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Q.1 As a project manager in banking sector, what will be
your role in project development as well
as management? (
10)
Description
The role of the Project Manager is to plan, execute, and finalize projects according to
strict deadlines and within budget. This includes acquiring resources and coordinating
the efforts of team members and third-party contractors or consultants in order to deliver
projects according to plan. The Project Manager will also define the project’s objectives
and oversee quality control throughout its life cycle.
Responsibilities as a Project Development and Management
• Direct and manage project development from beginning to end.
• Define project scope, goals and deliverables that support business goals in
collaboration with senior management and stakeholders.
• Develop full-scale project plans and associated communications documents.
• Effectively communicate project expectations to team members and stakeholders
in a timely and clear fashion.
• Liaise with project stakeholders on an ongoing basis.
• Estimate the resources and participants needed to achieve project goals.
• Draft and submit budget proposals, and recommend subsequent budget changes
where necessary.
• Where required, negotiate with other department managers for the acquisition of
required personnel from within the company.
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• Determine and assess need for additional staff and/or consultants and make the
appropriate recruitments if necessary during project cycle.
• Set and continually manage project expectations with team members and other
stakeholders.
• Delegate tasks and responsibilities to appropriate personnel.
• Identify and resolve issues and conflicts within the project team.
• Identify and manage project dependencies and critical path.
• Plan and schedule project timelines and milestones using appropriate tools.
• Track project milestones and deliverables.
• Develop and deliver progress reports, proposals, requirements documentation,
and presentations.
• Determine the frequency and content of status reports from the project team,
analyze results, and troubleshoot problem areas.
• Proactively manage changes in project scope, identify potential crises, and
devise contingency plans.
• Define project success criteria and disseminate them to involved parties
throughout project life cycle.
• Coach, mentor, motivate and supervise project team members and contractors,
and influence them to take positive action and accountability for their assigned
work.
• Build, develop, and grow any business relationships vital to the success of the
project.
PROJECT MANAGER AS A WHOLE
Project Managers are individuals responsible for planning, monitoring and controlling all
aspects of a project. They must motivate and synchronize the assigned resources to achieve
the goals of the project, while coping with the constraints of time, cost and consistent quality.
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Project Managers manage projects from start to finish.
PROJECT MANAGER ROLES FOR CREDIT CARD PRODUCT
For example: a bank’s offering of a new credit card. The credit card is the product. However,
in order to get into the credit card business, several projects have to be undertaken. Shown
below (within each of the functional areas) are some or these project types.
· Marketing projects
· Conducting a market research project to determine the market segments to pursue
· Design the credit card – a design team is assembled to hire a design company and
oversee the creation of the physical card and some of the advertising themes
· IT and systems projects
· Order taking systems
· Transaction processing projects
· Complaint handling and management
· Product launch projects
· Creating and managing advertising and public relations programs for print media
and television
· Writing and designing inserts for direct mail campaigns
(b) Explain the criteria for the selection of project
manager, with examples. (10)
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Project Manager selection criteria cannot be associated with other simple job descriptions, as the
subject post must possess some special skills in order to lead the team and project. Following criteria
and requirements must be fulfilled in order to be selected as a Project Manager for any organization.
Personal Skills
Project Managers must be able to motivate and sustain people. Project team members will look to the
project manager to solve problems and help with removing obstacles. Project managers must be able to
address and solve problems within the team, as well as those that occur outside the team. There are
numerous ways, both subtle and direct, in which project managers can help team members.
Some examples include the following:
Manage by example (MBE). Team members will be closely watching all actions of the project manager.
Therefore, project managers must be honest, direct, straightforward, and knowledgeable in all dealings
with people and with the project.
A good manager knows how to work hard and have fun, and this approach becomes contagious.
A positive attitude. Project managers must always have a positive attitude, even when there are
substantial difficulties, problems, or project obstacles. Negative attitudes erode confidence,
and a downward spiral will follow.
Define expectations. Managers who manage must clearly define
what is expected of team members. It is important to do this in
writing—get agreement from the individual team members. This
leaves no room for problems later, when someone states “It’s not
my job.” Performance expectations must be defined at the start
of the project.
Be considerate. Project management is a demanding job with a
need for multiple skills at many levels. Above all, be considerate
and respectful, and give people and team members the time and
consideration they deserve. Make people aware that their efforts
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are appreciated and the work that they do is important, because
it is. A letter, personal word, or e-mail of appreciation goes a
long way.
Technical Skills
There is no hard and fast rule. It really depends on the type and size of
projects, their structure, resources available, and the project environment.
Questions that project managers should ask include the following:
1. What types of technical problems require management?
2. Who will solve them?
3. Is it done with quality and satisfaction?
4. Who can I rely on in my project team?
5. What outside resources, if any, can I draw on for assistance?
As with all employees, project managers should have the technical
knowledge and skills needed to do their jobs. If managers lack these
skills, training is one option; being mentored or coached by a more
experienced individual is another. Senior management should ask the
question, Do your project managers need more technical skills than
they already possess?
On larger complex projects, such as systems integration projects or
multiple-year projects, there are frequently too many complex technologies for the project manager to
master. Technical training that provides breadth may be useful. On smaller projects, the project
manager
may also be a key technical contributor. In this case, technical training
may enhance the abilities of project managers to contribute technically,
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but it is unlikely to improve their management skills.
One thing is abundantly clear—the project manager is ultimately
responsible for the entire management of the project, technical or otherwise, and will require solutions
to the technical issues that will occur.
Management Skills
Project managers need other key skills besides those that are purely
technical to lead and deliver on their projects successfully. A good
project manager needs to understand many facets of the business
aspect of running a project, so critical skills touch on expertise in the
areas of organization, communication, finance, and human resources.
The following are examples of the management topics used in training
effective project managers:
Project planning, initiation, and organization
Recruiting people and keeping them
Effective project negotiation
Software tools for project management
Accurate estimating and cost control
Project execution and control
Developing powerful project presentations and reports
Personal and project leadership
Managing risk and making decisions
Effective problem management
Performance management
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Managing the projects within the organization
Project management professional (PMP) exam review
Growing and sustaining a high-performance team
Managing change within an organization
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QUESTION 2
Conflict Resolution in Project ManagementAmy Ohlendorf
Information Systems Analysis
MSIS 488, Fall 2001
Introduction | Project Management Overview | Understanding Conflict |
Approaches to Conflict Resolution | Conclusion | References
Introduction
Conflict in project management is inevitable. The potential for conflict in information
systems development projects is usually high because it involves individuals from
different backgrounds and orientations working together to complete a complex task.
The cause of conflict in team projects can be related to differences in values, attitudes,
needs, expectations, perceptions, resources, and personalities. Proper skills in dealing
with conflict can assist project managers and other organization members to handle
and effectively resolve conflicts which can lead to a more productive organization as a
whole.
Project Management Overview
Project management is a methodological approach to achieving agreed upon results
within a specified time frame with defined resources. (1) It involves applying
knowledge, skills, tools, and techniques to a wide range of activities in order to meet
the requirements of a project. The major objectives of project management include
performance, cost, and time goals. (2) The focus is to meet customer expectations,
deliver projects within budget, and complete projects on time. Project management is
helpful in achieving these objectives by organizing, planning, monitoring, controlling,and correcting the project activities. These activities consist of creating a workable
project environment, keeping the work environment healthy, planning the essential
activities to build the information system or product, and controlling execution of the
plan. (3)
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Using project management principles brings value to an organization. Applying these
principles give managers the ability to establish success measures, quantify value
proportionate with cost, use optimal organizational resources, allow customer focus
and alignment, incorporate quality principles, implement the practice of strategic
plans, resolve problems more quickly, work within the scope of the project, address
future risk before becoming a problem, and create a higher quality product the firsttime. The time and resources put into project management will make up for the cost
over the life of the project. (4, 5)
Project management relies on proven and repeatable processes and techniques. These
processes and techniques are utilized to coordinate resources to accomplish
predictable results. (5) Although success is never guaranteed, a project is more likely
to be successful when conventional project management processes are practiced. The
four phases of the project management process are explained below. (6)
1. Project InitiationThe first phase of the process involves performing activities to evaluate the
project size, scope, and degree of difficulty and to establish procedures for
supporting later project activities. Examples of activities at this phase are
forming a project initiation team, building the customer relationship,
developing effective management procedures, and constructing a project
workbook.
2. Project Planning
The second phase of the process involves defining clear, distinct activities and
work required to complete the activities for each individual project. Examples
of activities at this phase are defining the project scope, defining the work
breakdown structure, estimating resource requirements, outlining
communication procedures among managers, team members, and the customer,
identifying and evaluating risk, and developing a Baseline Project Plan.
3. Project Execution
The third phase of the process involves implementing the plans created in the
earlier phases, Project Initiation and Project Planning. Examples of activities at
this phase are executing the baseline plan, managing changes to the baseline
plan, monitoring project progress, and communicating project status to
managers, team members, and the customer.4. Project Closedown
The final phase of the process involves bringing the project to an end.
Examples of activities at this phase are evaluating team members, conducting
final project reviews, and closing the customer contract.
The project manager is responsible for carrying out the initiation, planning, execution,
and closedown phases of a project. The success of a project relies strongly on the
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project manager. The role of this person is to evaluate project feasibility and to create
the plan of activities required to meet the objectives. This individual must be able to
build an environment in which the project can be executed while protecting the
environment from factors that could impede progress, planning the work that has to be
completed to reach the goal, and keeping the course of the project in control. (7) It is
important for a project manager to possess a diverse set of skills - management,leadership, technical, customer relationship, and conflict management.(6)
Managers spend 42% of their time on reaching agreement with others when conflict
occurs. (8) Conflict management within a team environment requires the ability to
solve problems, set goals, compromise, settle personality differences, and resolve
conflicts. Training for project managers in this area is necessary for their success, as
they are typically responsible for handling conflict during a project. (9) The remainder
of this paper will address conflict and its resolution in project management.
Understanding Conflict
Conflict is "a situation of competition in which the parties are aware of the
incompatibility of potential future positions and in which each party wishes to occupy
a position which is incompatible with the wishes of the other."(10) Conflict is viewed
as a cycle: "As with any social process, there are causes; also, there is a core process,
which has results or effects. These effects feed back to effect the causes." (11) To
understand conflict further, the situation must include elements of interdependence,
emotions, perceptions, and behaviors. (12) For example, conflict occurs between
parties whose tasks are interdependent, who are angry with each other, who perceive
the other party as being at fault, and whose actions cause a business problem.
Conflict can be constructive and healthy for an organization. It can aid in developing
individuals and improving the organization by building on the individual assets of its
members. (13) Conflict can bring about underlying issues. It can force people to
confront possible defects in a solution and choose a better one. (14) The
understanding of real interests, goals and needs is enhanced and ongoing
communication around those issues is induced. In addition, it can prevent premature
and inappropriate resolution of conflict. (15) Constructive conflict occurs when
people change and grow personally from the conflict, involvement of the individuals
affected by the conflict is increased, cohesiveness is formed among team members,
and a solution to the problem is found. (10) However, if conflict is not managed
properly, it can be detrimental to an organization by threatening organizational unity,
business partnerships, team relationships, and interpersonal
connections. (16) Deconstructive conflict occurs when a decision has not been found
and the problem remains, energy is taken away from more important activities or
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issues, morale of teams or individuals is destroyed, and groups of people or teams are
polarized. (10)
Destructive conflict has a predictable pattern known as the Drama Triangle. (17) By
learning how to identify these unproductive roles and how to effectively handle each
role player, managers can prevent some conflicts from occurring and resolve thosethat do. Most individuals know how to assume the following three roles:
1. Persecutor refers to a person who uses aggressive behavior against another
person, attacking the intended victim. An attack can be direct or indirect and be
physical, verbal, or both. The persecutor's actions deliver a message that "you
are not okay" while making the persecutor feel righteous and superior.
2. Victim refers to a person who uses nonassertive behavior so others view them
as "I'm not okay." This behavior encourages others to either rescue or persecute
the victim. Victims will feel helpless, inadequate, sad, scared, or guilty. The
victim role is often used because the individual is feeling stressed, has low self-esteem, or is being persecuted by another.
3. Rescuer refers to a person who uses either nonassertive or agressive behavior.
Individuals become rescuers because they will not say "no" and unwillingly
assume the responsibility of solving the victim's problem. In contrast, others
will assume the rescuer role to demonstrate superiority over the victim.
These roles are learned in early childhood and are used throughout adulthood. They
involve the perception of oneself or someone else as inadequate or not acceptable. The
aggressive and nonassertive behaviors that are present in these roles lead to win-lose
outcomes and do not provide an opportunity for a win-win resolution.
It is important for a project manager to understand the dynamics of conflict before
being able to resolve it. The internal characteristics of conflict include perception of
the goal, perception of the other, view of the other's actions, definition of problem,
communication, and internal group dynamics. (18)
Perception of the goal becomes a problem when success becomes competitive
or "doing better than the other guy." The focus is placed on the solution rather
than attaining the goal.
Perception of the other can create conflict when the attitude becomes "us versusthem." Similarities and differences are emphasized causing division within a
group.
View of other's actions can be a problem when the situation is competitive
instead of cooperative. Behavior can be suspicious in a competitive
environment.
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Definition of problem can result in conflict when the size of the problem is
escalated, issues are misconstrued, and original issues are lost.
Communication in a competitive environment can cause mistrust and
information may be withheld or may be lacking. Communication is not open
and honest.
Internal group dynamics can be negative when the group structure iscentralized and rigid rather then safe and open. Conformity is emphasized and
tasks dominate over the needs of the team members.
These characteristics can strongly influence the behavior style of group members and
affect the potential outcome of the conflict. In some instances, the project manager's
lack of skills to effectively manage and resolve conflict can be the problem.
Approaches to Conflict Resolution
In Project Management: A Systems Approach to Planning, Scheduling, and Controlling, five modes for conflict resolution are explained and the situations when
they are best utilized are identified. (19) These modes are Confronting,
Compromising, Smoothing, Forcing, and Avoiding.
Confronting is also described as problem solving, integrating, collaborating or win-
win style. It involves the conflicting parties meeting face-to-face and collaborating to
reach an agreement that satifies the concerns of both parties. This style involves open
and direct communication which should lead the way to solving the problem.
Confronting should be used when:
Both parties need to win.
You want to decrease cost.
You want create a common power base.
Skills are complementary.
Time is sufficent.
Trust is present.
Learning is the ultimate goal.
Compromising is also described as a "give and take" style. Conflicting parties bargain
to reach a mutually acceptable solution. Both parties give up something in order toreach a decision and leave with some degree of satisfaction. Compromising should be
used when:
Both parties need to win.
You are in a deadlock.
Time is not sufficient.
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You want to maintain the relationship among the involved parties.
You will get nothing if you do not compromise.
Stakes are moderate.
Smoothing is also referred to as accommodating or obliging style. In this approach,
the areas of agreement are emphasized and the areas of disagreement are downplayed.Conflicts are not always resolved in the smoothing mode. A party may sacrifice it's
own concerns or goals in order to satisfy the concerns or goals of the other party.
Smoothing should be used when:
Goal to be reached is overarching.
You want to create obligation for a trade-off at a later time.
Stakes are low.
Liability is limited.
Any solution is adequate.
You want to be harmonious and create good will. You would lose anyway.
You want to gain time.
Forcing is also known as competing, controlling, or dominating style. Forcing occurs
when one party goes all out to win it's position while ignoring the needs and concerns
of the other party. As the intesity of a conflict increases, the tendency for a forced
conflict is more likely. This results in a win-lose situation where one party wins at the
expense of the other party. Forcing should be used when:
A "do or die" situation is present. Stakes are high.
Important principles are at stake.
Relationship among parties is not important.
A quick decision must be made.
Avoiding is also described as withdrawal style. This approach is viewed as postponing
an issue for later or withdrawing from the situation altogether. It is regarded as a
temporary solution because the problem and conflict continue to reoccur over and
over again. Avoiding should be used when:
You can not win.
Stakes are low.
Stakes are high, but you are not prepared.
You want to gain time.
You want to maintain neutrality or reputation.
You think problem will go away.
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You win by delaying.
Researchers examined the impact of the conflict resolution styles used by individuals
in shaping their work environment and affecting the level of ongoing conflict and
stress. (20) Results of the study showed that individuals who use a certain style to
conflicts can create environments with varied degrees of conflicts. Individuals whouse more of a confronting style create an environment with lower levels of task
conflict, which reduces relationship conflict and stress. Whereas, individuals who use
more of the forcing or avoiding styles tend to create an environment with more task
conflict, which increases relationship conflict and stress. The study suggests conflict
develops not only in environmental circumstances but in the styles used by individuals
when confronted with a conflict. The manner in which a person responds to
organizational dissension and uncertainty will influence the responses of others and
the individual's work experience.
Another study went a step further and examined the relationship between the threeforms of organizational justice (procedural, distributive, and interactional) and the
conflict resolution styles. (21) The researchers concluded that higher interactional
justice was related to greater use of the confronting style when distributive justice was
low and procedural justice was high. Use of the avoiding style was positively related
to distributive justice. This study suggests when employees perceive organizational
justice, they are likely to use more cooperative modes, such as confronting,
smoothing, and compromising, in dealing with conflict. Results from this study have
implications for organizations. Managers at all levels of an organization should be
attentive to enhancing employee perceptions of organzational justice in order to
encourage the use of more cooperative styles for organizational conflict management.
Barki and Hartwick tested a model of how members of information systems
development (ISD) projects perceive interpersonal conflict and examined the
relationships between interpersonal conflict, conflict management styles, and ISD
outcomes. (22) In the study, interpersonal conflict was defined as "a phenomenom
that occurs between interdependent parties as they experience negative emotional
reactions to perceived disagreements and interference with the attainment of their
goals." The results suggest that individuals' assessments of interpersonal conflict were
formed based on disagreement, interference, and negative emotion. Interdependence
was not a factor in their assessment. Negative emotion was found to be a significant
part of an individuals' perception of interpersonal conflict. Although conflict
management styles were shown to have positive effects on ISD outcomes, the
negative effects of interpersonal conflict on the outcomes were not alleviated.
Regardless of how the conflict was managed or resolved, the study demonstrated that
the impact of interpersonal conflict was perceived to be negative. The researchers
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concluded that management and satisfactory resolution of interpersonal conflict are
important. However, prevention of interpersonal conflict should be the greater focus.
Al-Tabtabai and colleagues undermine the modes of conflict resolution and propose a
conflict resolution technique using a cognitive analysis approach. (23) This approach
identifies a main source of conflict as the cognitive differences between parties.Feedback is presented that gives analysis of each individual's judgement and
comparisons with the counterpart's judgement. This cognitive feedback provides
insight to conflicting parties and gives them an opportunity to reach an acceptable
resolution to the conflict. The proposed systematic methodology to conflict resolution
identifies and measures the cues, distal variable, and judgements and determines the
relationships between these variables. The six steps of this methodology are listed
below.
1. Indentification of the Conflict Domain
2. Generation of Conflict Cases3. Exercise of Judgement
4. Analysis of the Results
5. Communication of the Judgement Differences (Cognitive Feedback)
6. Negotiation Among Conflicting Parties
The use of the cognitive analysis approach resulted in more agreement among the
parties in conflict. Cognitive feedback provided information on reasons why the
disagreement occurred among the parties and on areas that needed to be addressed to
reach an agreement. This approach allowed the project members involved in the
conflict to concentrate on the real differences that provoked the disagreement rather
than only discussing the effects of the conflicting situation. The findings from this
study suggest the use of cognitive feedback can be effectively applied to conflict
resolution.
Active listening is a proven technique managers can use to help resolve
conflict. (17) Developing this skill takes practice, but it can be extremely effective
when mastered. Listening allows the conflict to take its natural course by giving
individuals the opportunity to disagree, express strong opinions, and show passion for
ideas. A respect for individual differences is demonstrated and an environment of
understanding is fostered. Listening is helpful in achieving a winning resolution by
enabling an employee to identify the criteria that is considered an acceptable outcome.
When a manager is able to understand the needs and interests of individuals, the
chances of satisfactorily resolving the conflict for both parties are increased. As a
result of this process, trust and a relationship bond will form preparing individuals to
listen also to the needs of the manager. (15)
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An awareness of the potential approaches to conflict resolution and the understanding
of their consequences can provide project managers with a invaluable set of tools to
create an optimal work environment.
Common Causes of
Project Failure
OGC Best Practice
This document is primarily aimed at those
managing or otherwise involved in the
delivery of projects across Government.
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:12 p1. Lack of clear links between
the project and
the organisation's key strategic priorities,
including agreed measures of success.
2. Lack of clear senior management and
Ministerial ownership and leadership.
3. Lack of effective engagement with
stakeholders.
4. Lack of skills and proven approach to
project management and risk management.
5. Too little attention to breaking development
and implementation into manageable steps.
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6. Evaluation of proposals driven by initial
price rather than long-term value for
money (especially securing delivery of
business benefits).
7. Lack of understanding of, and contact with
the supply industry at senior levels in the
organisation.
8. Lack of effective project team integration
between clients, the supplier team and the
supply chain.
Common Causes of
Project Failure
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 p1. Lack of clear links between
the
project and the organisation's
key strategic priorities, including
agreed measures of success.
Do we know how the priority of this
project compares and aligns with our other
delivery and operational activities?
Have we defined the critical success factors
(CSFs) for the project?
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Have the CSFs been agreed with suppliers
and key stakeholders?
Do we have a clear project plan that covers
the full period of the planned delivery and
all business change required, and indicates
the means of benefits realisation?
Is the project founded upon realistic
timescales, taking account of statutory lead
times, and showing critical dependencies
such that any delays can be handled?
Are the lessons learnt from relevant projects
being applied?
Has an analysis been undertaken of the
effects of any slippage in time, cost, scope
or quality? In the event of a problem/conflict
at least one must be sacrificed.
2. Lack of clear senior management
and Ministerial ownership and
leadership.
Does the project management team have a
clear view of the interdependencies between
projects, the benefits, and the criteria against
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which success will be judged?
If the project traverses organisational
boundaries, are there clear governance
arrangements to ensure sustainable
Key questions to address
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 palignment with the business
objectives
of all organisations involved?
Are all proposed commitments and
announcements first checked for
delivery implications?
Are decisions taken early, decisively,
and adhered to, in order to facilitate
successful delivery?
Does the project have the necessary approval
to proceed from its nominated Minister either
directly or through delegated authority to a
designated Senior Responsible Owner (SRO)?
Does the SRO have the ability, responsibility
and authority to ensure that the business
change and business benefits are delivered?
Does the SRO have a suitable track record
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of delivery? Where necessary, is this being
optimised through training?
3. Lack of effective engagement
with stakeholders.
Have we identified the right stakeholders?
Have we as intelligent customers, identified the
rationale for doing so (e.g. the why, the what,
the who, the where, the when and the how)?
Have we secured a common understanding
and agreement of stakeholder requirements?
Does the business case take account of the
views of all stakeholders including users?
Do we understand how we will manage
stakeholders (e.g. ensure buy-in, overcome
resistance to change, allocate risk to the
party best able to manage it)?
Has sufficient account been taken of
the subsisting organisational culture?
Whilst ensuring that there is clear accountability,
how can we resolve any conflicting priorities?
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 p4. Lack of skills and proven
approach to project management
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and risk management.
Is there a skilled and experienced project
team with clearly defined roles and
responsibilities? If not, is there access
to expertise, which can benefit those
fulfilling the requisite roles?
Are the major risks identified, weighted
and treated by the SRO, the Director,
and Project Manager and/or project team?
Has sufficient resourcing, financial and
otherwise, been allocated to the project,
including an allowance for risk?
Do we have adequate approaches for
estimating, monitoring and controlling
the total expenditure on projects?
Do we have effective systems for
measuring and tracking the realisation
of benefits in the business case?
Are the governance arrangements robust
enough to ensure that "bad news" is
not filtered out of progress reports to
senior managers?
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If external consultants are used, are they
accountable and committed to help
ensure successful and timely delivery?
5. Too little attention to breaking
development and implementation
into manageable steps.
Has the approach been tested to ensure
it is not 'big-bang' (e.g. in IT-enabled
projects)?
Has sufficient time been built-in to allow
for planning applications in Property &
Construction projects for example?
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pHave we done our best to keep
delivery
timescales short so that change during
development is avoided?
Have enough review points been built-in so
that the project can be stopped, if changing
circumstances mean that the business
benefits are no longer achievable or no
longer represent value for money?
Is there a business continuity plan in the
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event of the project delivering late or failing
to deliver at all?
6. Evaluation of proposals driven by
initial price rather than long-term
value for money (especially securing
delivery of business benefits).
Is the evaluation based on whole-life value
for money, taking account of capital,
maintenance and service costs?
Do we have a proposed evaluation approach
that allows us to balance financial factors
against quality and security of delivery?
Does the evaluation approach take account
of business criticality and affordability?
Is the evaluation approach business driven?
7. Lack of understanding of, and
contact with the supply industry
at senior levels in the organisation.
Have we tested that the supply industry
understands our approach and agrees that
it is achievable?
Have we asked suppliers to state any
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assumptions they are making against
their proposals?
Have we checked that the project will
attract sufficient competitive interest?
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pAre senior management
sufficiently engaged
with the industry to be able to assess
supply-side risks?
Do we have a clear strategy for engaging
with the industry or are we making sourcing
decisions on a piecemeal basis?
Are the processes in place to ensure that all
parties have a clear understanding of their
roles and responsibilities, and a shared
understanding of desired outcomes,
key terms and deadlines?
Do we understand the dynamics of
industry to determine whether our
acquisition requirements can be met,
given potentially competing pressures
in other sectors of the economy?
8. Lack of effective project team
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integration between clients, the
supplier team and the supply chain.
Has a market evaluation been undertaken
to test market responsiveness to the
requirements being sought?
Are the procurement routes that allow
integration of the project team being used?
Is there early supplier involvement to help
determine and validate what outputs and
outcomes are sought for the project?
Has a shared risk register been established?
Have arrangements for sharing efficiency
gains throughout the supply team been
established?
If the answers to the above questions are
unsatisfactory, projects should not be
allowed to proceed until the appropriate
assurances are obtained.
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pExplanatory notes
Office of Government Commerce,
Trevelyan House, 26 - 30 Great Peter Street, London SW1P 2BY
Service Desk: 0845 000 4999 E: [email protected]
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W: www.ogc.gov.uk
About OGC
OGC - the UK Office of
Government Commerce -
is an Office of HM Treasury.
The OGC logo is a registered
trademark of the Office of
Government Commerce.
OGC Service Desk
OGCcustomers can contact the
central OGCService Desk about
all aspects of OGCbusiness.
The Service Desk will also channel
queries to the appropriate
second-line support. We look
forward to hearing from you.
You can contact the Service Desk
8am - 6pm Monday to Friday
T: 0845 000 4999
W: www.ogc.gov.uk
This document is printed on material comprising
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75 per cent post consumer waste and 25 per cent
ECF pulp.
© Crown Copyright 2005.
CP0015/01/05
1. An acquisition-based project is one which
has a significant element dependent on the
supply of goods and/or services by a third
party supplier or suppliers. Whilst it is not
essential for the goods or services to be
provided by a single supplier, the contribution
of the third party supplier or suppliers should
be considered significant, if a failure to deliver
on their part attracts public criticism.
2. An IT-enabled project is any business change
activity, including programmes and projects,
where the use of IT is critical to its success.
3. A project is defined as a unique set of
co-ordinated activities with a finite duration,
defined cost and performance parameters
and clear outputs to support specific
business objectives.
4. By value for money is meant "the optimum
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combination of whole-life cost and quality,
fitness for purpose to meet user
requirements". Government Accounting.
5. The list of Common Causes of Project Failure
has been agreed by the NAO and OGC.
OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:12 p
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