Identification, Prioritisation, and Implementation of Strategic Initiatives - Coursework Example

METHODOLOGIES OF PROJECT MANAGEMENT 1. INTRODUCTION It is essential for project managers and executives of an organisation to understand the various concepts of project methodologies and processes, it relations to projects, and ways in which project methodologies relate to organisation processes. A project management methodology provides a standard to guide the project team and this includes identification of the roles and responsibilities. PRINCE2 project management methodology requires the existence of a viable business case before a project can begin while PMBOK and AGILE requires the availability of body of knowledge and people’s mindset respectively. The following chapter discuss three popular project management methodologies and how each methodology affects or influence the identification, prioritisation, and implementation of strategic initiatives. 2. METHODOLOGIES OF PROJECT MANAGEMENT 2.1 PRINCE2 2.1.1 INTRODUCTION PRINCE2 or Projects in Control Environments is generally considered as an approach to management that guides managers on how to make changes to product lines, services, and some other aspect of the organisation in an effective way (Fox 2007, p.5). In other words, it provides a comprehensive, flexible, and fully integrated set of best practices for setting up an appropriate project management (Office of Government Commerce 2007, p.10) It provides the structure for project management team and definitions of responsibilities and relationships of all roles involved in the project. It also offers a series of plan levels that can be customised to the needs and size of a project (Office of Government Commerce, 2002, p.17). According to (Bentley p.6), PRINCE2 is much more focus on the products to be produced rather than the activities that will produce them. It encourages organisations to be aware of the links between strategic objectives and the goals of individual programmes and projects (Office of Government Commerce 2006, p.70). The components of PRINCE2 include a ‘business case’ where it emphasizes that this component must exist before a project can begin. Moreover, a viable business case should lead and drive a project (Bentley 2005, p.2). PRINCE2 project methodology requires projects to be headed by a Project Board that will review the business cases regularly to ensure that the projects are still feasible to the strategic needs of the organisation (Steel 2008, p.305). PRINCE2 generally allows the organisation to avoid the drawbacks of trial and error and gain a fast track to effective programme together with the benefits that come from managing change effectively. More importantly, PRINCE2 supports training, accreditation and professional development structures (Office of Government Commerce p.12). The following section discusses the various ways in which PRINCE2 support the identification, prioritisation, and implementation of an organisations strategic alternatives. 2.1.2 IDENTIFICATION OF STRATEGIC INITIATIVES As mentioned earlier, PRINCE2 projects are expected to always focus on delivering the specified products to meet a specified Business Case. This Business Case contains essential principles that can make investment decisions better such as justifying the investment, rigid organisation structure, planning based on products, flexible phasing, and flexible methodology (Bouwman et al. 2005, p.81). The justification for an initiative such as programme and project activity, which normally contains costs, benefits, risks, and time scales, is usually included in the established business case (Richards 2007, p.81). In other words, in order for a project to qualify, PRINCE2 requires the project to be worth the effort and cost, and must result into something worthwhile (Graham p.145). Since PRINCE2 advocates product-based planning where the first move is to identify and analyse products, the resulting information becomes the basis in estimating the effort and the initiatives required (Bentley & Davis 2009. p.80). At the beginning of a project, PRINCE2 requires the identification corporate or programme policies and processes that need to be applied. This can be in the form of a risk management policy that would support the realisation of the project’s strategic initiatives. This may include information such as the organisations attitude towards risk taking, tolerances, procedures for escalation, and defined roles and responsibilities (Office of Government Commerce 2009, p.78). As specified in the PRINCE2 roles and responsibilities, the project management has the obligation to ensure that risks are identified, recorded, and regularly reviewed (Bentley 2005, p.151). This is because according to Bentley (2005, p.151), information gathered on identified risks enables true assessment of the projects position that is useful for planning and implementing strategic initiatives. 2.1.3 PRIORITISATION OF STRATEGIC INITIATIVES In PRINCE2, prioritisation requires more than just a casual or occasional review of project priorities (Jeston & Nelis p.230). At the least, it requires discipline and recognition that there can only be a single priority. In addition, resources should be allocated based on strategic objectives and priorities thus required resources should be committed to projects with the highest priority. These priorities according to the Office of Government Commerce (2007. p.22) are areas with greatest return on investment. PRINCE2 encourages organisations not to have too much projects, which they cannot afford, or have the capacity to manage (Murray & Ward 2007, p.42). For instance, as part of the organisation’s business case, the accounting team do the cost the benefit analysis that includes calculation of the Net Present Value, Internal Rate of Return, payback period, and ensure that all project operates from the same points of departure by monitoring interest rate and hourly rate. This control according to Portman (p.42) makes prioritisation of strategic initiatives based on the Business Cases. 2.1.4 IMPLEMENTATION OF STRATEGIC INITIATIVES PRINCE2 typically use a process map to determine the following stage towards project implementation. This may involve tasks for directing, starting, initiating, managing, controlling, and closing the project. Before any implementation can be done, PRINCE2 requires determinations of every requirement are in fact present and accessible. In addition, everyone involved are required to give a justification to continue including the methods that will be use to implement the project. The Project Board under PRINCE2 is required to manage stage boundaries and decide if the project should proceed or not. Moreover, once the PB decided to continue, the task of controlling and monitoring the project activities and delivery should be guided, controlled, and monitored by the Project Manager (Blokdijk 2008, p.120). Effective use of PRINCE2 consistently requires a mixture of training customised to the organisation to raise the productivity of their staff rapidly (Office of Government Commerce 2002, p.11). The purpose of training in PRINCE2 according to Murray & Ward (2007, p.73) is to develop the skills and awareness of all people that will be involve in the project’s management so they can perform their roles effectively and efficiently. For instance, Project Board Members will undergo training to help them understand their roles and responsibilities better so they are able to direct project processes effectively. 2.2 PMBOK 2.2.1 INTRODUCTION The Project Management Body of Knowledge or simply PMBOK determines the minimum body of knowledge that is required by project stakeholders in order for them to be effective (Lewis 2007, p.17). PMBOK is a term from PMI or the Project Management Institute that describe the sum of knowledge within the project management profession (Adam 2007, p.140). These stakeholders according to PMBOK guidelines are those individuals and organisations that are actively participating and whose interest different project activities. Stakeholders may include customers, project team members, sponsors, management, and the project manager (Mersino 2007, p.116) may affect. Similar to other project management methodologies, PMBOK also identifies essential process for project management – initiating, planning, executing, monitoring, controlling, and closing (Lewis 2007, p.17). Initiating according to Lewis (2007, p.59) is doing whatever is required to authorise a project while planning identifies the works that must be executed such as development of policies, procedures, and other documentation that defines the project. In PMBOK, execution applies to labour and materials that are being use to develop products and services while monitoring progress against the plan and taking necessary actions to keep it the project on track is implementing control. Organisations normally adopt PMBOK to professionalise their project management through application of knowledge, skills, tools, and techniques to project activities (Clegg 2002, p.46). PMBOK supports two kind of process and these include project processes involving planning and control to ensure that products produced by the project matches what was intended at the beginning. Another is product processes that take into account those actions that produce the product. These may include engineering design, construction, and other related actions. The following section discusses how PMBOK influence the identification, prioritisation, and implementation of project’s strategic initiatives. 2.2.2 IDENTIFICATION OF STRATEGIC INITIATIVES Similar to PRINCE2, the PMBOK project management method capitalises on risk management to systematically identify and analyse barriers to project implementation (Barkley 2004, p.69). However, the development of strategic initiatives in PMBOK is not only dependent on the evaluation of risk but from the inputs coming from other activities resulting to a coherent document that will guide project manager in the execution and control of the project (Wysocki 2004, p.28). PMBOK is quality-oriented and requires project planning to identify which quality standards are relevant and determine the activities to satisfy them. Consequently, project managers are obligated to start building or achieving quality in the planning stage rather than relying on inspection and correction during the project execution (Rose 2005, p.42). The initiating process in PMBOK formally identifies and outlines the mechanisms based on the business case that drives the strategic initiatives (IT Governance Institute 2005, p.17). 2.2.3 PRIORITISATION OF STRATEGIC INITIATIVES It is very important for the project team to understand their priorities (Philips p.314) and in PMBOK method of project management, this is being done by assessing and identifying organisational attitude towards risk and the project scope statements that give insights into the priority and impact of the project. In addition, PMBOK requires project management to conduct a sensitivity analysis in order to understand the extent to which the uncertainty of each element involved in the project can affect the objectives (Saladis & Kerzner 2009, p.139). As mentioned in the previous section, quality-planning is essential to PMBOK and aside from the standard tools support by this project management method, additional tools may be use to attain quality planning. These tools include brainstorming, flowcharts for monitoring and controlling change, affinity diagrams, force field analysis, matrix diagram, and most of all prioritisation matrices. Prioritisation matrices are utilised when the organisation needs to prioritise issues that contains a number of important criteria for decision-making (Heldman et al. 2007, p.159). Consequently, decisions are being made that would influence the prioritisation of task and the availability of resources to achieve the goals and strategies of the project (Binder 2007, p.43). 2.2.4 IMPLEMENTATION OF STRATEGIC INITIATIVES Generally, all project management methodologies claims they have the essential principles and processes for the successful implementation and management of any project. However, the difference between PMBOK and the other popular methodologies is the actuality that PMBOK evolves and now includes a number of proven best practices that are widely used in different industries and disciplines (Blokdijk 2008, p.27). In the new version of PMBOK released in 2004, the methodology aims to identify the widely recognised good practices of project from IT to construction. Here, the project management team is identified as the one responsible for the implementation of a project and maintenance of quality assurance. (Blokdijk 2008, p.28). Many items affect each project decision and in PMBOK decisions extend beyond the organisation and include social, economic, and environmental influences. People working on a PMBOK project must take responsibility for their actions and this is the main reason why there is a need to enhance individual competence and improve professional knowledge (Rad & Levin 2002, p.185). In PMBOK, project management is required to work closely with the project teams to ensure that implementation is correct and with quality outcomes (Philips 2007, p.81). 2.3 AGILE 2.3.1 INTRODUCTION Originally, project managing information technology systems, AGILE project management methodology has become popular with modern organisations particularly in manufacturing and business management processes (Carayannis et al. 2005, p.324). The AGILE project management capitalises on people as improving communication and teamwork plays a very important role to the success of the project. In other words, individuals and interaction are given more weight than processes and tools. AGILE recognises the fact the people involved and the way they communicate has the largest bearing on the success or failure of a project. This is because although other processes, methodologies, tools, and so on can help, they are still not the overriding influence in the project. This is the reason why AGILE encourage project executives to hire the best people and encourage group interactions (Hunt 2006, p.11). According to Hunt (2006, p.11), AGILE is unique as it is not favour of comprehensive documentation like other methodologies. AGILE is more interested in customer satisfactions and useful product than spending time documenting processes because at the end of the project, it is the product produced by the project that matters and not the documentation. Another unique approach that is supported by AGILE is customer collaboration over contract negotiations. It advocates that time should be spent on working with customers and in getting, them involved in the project rather than on detailed contract negotiation. Finally, AGILE is more receptive and embraces change rather than sticking to the requirements and specification of the plan. In other words, AGILE practitioners are likely to respond to feedback than react to a fixed plan. However, this does not mean that there is no plan and that planning is not important. Planning is actually very important but the project must adapt itself to its environment and be agile (Hunt 2006, p.11). AGILE planning is much different from the other two project methodologies because it is adaptive in the sense that it is adapting the plans a project progresses. In other words, adaptive planning involves synchronising the plan with reality as the project continues. However, like other methodologies, AGILE takes into account the impact of the unknown or risks in order to minimise its impact to the project (Rosenberg et al. 2005, p.11). If PRINCE2 and PMBOOK have a business case to guide them, AGILE has ‘values’ that drives the agile practices. These values include communication, early feedback, and simplicity. The AGILE method requires a responsive management structure and provides a mechanism for feedback. It also requires teams of individuals to openly communicate, collaborate, and commit themselves to continuous learning. This is because a team cannot possibly work effectively if its members are not raising relevant issues, provide feedback to each other, and tried their best to resolve members varying perspectives (Schuh 2004, p.9). The following discusses how AGILE project management influences the identification, prioritisation, and implementation of strategic initiatives in an organisation. 2.3.2 IDENTIFICATION OF STRATEGIC INITIATIVES The primary factor making the case for the adaptation of AGILE project management is ‘uncertainty’ (Chin 2004, p.4) which can be internal or external. Those that are under the project umbrella such as scope, schedule, and cost that is likely to be controlled by the project manager. In contrast, external uncertainties are those factors beyond the project manager’s control such as the industry’s business environment, the competitors, and high-level business strategy decisions. In general, both uncertainties are critical elements to consider and identify (Chin 2004, p.4). The AGILE project management method requires the project team to identify these uncertainties in order to minimise its impact on the project. Although it may not be always possible to control external forces, the project management can make the necessary adjustments to keep the project objectives within reach. More importantly, these uncertainties influence identification of strategic initiatives as it can give project management a clear view of the real situation in and outside the organisation (Chin 2004, p.7). 2.3.3 PRIORITISATION OF STRATEGIC INITIATIVES In AGILE, the highest priority is to satisfy the customer or the end-user by maximising delivery of the project (Anderson 2004, p.155) and since being agile is a mindset and not merely adopting a set of practices and policies, prioritisation of strategic initiatives is greatly influenced by individual values and principles. For this reason, AGILE development teams work hard and as a matter of principle and through peer pressure prioritise strategies that would deliver customer satisfaction (Hass 2003, p.347). For instance, the teams would try to understand the reality of the situation and would not hesitate to drop a few low-priority tasks to ensure quality and timely delivery of the project (Richards 2007, p.50). However, when low-priority features are selected, the teams are obliged to justify to the customer as it bears the ultimate risk for the project (Westfall 2008, p.251). 2.3.4 IMPLEMENTATION OF STRATEGIC INITIATIVES Implementation of strategic initiatives in AGILE project management depends on the success of identification, planning, and projected delivery of customer value (Rosenberg et al. 2005, p.23). In addition, individual’s roles are important to the implementation of projects as it spreads the leadership and management of the project among all the team members (Dubinsky p.31). Typically, an AGILE project requires the end-user to provide abstract level requirements and the AGILE project team making the necessary decisions to achieve goals and implement the project (Jacko p.554). Traditional plan-driven projects according to Sliger & Broderick (2008, p.145), already defined all the features and tasks necessary to implement their projects. However, there is a strong possibility that the plan will not always work the way it was originally defined. For instance, new requirements arise, the amount of time to implement takes longer than expected, late deliveries from external suppliers that would certainly push out the schedule, and other unexpected things. In AGILE, these problems are avoided because AGILE project teams do not plan, skip design, and do not test. This is because AGILE teams are not encouraged to invest their time in time-consuming design and planning. Moreover, they are not required to create a plan that outlines the requirement for a particular time but rather invest and dedicate resources for the entire duration of the project. The team’s self-management orientation helps them figure out how to manage its own work (Zannier et al. 2004, p.227). In sum, strategic initiatives implementation is influenced by individuals and interactions, results of customer collaboration, and response to change (Satzinger et al. 2008, p.82). 3. SUMMARY/CONCLUSION PRICE2 guides project team members on their effort by providing a comprehensive, flexible, and fully integrated best practices. More importantly, it provides and defines the role and responsibilities of every member of the team. PRINCE2 is product oriented rather than activity supporter. For this reason, it always requires an organisation to produce a viable business case. PRINCE2 influence identification of strategic initiatives by considering the results of quality risk assessments. It never allows an initiative to start without justification that usually includes cost, benefits, risks, and time scales. Prioritisation of strategic initiatives in PRINCE2 is influence by need to have a single priority. For this reason, resources under this project management method are allocated based on priorities or areas with the greatest return. PRINCE2 requires determination of the availability of all resources required and justification to continue. Prior to the implementation of the project, organisations that adopted PRINCE2, training for every member of the teams is encouraged so they can perform their roles effectively. On the other hand, PMBOK capitalises on the minimum body of knowledge that is required to the success of the project. Identification of strategic initiatives in PMBOK is only dependent on the result of risk assessments and other inputs coming from other activities. Understanding priorities is essential to PMBOK thus assessment and identification of attitude towards risk and other relevant factors are being done to ensure everybody recognized their priorities. Implementation of strategic initiatives is the responsibility of the project management team. Aside from being a popular IT-based project management methodology, the AGILE is now widely used in manufacturing and business management. It capitalises on people and values. Identification of strategic objectives in AGILE is influence by various factors such as scope, schedule, and cost. The priorities in AGILE are initiatives that promotes customer satisfaction that is greatly influenced by values and principles of individuals. Similarly, implementations of strategic initiatives are influenced by the result of identification, planning, and projected delivery of customer value. More importantly, it is also determined by the understanding of individual roles. 4. BIBLIOGRAPHY ADAM A. 2007. Implementing Electronic Document and Record Management Systems. CRC Press, US ANDERSON D. 2004. Agile management for software engineering: applying the theory of constraints for business results. Prentice Hall PTR, US BARKLEY B. 2004. Project risk management Project Management Series, McGraw-Hill Professional, UK BENTLEY C. 2001. PRINCE 2: a practical handbook Computer weekly professional series. Butterworth-Heinemann, UK BENTLEY C. 2005. Prince 2 revealed: including how to use Prince 2 for small projects. Butterworth-Heinemann, UK BENTLEY W. & DAVIS P. 2009. Lean Six Sigma Secrets for the CIO: ITIL, COBIT, and Beyond. CRC Press, US BINDER J. 2007. Global project management: communication, collaboration and management across borders. Gower Publishing, Ltd., UK BLOKDIJK G. 2008. Prince2 100 Success Secrets - The Missing Foundation and Practitioner Exam Training, Certification and Project Management Guide. Lulu.com, UK BLOKDIJK G. 2008. Pmp/Pmbok 100 Success Secrets - Project Management Professional; The Missing Exam Study, Certification Preparation and Project Management Body of Knowledge. Lulu.com, UK BOUWMAN H. et al. 2005. Information and communication technology in organizations: adoption, implementation, use and effects, SAGE, UK CARAYANNIS E. et al. 2005. The story of managing projects: an interdisciplinary approach. Greenwood Publishing Group, US CHIN G. 2004. Agile project management: how to succeed in the face of changing project requirements. AMACOM Div American Mgmt Assn, US CLEGG S. 2002. Management and organization paradoxes Volume 9 of Advances in organization studies. John Benjamins Publishing Company, Netherlands JESTON J. & NELIS J. 2008. Management by process: a roadmap to sustainable business process management. Butterworth-Heinemann, Hungary FOX C. 2007. PRINCE2: A No Nonsense Management Guide Best practice. Van Haren Publishing, UK GALLEGOS F. 2004.Information technology control and audit, Volume 58 Information Technology Control and Audit, CRC Press, US GRAHAM N. 2008. Prince2 for Dummies. For Dummies, UK GUNASEKARAN A. 2001. Agile manufacturing: the 21st century competitive strategy. Elsevier, US HASS A. 2003, Configuration management principles and practice. Addison-Wesley, 2003, US HAZZAN O. & DUBINSKY Y. 2008. Agile Software Engineering Undergraduate Topics in Computer Science. Springer, US HELDMAN K. Et al. 2007. PMP Project Management Professional Exam Study Guide. John Wiley and Sons, Canada HUNT J. 2006. Agile Software Construction. Springer, 2006, Germany IT GOVERNANCE INSTITUTE. 2005. COBIT Mapping: Mapping PMBOK to COBI T 4.0. ISACA, US JACKO J. 2009. Human-Computer Interaction. New Trends: 13th International Conference, HCI International 2009, San Diego, CA, USA, July 19-24, 2009, Proceedings, Part 1 Volume 5610 of Lecture Notes in Computer Science. Springer, 2009, US LEWIS J. 2007. Fundamentals of project management. AMACOM Div American Mgmt Assn, US MERSINO A. 2007.Emotional intelligence for project managers: the people skills you need to achieve outstanding results. AMACOM Div American Mgmt Assn, US MURRAY A. & WARD M. 2007. Improving project performance using the PRINCE2 maturity model (P2MM). The Stationery Office, UK OFFICE OF GOVERNMENT COMMERCE. 2002. Managing successful projects with PRINCE2. The Stationery Office, UK OFFICE OF GOVERNMENT COMMERCE. 2002. Tailoring PRINCE2. The Stationery Office, UK OFFICE OF GOVERNMENT COMMERCE. 2006. Business Benefits Through Programme and Project Management. The Stationery Office, UK PHILIPS J. 2007. CAPM/PMP Project Management All-in-One Exam Guide. McGraw Hill Professional, US PORTMAN H. 2009. Prince2 in Practice, a Practical Approach to Creating Project Management Documents. Van Haren Publishing, UK RAD P. & LEVIN G. 2002. The advanced Project Management Office: a comprehensive look at function and implementation, CRC Press, US RICHARDS K. 2007. Agile project management: running PRINCE2 projects with DSDM Atern. The Stationery Office, UK ROSE K. 2005. Project quality management: why, what and how. J. Ross Publishing, US ROSENBERG D. Et al. 2005. Agile development with ICONIX process: people, process, and pragmatism. Apress, US SALADRIS F. & KERZNER H. 2009. Bringing the PMBOK Guide to Life: A Companion for the Practicing Project Manager. John Wiley and Sons, US SATSINGER J. et al. 2008. Systems Analysis and Design in a Changing World. Cengage Learning EMEA, Canada SCHUH P. 2004. Integrating agile development in the real world. Cengage Learning, US SLIGER M. & BRODERICK S. 2008. The Software Project Manager's Bridge to Agility. Addison-Wesley, US STELL A. 2008. Information Technology Governance and Service Management: Frameworks and Adaptations. Idea Group Inc (IGI), UK WESTFALL L. 2008. The Certified Software Quality Engineer Handbook. American Society for Quality, US WYSOCK R. 200. Project management process improvement. Artech House, US ZANNIER C. et. al. 2004. Extreme programming and agile methods - XP/agile universe 2004: 4th Conference on Extreme Programming and Agile Methods, Calgary, Canada, August 15-18, 2004 ; proceedings, Springer, Germany Read More