Project Management for Business - Case Study Example

Project Management for Business Executive Summary Complexities are increasing while managing present day projects. It has been also observed that even funded projects fail to meet desired objectives and expectations. With increasing research and development in this area, more and more strategies and techniques for project management is being updated, making the process even more complicated. The purpose of the current report is to analyse a project management case study on ‘Universal Credit’. The project aimed at improving the lives of unemployed and welfare-benefitted individuals. The program suffered from many lapses, majorly due to lack of project planning, governance as well as proper skill development. The program also lacked in leadership and mentoring, which was evident from the regular changes in its senior level management positions. The background information of the program has provided elaborate details on lapses and mismanagement, resulting in poor performance. In order to recover the project, the new leader has taken several steps. Apart from the above suggestions, two important recommendations have been provided with the objective of improving the overall progress and filling current loopholes for successful project completion. Contents Introduction 4 Brief background of the project 4 Project Planning and Project Governance 5 Conclusion and Recommendation 7 Reference List 9 Introduction In general, project management involves planning, execution, monitoring as well as evaluation of an ongoing project. Modern projects are becoming increasingly volatile, technology driven, dispersed, skill based and human focus. Presently, increasing complexity in projects calls for project management teams, rather than simply relying in few workers and vendors for successful completion (Andersen and Jessen, 2000). In the current report, the importance of effective project management will be analyzed by evaluating Universal Credit, an organization under the Department for Work & Pensions. It was a new project started by the government with the objective of providing full-time and part-time employment opportunities. However, the project suffered from many setbacks and reviewed with poor performance in just six months of its launch (National Audit Office, 2013). The current report will analyze the various issues that led to the setback. The study will particularly focus on project planning and project governance. The study will also provide recommendations on how proper planning and governance of projects are helpful in improving overall efficiency of any project. Brief background of the project The project titled Universal Credit was launched in the year 2013, for individuals looking for employment opportunities (Government of UK, 2013). The objective behind the launch was that many individuals living on benefits, perceived working as financial risks. In order to make a more affordable benefit system, reduce poverty and dependency on welfare as well as reduce error and fraud levels, the project was established. The project was further sub-divided into various smaller programmes, catering to niche needs of the various sections of the society. A living allowance system was introduced for disabled adults and children. An assessment program was also launched to evaluate work capabilities and benefits provided to the workers. The project was supposed to bring down the number of people living in benefits as well as improve overall living conditions of less-deserved and unemployed people. Even so, the preliminary performance review of the project revealed that even though the planning of Universal Credit was driven by ambition, the overall program suffered from ineffective control and weak management (Association for Project Management, 2013). There were also lapses in project governance such as, the project was low in transparency and motive. It was also reported that much focus was given on the good things, rather than on lapses and unfinished activities. Apart from that, supplier mismanagement also resulted in poor project outcome. In a time period of just six months, the project heads were changed three times, thereby showing a lack of responsibility and leadership in the management. The current leader, Howard Shiplee, has taken certain steps in order to modify the changes and bring success to the project (Government of UK, 2013). Project Planning and Project Governance Project management can be considered as a portfolio of various smaller projects; a proper and effective coordination of which is responsible for the overall success of the project. It can be said that project planning is a critical part in overall project management. In the case study, the project, ‘Universal Credit’, was termed as overambitious as well as possessing limited functionality. Clearly, there was a lack of proper planning and strategy, resulting in failure to achieve the desired results. As suggested by literature, project planning significantly impacts the overall success of a project (Globerson and Zwikael, 2002). Project planning can be described as the process of establishing directions and instructions in such as manner, thereby enabling the team to understand the exact action plan, route to follow in order to complete the project as well as effective utilization of resources for producing exact project deliverables (Meredith and Mantel, 2006). Project planning is the responsibility of the project head or project manager, who needs to ensure proper execution of the project as well as maximum satisfaction to all stakeholders. Proper and effective project planning is advantageous in many ways, such as; Minimizing or eliminating uncertainty. Improving overall efficiency of the planning operation. Gaining a higher understanding of objectives and motives of the project; and Providing a basis for controlling and monitoring of the work (Kerzner, 2006). The overall outcome of any project planning process is desired project objective. In general, a project plan usually consists of elements, including overview, general approach, project objectives, resources, schedules, contractual aspects, planning for risk management, personnel management as well as evaluation of planning methods. According to Russell and Taylor (2003), a successful project planning will include various aspects, such as; Defining the objectives of the project. Identification of activities. Establishing a relationship which takes precedence. Establishing corrective time estimates. Determining completion time for the project. Constant comparison of project objectives with current progress. Constant monitoring of resources and technologies required for successful completion of the project. Apart from the above priorities, project planning also includes proper coordination among team members. This is possible only when team members are properly trained as well as delegated with specific roles and responsibilities. The term ‘governance’ can be used to describe the systems and processes through which a society or an organization operates (Winch, 2001). Like project planning, project governance is also a critical element in project management. Project governance is the monitoring and guiding of entire planning that help in conversion of investment decisions into profitable values for the firm as well as in delivery of anticipated and expected benefits (Garland, 2009). Project governance is an influential component as it has many benefits, which are necessary for successful project completion. Few of the main benefits can be summarized as; Effective and most convenient way for resource utilization. Increasing visibility of the project. Timely and effective decision making. Focussed and determined team. The overall value of the project is directly tied with the strategic goals. Project governance can be led by head of the project or can be controlled by a set of committee involved in guidance and business direction. In the present case study, the project owner is the sole leader and responsible authority for the project’s performance. Hence, it can be said that the leadership and management strategies exhibited by the project lead is crucial, while governing any project. For failing projects, the most effective and proven recovery strategy is training and development of staffs and managers. It has been seen that majority of project failures are because of lack of coordination, motive and right information among the working class. So, providing them with the right information and at the right time is necessary for better project performance. Another important project governance activity is to ensure timely and effective assessment of project results and performance. An effective leader is the one, who is always present during the ongoing project or at least, present during critical issues and roadblocks, in order to provide effective suggestions or alternative courses of action. Conclusion and Recommendation It is clear that the project, Universal Credit, lacked effective leadership and proper management, resulting in poor performance within six months of its launch. The new leader, however, has taken several steps in order to transform the ailing project into a successful one. Few of the strategies taken include launching a clear delivery plan and working with better insights. The recovery plan also covered shift of focus from IT to a more people-oriented objective, which was the initial objective during launch of the program. Nonetheless, critics and industry watchdogs have argued that these recovery programs are not enough to enhance the declining project. Apart from the above action plans, various recommendations can be implemented to cushion the project, such as; 1. Creating a single accountability point: Managing finances and accounts, during a project, is a tough task and in order to ensure that all finances are delivering and completed morally and ethically, a single accountable point should be established. The case study demonstrated a lack of coordinated among programs, which later had resulted in finding issues. It is clear that mismanagement of finances led to the situation. So, the leader can establish a single reference point for all financial activities. This can be done by establishing a separate financial department or appointing an external financial manager. 2. Delegating distinguished roles and responsibilities as well as providing appropriate training and development: This can be done by evaluating the skills and qualifications of the team members, along with proper segregation as per job roles and skill sets. For instance, senior executives should be chosen based on their leadership capabilities and should be given training programs on ownership and project execution skills. Similarly, team or project managers should be selected on the basis of their persuasive and interpersonal skills as well as ability to assist and engage. Regular mentoring and coaching of these team members is essential for smooth flow of the project. The base line staff or first line engineers should be appointed, depending on their technical skills and learning capabilities. Therefore, maximum skill utilisation of project members as well as proper training and development facilities can ensure successful project completion. Reference List Andersen, E.S. and Jessen, S.A., 2000. Project evaluation scheme. Project Management, 6(1), pp. 61-69. Association for Project Management, 2013. Universal Credit suffered from poor project management.’ [online] Available at; http://www.apm.org.uk/news/universal-credit-suffered-poor-project-management#.UwLl1M5RJkj [Accessed 18 February 2014]. Garland, R., 2009. Project Governance - A practical guide to effective project decision making. London: Kogan Page. Globerson, S. and Zwikael, O., 2002. Impact of the project manager on project management planning processes. Project Management Journal, 33(3), pp. 58-64. Government of UK, 2013. Simplifying the welfare system and making sure work pays. [online] Available at; https://www.gov.uk/government/policies/simplifying-the-welfare-system-and-making-sure-work-pays [Accessed 18 February 2014]. Kerzner, H., 2006. Project Management: A Systems Approach to Planning, Scheduling and Controlling. New York, NY: Wiley. Meredith, J.R. and Mantel, S.J., 2006. Project Management – A Managerial Approach. New York, NY: Wiley. National Audit Office, 2013. Universal Credit: early progress. [online] Available at; http://www.nao.org.uk/report/universal-credit-early-progress/ [Accessed 18 February 2014]. Russell, R.S. and Taylor, B.W., 2003. Operations Management. Upper Saddle River, NJ: Pearson Education. Winch, G.M., 2001. Governing the project process: a conceptual framework. Construction Management and Economics, 19, pp. 799-808. Read More