Project Organization and Stakeholder Management - Assignment Example

Question #1

Stakeholder Management

Stakeholder management is the logical process of identifying, analyzing, planning and implementing into any project the involvement of stakeholders (Kerzner, 2013). This ensures that efficient stakeholders' engagements are achieved at all capacities and levels for the project's success. Both primary and secondary stakeholders must be incorporated before any project implementation process. They may render the whole project's effort and outcome null if they are excluded in the planning or if they do not feel part of the project.

Stakeholder Management Process

Stakeholder management process logically composes of the following stages; stakeholders' identification, assessment, planning and finally management of the set plan (Kerzner, 2013). The identification stage is the first step where stakeholders are identified. This occurs at very early stages of the project's life cycle. Identifying stakeholder informs the planning and definition of the project.

The second procedure is analysis. At this process, assessment of stakeholders occurs to examine their engagement nature as pertaining on the project. Stakeholders may have either direct or indirect involvement level in a project. Both levels cannot be underestimated and therefore a need for analysis. It is, therefore, vital to know the roles of every member required for the success of the project.

The third step of stakeholder management is the planning stage. At this level, ways of achieving stakeholders or stakeholder group involvement are strategized. The developed strategies are, after that, resourced for stakeholder management. Ways of communicating to both primary and secondary stakeholders through media, formal meetings, informal meeting and conferences and social sites are planned and dates set for implementation.

Finally, during the final stage, management stage, the strategies that have already been devised in the above stages are implemented. This process is implementable at either the onset stage of the project or when the implementation is ongoing. The stage involves adequate engagements with stakeholders. The project manager communicates the projects' startup, progress, completion, execution and monitoring plans using various ways of information dissemination to keep all the parties informed.

Stakeholder Analysis Tools

Two tools that may be used to carry out stakeholder analysis include power/interest matrix and position/importance matrix (Kerzner, 2013). When using power/interest matrix, for example, stakeholders are categorized into four groups. High power and low-interest stakeholders who need to be kept satisfied and sufficiently involved, low power and low interest who put minimum effort and should not be overloaded, low power and high interest who need to be kept informed and their interests sustained when required, and finally high power high interest participants who should be closely managed through active engagement in a project. In any project, consider the following power/interest matrix;

An illustrated example is as follows. The power/interest stakeholder matrix tool for a road construction project would include the following. First, the press and media who must be kept satisfied. The press and media duties are to print and disseminate projects information through various media platforms. Second, the road users are categorized under customers. They only require monitoring with very less efforts. Their influence and interest to the project are both low. Those employed in the construction, them that carry out technical installations, the local communities as well as the suppliers of construction material must be kept informed. The stakeholders in this category have very high interest to the project but with low influence on its performance. Lastly, the stakeholder including the project managers, the government and non-government sponsors must be managed closely.

An illustrated stakeholder tool for PLUG project of London is as shown below.

The above tool was used to analyze the stakeholders in the power line undergrounding project of the London Olympics Stadium, where the government, contractor, manual worker, community, environmentalists, owners and sponsors such as LDA and ODA were vital in the analysis.

Benefits of Stakeholder Management

Effective stakeholder management is very vital for a positive project outcome. Improved project relationship is achieved when all stakeholders are involved. A project manager must ensure adequate stakeholder involvement as a top priority of a project requirement to maximize transparency. Stakeholder management also assists managers to identify efficiently those who have significant influence and power on the project so that every support to the project's success is achieved. These include sponsors, suppliers, local community, government, and media group. Projects that neglect the parties above never succeed or if they succeed, they may be turned down at implementation stage (Kerzner, 2013).

Limitations of Stakeholder Management

Stakeholder management has a challenge of the long processes and requirements during the process of identification through the implementation of stakeholders' actions. It is always difficult for project managers to satisfy all the needs of stakeholders. Moreover, continuous reporting of the start, progress, and completion of the project is often cost consuming when media and gazettes printouts are involved for formalities (Kerzner, 2013).

Question #2

Project Organization

Project organization is primarily the management structure applicable to a particular project or program as well as the organizational operation environment. It defines the structure of reporting the processes, systems and various procedures of the project from lower to higher ranks. Therefore, the variant roles of different professionals involved in a project can easily be identified.

Structures of Project Organization

The available types of organizational structures are four: the projectised, functional, virtual and the matrix structure (Kerzner, 2013).

Benefits and Limitations of each Structure

Functional Structure

Functional Structure has the advantages of specialization which improves the expertise over time at the unit of competence. Moreover, there is a clear line of authority and enhanced accountability and communication between workers within particular departments. Additionally, the efficiency of the task in each subcategory is enhanced. Superficially, it is cost effective since there is little duplication when compared to the projectised structure. It can as well be flexible since it is simple to start up a new project. Finally, there is the maintenance of corporate identity and a standard system governing various organizations. However, the focus on each unit interferes with interdepartmental coordination and communication. Moreover, there are no teamwork benefits since each group work as an independent entity. The project results in this case may not be recognized during the appraisals and since no one manages the project portfolio, the resultant delivery method is often poorly coordinated. Finally, the overall project manager may face the tremendous challenge of coordination as the project expands.

Matrix Structure

Matrix structure has the benefits of, first, efficient exchange of information since departments work together and frequently communicate to one another. This advantage enhances productivity as well as quick decision making. The second benefit is increased motivation which supports a democratic style of leadership. It incorporates team members before project managers make any decision hence decisions that satisfy employees are made. Moreover, it is very flexible because projects can easily be started and stopped. With the structure also, the PM become well experienced and skilled at managing projects. However, the structure has limitations of internal complexity. This is a case where some workers may be confused about who exactly their direct supervisor is because they can receive directions regarding the same task from supervisors in various departments. The structure also has a disadvantage of a lot of negotiations, meetings, and communications. There can easily arise to competition among projects especially if manager need same individuals as team members. Finally, the matrix structure may cause internal conflicts and is often expensive to maintain. The overhead cost of a company may increase due to the requirements of double management calling for extra salaries for managers.

Virtual Structure

The virtual structure enables distant engagements and collaborations by use of information technology (IT). It responds quickly to problems and puts clearly the required methods, documentations, tools, et cetera. Affordability of the system is beneficial because companies only pay for support they need and eliminate the professional fees and large infrastructures that would be demanded for other structures. However, the structure may need a different approach because of the restrictions of time, distances, et cetera. Incompetent members can adversely hinder the virtual project management structure. Lastly, communications at virtual physical locations can pose communication challenges.

Projected Structure

In this case, all the team members report directly to the project manager. There is, therefore, a clear line of management which reduces conflicts, and enables decision making to be more flexible and faster. Secondly, there exists a simple and a shorter line of communication because of the presence of a single reporting system. The structure is as well best at delivery and has the capability to build its own organizational identity and ethos. Finally, less time is consumed during responses to stakeholders, and any other communication due to the presence of a single authority. However, the structure has the disadvantages of high equipment and employees cost because of a high-cost short period hire. Secondly, the team members are insecure since once the project is completed, their jobs also end. The overall corporation may often be lost, inflexibility may arise and project divisions can decide to go their own way. Finally, in case the organization has many projects, there may be poor communication between projects, thereby causing resources duplication.

Structure Choice Factors

Seven factors can be utilized to consider the best choice of organizational structure. The first consideration is the duration and size of a project. Second is the project's strategic importance and then the innovation needs. Other factors include; integration needs which consider the number of departments to be involved, environmental complexities such as the number of external interfaces, time constraints, and budget or resource availability and finally project's site location (Kerzner, 2013).

Question #3

Project Planning

Project planning entails use of schedules such as work breakdown structures and Gantt charts to enhance project management through proper strategies to complete tasks at a defined time period. During planning, the scope of the project is defined and ways of completing the tasks set. Moreover, the documentations required are created to ensure prosperous project completion. Additionally, organization of project work load, team management and logical dependencies of operations are crucial during planning. Since it is what drives the project’s undertakings, it must be officiated before the projects begin. The anticipated delays among other likely factors are also taken into consideration during planning.

Project management plan is carried out to define any definitions required, opportunities and problems, and how the projects relate to business cases. It is also vital for knowing the scopes, objectives, acceptance and deliverable criteria as well as KPIs. The same also takes into account assumptions, dependencies and constraints. Moreover, ways of handing over, necessary techniques and tools, control, monitoring and reporting approaches are necessary during the planning stage. Finally, the budget, roles, timescales, site locations and plans and policies must be well configured before projects start. In summary, the planning process must ensure complex activities are broken down into smaller manageable activities, sequence determination, time estimation, planning cost, decision making logics, and idea filtering for the project’s success.

The use of a WBS organizes tasks into consistent sequence, allowing people to be allocated to finish tasks at the defined period. Basically, WBS arranges tasks in a hierarchical tree in a logical manner. Advantages of WBS as a project planning tool are, for example, huge tasks are distributed into manageable levels, analytical process of completing tasks and efficient team management. However, coordination may be a major WBS challenge.

Critical Path Analysis (CPA)

CPA is a technique in project management that lays out all tasks and activities required to finish them, the time to complete each activity as well as their relationships. Critical Path Method is essential for predicting if a project will be completed at the specified time. It is also vital in reorganizing the project before commencing it, while in progress and to keep completion of the project in track. It finally ensures the deliverables are ready for dissemination in time. With the use of either the computer software or the manual methods, the activity lists must be made before, the order of completion and the period expected to complete. The final stage if the CPA diagrams modeling.

Advantages and limitations of CPM as a Tool

Limitations

In Critical Path Analysis Method, resources cannot be seen. CPM also has the sharing float with teams. For big projects, the CPA analysis can be very complex hence difficulty in interpretation. The method is never direct and therefore needs careful calculations. Lastly, personnel and scheduling is not handled in the process allocation resources. Finally, the estimating the completion of activities can be challenging and difficult at times.

Advantages

The method is very helpful for monitoring tasks and activities, and controlling projects. Moreover, a project manager can determine exact dates for every activity, compare with activities to be carried out react appropriately. CPA shows activities in an easy to understand network and displays scheduling and dependencies. Finally, CPA is significant in determining float and slack times.

Reference

Kerzner, H.R., 2013. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.