MBA641 StrategicProject Management

FIND A SOLUTION AT American Essay Writers

Workshop 7Contingency Management anddeveloping performanceobjectivesMBA641 StrategicProject ManagementCopyright Notice
COPYRIGHTCOMMONWEALTH OF AUSTRALIACopyright Regulations 1969WARNING
This course-pack contains material copied by Kaplan Business School in reliance ofsection 113P of the Copyright Act 1968 (Act).The material in this communication may be subject to copyright under the Act. Anyfurther reproduction or communication of this material by you may be the subject ofcopyright protection under the Act.Do not remove this notice.For use only by the students of Kaplan Business School enrolled in thesubject: MBA641 Strategic Project Management.
This Topic’s Big IdeaDeveloping precise objectives are themost important way for all stakeholderto manage expectation and trackproject performance.Learning Objectives1. Identify and explain the three keyareas in contingency management2. Understand the importance ofdeveloping concise objectives3. Identify and analyse the roles ofstakeholder in developing objectives4. Understand how objectives can beprioritised and measuredContingency Management• All project, even the very well managed,will have some unexpected elementswhich can affect the schedule and budget.• These events must be allowed for in theoverall planning of budget and time.• Neglecting this issue could see the failureof the overall project.Contingency ManagementContingency Reserve• A reserve of time and/or money for the possible risks thathave been identified and agreed that a possible response isrequired.Contingency Plan• An alternate plan that can be implement in the case that theoriginal plan (or part of that) cannot be carried out, or to do sowould incur significant cost or scheduling issues.Management Reserves• Generally kept aside from the main project budget, this is tosupport projects in the event of completely unforeseenoutcomes within the project that were not identified in any ofthe risk analysis.Contingency ManagementProcess Cont.RiskIdentification Risk Analysis Risk Mitigation Planning Contingency Planning Implementation Risk Reduction• Contingency management is an importantstep to mitigate risk.• This process can continue throughout thelife of a project.Contingency Reserves: CostImage adopted from Broadleaf.com.au, retrieved 18 April 2020http://broadleaf.com.au/resource-material/project-cost-contingency/Contingency Reserves: Time
Total Project Time
Scheduled Duration Contingency
• Delays in a project can lead to complete failure ifkey milestones, which are time sensitive, aremissed.• Additional time spent on a project will also lead toadditional costs (such as wages) so will need tobe used in conjunction with a contingencybudget.Contingency Calculation Methods• There are many different methods tocalculate contingency, with new methodsconstantly being developed.• The most commonly used methods arebased around a percentage of the totalproject budget or schedule.• Some others use a calculation of theabove combined with a weighting of thepossible risk or impact involved.Workshop Activity 7.1In pairs or small groups watch the following videoand complete these tasks:• Make a list of the elements which would perhapsneed a contingency plan.• What would you see as the most/least importantelements in this project?• What could be the impact if the correctcontingency isn’t applied?Share your thoughts with the rest of the classSmall Group ChallengeCreamfields TaiwanPlay VideoPerformance Objectives• Poorly defined project performanceobjectives negatively impact on themanagement of the project, delivery ofits outcome, and meeting ofstakeholders’ expectations.• The ability to identify and agree on thekey indicators to determine how well theproject is performing is an essentialdecision support aid.Development Framework• A framework for developing projectperformance objectives is necessary toovercome the challenges in meetingdiverse stakeholders’ expectations andthe challenges in managing unclearperformance objectives.• SMART application is required.Specific: Not vague, but precise.Measurable: In ways that can be countedprecisely.Attainable: The goal or objective must bepossible to achieve.Relevant: Must be appropriate to the task athand.Time Based: With a clear start and enddate.SMART ObjectivesDeveloping ObjectivesThe key steps to developing projectperformance objectives are:1. Identification of stakeholders.2. Identification of project objectives.3. Definition of project measures.4. Prioritisation of project objectives.Managing Performance ObjectivesStakeholderidentification andselectionProjectPerformanceObjectivesMeasurementidentification anddefinitionPrioritisationof projectobjectivesAnalysisWorkshop Activity 7.2Watch the following video and complete thefollowing tasks:• Identify the past achievements and write aSMART summary of those achievements.• Compile some SMART objectives for thepossible future company in this example.Small Group ChallengeMicro FinancePlay VideoIdentification of Stakeholders• Project stakeholders are individuals orgroups that are involved in or may beimpacted by the project.• Stakeholders need to be identified andprioritised in order of their respectiveinfluence and impact on the project.• Review and refine stakeholders’ liststhroughout the project.Stakeholder Groups• Activeo Senior Managero Project Manager• Processo Line Managero Technical Personnel• Producto Customerso DistributorsStakeholder EngagementImage adopted from World Bank Group, Project Management Essentials, Pg 55 retrieved on 21 May 2021https://olc.worldbank.org/sites/default/files/Project%20Management%20Essentials%20Materials_0.pdfActive Role Stakeholders• Identify individuals or groups that playan active role in the project• An organisational chart and a roles andresponsibilities matrix are useful foridentifying active role stakeholders• The senior manager and projectmanager are active role stakeholdersProject Process Stakeholders• Identify individuals or groups that areinvolved in, or may be impacted by, theproject process.• The line manager and different peopleinvolved in different phases of theproject, such as technical personnel,are project process stakeholders.Product Stakeholders• Identify individuals or groups that areinvolved in, or are impacted by, theproduct or outcome of the project.• Clients, customers, or end users are allexamples of product stakeholders.• Distributors are also productstakeholders.Project Objectives• Develop a list of objectives.• Engage each stakeholder and elicit aset of objectives from each stakeholderbased on the project purpose.• Look for similar sets of ideas orobjectives between stakeholders.Fundamental Objectives• A fundamental objective reflects the endyou are trying to achieve.• A person with political aspirations mayhave the following fundamentalobjective:o To become an elected representativein the upcoming state election.Means Objectives• A means objective is a potential way toreach the end you are trying to achieve.• A person with political aspirations mayhave the following fundamentalobjective:o To win a major political party’spreselection contest and becometheir electoral candidate.Objectives and Measures• It is important to separate objectivesinto fundamental objectives and meansobjectives.• Project performance measures shouldbe established primarily againstfundamental objectives.• Winning a preselection contest, thoughhelpful, does not guarantee an electionvictory to an aspiring politician.Objectives
Stakeholders
Objectives
Active• Senior manager• Project manager
1. Minimise project time2. Minimise project costs
Process• Technicalpersonnel• Line manager
4. Procure cost effectivematerial and equipment3. Develop new product
Product• Customers• Distributors
5. Maximise customerexperience6. Maximise commercialsuccess
Workshop Activity 7.3Watch the following video:• Complete the previous table of Stakeholdersand Objectives according to the information laidout in the video.Share your findings with the rest of the classIndividual ChallengeFood for 40,000 PeoplePlay VideoProject Performance Measures• The next step is to determine from thestakeholders how they viewachievement of the stated objectives orthe metric that can be used to measurethe outcome of the objectives.Defining Project Measures• Formalise the measurement goals inthe context of the performanceobjectives.• Establish a set of questions that may beused to elicit the appropriate measuresfrom stakeholders.• Set out the quantitative and qualitativemeasures for each performanceobjective.Measures
Stakeholders
Objectives
Measures
Active• Senior manager• Project manager
1. Minimise project time2. Minimise project costs
1. Time of delivery against agreed standards2. Conformance to budget
Process• Technicalpersonnel• Line manager
4. Procure cost effectivematerial and equipment3. Develop new product
4. Contract sign-off; shipment and delivery ofequipment3. Product quality and reliability
Product• Customers• Distributors
5. Maximise customerexperience6. Maximise commercialsuccess
5. Perception of quality and reliability ofproduct6. Increased revenue
Prioritise Project Objectives• The process of performance objectivedevelopment often generates multiple,competing objectives that must besimultaneously accommodated in thefinal decision.• A simple direct ranking technique forstakeholders to identify their highestpriority objectives may be useful here.Workshop Activity 7.4Thimpu, Bhutan 2008Lyonpo Om Pradham, Minister for Trade and Industries, has a problem.The following statement has just been added to the country’s constitution:“…the State shall strive to promote those conditions that will enable thepursuit Gross National Happiness.”The constitutional amendment represents a novel departure from theeconomic measures typically used to estimate national performance such asGross Domestic Product.Lyonpo has been asked to develop the performance measures, indicators,and thresholds that will enable Bhutan to gauge how well it is performingagainst its new constitutional objective to promote those conditions that willenable the pursuit of Gross National Happiness.In groups, help Lyonpo to develop a range of Gross NationalHappiness performance measures, indicators, and thresholds.Small Group ChallengeNext WeekPerformance evaluation

YOU MAY ALSO READ ...  Unit VII The Body Revision Don’t use plagiarized sources. Get Your Custom Essay on…
america-essay-wriers
Best Essay Writers

QUALITY: 100% ORIGINAL PAPERNO PLAGIARISM – CUSTOM PAPER