B.2.2. Project Management Principles

B.2.2. Project Management Principles Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among the following elements: scope, time, cost, and quality; stakeholders with differing needs and expectations; identified requirements (needs); and unidentified requirements (expectations). The term project management is sometimes used to describe an organizational approach to the management of ongoing operations. This approach, more properly called management by projects, treats many aspects of ongoing operations as projects in order to apply project management to them. Although an understanding of project management is obviously critical to an organization that is managing by projects, a detailed discussion of the approach itself is outside the scope of this document. B.2.2.1. Project Phases and Project Life Cycle Because projects are unique undertakings, they involve a degree of uncertainty. Organizations performing projects will usually divide each project into several project phases to provide better management control and appropriate links to the ongoing operations of the performing organization. Collectively, the project phases are known as the project life cycle. B.2.2.2. Characteristics of Project Phases Each project phase is marked by completion of one or more deliverables. A deliverable is a tangible, verifiable work product such as a feasibility study, a detail design, or a working prototype. The deliverables, and hence the phases, are part of a sequential logic designed to ensure proper definition of the product of the project. The conclusion of a project phase is generally marked by a review of both key deliverables and project performance in order to determine if the project should continue into its next phase and detect and correct errors cost effectively. These phase-end reviews are often called phase exits, stage gates, or kill points. Each project phase normally includes a set of defined work products designed to establish the desired level of management control. The majority of these items are related to the primary phase deliverable, and the phases typically take their names from these items: requirements, design, build, text, start-up, turnover, and others as appropriate. The project life cycle serves to define the beginning and the end of a project. For example, when an organization identifies an opportunity that it would like to respond to, it will often authorize a feasibility study to decide if it should undertake a project. The project life cycle definition will determine whether the feasibility study is treated as the first project phase or as a separate, stand-alone project. The

project life cycle definition will also determine which transitional actions at the end of the project are included and which are not. In this manner, the project life cycle definition can be used to link the project to the ongoing operations of the performing organization. The phase sequence defined by most project life cycles generally involves some form of technology transfer or hand-off such as requirements to design, construction to operations, or design to implementation. Deliverables from the preceding phase are usually approved before work starts on the next phase. However, a subsequent phase is sometimes begun prior to approval of the previous phase deliverables when the risks involved are deemed acceptable. This practice of overlapping phases is often called fast tracking. Project life cycles generally define: What technical work should be done in each phase (e.g., is the work of the systems analyst part of the definition phase or part of the execution phase?) Who should be involved in each phase (e.g., concurrent engineering requires that the implementers be involved with requirements and design). Project life cycle descriptions may be very general or very detailed. Highly detailed descriptions may have numerous forms, charts, and checklists to provide structure and consistency. Such detailed approaches are often called project management methodologies. Most project life cycle descriptions share a number of common characteristics: Cost and staffing levels are low at the start, higher towards the end, and drop rapidly as the project draws to a conclusion. The probability of successfully completing the project is lowest, and hence risk and uncertainty are highest, at the start of the project. The probability of successful completion generally gets progressively higher as the project continues. The ability of the stakeholders to influence the final characteristics of the project product and the final cost of the project is highest at the start and gets progressively lower as the project continues. A major contributor to this phenomenon is that the cost of changes and error correction generally increases as the project continues. B.2.2.3. Project Management Methodologies The PRINCE Method The very nature of the definition and characteristics of projects gives some indication as to why projects are sometimes difficult and complicated to manage. In order to help people who are required, as part of their work, to manage projects, a number of project management methods, including formal methods such as PRINCE, have been developed and are becoming more widely used. These methods are based on a common set of project management principles which, when adhered to, will increase the probability of a successful outcome to the project.

Successful projects are those where the following basic areas or activities are implemented and managed effectively. Formally starting or initiating the project Establishing an organizational structure around the project Utilizing a structured planning method Applying project control techniques including: - Change control - Quality control Managing the stages of the project Executing the project tasks and activities Assessing and managing risks which could impact on the project Formally closing the project. Successful project management is aided by a stepped, logical approach, which addresses each of the above areas. All project management methodologies identify a standard set of processes common to all types of project and offer guidance and support on the execution of these processes. Completing some of the processes below (Figure 4) may seem somewhat heavy going and bureaucratic, but they have been devised as a means of ensuring that the correct amount of detail is applied to the key elements of the project. Lack of attention to detail in projects can lead to expensive time and cost overruns or serious failure in terms of the quality of project deliverables. The damaging effect on the organization and its patients/clients of overruns and low-quality outcomes can far outweigh time saved by cutting corners within projects. Figure 4. PRINCE Project Management Processes Start-Up the Project (SU) Initiate the Project (IP) Direct the Project (DP) Control the Stage (CS) Manage Product Delivery (MP) Manage Stage Boundaries (SB) Close the Project (CP) P l a n n i n g Planning processes operate throughout the project.

Start-Up the Project (SU) SU processes remind those who wish to set up a project that time must be given for the activities required to establish a project board and to appoint a project manager. As part of SU, preparation of the project brief and of the detailed plans for the first stage of the project takes place. Starting projects without a clear business case can lead to early failure. These start-up processes help to ensure that the project has a firm foundation in the sense that it is agreed to be worthwhile and viable from the outset. Initiate the Project (IP) Project initiation is done at a formal Project Initiation Meeting (PIM). The project brief and plans produced at Start-Up are discussed and agreed upon the PIM. This meeting formally signals start of the project. Direct the Project (DP) DP is about ensuring that all of the elements are in place to properly manage the project. Projects sometimes fail because steps are not taken to ensure that staff is released from other duties when required to carry out work on the project. DP creates the lines of communication necessary to authorize the funds and other resources (people and equipment) needed by the project. Sometimes projects are allowed to commence a new project stage before the previous stage has been fully completed. A key element of directing the project processes is to make sure this does not happen. Control the Stage (CS) In order to make projects more manageable they should be divided into stages and appropriate mechanisms employed to manage each stage effectively. An example of stages in the development and implementation of a health care system might include the following: Specification Design Development Testing User training Implementation Post-implementation review. Although the PRINCE method involves producing high-level plans for the whole project, the actual work undertaken is approved only one stage at a time. In this way projects in progress which are no

longer meeting their original aims or are significantly overspent can, if necessary, be cancelled before any more money or effort is wasted. Staging a project also allows greater focus to be applied to the tasks in the current stage and avoids attention being distracted too much by later stages. Stage plans are produced before the first and each subsequent stage commences. These plans contain details of the tasks to be undertaken, the resources required, and the quality standards to be adhered to during the stage. Controlling a stage involves ensuring that all of the work (or "Work Packages") within a stage is properly authorized and is successfully completed. Manage Product Delivery (MP) Products are the "things" or deliverables that the project is to produce. There are two general types of product: Final Products - e.g., a fully implemented and operational Patient Administration System within this healthcare institution. Interim Products - these are the things that have to be produced throughout the project in order to reach the final product. In the example above, a fully developed and implemented Master Patient Index would be considered as an interim product because it is just one component of the final product. It is important to ensure that sufficient care and effort are put into the production of each project product. Managing Product Delivery gives guidance on how this can be achieved. This guidance is particularly helpful when products are to be created by suppliers or subcontractors. The customer Project Manager specifies: Work packages for the contractor to complete, for instance, developing some reporting software that will be used to monitor patient throughput, and The specification of the work package must include the quality standards that must be met by the supplier or contractor. The contractor must meet this specification before the Project Manager can accept the work package as complete. In this way the customer organization is able to keep control of the development and delivery of project products. Manage Stage Boundaries (SB) As already mentioned, projects are more likely to be successful if they are broken into stages. Certain criteria, which assess how well the project is progressing, must be met before a project can proceed from one stage to the next. These criteria should be examined closely at the end of each stage, at the boundary between stages. Senior people in the organization examine the progress of each stage in terms of schedule, costs incurred against budget, and the quality of the products produced so far.

In this way, stage by stage, assessment is made of the continuing viability of the project. If it is still viable, then approval to proceed to the next stage can be given. Close the Project (CP) When a project is complete it is advisable to conduct a controlled closedown. This allows the formal handing over of the final product of the project to the staff responsible for its continued operation. Closing the project includes steps to ensure that all of the aims have been met. Formal acceptance and sign off procedures are carried out to check that all the project products meet the required quality standards. The closure processes also include the production of a Lessons Learned Report and a list of recommendations for future actions. Planning (PL) This is a common process used by all of the other processes that involve producing plans. Planning is essential it helps to: Communicate what has to be done, when and by whom Encourage forward thinking Provide the measures of success for the project Make clear the commitment of time, resources (people and equipment), and money required for the project Determine if targets are achievable Identify the activities the resources need to undertake. Three main types of planning are required within PRINCE projects: Project Planning - This is required in order to provide an overview of the whole project. Stage Planning - Plans for each stage need to be prepared. These are produced towards the end of the previous stage. Plans are considered at End Stage Assessment meetings. This enables the assessment of the previous stage of the project and consideration of plans for the new stage. Exception Planning - This type of planning is used when there are signs that the project is slipping behind schedule or is deviating from budget or quality targets.

B.2.2.4. PRINCE Project Components The above processes ranging from starting up to closing down a project are backed up by a set of "Components" which take care of other important facets of projects. These are: Organization Planning Controls Stages Management of Risk Quality in a project environment Configuration Management Change Control Outlines of some of the processes underpinning the Planning and Controls components have already been provided. A brief overview of the remaining components is provided below. Figure 5. PRINCE Project Management Organizational Structure (arrows indicate accountability) Project Committee Senior Senior User Executive Supplier Project Assurance Project Manager Project Support Team Leader Team Leader The basic PRINCE project organizational structure is illustrated in Figure 5. The PRINCE guidance specifies quite precisely the roles and responsibilities of each member of the project organization. Project Committee - Provides senior input to the management of the project. This committee carries overall responsibility for the success or failure of the project. Members of the Project

Committee must be of sufficient seniority to be able to secure the resources needed by the Project Manager to manage the project. Project Manager - Is given authority, within certain tolerances, by the Project Committee to manage the project on a day-to-day level. Team Leader - Is not a mandatory role. There may be one or more Team Leaders involved in a project. The Project Manager delegates responsibility to Team Leaders to produce the project products. Team Leaders may be contractors not directly employed by the customer organization. Team Leaders receive Work Packages from the Project Manager. Project Assurance - Provides independent monitoring of the progress of the project on behalf of the Project Board. A Project Assurance Team, usually of three members, ensures that the Business User and Technical aspects of the project are continually monitored. Project Support - Is also an optional set of roles. A Project Support Office if provided undertakes administrative activities required to keep the project going. These activities will typically include arranging meetings, updating project plans on project planning software, and filing project documents. For smaller projects, existing administrative and clerical staff in the organization can fulfil this role. B.2.2.5. Management of Risk Risk is defined as "the chance of exposure to the adverse consequences of future events". Successful identification and management of risk can greatly improve the chances of project success. The PRINCE method offers quite detailed guidance on risk management. As with other elements of the method, organizations are able to select the level of detail they feel they require for each specific project. The more expensive or important projects are likely to require more effort to be expended on risk management. Risk Management is broken down into two phases: Risk Analysis and Risk Management. Risk Analysis - In the risk analysis phase the following processes take place: Risk Identification when a list of possible risks is compiled; Risk Estimation when an assessment is made of the likelihood of each risk occurring within the project; and Risk Evaluation, an assessment is made of the acceptable level of each risk and alternative actions are identified to avoid unacceptable risks. Risk Management - In the risk management phase the following processes take place: Planning - the course of action most suited to managing each risk is agreed upon. Resourcing - the resources required to handle the risk are identified and assigned. Monitoring - the status of risks is monitored. Checks are made to ensure that countermeasures are working effectively. Controlling - making sure that the risk management plan is being fully implemented as agreed.

The range of action that can be taken to help manage risk includes: Prevention - implementing measures to counteract or eliminate the risk. Reduction - taking steps to reduce the impact of identified risks. Transference - passing the risk onto a third party, e.g., a contractor or an insurance company. Contingency - actions that are planned to come into force if and when the identified risk occurs. Acceptance - of the possibility that identified risks might occur but the proposed countermeasures are too expensive to implement. B.2.2.6. Quality in the Project Environment The International Standards Organization defines quality as the "totality of features and characteristics of a product or service which bear on its ability to satisfy stated and implied needs" (ISO 8402). PRINCE offers a complete quality control method for projects including the following elements: A quality system, encompassing organization, procedures, and processes to ensure that quality assurance is taken care of throughout projects. Quality planning, which involves setting the quality targets for the project and ensuring that plans are in place to achieve them. Quality control, which involves installing mechanisms to inspect each product produced to ensure it meets agreed quality standards. B.2.2.7. Configuration Management Effective project management is a key component of procuring, developing, or implementing IT systems in health care. Many such health systems projects can be complex, expensive, and risky to implement. The use of a structured, scalable project management method like PRINCE can increase the odds of delivering a project on time, within budget, and to the right quality standard or, in a word, successfully. Configuration Management is about product control. It provides a mechanism, which can be used to track the evolution of project products and as such keeps track of product versions. Change Control - Change impacts on all projects. If change is not carefully managed then it can have a detrimental, sometimes devastating, effect on a project. An almost infinite range of changes can happen during projects, from changes of government to changes of project personnel. PRINCE manages change through the use of Project Issue Reports (PIR's) a simple paper-form based mechanism used to capture both general issues and change issues that arise throughout projects. Project Issues can be about anything to do with the project

such as suggestions, questions, or requests for changes to be made. PIR's can be raised by anyone involved in the project. The Project Manager prioritizes each PIR and an impact analysis is carried out. Prioritization of proposed changes - Proposed issues can be can be categorized as follows: - changes which are a must; a final product will not work without this change - important changes; their absence would be very problematic though a workaround is possible for a while - changes which are nice to have but not vital - cosmetic changes of no importance - project issues which in fact do not involve a change. Impact analysis - The impact of each proposed change will involve consideration of the following questions: - what would have to change to accommodate this Project Issue Report? - what effort is needed to implement the change? - what impact will the change have on project risks? - will there be an impact on the project's Business Case?