develop this Project Management Framework (PMF) to assist others in their understanding and application of project management processes throughout the project lifecycle. This PMF acknowledges and provides guidance on how to customise the science of project management in order to address organisational and individual project management maturity whilst balancing the diverse range of complex projects within their unique environment.
Rod developed this PMF in response to a need for the systematic application of project management principles, processes and practices across all intra and inter-organisations. However, as each organisation and project is unique generalised rules require flexibility to aid the customisation of its approach to address the specific needs of the diverse range of projects and organisational settings.
Rod has sought input into the enhanced systems, tools and techniques, initially developed within the original PMF, with the aim of enhancing their application through collaboration and continual improvement. The enhancements are intended to better support project management practitioners in their quest to deliver a more consistent and mature approach to the delivery of projects.
Additions and Amendments:
The third edition contains the following additions:
Organisational Behaviour:
Industry and organisational expertise.
Motivation.
Delegation.
Policies and procedures.
Teamwork.
Project Influences:
Fit-for-Purpose:
Business Factors.
Formation Factors.
Functional Factor.
End User Factors.
Influence of the In-House Approach.
Influence of the Out-Sourcing Approach.
Influence of the Hybrid Approach.
Governance Board Terms of Reference.
Pre-Project Phase:
Organisational and Project Driver Alignment.
Organisational and Project Vision Alignment.
Initiation Phase:
Positive (Opportunity) Risk Analysis Matrix.
Planning Phase:
Illustration of the Communication Process.
The third edition contains the following amendments:
Colour Coded System has been enhanced through the use of North, East, South and West facing chevrons to assist readers who suffer from colour blindness.
Process maps contain a numbering system to outline the order of actions:
Whole numbers indicating a procedure or decision in the process.
Decimal numbers indicating input to a whole number procedure or decision.
SMART goals have been amended to SMARTER goals to incorporate the critical aspects of ethical behaviour and records management.
Product Development and Delivery has been amended to include all facets of the Project Product Evolution, Product Design, Development and Delivery.
About this Project Management Framework:
The successful delivery of a project product and the management of projects still vary considerably despite the ongoing development of a plethora of project management processes, practices, techniques and tools. A contributing factor to these varied outcomes is the lack of an organisational Project Management Framework (PMF) that addresses the structured management within intra-organisational and inter-organisational environments whilst providing flexibility to support the unique and dynamic nature of projects.
This PMF is a comprehensive but not an all-inclusive guide into the development and delivery of projects within an organisation or across multiple organisations. It forms the basis of a systematic approach that must be established by an organisation in order to implement a standardised approach to the management of their projects. This PMF considers and incorporates best practice principles as an essential element in the delivery of the project product.
PMF outlines a governance structure along with a series of principles, processes and practices that will guide the management of projects from inception to completion. It also affords organisations a foundation for the implementation of continual improvement, as a key feature, to improve organisational project management maturity levels.
A codified system has been adopted to outline the critical roles and responsibilities of all critical project personnel. Process maps are widely used throughout this framework to identify the essential actions required for the development and delivery of successful projects. These process maps utilise a codified system to specify the actions that must be undertaken at each level of project responsibility. Table: 1 identifies this codified system.
Table: 1 - Codified System
This PMF acts as a guide only for a person, team, entity or organisation. It will walk each user through the necessary steps to embed a true framework into a single project or across an entire organisation. It also recognises and supports the necessity to customise its application in order to address specific requirements of each project and/or organisation.
Table of Contents
1 Purpose
2 Project Management Overview
2.1 Business Operational Definition
2.2 Project Definition
2.3 Lifecycles
2.4 Project Portfolio Management
2.5 Project Program Management
2.6 Project Management
2.7 Project Management Functional Areas
2.8 Project Core Roles and Responsibilities
2.9 Project Management Framework Process Maps
3 Principles
3.1 Continued Benefit Justification
3.2 Collaboration Between Project Organisations
3.3 Defined Governance Structure
3.4 Management by Phases & Stages
3.5 Management by Exception
3.6 Continual Improvement
4 Organisational Behaviour
4.1 Industry / Organisational Expertise
4.2 Project Leadership
4.3 Culture
4.4 Organisational Structure
4.5 Policies and Procedures
4.6 Teamwork
4.7 Project Personnel Traits / Skills
4.8 Roles & Responsibilities
4.9 Client / Sponsor / End User
4.10 Governance Board
4.11 Project Office Intra-Organisational
4.12 Project Office Inter-Organisational
4.13 Project Office Independent Audits
4.14 Project Management Team
4.15 Product Delivery Resources
5 Project Influences
5.1 Project Directorship and Management
5.2 Fit-For-Purpose
5.3 Project Complexity
5.4 Project Categories
5.5 Project Approach
5.6 Project Product Evolution
5.7 Project Governance
5.8 Project Prioritisation
5.9 Collaboration and Competition
5.10 Length and Rigour of Project Documentation
5.11 Project Suspension or Early Termination
5.12 Central Project Registry
5.13 Information Management
6 Pre-Project Phase
6.1 Corporate Organisational Drivers
6.2 Private Organisational Drivers
6.3 Organisational and Project Driver Alignment
6.4 Organisational Project Vision Alignment
7 Initiation Phase
7.1 Feasibility Study
7.2 Viability Study
7.3 Benefit Realisation Plan
7.4 Project Charter Considerations
7.5 Project Integration
7.6 Initial Project Scope
7.7 Initial Schedule Estimate
7.8 Initial Budget Estimate
7.9 Quality Analysis and Statement
7.10 Human Resource Analysis
7.11 Initial Stakeholder Identification
7.12 Communication Analysis
7.13 Risk Analysis
7.14 Procurement Analysis
8 Planning Phase
8.1 Project Management Plan Considerations
8.2 Project Integration Management
8.3 Project Scope Management
8.4 Project Schedule & Time Management
8.5 Project Budget & Cost Management
8.6 Project Quality Management
8.7 Project Human Resource Management
8.8 Project Stakeholder Engagement
8.9 Project Communication Management
8.10 Project Risk Management
8.11 Project Procurement & Contract Management
9 Execution Phase
9.1 Project Execution Considerations
9.2 Managing Project Integration
9.3 Managing Project Scope
9.4 Managing Project Schedule
9.5 Managing Project Budget
9.6 Managing Project Quality
9.7 Managing Project Human Resources
9.8 Managing Project Stakeholder Engagement
9.9 Managing Project Communications
9.10 Managing Project Risks
9.11 Managing Project Procurement and Contracts
10 Finalisation Phase
10.1 Finalise Integration Management
10.2 Finalise Scope Management
10.3 Finalise Time Management
10.4 Finalise Cost Management
10.5 Finalise Quality Management
10.6 Finalise Human Resource Management
10.7 Finalise Stakeholder Engagement
10.8 Finalise Project Communications
10.9 Finalise Project Risk Management
10.10 Finalise Project Procurement and Contracts
11 Project Management Maturity
11.1 Project Management Continual Improvement
11.2 Project Training and Development
11.3 Project Management Community of Practice
11.4 Project Audit Maturity System
12 Project Management Dictionary
13Project Management Framework Process Map
1. Purpose
The purpose of this Project Management Framework (PMF) is to provide a series of consistent principles, processes and practices that have been designed to work collaboratively throughout the management of all projects. These principles, processes and practices will guide all project personnel, and the project stakeholder community, through the project development and delivery process, whilst maintaining a strong focus on achieving the required benefits from the project.
In addition to the principles, processes and practices, this PMF summarises specific project management terminology that will enhance effective communication across the project’s internal and external environments. These definitions will provide a common project management dialogue for all stakeholders, including all project personnel. Furthermore, the adopted use of these specific terms will reduce miscommunication between an organisation’s business operational and project management functions.
If applied in a consistent manner throughout an organisation this PMF will aid the improvement of project management performance; thereby increasing the organisation’s ability to deliver on their corporate goals and objectives. Application of the recommended principles, processes and practices will streamline management actions and limit the over allocation of resources to ensure all project decisions are made with improved levels of knowledge and understanding of the available data and information at the time.
Subsequently, this PMF will ensure projects undertaken support the achievement of the required benefits in accordance with the organisation’s strategic direction whilst enhancing a common language across all facets of the organisation’s business.
PMF specifically aims to provide:
Guidelines for the establishment of a project governance structure suitable for the complexity of the project and the resources to be invested;
Defined roles and responsibilities that must be included to suit the project;
A structured approach that will assist in the management of projects over their entire lifecycle, in a controlled yet flexible manner;
Principles that will guide project personnel’s uncertainty throughout the full lifecycle of the project, including the pre-project phase;
Processes that will ensure all projects are undertaken in a systematic, organised and controlled manner, by appropriately trained project personnel;
Practices to enhance implementation, monitoring and controlling processes; and
Standardised project management terminology for ease of communication.
2. Project Management Overview
Corporate planning for any organisation identifies the strategic direction as the necessary driver of current and future business actions. In order to set the strategic direction, the Executive Management or Senior Executive Team must consider the organisation’s short-term, mid-term and long-term goals and objectives. The Executive Management Team must also consider the existing conditions and predictable movements with the internal and external environments while adhering to the organisation’s vision and mission.
Once the strategic direction has been set it must be recorded in a corporate plan. The corporate plan will prescribe the course of action that needs to be taken in order to achieve the strategic goals and objectives. This course of action is delivered in two parts:
Business operations – delivering the ongoing day-to-day business functions; and
Project management – introducing change to implement new business initiatives.
Consequently a suite of plans is required for an organisation to move from setting the strategic direction to achieving their strategic goals and objectives. This will include:
Corporate plan – a plan that articulates the Executive Management Team’s short, mid and long-term strategies to achieve a specific set of goals and objectives (corporate plans are often established for a five to ten year timeframe);
Business plans – plans that outline the business actions of each department, division, branch or unit. These business actions, also known as the business unit’s operational obligations, collectively deliver the corporate plan (business plans generally use a one to four year planning cycle); and
Project plans – plans that outline the project’s obligations to deliver on the corporate plan (project plans are generally set for the duration of the project).
To enhance a common understanding and efficiently allocate resources a standardised set of principles, processes and practices designed to oversee the performance of all planned actions is recommended. A Strategic Management Framework (SMF) will provide a stable foundation and outline the standard principles, processes and practices to: set strategic direction; implement planned actions; monitor actual performance; and control variances.
As the management of organisational projects must work in collaboration with business unit operational functions it is essential that projects are managed effectively, and that their management is conducted both collaboratively and independently of corporate and business unit operational functions. The management of projects will also require the adoption of a standardised Project Management Framework (PMF). A PMF increases work harmonisation in the pursuit of the project’s goals and objectives in order to achieve the required organisational benefits from undertaking the project.
It is recommended that organisations integrate their PMF into their SMF to enable all organisational personnel to better understand the complexities of project management and the integration of the project goals and objectives into the business operational function. The project goals and objectives are also known as the project deliverable, product, or output. This approach assists all personnel in the achievement of the required benefits from undertaking a project and achievement of the organisation’s strategic direction.
A PMF must standardise organisational principles, processes and practices to ensure that it works collaboratively and systematically in the management of all organisational projects. The PMF will assist trained project management personnel to consistently deliver the required benefits of an approved project within the agreed constraints, whilst providing flexibility to respond appropriately to evolving environmental factors. The PMF supports effective communication between business operational and project management personnel for a smooth transition of the project product from the temporary Project Organisation to the permanent business units’ operational function.
2.1 Business Operational Definition
Business operations –are defined by the existence of the following key elements:
Consistency – operational functions and duties that are generally consistent from day-to-day, week-to-week, month-to-month and year-on-year;
Permanent endeavour – operational duties are a permanent function of the organisation and are critically required for its ongoing operation;
Functional – operational duties are often divided up into a variety of functional areas with specialised personnel overseeing all actions of that function across the organisation. Each of these functional areas is generally referred to as a business department, division, branch or unit with single focus functionality. The intention of these functional areas is to harvest the maximum organisational return from the organisational assets, for which the business unit (department, division or branch) is accountable and responsible;
Service levels – a business unit (functional area) is required to deliver goods and/or services in accordance with their organisational service level agreement. In essence, the business unit will manage all organisational obligations for their defined operational function both independently and collaboratively with the organisation’s other business units; and
Optimisation management focus – business unit managers will continuously focus their efforts and strive to optimise their business unit’s operational function. Collaboratively, with their teams, the business unit manager will enhance business operational processes and management strategies in order to increase the output of all work actions within their area of accountability and responsibility.
2.2 Project Definition
Projects – are defined by the existence of the following key elements:
Change – a project provides organisations with a mechanism to introduce change, or respond to, or address requests to undertake change, either internally and/or as a consequence of an event within the dynamic external environment;
Temporary endeavour – a project has a definite beginning and end, though this does not mean it is or will be short in duration. The end is reached when the project objectives have been achieved; or it becomes clear that the project objectives will not, or cannot be achieved; or the need for the project product no longer exists. Therefore a project may be suspended or terminated early. The conclusion of a project does not always result in the project product and/or the intended benefits being realised. In most cases the responsibility for achieving the project’s benefits is handed over to the client who has requested the project be undertaken;
Unique product, output, service, or result – a project must create a unique product, usually a one-off, one-time, specific undertaking with a single set of clearly defined objectives. Projects may take on similarities with previous or other projects, although one or more elements of a particular project will always be unique;
Cross-functional – as noted by the ten different functions of project management. Projects require personnel with a variety of experience, knowledge and skills from a variety of business operational functional areas, often found within an organisation. These functions work collaboratively to deliver the project product; and
There is a level of uncertainty and/or amendment – as every project is unique, this equates to a level of uncertainty being attached to the project. Uncertainty may provide different opportunities and/or threats over the project’s lifecycle, introducing a level of risk and/or amendment to the project product and/or project’s development and delivery processes.
2.3 Lifecycles
Project management must look beyond the duration of the project delivery process if it intends to provide any organisation with the best opportunity to achieve the successful delivery of the project product, and support the achievement of the intended benefits for undertaking the project in the first place. This will require a thorough understanding of the variety of lifecycles associated with a project. Projects include four main lifecycles that must be identified, considered and responded to throughout the project. These include:
Project management lifecycle (project lifecycle);
Project document lifecycle;
Project product lifecycle; and
Project benefits lifecycle.
2.3.1 Project Management Lifecycle
The management process of a project has a defined lifecycle. The project management lifecycle (project lifecycle) should result in the creation of the project product, and incorporate phases from initiation through to finalisation. Movement through the project lifecycle is based on the completion of process milestones and achievement of said process milestones via its approval. This approval process is also known as a decision gate. The decision gate process provides the project Governance Board, and more importantly, the Client Organisation with the ability to evaluate the projects capacity to deliver the Client Organisation’s intended benefits and make the decision to continue with the project or not.
As all organisational projects must be linked to the strategic direction of the organisation, it is therefore important to acknowledge the pre-project phase where the necessity to undertake a project is identified. This PMF acknowledges organisations make decision to undertake projects based on their strategic direction, though projects are also undertaken by individuals. The project driver for a personal project is the personal desire to undertake the project to achieve a personal benefit. Figure 2.1 illustrates the project lifecycle.
Figure 2.1 – Project Lifecycle
The project’s lifecycle is overseen via process milestones. A milestone marks a significant point where a major achievement has been accomplished.
Process Milestone – these milestones indicate the completion of a project phase. Moreover they indicate the importance of triggering project continuance. The project lifecycle consists of the following four process milestones:
Approval of the Project Charter (PC);
Approval of the Project Management Plan (PMP);
Formal acceptance of the project product by the Client Organisation; and
Approval to formally close the project.
2.3.2 Project’s Document Lifecycle
The project will also have a document lifecycle. Each phase in the project lifecycle, including the pre-project phase, utilises specific documentation to oversee phase actions. Figure 2.2 identifies the documents that drive each project phase.
Figure 2.2 – Project Document Lifecycle
2.3.3 Product Lifecycle
Similar to the project lifecycle, the project product also has a defined lifecycle. This lifecycle refers to the various phases that the product traverses, including: its development and delivery, asset operation and destruction. This may also be known as: cradle to grave; inception to completion; investment to divestment; appraisal to abandonment; or innovation to obsolescence. As a consequence of the ‘sustainability development’ movement (balancing the competing needs of: society, environment and economics), PMF suggests consideration of the progressive 360 degree lifecycle, effectively cradle to cradle. A cradle to cradle product lifecycle supports the regeneration of product materials through the use of renewable, reusable and/or recyclable resources.
Undertaking a project is strictly for the purpose of producing the project product in order to achieve the intended benefits for the organisation. It is important to recognise that the entire project’s lifecycle is taken up through the development then delivery of the product; essentially it is the gestation period then birth of the product. The product, which will become an organisational asset, will then commence its own lifecycle.
During the project lifecycle, PMF recognises the full product lifecycle must be continuously considered when making project management decisions that may impact or influence the feasibility, viability and/or longevity of the product. This decision-making process may also require the input of the Governance Board and/or the Client Organisation. Figure 2.3 identifies the asset product lifecycle for the project product.
Figure 2.3 – Asset Project Product Lifecycle
However, as with many aspects of project management there is frequently an exception to the rule. Projects that deliver an event, such as a conference or ceremony, often have a lifecycle that is different to those projects that produce a physical asset. Event projects have a product lifecycle that runs concurrently with the project lifecycle. Figure 2.4 illustrates an event project product lifecycle.
Figure 2.4 – Event Project Product Lifecycle
2.3.4 Project Benefit Lifecycle
The benefit that must be achieved from undertaking the project has a different lifecycle to that of the project, though one that is more similar to the asset project product lifecycle. This is due to the desire to extract the optimum benefits out of the asset, which is produced as the product of the project.
In the same way the project asset product lifecycle transitions from project delivery to business operations, the responsibility for achieving the benefits associated with the product will also be reallocated from the Project Management Team to the Business Operational Team. This requires the Project Management Team and the Business Operation Team to focus on the benefits whilst the project product is in their care.
Benefit realisation is considered by the Project Management Team during the project lifecycle, making it important to identify the project benefit lifecycle and recording the benefits required of the project. Benefit identification occurs during the project lifecycle although benefit delivery occurs during the project product and post-project lifecycles. Understanding this will assist the Project Management and Product Delivery Teams achieve the benefits during the project execution and support the Business Operational Team extract the post-project benefits. Figure 2.5 highlights the project benefits lifecycle.
Figure 2.5 – Project Benefits Lifecycle
2.4 Project Portfolio Management
A project portfolio is a collection of project programs, projects and other work that are managed collaboratively or independently as necessary. The project programs, projects and other related work of a portfolio may not necessarily be interdependent or related to the same project product, benefit or output. All portfolio actions should be managed simultaneously to optimise resource utilisation and align project portfolio outcomes with the organisation’s strategic direction.
Project portfolios are generally conducted within intra-organisational settings. It must be recognised that not all organisations have, nor require, their projects to be managed within a portfolio. This may be due to the diverse range of projects being undertaken by an organisation or its business units. Alternately this could be as a consequence of the size and structure of the organisation, which may not be well suited to the