Project Management

Basic Management Skills

Introduction
Management is a topic that is as vast as the sky. When it comes to the skills that
are required to become a good manager, the list may be endless.
In everyday life, we observe many people considering management as - whatever
that needs to be done in order to keep a company afloat - but in reality, it is far more
complicated than the common belief.
So let us get down to the most basic skills that need to be acquired, if one is to
become a successful manager.

The ABC's of Management

You will understand that management involves managing people and thereby,
managing the output garnered in favor of the company. According to Dr. Ken
Blanchard, in his famous book "Putting the One minute Manager to Work", the
ABC's of management world are as below:
 Activators - The type of strategy followed by a manager before his workforce sets on
with performance.
 Behaviors - How the workforce performs or behaves within the activity or situation as a
result of activators or consequences.
 Consequences - How the manager handles the workforce after the performance.
Research shows that although we may be inclined to think that an activator's role
brings about the most efficient behavior in a workforce, in effect; it is how managers
handle the workforce after a particular behavior that influences future behavior or
performance up to a great extent.
To quantify, activators' base behavior contribution is calculated to make up for 15 to
25 percent of behavior, while 75-85 percent of the behavior is known to be
influenced by consequences.
Therefore, it is crucial that we understand and develop the basic management skills
that will help bring out expected outcomes from a workforce.

Problem Solving and Decision Making

This is where most managers either get stamped in to good or bad books. However,
the type of decisions you make should not ideally make you a good or bad
manager; rather how you make such decisions is what need to be the deciding
factor.
You will need to know the basic ethics of problem solving and this should be
thoroughly practiced in every occasion, even if the problem concerns you
personally.

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Unless otherwise, a manager becomes impartial and entirely professional, he/she

may find it difficult to build a working relationship with co-workers in an organization.

Planning and Time Management

The last thing you would want your co-workers to think is that you get by your
working hours, cuddled up in an office chair, enjoying light music while doing
nothing! Planning and Time management is essential for any manager; however, it
is even more important for them to realize why these two aspects are important.
Although you may be entitled to certain privileges as a manager, that does not
necessarily mean you could slay time as you please.
Assuming responsibility to manage the time is important so that you could become
the first to roll the die which will soon become a chain reaction within the
organization.
Having said that, when you conduct yourself with efficiency, you will also end up
portraying yourself as a role model for co-workers which may add a lot of value as
you move along with management duties in the company.
Planning ahead of time for events and activities that you foresee in your radar and
taking the necessary initiatives as well as precautions as you move along are
undoubtedly, some of the main expectations from managers.
If you could adapt a methodical style at your workplace and adapt effective
techniques to carry out your duties with the least hindrance, you will soon build the
sacred skills of planning and time management.

Delegation
Having planned everything that lies ahead and having come up with a plan for time
management, you may feel that you have got more than you could chew on your
plate. This is where delegation should come into play.
Becoming a good manager does not mean carrying out every task by him/herself.
Rather, it is about being able to delegate work effectively in order to complete the
task on time.
Many managers mishandle delegation either because they do not have enough
confidence in their co-workers and subordinates or because they do not master the
techniques of delegation.
Therefore, the key for delegation would be to identify the individuals that are
capable of carrying out the task, delegating the work with accurate instructions and
providing enough moral support. Once the task is complete, you will get an
opportunity to evaluate their performance and provide constructive feedback.

Communication Skills

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Nothing could be ever accomplished in the world of a manager without him or her
being able to accurately, precisely and positively communicate their instructions,
suggestions or feedback to others.
Therefore, you should be extremely careful in picking out your words. A 'Can-Do'
attitude is something that can be easily portrayed through your words.
When your communication bears a positive note, it will run across your audience
almost contagiously.

Managing Yourself & Leading Others

No matter how much charisma you may have in your personality or how good your
positive communication skills may be, a manager never fails to be the one to
communicate all things whether good or bad.
In your managerial position, you are exposed to both the executive layer and the
working layer of an organization which makes you the ham in the sandwich.
Therefore, you may find yourself squashing and thrilling in between when it comes
to many decisions.
The number one rule in managing yourself is to realize that you are a professional,
who is being paid for the designation that you bear in the company. If you
remember this fact, you will always remember never to take any issue personally.
Always draw a line between your managerial persona and your actual persona. It is
good to bond with co-workers at a personal level while maintaining a distance in
your profession. Therefore, you will also be required to draw a line somewhere.
And most importantly, you will become the sponge that absorbs heat from the
higher strata of the company and delivers the minimum heat and pressure to the
lower strata. Therefore, you will need to practice a fair share of diplomacy in your
role.

Conclusion
Managing people and processes is a style in itself that requires dedication and
experience-blended practice. The skills needed are as vast and deep as the ocean.
The basic management skills presented herein is only a doorway for you to get
started on the management path that lies ahead.

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Project Management Triangle

Introduction
The project management triangle is used by managers to analyze or understand the
difficulties that may arise due to implementing and executing a project. All projects
irrespective of their size will have many constraints.
Although there are many such project constraints, these should not be barriers for
successful project execution and for the effective decision making.
There are three main interdependent constraints for every project; time, cost and
scope. This is also known as Project Management Triangle.
Let's try to understand each of the element of project triangle and then how to face
challenges related to each.

The Three Constraints

The three constraints in a project management triangle are time, cost and scope.

1 - Time

A project's activities can either take shorter or longer amount of time to complete.
Completion of tasks depends on a number of factors such as the number of people
working on the project, experience, skills, etc.
Time is a crucial factor which is uncontrollable. On the other hand, failure to meet
the deadlines in a project can create adverse effects. Most often, the main reason
for organizations to fail in terms of time is due to lack of resources.

2 - Cost

It's imperative for both the project manager and the organization to have an
estimated cost when undertaking a project. Budgets will ensure that project is
developed or implemented below a certain cost.
Sometimes, project managers have to allocate additional resources in order to meet
the deadlines with a penalty of additional project costs.

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3 - Scope

Scope looks at the outcome of the project undertaken. This consists of a list of
deliverables, which need to be addressed by the project team.
A successful project manager will know to manage both the scope of the project
and any change in scope which impacts time and cost.

Quality
Quality is not a part of the project management triangle, but it is the ultimate
objective of every delivery. Hence, the project management triangle represents
implies quality.
Many project managers are under the notion that 'high quality comes with high cost',
which to some extent is true. By using low quality resources to accomplish project
deadlines does not ensure success of the overall project.
Like with the scope, quality will also be an important deliverable for the project.

Six stages of Project Management

A project undergoes six stages during its life cycles and they are noted below:
 Project Definition - This refers to defining the objectives and the factors to be
considered to make the project successful.
 Project Initiation - This refers to the resources as well as the planning before the
project starts.
 Project Planning - Outlines the plan as to how the project should be executed. This is
where project management triangle is essential. It looks at the time, cost and scope of
the project.
 Project Execution - Undertaking work to deliver the outcome of the project.
 Project Monitoring & Control - Taking necessary measures, so that the operation of
the project runs smoothly.
 Project Closure - Acceptance of the deliverables and discontinuing resources that were
required to run the project.

Overcoming Challenges to Project Constraints

It is always a requirement to overcome the challenges related to the project triangle
during the project execution period. Project managers need to understand that the
three constraints outlined in the project management triangle can be adjusted.
The important aspect is to deal with it. The project manager needs to strike a
balance between the three constraints so that quality of the project will not be
compromised.
To overcome the constraints, the project managers have several methods to keep
the project going. Some of these will be based on preventing stakeholders from
changing the scope and maintaining limits on both financial and human resources.

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A project manager's role is evolved around responsibility. A project manager needs

to supervise and control the project from the beginning to the closure.
The following factors will outline a project manager's role:
 The project manager needs to define the project and split the tasks amongst team
members. The project manager also needs to obtain key resources and build teamwork.
 The project manager needs to set the objectives required for the project and work
towards meeting these objectives.
 The most important activity of a project manager is to keep stakeholders informed on the
progress of the project.
 The project manager needs to asses and carefully monitor risks of the project.

Skills Required for a Project Manager

In order to overcome the challenges related to project triangle and meet the project
objectives, the project manager needs to have a range of skills, which includes:
 Leadership
 Managing people
 Negotiation
 Time management
 Effective communication
 Planning
 Controlling
 Conflict resolution
 Problem solving

Conclusion
Project management is very often represented on a triangle. A successful project
manager needs to keep a balance between the triple constraints so that the quality
of the project or outcome is not compromised.
There are many tools and techniques that are available in order to face the
challenges related to the three constraints. A good project manager will use
appropriate tools in order to execute the project successfully.

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Project Manager Goals

Introduction
Every organization requires good leadership in order to carry out all their projects
successfully. This requires the organization to appoint efficient project managers to
carry out various tasks, and of course, to guide and lead the project management
team and get them to a point, where they have effectively completed any given
project at hand, taking into account a whole load of factors.
In order to understand how project management can run smoothly, it is important to
first identify the role and the tasks carried out by the project manager. So who is a
project manager and why is he/she so important?

The Role of a Project Manager

The role of a project manager basically involves handling all aspects of the project.
This includes not just the logistics but also the planning, brainstorming and seeing
to the overall completion of the project while also preventing glitches and ensuring
that the project management team works well together.

The Goals of a Project Manager

Following should be the the main goals for a project manager, but they are not
limited to the listed ones because it very much depends on the situation:
(1) Deadlines
A project manager must always be able to carry out his role in a very effective
manner.
This means that in most cases he/she would have to run against time with the clock
ticking away. All projects would have deadlines, so it is the duty of a project
manager to complete the project by this given date.
It should be noted that although the project manager and his team may draw up a
schedule at the outset that may seem perfect, as time goes on you will find that the
requirements may change, and the projects may require new strategies to be
implemented and more planning to be carried out.
Time therefore could be a big obstacle for a project manager achieving his/her goal.
As the project manager you should never lose sight of the deadline, your role would
be to keep pushing your team to finish the work and deliver on time.
Remember that your clients' satisfaction is your number one priority.
(2) Client Satisfaction
Satisfaction of the client, however, does not mean that you rush to finish the work
on time without ensuring that standards are met.

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The reputation of your organization would depend on the quality of the delivery of
your projects. This is another factor you should not lose sight of throughout the
project.
Your role would also be to keep reminding the team members that quality is key.
(3) No Budget Overrun
No project can be started off without the preparation of the budget. Although this is
just a forecast of the costs that would be incurred, it is essential that this budget is
prepared after careful research and comparing prices to get the best.
You would need to consider ways of cutting costs while also ensuring that you meet
the needs of the client as well as meeting the standards expected of your
organization.
This budget must include all costs with regard equipment, labor and everything else.
You then need to try and always stick to the budget, although it's always best to
leave some allowance for a few 100 dollars for any additional expenses that may
arise.
(4) Requirements Coverage
Another goal of a project manager involves meeting all requirements of the client.
You would need to therefore have all specifications at hand and go through them
every once in a while to ensure that you are on track.
If there is confusion as to any requirements, it would be best for you to get them
cleared at the very beginning.
(5) Team Management
While you would have to ensure that all aspects of the project are maintained, you
are also responsible as project manager for the happiness of your team.
You need to keep in mind that it is the incentives and encouragement provided to
them that will make them work harder and want to complete the work on time,
thereby helping you reach your goals.
If the team members are unhappy with the way things are being carried out,
productivity will also in turn decrease, pulling you further away from achieving your
goals. It is essential therefore to always maintain a warm friendly relationship with
them.
The communication within the team should be very effective. They should be willing
to voice out their opinions while you listen to their suggestions and consider
including them in the project.
This is after all a team effort. Your goals with regard to the project are also their
goals.

Conclusion
The role of a project manager is therefore no easy task. It involves taking up a lot of
responsibility as each of the goals of the project must be met without making too
many sacrifices.

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If these goals are outlined to the project management team at the very beginning,
there in no way for the delivery of the goals to be delayed in any way as everyone
will always be aware of what they need to achieve and by when.

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Project Charter
Introduction
Project Charter refers to a statement of objectives in a project. This statement also
sets out detailed project goals, roles and responsibilities, identifies the main
stakeholders, and the level of authority of a project manager.
It acts as a guideline for future projects as well as an important material in the
organization's knowledge management system.
The project charter is a short document that would consist of new offering request
or a request for proposal. This document is a part of the project management
process, which is required by Initiative for Policy Dialogue (IPD) and Customer
Relationship Management (CRM).

The Role of Project Charter

Following are the roles of a Project Charter:
 It documents the reasons for undertaking the project.
 Outlines the objectives and the constraints faced by the project.
 Provides solutions to the problem in hand.
 Identifies the main stakeholders of the project.

Benefits of Project Charter

Following are the prominent benefits of Project Charter for a project:
 It improves and paves way for good customer relationships.
 Project Charter also works as a tool that improves project management processes.
 Regional and headquarter communications can also be improved to a greater extent.
 By having a project charter, project sponsorship can also be gained.
 Project Charter recognizes senior management roles.
 Allows progression, which is aimed at attaining industry best practices.

Elements in Project Charter

Since project charter is a project planning tool, which is aimed at resolving an issue
or an opportunity, the below elements are essential for a good charter project.
For an effective charter project, it needs to address these key elements:
 Identity of the project.
 Time: the start date and the deadline for the project.

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 People involved in the project.

 Outlined objectives and set targets.
 The reason for a project charter to be carried out, often referred to as 'business case'.
 Detailed description of a problem or an opportunity.
 The return expected from the project.
 Results that could be expected in terms of performance.
 The expected date that the objectives is to be achieved.
 Clearly defined roles and responsibilities of the participants involved.
 Requirement of resources that will be needed for the objectives to be achieved.
 Barriers and the risks involved with the project.
 Informed and effective communication plan.
Out of all above elements, there are three most important and essential elements
that need further elaboration.

Business Case
This outlines the need for a project charter to take place. A business case should
set out the benefits gained from carrying out a project charter. Benefits need not
only be in terms of finance such as revenue, cost reduction, etc., but also the
benefit that the customer receives.
Following are the characteristics of a good business case:
 The reasons of undertaking the project.
 The benefits gained from undertaking the project now.
 The consequences of not doing the project.
 The factors that would conclude that it fits the business goals.

Project Scope
As the name denotes, it refers to the scope that the project will give the business if
they undertake the project.
Before doing a project, the following concerns need to be addressed:
 The within scope and out of scope needs to be considered.
 The process that each team will focus upon.
 The start and end points for a process.
 Availability of resources.
 Constraints under which the team will work.
 Time limitations.
 The impact on the normal workload if the project is to be undertaken.

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Conclusion
The project charter is not only a tool that is used for planning projects but also a
communication mechanism that acts as a reference. A well-planned project with an
effective communication plan will definitely bring in success for the project
undertaken at hand.
Therefore, the Project Charter should be one of the frequently referred documents
in a project and the entire project team needs to be aware of the content of the
Project Charter. This is a key element for a successful project.

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Project Management Processes

Introduction
Project management is one of the critical processes of any project. This is due to
the fact that project management is the core process that connects all other project
activities and processes together.
When it comes to the activities of project management, there are plenty. However,
these plenty of project management activities can be categorized into five main
processes.
Let's have a look at the five main project management processes in detail.

1 - Project Initiation
Project initiation is the starting point of any project. In this process, all the activities
related to winning a project takes place. Usually, the main activity of this phase is
the pre-sale.
During the pre-sale period, the service provider proves the eligibility and ability of
completing the project to the client and eventually wins the business. Then, it is the
detailed requirements gathering which comes next.
During the requirements gathering activity, all the client requirements are gathered
and analysed for implementation. In this activity, negotiations may take place to
change certain requirements or remove certain requirements altogether.
Usually, project initiation process ends with requirements sign-off.

2 - Project Planning
Project planning is one of the main project management processes. If the project
management team gets this step wrong, there could be heavy negative
consequences during the next phases of the project.
Therefore, the project management team will have to pay detailed attention to this
process of the project.
In this process, the project plan is derived in order to address the project
requirements such as, requirements scope, budget and timelines. Once the project
plan is derived, then the project schedule is developed.
Depending on the budget and the schedule, the resources are then allocated to the
project. This phase is the most important phase when it comes to project cost and
effort.

3 - Project Execution
After all paperwork is done, in this phase, the project management executes the
project in order to achieve project objectives.

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When it comes to execution, each member of the team carries out their own
assignments within the given deadline for each activity. The detailed project
schedule will be used for tracking the project progress.
During the project execution, there are many reporting activities to be done. The
senior management of the company will require daily or weekly status updates on
the project progress.
In addition to that, the client may also want to track the progress of the project.
During the project execution, it is a must to track the effort and cost of the project in
order to determine whether the project is progressing in the right direction or not.
In addition to reporting, there are multiple deliveries to be made during the project
execution. Usually, project deliveries are not onetime deliveries made at the end of
the project. Instead, the deliveries are scattered through out the project execution
period and delivered upon agreed timelines.

4 - Control and Validation

During the project life cycle, the project activities should be thoroughly controlled
and validated. The controlling can be mainly done by adhering to the initial protocols
such as project plan, quality assurance test plan and communication plan for the
project.
Sometimes, there can be instances that are not covered by such protocols. In such
cases, the project manager should use adequate and necessary measurements in
order to control such situations.
Validation is a supporting activity that runs from first day to the last day of a project.
Each and every activity and delivery should have its own validation criteria in order
to verify the successful outcome or the successful completion.
When it comes to project deliveries and requirements, a separate team called
'quality assurance team' will assist the project team for validation and verification
functions.

5 - Closeout and Evaluation

Once all the project requirements are achieved, it is time to hand over the
implemented system and closeout the project. If the project deliveries are in par with
the acceptance criteria defined by the client, the project will be duly accepted and
paid by the customer.
Once the project closeout takes place, it is time to evaluate the entire project. In this
evaluation, the mistakes made by the project team will be identified and will take
necessary steps to avoid them in the future projects.
During the project evaluation process, the service provider may notice that they
haven't gained the expected margins for the project and may have exceeded the
timelines planned at the beginning.

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In such cases, the project is not a 100% success to the service provider. Therefore,
such instances should be studied carefully and should take necessary actions to
avoid in the future.

Conclusion
Project management is a responsible process. The project management process
connects all other project activities together and creates the harmony in the project.
Therefore, the project management team should have a detailed understanding on
all the project management processes and the tools that they can make use for
each project management process.

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Project Management Office (PMO)

Introduction
When organizations grow, they establish different entities for governing respective
practices.
The Project Management Office (PMO) is the entity created for governing the
processes, practices, tools and other activities related to project management in an
organization.
This office (team) defines and maintains the standards for project management in
the organization.
Usually, the management of the organization assigns a team of experts in the field
of project management in order to run the project management office.
The organization looks for qualifications such as PMI certifications and extensive
experience is managing large projects when selecting people for the project
management office.

Building a Project Management Office

Due to the complexity of present projects, the project management function should
be a matured and streamlined practice.
Therefore, organizations look for better ways of managing the projects in order to
maximize the profit margins. For this, organizations look into process optimization,
productivity enhancement and building their bottom-line.
Since there are many parameters involved in the project management function
(such as people, technology, communication and resources), governing the project
management function by the senior management can be risky.
Therefore, a project management office is the ideal solution for building and
maintaining the project management practice as a capable function of the
organization.
Implementing a project management office is as same as any other organizational
change project. Therefore, it is approached with a strong and rigid methodology with
a lot of experience.
There are a number of key steps involved in building a project management office
and PMBOK (Project Management Body of Knowledge) can be a great reference
for this purpose.

Is It an Overhead?
Some traditional organizations view the project management office as an overhead.
This is mainly due to the fact that the organization is small enough where there is no
explicit need for a project management office.

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In such organizations, the general management can govern project management

practice. For the rest of the organizations where there are large projects, a project
management office is a lot more than an overhead.
At present, the world economy is at a recession. Therefore, a lot of companies look
at cutting costs in order to retain in the corporate environment.
Among the ways of doing this, cutting down staff and closing down departments
have become two popular options. In such cases, project management office has
become an easy victim, as it does not add any figure to the bottom-line of the
company.
Therefore, it has become a challenge for the project management offices to justify
their work to the upper management.

The Advantages of a PMO

Project management is one of the key functions of an organization. Therefore,
refining the processes related to project management could add a lot of value to the
organization's bottom-line.
This is what exactly a successful project management office does.

Why Does PMO Fail?

Based on the historical statistics, only one-third of project management offices work
and the rest do not work as expected.
This is one of the main concerns that senior management faces when deciding to
build a project management office for an organization. The management is doubtful
about the success of the project management office from the beginning.
One of the main reasons for project management office to fail is the lack of
executive management support. In most cases, the executive management does
not have enough knowledge on how to support and guide a project management
office.
Secondly, incapability of the project management office causes failures. This is
mainly due to the people and resources assigned to the project management office.

Conclusion
Project management office is one of the entities that will add value to large
organizations in the long run. A project management office could be an overhead for
smaller scale organizations and such establishment may end up as a failure.
A successful project management office can enhance the productivity of the project
teams and cause a lot of cost savings. In addition to that, it can make the
organization a more matured and capable entity.

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Organizational Structures
Introduction
Any operating organization should have its own structure in order to operate
efficiently. For an organization, the organizational structure is a hierarchy of people
and its functions.
The organizational structure of an organization tells you the character of an
organization and the values it believes in. Therefore, when you do business with an
organization or getting into a new job in an organization, it is always a great idea to
get to know and understand their organizational structure.
Depending on the organizational values and the nature of the business,
organizations tend to adopt one of the following structures for management
purposes.
Although the organization follows a particular structure, there can be departments
and teams following some other organizational structure in exceptional cases.
Sometimes, some organizations may follow a combination of the following
organizational structures as well.

Organizational Structure Types

Following are the types of organizational structures that can be observed in the
modern business organizations.

Bureaucratic Structures

Bureaucratic structures maintain strict hierarchies when it comes to people

management. There are three types of bureaucratic structures:
1 - Pre-bureaucratic structures
This type of organizations lacks the standards. Usually this type of structure can be
observed in small scale, start-up companies. Usually the structure is centralized and
there is only one key decision maker.
The communication is done in one-on-one conversations. This type of structures is
quite helpful for small organizations due to the fact that the founder has the full
control over all the decisions and operations.
2 - Bureaucratic structures
These structures have a certain degree of standardization. When the organizations
grow complex and large, bureaucratic structures are required for management.
These structures are quite suitable for tall organizations.
3 - Post-bureaucratic Structures
The organizations that follow post-bureaucratic structures still inherit the strict
hierarchies, but open to more modern ideas and methodologies. They follow
techniques such as total quality management (TQM), culture management, etc.

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Functional Structure

The organization is divided into segments based on the functions when managing.
This allows the organization to enhance the efficiencies of these functional groups.
As an example, take a software company.
Software engineers will only staff the entire software development department. This
way, management of this functional group becomes easy and effective.
Functional structures appear to be successful in large organization that produces
high volumes of products at low costs. The low cost can be achieved by such
companies due to the efficiencies within functional groups.
In addition to such advantages, there can be disadvantage from an organizational
perspective if the communication between the functional groups is not effective. In
this case, organization may find it difficult to achieve some organizational objectives
at the end.

Divisional Structure

These types of organizations divide the functional areas of the organization to

divisions. Each division is equipped with its own resources in order to function
independently. There can be many bases to define divisions.
Divisions can be defined based on the geographical basis, products/services basis,
or any other measurement.
As an example, take a company such as General Electrics. It can have microwave
division, turbine division, etc., and these divisions have their own marketing teams,
finance teams, etc. In that sense, each division can be considered as a micro-
company with the main organization.

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Matrix Structure

When it comes to matrix structure, the organization places the employees based on
the function and the product.
The matrix structure gives the best of the both worlds of functional and divisional
structures.
In this type of an organization, the company uses teams to complete tasks. The
teams are formed based on the functions they belong to (ex: software engineers)
and product they are involved in (ex: Project A).
This way, there are many teams in this organization such as software engineers of
project A, software engineers of project B, QA engineers of project A, etc.

Conclusion
Every organization needs a structure in order to operate systematically. The
organizational structures can be used by any organization if the structure fits into
the nature and the maturity of the organization.

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In most cases, organizations evolve through structures when they progress through
and enhance their processes and manpower. One company may start as a pre-
bureaucratic company and may evolve up to a matrix organization.

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Management Styles
Introduction
In an organization, managers perform many functions and play many roles. They
are responsible for handling many situations and these situations are usually
different from one another.
When it comes to handling such situations, managers use their own management
styles.
Some management styles may be best for the situation and some may not be.
Therefore, awareness on different types of management styles will help the
managers to handle different situations the optimal way.
In short, a management style is a leadership method used by a manager. Let's have
a look at four main management styles practised by managers all over the world.

Autocratic
In this management style, the manager becomes the sole decision maker.
The manager does not care about the subordinates and their involvement in
decision making. Therefore, the decisions reflect the personality and the opinion of
the manager.
The decision does not reflect the team's collective opinion. In some cases, this style
of management can move a business towards its goals rapidly and can fight
through a challenging time.
If the manager has a great personality, experience and exposure, the decisions
made by him or her could be better than collective decision making. On the other
hand, subordinates may become dependent upon the manager's decisions and may
require thorough supervision.
There are two types of autocratic managers:
 Directive autocrat. This type of managers make their decisions alone and supervise the
subordinates closely.
 Permissive autocrat. This type of managers make their decisions alone, but allows
subordinates to freely execute the decisions.

Democratic
In this style, the manager is open to other's opinions and welcome their contribution
into the decision making process. Therefore, every decision is made with the
majority's agreement.
The decisions made reflect the team's opinion. For this management style to work
successfully, robust communication between the managers and the subordinates is
a must.

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This type of management is most successful when it comes to decision making on a

complex matter where a range of expert advice and opinion is required.
Before making a business decision, usually a series of meetings or brainstorming
sessions take place in the organizations. These meetings are properly planned and
documented.
Therefore, organization can always go back to the decision making process and see
the reasons behind certain decisions. Due to the collective nature, this style of
management gives more employee satisfaction.
If decision making through the democratic style takes too long for a critical situation,
then it is time to employ autocrat management style before it is too late.

Paternalistic
This is one of the dictatorial types of management. The decisions made are usually
for the best interest of the company as well as the employees.
When the management makes a decision, it is explained to the employees and
obtains their support as well.
In this management style, work-life balance is emphasized and it eventually
maintains a high morale within the organization. In the long run, this guarantees the
loyalty of the employees.
One disadvantage of this style is that the employees may become dependent on the
managers. This will limit the creativity within the organization.

Laissez-faire
In this type of management, the manager is a facilitator for the staff. The employees
take the responsibility of different areas of their work. Whenever the employees face
an obstacle, the manager intervenes and removes it. In this style, the employee is
more independent and owns his or her responsibilities. The manager has only a
little managerial tasks to perform.
When compared with other styles, a minimum communication takes place in this
management style between the employees and the managers.
This style of management is the best suited for companies such as technology
companies where there are highly professional and creative employees.

Conclusion
Different management styles are capable of handling different situations and solving
different problems.
Therefore, a manager should be a dynamic person, who has insight into many types
of management styles.

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Communications Management
Introduction
Often you would come across organizations that stress the importance of good
communication management. It's empirical for an organization to have a proper
communication management.
Once this is achieved, the organization is one step closer to achieving its overall
business objectives. Communication management refers to a systematic plan,
which implements and monitors the channels and content of communication.
To become a good manager, one must have a contingency approach at hand when
it comes to communicating with employees.
An effective communication management is considered to be a lifeline for many
projects that an organization undertakes as well as any department of the
organization.

The Five W's of Communication Management

The five W's in communication are crucial and need to be addressed for a project or
organizational function to be successful by means of an effective communication
management.
Following are the five W's of communications management:
 What information is essential for the project?
 Who requires information and what type of information is needed?
 What is the duration of time required for the information?
 What type or format of information is required?
 Who are the person/s who will be responsible for transmitting the collated information?
The five W's in communication management are only the guidelines. Therefore, you
do need to take other considerations into account, such as cost and access to
information.

The Communication Process

The main objective of communication management is to ensure smooth flow of
information from either between two people or a group.
Let us examine the communication process with the use of a diagram.

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The communication process consists of three main divisions; sender transmits a

message via a channel to the receiver. As per the above diagram, the sender first
develops an idea, which then can be processed as a message.
This message is transmitted to the receiver. The receiver has to interpret the
message to understand its meaning.
When it comes to the interpretation, the context of the message should be used for
deriving the meaning. Furthermore, for this communication process model, you will
also utilize encoding and decoding.
Encoding refers to developing a message and decoding refers to interpreting or
understanding the message. You will also notice the feedback factor, which the
sender and receiver both involve.
Feedback is crucial for any communication process to be successful. Feedback
allows immediate managers or supervisors to analyze how well subordinates
understand the information provided and to know the performance of work.

Methods of Communication
Understanding the communication process alone will not guarantee success for
managers or an organization. Managers need to be aware of the methods used in
the communication process.
The standard methods of communication that are widely used by managers and
organizations across the world are either written or oral methods.
Apart from these two mechanisms, non-verbal communication is another prominent
method used to assess communication within the organization.
Non-verbal communication refers to the use of body language as a method of
communication. This method will include gestures, actions, physical appearance as
well as facial appearance and attitude.
Although most of these methods are still in use for a larger part of the organization,
the usage of e-mail and other electronic mediums as a method of communication
has lessened the need for face-to-face communication.
This sometimes leads to situations where both parties involved do not trust or feel
comfortable with each other and also the messages can be easily misinterpreted.

Oral Communication Skills

A large proportion of oral communication is directly involved in communications
management. For example, if a manager does not converse or make it clear to a
sales team, this may lead to differences in objectives and achievements.

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There are two aspects of oral communication, active listening and constructive
feedback.

Active Listening
This is where the person, who receives the message pays attention to the
information, interprets and remembers.
As you would be aware, listening helps you to pay attention and following are some
points, which illustrate active listening.
 Making eye contact with the relevant party
 Making sure to clarify questions if it's not clear
 Avoiding using gestures, which are distracting or uncomfortable

Constructive Feedback
This is where managers fail most of the time. Feedback needs to be constructive
and then it will help the employees to shape up their performance instead of mere
criticism.

Conclusion
Communication management is vital for any organization irrespective of its size. It
contributes to achieving the company's overall objectives as well as creates a
positive and friendly environment.
An effective communication process within the organization will lead to an increase
in profits, high employee satisfaction and brand recognition.

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Project Risk Management

Introduction
Risk is inevitable in a business organization when undertaking projects. However,
the project manager needs to ensure that risks are kept to a minimal. Risks can be
mainly divided between two types, negative impact risk and positive impact risk.
Not all the time would project managers be facing negative impact risks as there are
positive impact risks too. Once the risk has been identified, project managers need
to come up with a mitigation plan or any other solution to counter attack the risk.

Project Risk Management

Managers can plan their strategy based on four steps of risk management which
prevails in an organization. Following are the steps to manage risks effectively in an
organization:
 Risk Identification
 Risk Quantification
 Risk Response
 Risk Monitoring and Control
Let's go through each of the step in project risk management:

Risk Identification
Managers face many difficulties when it comes to identifying and naming the risks
that occur when undertaking projects. These risks could be resolved through
structured or unstructured brainstorming or strategies. It's important to understand
that risks pertaining to the project can only be handled by the project manager and
other stakeholders of the project.
Risks, such as operational or business risks will be handled by the relevant teams.
The risks that often impact a project are supplier risk, resource risk and budget risk.
Supplier risk would refer to risks that can occur in case the supplier is not meeting
the timeline to supply the resources required.
Resource risk occurs when the human resource used in the project is not enough or
not skilled enough. Budget risk would refer to risks that can occur if the costs are
more than what was budgeted.

Risk Quantification
Risks can be evaluated based on quantity. Project managers need to analyze the
likely chances of a risk occurring with the help of a matrix.

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Using the matrix, the project manager can categorize the risk into four categories as
Low, Medium, High and Critical. The probability of occurrence and the impact on the
project are the two parameters used for placing the risk in the matrix categories. As
an example, if a risk occurrence is low (probability = 2) and it has the highest impact
(impact = 4), the risk can be categorized as 'High'.

Risk Response
When it comes to risk management, it depends on the project manager to choose
strategies that will reduce the risk to minimal. Project managers can choose
between the four risk response strategies, which are outlined below.
 Risks can be avoided
 Pass on the risk
 Take corrective measures to reduce the impact of risks
 Acknowledge the risk

Risk Monitoring and Control

Risks can be monitored on a continuous basis to check if any change is made. New
risks can be identified through the constant monitoring and assessing mechanisms.

Risk Management Process

Following are the considerations when it comes to risk management process:
 Each person involved in the process of planning needs to identify and understand the
risks pertaining to the project.
 Once the team members have given their list of risks, the risks should be consolidated to
a single list in order to remove the duplications.
 Assessing the probability and impact of the risks involved with the help of a matrix.
 Split the team into subgroups where each group will identify the triggers that lead to
project risks.
 The teams need to come up with a contingency plan whereby to strategically eliminate
the risks involved or identified.
 Plan the risk management process. Each person involved in the project is assigned a
risk in which he/she looks out for any triggers and then finds a suitable solution for it.

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Risk Register
Often project managers will compile a document, which outlines the risks involved
and the strategies in place. This document is vital as it provides a huge deal of
information.
Risk register will often consist of diagrams to aid the reader as to the types of risks
that are dealt by the organization and the course of action taken. The risk register
should be freely accessible for all the members of the project team.

Project Risk: Opportunity or Threat?

As mentioned above, risks contain two sides. It can be either viewed as a negative
element or a positive element. Negative risks can be detrimental factors that can
haphazard situations for a project.
Therefore, these should be curbed once identified. On the other hand, positive risks
can bring about acknowledgements from both the customer and the management.
All the risks need to be addressed by the project manager.

Conclusion
An organization will not be able to fully eliminate or eradicate risks. Every project
engagement will have its own set of risks to be dealt with. A certain degree of risk
will be involved when undertaking a project.
The risk management process should not be compromised at any point, if ignored
can lead to detrimental effects. The entire management team of the organization
should be aware of the project risk management methodologies and techniques.
Enhanced education and frequent risk assessments are the best way to minimize
the damage from risks.

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Project Time Management

Introduction
Time is a terrible resource to waste. This is the most valuable resource in a project.
Every delivery that you are supposed to make is time-bound. Therefore, without
proper time management, a project can head towards a disaster.
When it comes to project time management, it is not just the time of the project
manager, but it is the time management of the project team.
Scheduling is the easiest way of managing project time. In this approach, the
activities of the project are estimated and the durations are determined based on
the resource utilization for each activity.
In addition to the estimate and resource allocation, cost always plays a vital role in
time management. This is due to the fact that schedule over-runs are quite
expensive.

The Steps of the Time Management Process

Following are the main steps in the project time management process. Each
addresses a distinct area of time management in a project.
1. Defining Activities
When it comes to a project, there are a few levels for identifying activities. First of
all, the high-level requirements are broken down into high-level tasks or
deliverables.
Then, based on the task granularity, the high-level tasks/deliverables are broken
down into activities and presented in the form of WBS (Work Breakdown Structure).
2. Sequencing Activities
In order to manage the project time, it is critical to identify the activity sequence. The
activities identified in the previous step should be sequenced based on the
execution order.
When sequencing, the activity interdependencies should be considered.
3. Resource Estimating for Activities
The estimation of amount and the types of resources required for activities is done
in this step. Depending on the number of resources allocated for an activity, its
duration varies.
Therefore, the project management team should have a clear understanding about
the resources allocation in order to accurately manage the project time.
4. Duration and Effort Estimation
This is one of the key steps in the project planning process. Since estimates are all
about the time (duration), this step should be completed with a higher accuracy.

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For this step, there are many estimation mechanisms in place, so your project
should select an appropriate one.
Most of the companies follow either WBS based estimating or Function Points
based estimates in this step.
Once the activity estimates are completed, critical path of the project should be
identified in order to determine the total project duration. This is one of the key
inputs for the project time management.
5. Development of the Schedule
In order to create an accurate schedule, a few parameters from the previous steps
are required.
Activity sequence, duration of each activity and the resource
requirements/allocation for each activity is the most important factors.
In case if you perform this step manually, you may end up wasting a lot of valuable
project planning time. There are many software packages, such as Microsoft
Project, that will assist you to develop reliable and accurate project schedule.
As part of the schedule, you will develop a Gantt chart in order to visually monitor
the activities and the milestones.
6. Schedule Control
No project in the practical world can be executed without changes to the original
schedule. Therefore, it is essential for you to update your project schedule with
ongoing changes.

Conclusion
Time management is a key responsibility of a project manager. The project
manager should equip with a strong skill and sense for time management.
There are a number of time management techniques that have been integrated into
the management theories and best practices.
As an example, Agile/Scrum project management style has its own techniques for
time management.
In addition, if you are keen on learning time management into greater depths, you
can always get into a training course of one of the reputed and respected time
management trainers.

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Total Quality Management (TQM)

Introduction
There are many approaches in the business domain in order to achieve and exceed
the quality expectations of the clients.
For this, most companies integrate all quality-related processes and functions
together and control it from a central point.
As the name suggests, Total Quality Management takes everything related to
quality into consideration, including the company processes, process outcomes
(usually products or services) and employees.

The Origin
The origin of the TQM goes back to the time of the First World War. During the
World War I, there have been a number of quality assurance initiatives taken place
due to the large-scale manufacturing required for war efforts.
The military fronts could not afford poor quality products and suffered heavy losses
due to the poor quality. Therefore, different stakeholders of the war initiated efforts
to enhance the manufacturing quality.
First of all, quality inspectors were introduced to the assembly lines in order to
inspect the quality. Products below certain quality standard were sent back for
fixing.
Even after World War I ended, the practice of using quality inspectors continued in
manufacturing plants. By this time, quality inspectors had more time in their hands
to perform their job.
Therefore, they came up with different ideas of assuring the quality. These efforts
led to the origin of Statistical Quality Control (SQC). Sampling was used in this
method for quality control.
As a result, quality assurance and quality control cost reduced, as inspection of
every production item was need in this approach.
During the post-World War II era, Japanese manufacturers produced poor quality
products. As a result of this, Japanese government invited Dr. Deming to train
Japanese engineers in quality assurance processes.
By 1950, quality control and quality assurance were core components of Japanese
manufacturing processes and employees of all levels within the company adopted
these quality processes.
By 1970s, the idea of total quality started surfacing. In this approach, all the
employees (from CEO to the lowest level) were supposed to take responsibility of
implementing quality processes for their respective work areas.
In addition, it was their responsibility to quality control, their own work.

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Basic Principles of TQM

In TQM, the processes and initiatives that produce products or services are
thoroughly managed. By this way of managing, process variations are minimized,
so the end product or the service will have a predictable quality level.
Following are the key principles used in TQM:
 Top management - The upper management is the driving force behind TQM. The upper
management bears the responsibility of creating an environment to rollout TQM
concepts and practices.
 Training needs - When a TQM rollout is due, all the employees of the company need to
go through a proper cycle of training. Once the TQM implementation starts, the
employees should go through regular trainings and certification process.
 Customer orientation - The quality improvements should ultimately target improving the
customer satisfaction. For this, the company can conduct surveys and feedback forums
for gathering customer satisfaction and feedback information.
 Involvement of employees - Pro-activeness of employees is the main contribution from
the staff. The TQM environment should make sure that the employees who are
proactive are rewarded appropriately.
 Techniques and tools - Use of techniques and tools suitable for the company is one of
the main factors of TQM.
 Corporate culture - The corporate culture should be such that it facilitates the
employees with the tools and techniques where the employees can work towards
achieving higher quality.
 Continues improvements - TQM implementation is not a one time exercise. As long as
the company practices TQM, the TQM process should be improved continuously.

The Cost
Some companies are under the impression that the cost of TQM is higher than the
benefits it offers. This might be true for the companies in small scale, trying to do
everything that comes under TQM.
According to a number of industrial researches, the total cost of poor quality for a
company always exceeds the cost of implementing TQM.
In addition, there is a hidden cost for the companies with poor quality products such
as handling customer complaints, re-shipping, and the overall brand name damage.

Conclusion
Total Quality Management is practiced by many business organizations around the
world. It is a proven method for implementing a quality conscious culture across all
the vertical and horizontal layers of the company.
Although there are many benefits, one should take the cost into the account when
implementing TQM.

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For small-scale companies, the cost could be higher than the short and mid term
benefits.

Procurement Management
Introduction
Today, different organizations employ various management techniques to carry out
the efficient functioning of their departments. Procurement management is one such
form of management, where goods and services are acquired from a different
organization or firm.
All organizations deal with this form of management at some point in the life of their
businesses. It is in the way the procurement is carried out and the planning of the
process that will ensure the things run smoothly.
But with many other management techniques in use, is there any special reason to
use this particular form of management to acquire goods and services? Yes, this is
one of the frequent questions asked regarding procurement management.
Procurement management is known to help an organization to save much of the
money spent when purchasing goods and services from outside. It also has several
other advantages.

How Does Procurement Management Works?

Following are the four main working areas of concerns when it comes to
procurement management. The following points should be considered whenever
procurement process is involved:
 Not all goods and services that a business requires need to be purchased from outside.
It is for this reason that it is very essential to weigh the pros and cons of purchasing or
renting these goods and services from outside.
You would need to ask yourself whether it would in the long run be cost-effective and
whether it is absolutely necessary.
 You would need to have a good idea of what you exactly require and then go on to
consider various options and alternatives. Although there may be several suppliers, who
provide the same goods and services, careful research would show you whom of these
suppliers will give you the best deal for your organization.
You can definitely call for some kind of bidding for your requirement by these vendors
and use a selection criterion to select the best provider.
 The next step typically would be to call for bids. During this stage, the different suppliers
will provide you with quotes.
This stage is similar to that of choosing projects, as you would need to consider different
criteria, apart from just the cost, to finally decide on which supplier you would want to go
with.
 After the evaluation process, you would be able to select the best supplier. You would
then need to move on to the step of discussing what should go into the contract.
Remember to mention all financing terms how you wish to make the payments, and so
on, so as to prevent any confusion arising later on, as this contract will be binding.

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Always remember that it is of utmost importance to maintain a good relationship with the
supplier. This includes coming up with an agreement that both would find satisfactory.
This helps the sustainability of your business as well as the supplier's business.
These four simple steps would help you acquire your goods easily and quickly
without much hassle, but always requires careful consideration at each stage.

Making the Process Work Efficiently

In order to ensure that everything goes well through to the end, you would have to
keep track of the progress of the procurement. This would mean that you should
keep checking on the suppliers in order to ensure that they are abiding by the terms
of the contract and will be able to supply you with the goods and services by the
deadline.
Should there be any discrepancies or any issues, you should always let the supplier
know by means of the method of communication decided on at the time of making
the contract.
The organization must always be willing and open to change. This is in respect of all
changes required in order to ensure the efficiency of the process. These changes
could be in the form of technological advancements and even changes to the
workforce, among other changes.
In terms of technology, any new equipment and machinery required to handle these
goods may need to be purchased.
Similarly, with regard to the workforce, you would need to employ workers, who are
highly skilled and trained when it comes to dealing directly with suppliers.
It is always best for an organization to have different teams within who are
specialized in different fields. This would make procurement management even
easier. Each team could then deal with the relevant areas of buying and will also
have the expertise required. For example, those who have experience buying
machinery may not have the same skill when it comes to getting particular services
from another organization.

Conclusion
It should be kept in mind, however, that this procurement management system must
run efficiently and smoothly for all benefits to be reaped. The key to this would
therefore be an efficient system as well as the right supplier and resources.
For the purpose of procurement management, there should be a team of highly
trained individuals, if procurement management plays a key role.
As an example, a hospital should have a dedicated procurement team and should
employ strong procurement management techniques and tools.

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Stakeholder Management
Introduction
When working on a project, there are many people or organizations that are
dependent on and/or are affected by the final product or output. These people are
the stakeholders of a project.
Stakeholder management involves taking into consideration the different interests
and values stakeholders have and addressing them during the duration of the
project to ensure that all stakeholders are happy at the end.
This branch of management is important because it helps an organization to
achieve its strategic objectives by involving both the external and internal
environments and by creating a positive relationship with stakeholders through good
management of their expectations.
Stakeholder management is also important because it helps identify positive
existing relationships with stakeholders. These relationships can be converted to
coalitions and partnerships, which go on to build trust and encourage collaboration
among the stakeholders.

How Does Stakeholder Management Work?

Stakeholder management, in a business project sense, works through a strategy.
This strategy is created using information gathered through the following processes:
 Stakeholder Identification - It is first important to note all the stakeholders involved,
whether internal or external. An ideal way to do this is by creating a stakeholder map.
 Stakeholder Analysis - Through stakeholder analysis, it is the manager's job to identify
a stakeholder's needs, interfaces, expectations, authority and common relationship.
 Stakeholder Matrix - During this process, managers position stakeholders using
information gathered during the stakeholder analysis process. Stakeholders are
positioned according to their level of influence or enrichment they provide to the project.
 Stakeholder Engagement - This is one of the most important processes of stakeholder
management where all stakeholders engage with the manager to get to know each
other and understand each other better, at an executive level.
This communication is important for it gives both the manager and stakeholder a chance
to discuss and concur upon expectations and most importantly agree on a common set
of Values and Principals, which all stakeholders will stand by.
 Communicating Information - Here, expectations of communication are agreed upon
and the manner in which communication is managed between the stakeholders is
established, that is, how and when communication is received and who receives it.
 Stakeholder Agreements - This is the Lexicon of the project or the objectives set forth.
All key stakeholders sign this stakeholder agreement, which is a collection of all the
agreed decisions.
In today's modern management project practice, managers and stakeholders favor
an honest and transparent stakeholder relationship.

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Failures in Stakeholder Management

Some organizations still endure poor stakeholder management practices and this
arises because of:
 Communicating with a stakeholder too late. This does not allow for ample revision of
stakeholder expectations and hence their views may not be taken into consideration.
 Inviting stakeholders to take part in the decision making process too early. This results in
a complicated decision making process.
 Involving the wrong stakeholders in a project. This results in a reduction in the value of
their contribution and this leads to external criticism in the end.
 The management does not value the contribution of stakeholders. Their participation is
viewed as unimportant and inconsequential.
Whatever way stakeholder management is approached, it should be done
attentively so as to achieve the best results.

Achieving Good Stakeholder Management

Insufficient involvement and ineffective communication with stakeholders can lead
to project failure. The following are a few ideas that can be used to achieve good
stakeholder management practices:
 Management and stakeholders should work together to draw up a realistic list of goals
and objectives. Engaging stakeholders will improve business performance and they take
an active interest in the project.
 Communication is the key. It is important for stakeholders and management to
communicate throughout the course of the project on a regular basis. This ensures that
both parties will be actively engaged and ensure smooth sailing during the course of the
project.
 Agreeing on deliverables is important. This makes sure there is no undue
disappointment at the end. Prototypes and samples during the course of the project
helps stakeholders have a clear understanding regarding the end project.

Conclusion
In conclusion, in order to achieve an outcome from the projects, good stakeholder
management practices are required. Stakeholder management is the effective
management of all participants in a project, be it external or internal contributors.
Arguably, the most important element in stakeholder management is
communication where a manager has to spend his 99% time in doing meetings,
checking and replying e-mails and updating and distributing reports, etc.

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Work Breakdown Structure

Introduction
Dividing complex projects to simpler and manageable tasks is the process identified
as Work Breakdown Structure (WBS).
Usually, the project managers use this method for simplifying the project execution.
In WBS, much larger tasks are broken down to manageable chunks of work. These
chunks can be easily supervised and estimated.
WBS is not restricted to a specific field when it comes to application. This
methodology can be used for any type of project management.
Following are a few reasons for creating a WBS in a project:
 Accurate and readable project organization.
 Accurate assignment of responsibilities to the project team.
 Indicates the project milestones and control points.
 Helps to estimate the cost, time and risk.
 Illustrate the project scope, so the stakeholders can have a better understanding of the
same.

Construction of a WBS
Identifying the main deliverables of a project is the starting point for deriving a work
breakdown structure.
This important step is usually done by the project managers and the subject matter
experts (SMEs) involved in the project. Once this step is completed, the subject
matter experts start breaking down the high-level tasks into smaller chunks of work.
In the process of breaking down the tasks, one can break them down into different
levels of detail. One can detail a high-level task into ten sub-tasks while another can
detail the same high-level task into 20 sub-tasks.
Therefore, there is no hard and fast rule on how you should breakdown a task in
WBS. Rather, the level of breakdown is a matter of the project type and the
management style followed for the project.
In general, there are a few "rules" used for determining the smallest task chunk. In
"two weeks" rule, nothing is broken down smaller than two weeks worth of work.
This means, the smallest task of the WBS is at least two-week long. 8/80 is another
rule used when creating a WBS. This rule implies that no task should be smaller
than 8 hours of work and should not be larger than 80 hours of work.
One can use many forms to display their WBS. Some use tree structure to illustrate
the WBS, while others use lists and tables. Outlining is one of the easiest ways of
representing a WBS.

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Following example is an outlined WBS:

There are many design goals for WBS. Some important goals are as follows:
 Giving visibility to important work efforts.
 Giving visibility to risky work efforts.
 Illustrate the correlation between the activities and deliverables.
 Show clear ownership by task leaders.

WBS Diagram
In a WBS diagram, the project scope is graphically expressed. Usually the diagram
starts with a graphic object or a box at the top, which represents the entire project.
Then, there are sub-components under the box.
These boxes represent the deliverables of the project. Under each deliverable,
there are sub-elements listed. These sub-elements are the activities that should be
performed in order to achieve the deliverables.
Although most of the WBS diagrams are designed based on the deliveries, some
WBS are created based on the project phases. Usually, information technology
projects are perfectly fit into WBS model.
Therefore, almost all information technology projects make use of WBS.
In addition to the general use of WBS, there is specific objective for deriving a WBS
as well. WBS is the input for Gantt charts, a tool that is used for project
management purpose.
Gantt chart is used for tracking the progression of the tasks derived by WBS.
Following is a sample WBS diagram:

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Conclusion
The efficiency of a work breakdown structure can determine the success of a
project.
The WBS provides the foundation for all project management work, including,
planning, cost and effort estimation, resource allocation, and scheduling.
Therefore, one should take creating WBS as a critical step in the process of project
management.

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Critical Path Method

Introduction
If you have been into project management, I'm sure you have already heard the
term 'critical path method.'
If you are new to the subject, it is best to start with understanding the 'critical path'
and then move on to the 'critical path method.'
Critical path is the sequential activities from start to the end of a project. Although
many projects have only one critical path, some projects may have more than one
critical paths depending on the flow logic used in the project.
If there is a delay in any of the activities under the critical path, there will be a delay
of the project deliverables.
Most of the times, if such delay is occurred, project acceleration or re-sequencing is
done in order to achieve the deadlines.
Critical path method is based on mathematical calculations and it is used for
scheduling project activities. This method was first introduced in 1950s as a joint
venture between Remington Rand Corporation and DuPont Corporation.
The initial critical path method was used for managing plant maintenance projects.
Although the original method was developed for construction work, this method can
be used for any project where there are interdependent activities.
In the critical path method, the critical activities of a program or a project are
identified. These are the activities that have a direct impact on the completion date
of the project.

Key Steps in Critical Path Method

Let's have a look at how critical path method is used in practice. The process of
using critical path method in project planning phase has six steps.

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Step 1: Activity specification

You can use the Work Breakdown Structure (WBS) to identify the activities involved
in the project. This is the main input for the critical path method.
In activity specification, only the higher-level activities are selected for critical path
method.
When detailed activities are used, the critical path method may become too
complex to manage and maintain.
Step 2: Activity sequence establishment
In this step, the correct activity sequence is established. For that, you need to ask
three questions for each task of your list.
 Which tasks should take place before this task happens.
 Which tasks should be completed at the same time as this task.
 Which tasks should happen immediately after this task.

Step 3: Network diagram

Once the activity sequence is correctly identified, the network diagram can be
drawn (refer to the sample diagram above).
Although the early diagrams were drawn on paper, there are a number of computer
softwares, such as Primavera, for this purpose nowadays.
Step 4: Estimates for each activity
This could be a direct input from the WBS based estimation sheet. Most of the
companies use 3-point estimation method or COCOMO based (function points
based) estimation methods for tasks estimation.
You can use such estimation information for this step of the process.
Step 5: Identification of the critical path
For this, you need to determine four parameters of each activity of the network.
 Earliest start time (ES) - The earliest time an activity can start once the previous
dependent activities are over.
 Earliest finish time (EF) - ES + activity duration.
 Latest finish time (LF) - The latest time an activity can finish without delaying the project.
 Latest start time (LS) - LF - activity duration.
The float time for an activity is the time between the earliest (ES) and the latest (LS)
start time or between the earliest (EF) and latest (LF) finish times.
During the float time, an activity can be delayed without delaying the project finish
date.
The critical path is the longest path of the network diagram. The activities in the
critical path have an effect on the deadline of the project. If an activity of this path is
delayed, the project will be delayed.

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In case if the project management needs to accelerate the project, the times for
critical path activities should be reduced.
Step 6: Critical path diagram to show project progresses
Critical path diagram is a live artefact. Therefore, this diagram should be updated
with actual values once the task is completed.
This gives more realistic figure for the deadline and the project management can
know whether they are on track regarding the deliverables.

Advantages of Critical Path Method

Following are advantages of critical path methods:
 Offers a visual representation of the project activities.
 Presents the time to complete the tasks and the overall project.
 Tracking of critical activities.

Conclusion
Critical path identification is required for any project-planning phase. This gives the
project management the correct completion date of the overall project and the
flexibility to float activities.
A critical path diagram should be constantly updated with actual information when
the project progresses in order to refine the activity length/project duration
predictions.

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Resource Leveling
Introduction
Resource leveling is a technique in project management that overlooks resource
allocation and resolves possible conflict arising from over-allocation. When project
managers undertake a project, they need to plan their resources accordingly.
This will benefit the organization without having to face conflicts and not being able
to deliver on time. Resource leveling is considered one of the key elements to
resource management in the organization.
An organization starts to face problems if resources are not allocated properly i.e.,
some resource may be over-allocated whilst others will be under-allocated. Both will
bring about a financial risk to the organization.

The Two Key Elements of Resource leveling

As the main aim of resource leveling is to allocate resource efficiently, so that the
project can be completed in the given time period. Hence, resource leveling can be
broken down into two main areas; projects that can be completed by using up all
resources, which are available and projects that can be completed with limited
resources.
Projects, which use limited resources can be extended for over a period of time until
the resources required are available. If then again, the number of projects that an
organization undertakes exceeds the resources available, then it's wiser to
postpone the project for a later date.

Structure of Resource leveling

Many organizations have a structured hierarchy of resource leveling. A work-based
structure is as follows:

 Stage
 Phase
 Task/Deliverable
All of the above-mentioned layers will determine the scope of the project and find
ways to organize tasks across the team. This will make it easier for the project team
to complete the tasks.
In addition, depending on the three parameters above, the level of the resources
required (seniority, experience, skills, etc.) may be different. Therefore, the resource
requirement for a project is always a variable, which is corresponding to the above
structure.

Establishing Dependencies

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The main reason for a project manager to establish dependencies is to ensure that
tasks get executed properly. By identifying correct dependencies from that of
incorrect dependencies allows the project to be completed within the set timeframe.
Here are some of the constraints that a project manager will come across during the
project execution cycle. The constraints a project manager will face can be
categorized into three categories.
 Mandatory - These constraints arise due to physical limitations such as experiments.
 Discretionary - These are constraints based on preferences or decisions taken by
teams.
 External - Often based on needs or desires involving a third party.

The Process of Assigning Resources

For resource leveling to take place, resources are delegated with tasks
(deliverables), which needs execution. During the starting phase of a project,
idealistically the roles are assigned to resources (human resources) at which point
the resources are not identified.
Later, these roles are assigned to specific tasks, which require specialization.

Leveling of Resources
Resource leveling helps an organization to make use of the available resources to
the maximum. The idea behind resource leveling is to reduce wastage of resources
i.e., to stop over-allocation of resources.
Project manager will identify time that is unused by a resource and will take
measures to prevent it or making an advantage out of it.
By resource conflicts, there are numerous disadvantages suffered by the
organization, such as:
 Delay in certain tasks being completed
 Difficulty in assigning a different resource
 Unable to change task dependencies
 To remove certain tasks
 To add more tasks
 Overall delays and budget overruns of projects

Resource leveling Techniques

Critical path is a common type of technique used by project managers when it
comes to resource leveling. The critical path represents for both the longest and
shortest time duration paths in the network diagram to complete the project.
However, apart from the widely used critical path concept, project managers use
fast tracking and crashing if things get out of hand.

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 Fast tracking - This performs critical path tasks. This buys time. The prominent feature
of this technique is that although the work is completed for the moment, possibility of
rework is higher.
 Crashing - This refers to assigning resources in addition to existing resources to get
work done faster, associated with additional cost such as labor, equipment, etc.

Conclusion
Resource leveling is aimed at increasing efficiency when undertaking projects by
utilizing the resources available at hand. Proper resource leveling will not result in
heavy expenditure.
The project manager needs to take into account several factors and identify critical
to non-critical dependencies to avoid any last minute delays of the project
deliverables.

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Statement of Work (SOW)

Introduction
When it comes to implementing or constructing large and complex systems (such
as an enterprise software system), the work requirements and conditions should be
properly documented. Statement of Work (SOW) is such document that describes
what needs to be done in the agreed contract.
Usually, the SOW is written in a precise and definitive language that is relevant to
the field of business. This prevents any misinterpretations of terms and
requirements.
An SOW covers the work requirements for a specific project and addresses the
performance and design requirements at the same time.
Whenever requirements are detailed or contained within a supplementary
document, SOW makes reference to the specific document.
The SOW defines the scope and the working agreements between two parties,
typically between a client and a service provider. Therefore, SOW carries a legal
gravity as well.

Purpose of SOW
The main purpose of a SOW is to define the liabilities, responsibilities and work
agreements between clients and service providers.
A well-written SOW will define the scope of the engagement and Key Performance
Indicators (KPIs) for the engagement.
Therefore, the KPIs can be used to determine whether the service provider has met
conditions of the SOW and use it as a baseline for future engagements.
SOW contains all details of non-specifications requirements of the contractor or
service provider's effort. Whenever specifications are involved, the references are
made from SOW to specific specification documents.
These specification documents can be functional requirements or non-functional
requirements.
Functional requirements (in a software system) define how the software should
behave functionally and non-functional requirements detail other characteristics of
the software such as performance, security, maintainability, configuration
management, etc.

Format of SOW
The SOW formats differ from one industry to another. Regardless of the industry,
some key areas of the SOW are common. Following are the commonly addressed
areas in a SOW:

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1. Scope

This section describes the work to be done in a technical manner. If the system to
be built is a software system, this section defines the hardware and software
requirements along with the exact work to be done in terms of the final system.
If there is anything 'out of scope', those areas are also mentioned under a suitable
subheading.

2. Location

The location where the work is performed is mentioned under this section. This
section also details the hardware and software specifications. In addition to that, a
description about human resources and how they work are addressed here.

3. Timelines

This defines the timeline allocated for the projects. It includes the development time,
warranty time and maintenance time. In addition to calendar time, the man days
(total effort) required to complete the project is also noted.

4. Delivery schedule

This section of the SOW describes the deliveries and the due dates for the
deliveries.

5. Standards

The standards (internal or external) are defined in this section. All deliveries and
work done should comply with the standards defined in this section of the
document.

6. Acceptance Criteria

This section defines the minimum requirements for accepting deliverables. It also
describes the criteria used for acceptance.

7. Mode of contract and payments

There are a number of engagement models when it comes to contracting a service

provider.
In the domain of software development, there are two distinct contract models, fixed
bid and a retainer.
In fixed bid, the project cost is a constant and it is up to the service provider to
optimize the resource allocation in order to maintain the profit margins.
The client does not worry about the number of resources, as long as the delivery
schedule is met. In the retainer model, the client pays for the number of resources
allocated to the project.

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Since SOW is an integrated part of a project, almost all senior members of the
project team should become aware of terms and conditions of the SOW.
Sometimes, especially in software development projects, a penalty is applied if the
delivery dates are missed. Therefore, everyone should be aware of such
demanding terms of a SOW.

Conclusion
SOW is a critical document for project management. It defines the scope of the
work and the work agreements. Therefore, all stakeholders of the project should
have a thorough understanding of the SOW of the project and adhere to it.

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Project Contract Types

Introduction
In the world of business, contracts are used for establishing business deals and
partnerships. The parties involved in the business engagement decide the type of
the contract.
Usually, the type of the contract used for the business engagement varies
depending on the type of the work and the nature of the industry.
The contract is simply an elaborated agreement between two or more parties. One
or more parties may provide products or services in return to something provided by
other parties (client).
The contract type is the key relationship between the parties engaged in the
business and the contract type determines the project risk.
Let' have a look at most widely used contract types.

Fixed Price (Lump Sum)

This is the simplest type of all contracts. The terms are quite straightforward and
easy to understand.
To put in simple, the service provider agrees to provide a defined service for a
specific period of time and the client agrees to pay a fixed amount of money for the
service.
This contract type may define various milestones for the deliveries as well as KPIs
(Key Performance Indicators). In addition, the contractor may have an acceptance
criteria defined for the milestones and the final delivery.
The main advantages of this type of contract are that the contractor knows the total
project cost before the project commences.

Unit Price
In this model, the project is divided into units and the charge for each unit is defined.
This contract type can be introduced as one of the more flexible methods compared
to fixed price contract.
Usually, the owner (contractor/client) of the project decides on the estimates and
asks the bidders to bid of each element of the project.
After bidding, depending on the bid amounts and the qualifications of bidders, the
entire project may be given to the same service provider or different units may be
allocated to different service providers.
This is a good approach when different project units require different expertise to
complete.

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Cost Plus
In this contract model, the services provider is reimbursed for their machinery,
labour and other costs, in addition to contractor paying an agreed fee to the service
provider.
In this method, the service provider should offer a detailed schedule and the
resource allocation for the project. Apart from that, all the costs should be properly
listed and should be reported to the contractor periodically.
The payments may be paid by the contractor at a certain frequency (such as
monthly, quarterly) or by the end of milestones.

Incentive
Incentive contracts are usually used when there is some level of uncertainty in the
project cost. Although there are nearly-accurate estimations, the technological
challenges may impact on the overall resources as well as the effort.
This type of contract is common for the projects involving pilot programs or the
project that harness new technologies.
There are three cost factors in an Incentive contract; target price, target profit and
the maximum cost.
The main mechanism of Incentive contract is to divide any target price overrun
between the client and the service provider in order to minimize the business risks
for both parties.

Retainer (Time and Material - T&M)

This is one of the most beautiful engagements that can get into by two or more
parties. This engagement type is the most risk-free type where the time and
material used for the project are priced.
The contractor only requires knowing the time and material for the project in order to
make the payments. This type of contract has short delivery cycles, and for each
cycle, separate estimates are sent of the contractor.
Once the contractor signs off the estimate and Statement of Work (SOW), the
service provider can start work.
Unlike most of the other contract types, retainer contracts are mostly used for long-
term business engagements.

Percentage of Construction Fee

This type of contracts is used for engineering projects. Based on the resources and
material required, the cost for the construction is estimated.
Then, the client contracts a service provider and pays a percentage of the cost of
the project as the fee for the service provider.

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As an example, take the scenario of constructing a house. Assume that the

estimate comes up to $230,000.
When this project is contracted to a service provider, the client may agree to pay
30% of the total cost as the construction fee which comes up to $69,000.

Conclusion
Selecting the contract type is the most crucial step of establishing a business
agreement with another party. This step determines the possible engagement risks.
Therefore, companies should get into contracts where there is a minimum risk for
their business. It is always a good idea to engage in fixed bids (fixed priced)
whenever the project is short-termed and predictable.
If the project nature is exploratory, it is always best to adopt retainer or cost plus
contract types.

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