The Risk Management Strategy and the Benefits of Using Projects in Controlled Environments - Case Study Example

Lecturer: Introduction PRINCE2, which is an acronym of PRojects IN Controlled Environments version 2009 is a tactical procedure applied in project management to enhance effectiveness. It allows structured project implementation in a consistent and controlled manner, through a series of well-defined steps (Godes & Mayzlin, 2010). This report highlights the benefits of using PRINCE2 in the LU case study and the manner in which the methodology can be applied to enhance accomplishment of project objectives. The risk management strategy has been discussed as well as how the method can be applied to enhance strategic and tactical project management in the business case. LU Case Study Analysis The method is beneficial in project management for several reasons. For instance, the methodology is product-focused and hence all the activities are organized in a way to increase product quality. Moreover, method requires segmentation of the project in to distinct stages that are easily manageable (Hinde, 2012). The method will help the LU team to maintain focus and deliver an excellent outcome of the project at hand. PRINCE2 methodology also enhances communication among the project team members as well as other stakeholders thereby promoting effective control of the project. This is important in ensuring that all the actions undertaken in project implementation are understood by all project team members to avoid misperception and promote ownership of the project goals, which is necessary to ensure that everyone strives to achieve a common purpose. More stakeholders are allowed to contribute to the project decision making since they are at all times offered access to information consistently through reports (David, 2009). With the application of PRINCE2, it is possible to make improvements in the project implementation process because of the continuous monitoring and control. Weaknesses can be detected once they emerge and solutions identified early enough to deter them from causing failure in the implementation of the project plan. The method is flexible to a great extent such that the necessary changes can be made as the project progresses (Archibald et al. 2013). Where the changes during run-time are likely to affect the project timetable, PRINCE2 ensures that the effect is curtailed. The method allows the project team members to acquire time management skills as well as cost effective ways of utilizing project resources due to the high level of organization and control, thereby ensuring that the overall project cost is lowered (Rothaermel, 2012). However, PRINCE2 methodology is not without limitations. It has a relatively high level of inflexibility due to the adherence to a step by step process. Moreover, it is likely that only the project managers may have the full knowledge of PRINCE2, meaning other project players are likely to find it complicated thereby getting discouraged or they might fail to get the best out of its application. Its application in the project will therefore necessitate training of all staff who will be involved in the project to promote competence (Seegers & Hedeman, 2009). Ten days training will be enough to sensitize the project team members and take them through practical examples of applying PRINCE2, as well to demonstrate that the method is applicable to this particular project. It should be conducted by knowledgeable professionals who have applied PRINCE2 methodology successfully in other projects. This will save time and resources during the project implementation. To support strategic and tactical decision-making on the project, it is necessary to include information that will enable successful directing of the project, which takes in to account the actions that allow the project board to make sure the project implementation plan is followed from beginning to project closure. These actions are in all the stages of project implementation. It is necessary to include in the business case the required resources for the project, the people who will undertake all the actions involved as well as the major stakeholders and their role in the project (Thompson and Martin, 2010). The company policy and practices need to be indicated on the business case. The information is necessary to promote understanding of the company guidelines with regards to project management. Different companies have different strategies and therefore decisions for this particular project need to be made in line with the company policies and regulations. This information may be retrieved from the company documents (Archibald et al. 2013). However, a company may have good documentation that does not reflect the actual practices with regards to project management. Moreover, the presence of documents is not an assurance that the policies and procedures they contain are applied in the day to day project activities (Seegers & Hedeman, 2009). It is necessary to have information on the distinct types of documents applied by the company, their usage, complexity and movement across the company. The information offers a checkpoint of the tools applied by the project teams to accomplish projects. Samples of company documents are necessary since they offer suggestion of a starting point from which transformation can be endorsed. It is also important to understand the LU’s corporate culture with regards to project management consultations (Archibald et al. 2013). This information can be acquired from the minutes of project management meetings. This information will help in planning for constructive meetings other than the non-functional ones that have been held in the past Information regarding the issues and the imminent risks should also be included in detail to help in the planning for risk management strategies and also establish measures to deal with emerging issues. According to Parker et al. (2013), projects fail as a result of deliberate incompetence by disgruntled team members who cannot gather enough courage to raise their concerns in public. It is therefore necessary to precisely put forward in the business case the names of team members who are rivals or who cannot work together. It helps to minimize time wastage and facilitate smooth running of the project when all team members work towards accomplishing a common goal. Resources may be set aside to motivate the dis-satisfied members who may feel relegated to unimportant tasks. It is important to have information regarding the cause of bickering between LU, the project team, the construction team and the media savvy historical conservationists. This information will help in developing a liaison strategy to bring cohesion among all these parties. The project cannot progress in isolation and therefore each stakeholder’s needs must be addressed (Portman, 2009). Effective risk management safeguards the project against unexpected occurrences that are likely to interfering with the smooth running of project activities. PRINCE2 requires risk management strategies from the initial stages all through to project closure, thereby giving management the confidence that all the project objectives will be met. The methodology considers risks as uncertain occurrences that have an effect on the accomplishment of objectives (Office of Government Commerce (OGC), 2009). In this scenario, the first step would be to develop a risk management strategy that will help to understand the manner in which risks will be treated in the course of the project. The risk management through PRINCE2 will describe the risk approach for the project at the initial stage, carefully defining the reactions for each risk identified and the necessary resources needed to effectively deal with them (Parker et al. 2013). It is therefore imperative that a risk budget be developed and included in the total project budget. A risk register is necessary and should be maintained throughout the project and contains details of the risks that have been identified within the project, their potential to affect the project outcome as well as their history. The tools and methods to be applied, timing and recording the risk management activities, the risk tasks and tolerances should also be included in the risk management strategy (Seegers & Hedeman, 2009). As a project manager, it is necessary to understand the board’s assertiveness with regards to risk taking as it will have a significant influence on the quantity of risk that is tolerable and hence identification of the most appropriate responses required. Each risk needs to be considered in terms of its cause, which is necessary to allow risk management to start from the root of the risk. The risk event should further be analyzed to allow description of the area of uncertainty. It is also important to analyze the outcome of the risk to determine its impact if it happens (Office of Government Commerce (OGC), 2009). The day to day ledger entries need to be effectively maintained and weekly reports be submitted to allow consistency in record keeping and monitoring of progress. According to (Portman, 2009), most projects fail because of failure of project managers to get the information on time with regards to progress. Frequent assessment of the record keeping allows the project managers to remain updated on the progress and also to reduce the burden of the subordinate staff of compiling huge backlog of information recorded over a long period of time. The meetings in this business case do not yield the expected results because of lack of an appropriate agenda to be discussed. Meetings should be planned well in advance and the information communicated to all those expected to attend. They should also be supplied with the agenda at the time of invitation. Impromptu meetings may lead to project failure since participants do not have an opportunity for preparation raise important issues affecting the project. Monthly project management meetings are necessary to review progress. Strategies to deal with other pressures that affect the outcome of meetings should be developed so that the focus in meetings will be matters concerning the project (Office of Government Commerce (OGC), 2009). Project control from the top to the bottom is necessary to ensure that the plan is implemented according to the laid out plan. In PRINCE2, directing the project allows the creation of emergency processes for the development of innovative plans and how the project management board needs to respond to emergencies. Directing highlights the manner in which the project sponsor regulates the project. For a project to be authorized, the requirements of the sponsor have to be analyzed and the necessary steps undertaken to maintain conformity (Office of Government Commerce (OGC), 2009). In this business case, it is necessary to change the stage plan, taking in to consideration the necessary safety measures that need to be addressed. This is necessary to prevent non-conformity from causing other unforeseen circumstances. Direction in PRINCE2 also involves giving ad hoc bearing to the project so long as it is for the betterment of the project implementation. In this business case, the project board needs to be informed of the necessary changes in design so as to conform to the safety requirements of section 12. It is also necessary to state the budgetary requirements at this stage to ensure that timely planning is done and also to avoid the risk of business closure. The delay in completion of the project will also need to be highlighted so that the business closure date can be adjusted accordingly (Archibald et al. 2013). Once the project conforms to the safety requirements of section 12, it is necessary for the project management to seek certification, which will be necessary in addressing future challenges of a similar nature. Such certification should be safely guarded and the adherence of the requirements followed up and reported in subsequent monthly meetings. Continuous monitoring of adherence to safety measures is necessary so as to ensure that interruptions in project implementation due to stoppages related to safety are avoided (Thompson and Martin, 2010). PRINCE2 requires that projects be divided in to smaller sub-processes that together form the entire process. The sub-processes determine the manner in which each stage of the project is controlled. It comprises the way the project deliverables are certified and received. Monitoring of the project is a significant aspect of PRINCE2. It gives specifics of the manner in which progress needs to be monitored as well as how the important parts of the project should be conveyed to the project board for further action (Rothaermel, 2012). It is important to recommend a strategy to evaluate the project issues as well as the manner in which remedial action should be undertaken. Moreover, a method to relay information on project issues to the project board should be developed (Seegers & Hedeman, 2009). This will be important to allow brainstorming of serious matters such as the evident incompetence among the station engineers. The strategy is important in protecting the image of the company with regards to the LU historical society and Westminster city council’s planning authority, and also promote future prospects for bigger contracts with the local authority. Conclusion PRINCE2 is a strategic approach to project management that involves monitoring and control of projects from inception to the end. The method requires an organized and well-ordered start, continuous organization and control of the project as it progresses as well as an orderly and meticulous termination. It allows effective risk management strategies to be developed thereby helping project managers in risk mitigation. The strategy can be effectively applied by LU to accomplish the project goals. However, it is necessary to train the project team members regarding the application of PRINCE2 so as to promote the ownership of project goals and hence successful accomplishment of objectives. References Archibald, R. D., Ivano D. F. and Shane C. 2013. “Unlocking a Project Team’s High-Performance Potential Using Cognitive Readiness: A Research Study Report and Call to Action”, Project Management World Journal, Vol. 2, 2 pp.223-225 David, F.R. 2009. Strategic Management: Concepts and Cases. 12th ed. FT Prentice Hall, p. 104-114 Godes, D & Mayzlin, D. (2010), “Greater understanding of PRINCE2 needed by stakeholders and boards”, Project Manager Today, Vol. 22(8), pp.16-17 Hinde, D. 2012. PRINCE2 Study Guide, John Wiley & Sons Office of Government Commerce (OGC), 2009. Managing Successful Projects with PRINCE2 2009, Stationary Office Books Parker, D., Charlton, J. & Pathak, R. (2013) “Integration of project-based management and change management: Intervention methodology", International Journal of Productivity and Performance Management, Vol. 62, 5, pp.534 - 544 Portman, H. 2009. PRINCE2 in Practice: A Practical Approach to Create Project Management Documents, Van Haren Publishing Rothaermel, F. T. 2012. Strategic Management: Concepts and Cases. McGraw-Hill/Irwin, p. 56-61 Seegers, B. & Hedeman, R. 2009. PRINCE2 Edition 2009: A Pocket Guide, John Wiley & Sons Thompson, J. and Martin, F. 2010. Strategic Management: Awareness & Change. 6th ed. Cengage Learning EMEA Read More