1. Project Management: Tools & Techniques
LESSON 3

2. The 4-D model D1 – Defining the project
D2 – Design the project process
D3 – Deliver the project
D4 – Develop the process

3. …and the 4 procedures …

4. Developing the project ….
Mechanisms
Human resources
Knowledge
Experience
Capital
Tools- Techniques IT
NEED/WILLING
Constraints
Economical
Legal
Logical
Time-dependent
Environmental
Qualitative
etc
Project
COVER THE NEED

5. Interested Parties (or Stakeholders)
People or groups
interested in the performance and/or success of the project
affected or constrained by the project
Project Manager:
identify the parties, their interests, and sequence both in order of importance to the project
Influence the project directly or indirectly
interested parties interests
project management practices
organizational project management maturity
standards, issues, trends

6. Interested Parties (or Stakeholders)
Project Sponsor
Project Manager
Project team
Project organization
Programme organization
Regional, national and international legislative and regulatory agencies
Users, Customers, …..
Suppliers
Community or special interest groups
Politicians…..

7. Interested Parties (or Stakeholders)
Elements that affect perception of interested parties
Responsiveness
the speed of reply to requests for information or changes
Communication
How readily the project team provided information
Competence / professionalism
The apparent ability of the project organization to deliver the outcomes
Courtesy
The style of treatment received by stakeholders
Accessibility
The ease with which individuals could be identified and contacted when information was required
Maylor page 48

8. Identify Stakeholders
Stakeholder analysis
Step 1: Indentify all potential stakeholders
Step 2: Indentify the potential impact or support each stakeholder could generate
Step 3: Assess how key stakeholders are likely to respond in various situations and plan your reaction
PMBOK Guide, 4th edition, 2008

9. Identify Stakeholders (Outputs)
Stakeholder Register
Identification info, Assessment info, Classification
Stakeholder Management Strategy
Stakeholder Analysis Matrix
PMBOK Guide, 4th edition, 2008

10. The problem
The city of XYZ has several bus companies. During the last years the frequency of bus accidents has gone up significantly. This has caused much delay and inconvenience for the passengers. There have also been several serious accidents in which passengers have been killed. The newspapers have taken a particular interest in the problem, and some of the companies that have had more than their share of bad publicity have registered a reduction in the number of passengers. Much of the problem is technical: the buses are old, and are in bad condition because of a persistent lack of spare parts. But the human factor is also important: many accidents have been caused by high-speed driving on bad roads. Assignment: Suppose that you are acting as the manager of one of the interested bus companies. Your task is to implement the Logical Framework Approach (LFA) in order to decide upon a project that will address above problem.

11. Participation Analysis
On the basis of the available information, the first task is to develop a comprehensive picture of the interest groups, the individuals and institutions involved. Present these groups in the cells of the matrix shown in the following slide.

13. Hints to perform Participation Analysis:
From the given problem information, think about the following involved stakeholders:
Bus company
Passengers
General public
Mass media
Drivers
Bus owners
Categorize the above groups / stakeholders into three classes:
Institutions
Interest Groups
Others

14. Make a more detailed analysis of the most important groups
Select as most important groups:
Passengers, and
Bus Companies
Make a more detailed analysis of these groups, i.e., identify for each group the following:
Problems: The main problems affecting or facing the group
Interests: The main needs and interests as seen from the group's point of view
Potentials: The strengths and weaknesses of the group
Linkages: Main conflicts of interests, patterns of cooperation or dependency with other groups
Present your findings in the cells of the matrix shown in the following slide.

16. Hints to identify problems, interests, potentials and linkages:
Consider the following findings:
1. Economic losses caused by busses out of service
2. Sufferings for victims and their families
3. Economically viable operations
4. Able to directly influence the problem
5. Can choose other bus companies if necessary
6. Delays caused by accidents
7. Reduced number of passengers
8. Dependent upon the passenger’s cooperation
9. Safe, expedient and cheap transport
10. Boycott the only means to influence the problem
11. Economic losses caused by payments to victims
Categorize the above findings into four classes:
Problems
Interests
Potentials
Linkages
and identify the group (Bus Companies or Passengers) each finding is more relevant / valid

17. Problem Analysis
Suppose that you decided to give priority to passengers’ interests
Set as “focal problem” for passengers the following: frequent bus accidents
Identify the causes / effects of the focal problem
Construct the “problem tree”
You can complete the problem tree presented in the following slide
Hints to perform problem analysis:
The substantial and direct causes of the focal problem are placed parallel underneath it
The substantial and direct effects of the focal problem are placed parallel on the line above it
Causes and effects are further developed along the same principle to form the problem tree

18. Complete the Problem Tree

19. More hints for Problem Analysis:
Consider the following factors :
Drivers are not careful enough
People arrive too late
Insufficient maintenance
Economic losses for passengers
Bad condition of vehicles
Loss of confidence in the bus company
Bad condition of roads
Passengers are hurt or killed
Vehicles are too old
Categorize them into cause and effect factors of the focal problem (“frequent bus accidents”)
Place each factor accordingly in the problem tree

20. Objectives Analysis
Suppose that you have decided to add "training of drivers" as a means to make drivers more responsible
Construct the objectives tree by rewording problems in the problem tree into objectives (positive / desirable conditions)

21. Hints to perform Objectives Analysis
The problem tree is transformed into a tree of objectives (future solutions of the problems)
Working from the top downwards, all problems are reworded, making them into objectives (positive statements)
The focal problem is similarly transformed into an objective
Difficulties in rewording may be solved by clarifying the original problem statement
If the statements make no sense after being reworded from problems, write a replacement objective, or leave the problem unchanged
Check that meeting objectives at one level are sufficient to achieve the objective at the next level
Problems: "If cause A, then effect B"
Objectives: "Means X in order to achieve end Y“
Caution: Every cause-effect relationship does not automatically become a means-end relationship. This depends on the rewording
Working from the bottom upwards, ensure that cause-effect relationships have become means-ends relationships
Finally, draw lines to indicate the means-ends relationships in the objectives tree.

22. How the Objectives Tree is developed
Reformulate all elements in the problem tree into positive (desirable) conditions
Review the resulting means-ends relationships to assure validity and completeness of the objective tree
If necessary:
Revise statements
Delete objectives which appear unrealistic or unnecessary
Add new objectives where necessary
Draw connecting lines to indicate the means-ends relationships.

23. Reformulate “Problems” into “Objectives”
Economic losses for passengers
Loss of confidence in the bus company
Passengers are hurt or killed
People arrive too late
Frequent bus accidents (focal problem)
Drivers are not careful enough
Bad condition of vehicles
Bad condition of roads
Vehicles are too old
Insufficient Maintenance
Complete the objectives (cells of the 2nd column) in the table:
Add “Drivers are better trained” as a means to make drivers more responsible

24. Complete the Objectives Tree
Cause
Effect
Complete the Objectives Tree

25. Alternatives Analysis
Three steps:
Eliminate the objectives which cannot be achieved
Identify two possible alternative options (means-end branches in the objectives tree) which could become possible projects
These means-end branches constitute the alternative options
Number and label thee alternative options
Evaluate the two alternative options (and their combination) with respect to the following viability criteria:
Cost
Chance for success
Cost/Benefit
Time horizon
Social risk

26. Alternatives Analysis: 1st Step
Determine and eliminate the objectives which cannot be achieved

27. Alternatives Analysis: 2nd Step
Identify two possible alternative options (means-end branches in the objectives tree) which could become possible projects
These means-end branches constitute the alternative options
Number and label thee alternative options
Show these options in the objectives tree

28. Re-design the Objectives Tree

29. Alternatives Analysis: 3rd Step
Evaluate the two alternative options (and their combination) with respect to the following viability criteria:
Cost
Chance for success
Cost/Benefit
Time horizon
Social risk
Select one of the options (option 1, option 2 or their combination) as the appropriate project strategy for the bus company

30. (Option 1 & Option 2 combined)
Complete the Comparison Table
Use linguistic terms (Low/High, Short/Long etc.) to evaluate the options
Justify your evaluations
Option 1
Option 2
Option 3
(Option 1 & Option 2 combined)
Cost
Chance for success
Cost/Benefit
Time horizon
Social risk

31. Compete the
Project Matrix (PM)

32. Complete the Project Matrix (PM): 1st Step (1/2)
Identify main project elements for the selected project strategy
Use the objectives tree to identify the main project elements
Start at the top of the objectives tree and work downwards
If necessary, reformulate the wording from the objectives tree to make them more accurate

33. Complete the Project Matrix (PM): 1st Step (2/2)
Transfer the project elements into the first vertical column of the project matrix (Goal, Purpose, Outputs, Activities)
The goal describes the anticipated long term objective towards which the project will contribute
The purpose describes the intended effects of the project (project purpose) for the direct beneficiaries as a precisely stated future condition. There should be only one immediate objective
The outputs are expressed as objectives which the project management must achieve and sustain within the life of the project. Their combined impact should be sufficient to achieve the immediate objective
Activities are expressed as processes. Avoid detailing activities
Main inputs for the activities can be expressed in terms of funds, personnel, goods etc.

34. Complete “Goal”, “Purpose”, “Outputs”, “Activities” and “Inputs” cells in the PM matrix

35. Complete the Project Matrix (PM): 2nd Step
Identify assumptions
Assumptions describe conditions that must exist if the project is to succeed but which are outside the direct control of the project management
Start from the bottom of the objectives tree and work upwards
Examine whether the inputs are sufficient to undertake the anticipated activities or whether additional events must also take place outside the project (assumptions)
Some assumptions can be derived from elements in the objectives tree which were eliminated

36. Complete “Assumptions” cells in the PM matrix

37. Complete the Project Matrix (PM): 3rd Step
Determine indicators
The indicators specify how to verify the attainment of objectives and outputs.
Some indicators can be derived from the objectives tree (an indicator, for example, can specify exactly how much the frequency of bus accidents should be reduced and by which date)

38. Complete “Indicators” cells in the PM matrix