REPORT
Report
The research aims at analyzing PMIBoK5 to identify the topic coverage for P3M, entailing the areas concerned with P3M, and to identify the influences in PMIBoK5 affecting the approaches as well as the methodologies of P3 Management in the diverse project environments.
Deliverables
Project Management Institute Body of Knowledge (PMIBoK) entails a term describing the totality of knowledge within project management as a profession. The areas of coverage concerned with the P3 management include the project scope management, project quality management, project cost management, project risk management, project stakeholder management, project procurement (Haimes 2015, p. 41).
Related Scope Factors to P3 Management
Project scope management. It involves a set of processes that lead to the definition of the scope of a project, ensuring its mapping is accurate. The project scope management allows the allocation of the correct amount of work that is necessary to complete the said project successfully (Haimes 2015, p. 41). The same area of knowledge concerns itself with the control of all that is, and that is not part of the scope of the project. Ideally, the scope entails the detailed set of deliverables affiliated to a project and derived from the requirements of the project.
According to the PMBOK, the scope of a project involves the completion of a task for the delivery of a service, product, or outcome associated with specific characteristics as well as functions. Scope management entails three major facets, which include planning, controlling, and closing.
Project cost management. It involves the process making a plan and controlling the budget of business. The project cost management involves the activities like budgeting, planning, financing, estimating, managing, funding, as well as controlling costs to limit the completion of the project within the approved budget (Haimes 2015, p. 41). The project cost management entails four major steps, which include; resource planning, the estimation of the cot pertaining to a given part of the project, budgeting of the cost, as well as controlling the cost (Haimes 2015, p. 42). Therefore, there has to be a combination of the four major steps, to achieve the cost management process of the project.
Project quality management. The project quality management involves the entire processes and the activities required for the determination and the achievement of project quality. It entails all the plans put in place to meet the requirements of the customers (Haimes 2015, p. 42). To deliver high-quality services there exists three key concepts that tend to aid such a process. The three qualities include customer satisfaction, continuous improvement as well as the prevention over inspection.
Additionally, customer satisfaction involves the act of ensuring that the client feels the satisfaction of all their requirements because of using the product or service. The whole process entails customer’s feeling about the services that they received. The prevention over inspection entails the cost of quality, which involves the money spent during the process to avoid failures as well as the money spent at the end of the process to recover the events of failure. They are famous as the cost of conformance and non-conformance respectively.
Moreover, continuous improvement is a concept existing in all the major quality management approaches like the six sigma and total management (TQM). It involves the ongoing efforts tailored to effect the improvement of one’s products or services. Based on the project perspective, the concept applies to the analysis of the issues encountered in the progress of the project for any lessons learned; to apply the knowledge in the future projects. Project quality management entails three key processes, which include; plan quality, quality assurance, and quality control.
Project risk management. It involves the process of dealing with uncertain events in a proactive manner. As a result, one will be able to minimize the threats to the project as well as seizing opportunities as they unfold. Consequently, it allows the submission of the project at the appropriate time, quality results, as well as the right budget estimates as required by the sponsor.
Project risk management follows a set of regulations, which include making the process of risk management part of the project. Additionally, early identification of risks in the project, communicating about the risks for the project, and considering threats and opportunities for the project, also makes part of the regulations to govern project risk management.
Moreover, project risk management needs to follow the rules, like making clarifications on ownership issues, giving priority to the risks, analysis of risks and the plan as well as the implementation of risk responses. Finally, risk management involves the registration of projects risks and the tracking of the associated tasks.
Project procurement management. It involves the collaboration with external suppliers in a bid to purchase goods and services for the project (Meredith & Mantel 2011, p. 7). Through the creation of such relationships, one will be able to purchase commodities necessary for the project at the appropriate time and cost. The process of project procurement follows a set of steps.
Additionally, project procurement management involves contracting, whereby the communication with suppliers in regards to the date as well as the conditions of payment takes precedence (Meredith & Mantel 2011, p. 7). Moreover, project procurement management involves the control process, which entails the controlling of payment and delivery procedures. Finally, the project procurement process involves the measurement that is the final step and involves assessing the performance indicators to determine effectiveness and the accomplishment of the whole process (Meredith & Mantel 2011, p. 8).
Project stakeholder management. The stakeholders of a project involve the people who vested interest or care about the project. They tend to involve themselves in the management process because they either have something to lose or gain in the project (Ballesteros & Chavarria 2016, p. 12). Project stakeholders include the government, customers, suppliers, subcontractors, as well as the project sponsor, who is the executive, with the power to decide for the project and assign resources appropriately.
The stakeholders can make, or prevent the prosperity of the project irrespective of the extent of achievement of all the deliverables in a satisfactory manner (Ballesteros, & Chavarria 2016, p. 12). The stakeholder's team also entails the project managers from different departments, team members, as well as managers of the organization.
In particular, it is imperative that the stakeholders have a wide job guiding the project via a lifecycle, and any problem with the stakeholders tend to derail the process (Opentextbc.ca, 2017). The following is a diagram the shows the ability of managers to deal with the external as well as the internal environment.
(Opentextbc.ca, 2017)
Effects of Risk and Stakeholder Management on P3M Methodologies
It is important to consider the risk management and stakeholder management because they are the most sensitive parts of the project management process (Austin 2002, p. 192). The deliverables depend on the ability of the project manager to assess the risk as well as the ability of the other stakeholders to deliver in the performance of their duties in the process.
Project risk depends on the size of the project, how well defined the project is, and the technical sophistication of the project. Therefore, if one is responsible for managing a large sophisticated, poorly developed project, they are risking because if the project cannot deliver then, the manager will be the first person to lose (Austin et al. 2002, p. 192). Risk management affects the P3M methodologies because it requires the application techniques like defining the risks, risk assessment, risks prioritization, and dealing with risks.
On the other hand, stakeholder management involves the tasks such as ensuring that the Project Initiation Document PID is comprehensive, excellent communication with the sponsors, leading the team effectively, and communication with the subcontractors (Austin et al. 2002, p. 193). Additionally, the project manager needs to emulate the technical appreciation of the issues about the management of the project, have good organizational ability including the delegation of duties, as well as the expertise in the management of projects.
Therefore, the application of the P3M methodologies depends on the ability of the manager to handle their duties effectively (Austin et al. 2002, p. 193). As a result, it becomes important to discuss the two types of project management processes because they have a direct influence on the application of the P3M methodologies.
Key Theory
The stakeholder theory of corporation entails three main aspects. The aspects include the descriptive accuracy, normative validity as well as the instrumental power. Through the presentation of a model, the stakeholder theory describes the significant aspects of the corporation (Petit 2012, p. 540). It present corporation as a constellation involving competitive as well as cooperative interest, associated with the intrinsic value. The descriptive accuracy involves the uniqueness of the model in describing the concepts more accurately compared to the rival models (Thomas & Lee 1995, p. 66).
Moreover, the model offers a mechanism that enables the testing of empirical claims, which include the instrumental predictions that are in line with the stakeholder concept (Petit 2012, p. 540). According to Donald Thompson, the theory is managerial, recommending the structures, attitudes, and practices that combine to make up the management philosophy.
Therefore, the ultimate justification for the theory exists in the normative base. The alternative to the stakeholder theory is ethically unsustainable (Petit 2012, p. 541). Finally, the theory of property rights has the mandate to support the conventional perspective in the pluralistic as well as the modernized form and the stakeholder theory.
Managing Project Risks
The management of the technological as well as other systems needs to follow a holistic approach to the determination of the organizational, hierarchical, as well as the fundamental decision-making structure (Thomas & Lee 1995, p. 66). The process of risk management starts with the identification of the risk, which is a process that entails the risk management planning analysis, controlling as well as response planning.
However, among the processes mentioned, the project risk identification is the most important part of the risk management planning. The process determines the kind of risks that might affect the project as well as the documentation of their features (Chaves 2016, p. 30). According to Paul Newton, the identification of risks shall not take much of the time. Therefore, once the process of listing the risks is complete, the stakeholders begin the analysis to determine the risks need the allocation of more time and money.
Contributions (Outcome)
The P3M methodologies aid in the delivery of projects, portfolios, and programs. The sponsor of the project is responsible for executing adequate governance by periodically checking the mechanisms in the application for the project to achieve its aim (Chaves 2016, p. 30). Therefore, through the application of the appropriate procedures, the execution of the requirements of the project tends to follow the correct mechanisms and it is famous as project assurance. Sometimes a person who is external to the project management team carries out such a task and reports to the project sponsor.
In relation to the program, the P3M methodologies define the standards set by the portfolio for the governance of the project. For the programs designed as stand-alone entities, the independent form of governance applies for each entity (Chaves et al. 2016, p. 30). Most of the times programs result from already existing projects, which may be lacking a consistent managerial pattern.
Additionally, the methodologies enable the alternative managerial procedures, to safeguard the status of the projects that are part of the already existing ones but lack a consistent form of governance (Chaves et al. 2016, p. 30). Therefore, the project management team has an additional task of determining the suitable procedure for employing the correct form of governance in a given entity.
Moreover, the P3M methodologies present need to introduce a balance in the choice of a consistent approach to determining the governance for the project. The program assurance function gives the reports of the work to the program sponsor (Burke 2013, p. 7). The program ensures that the standards of governance applied in the project are quality and meet the requirements set out in the criteria proposed by the executive. The implementation of the procedures for the governance of the existing projects includes conducting the project assurance on the components of projects (Burke 2013, p. 7).
In terms of the portfolio management, organizations combine their programs and the projects to undertake in one common portfolio. The initiative will make the task of managing the project easier because of the organized plan, whereby all functions pertaining to the project take place at a common point (Burke 2013, p. 7). The governance of the portfolio disregards the need to have an independent governance for each project and the programs, by enabling a mechanism for the management of all the projects and programs in one place.
Additionally, the large organizations tend to have various portfolios that exist in different places in terms of geographical location, operating division, or the subsidiary of the portfolios (Burke 2013, p. 7). However, some mechanisms enable the supervision of the progress of all the portfolios at one point, for instance, the creation of a central managerial portfolio that allows the monitoring of the rest.
In addition, there may exist compelling reasons to have different governance measures for the organizations, though the governance-organized management at a common setting is suitable for the assurance of project success (Turner 2016, p. 100). In addition, the portfolio assurance is a function of corporate quality and the individual responsible for its governance reports to the portfolio sponsor.
Risk management is a vital ingredient in the process of project management. Risks arise every day and in every instance of the management process (Turner 2016, p. 100). Therefore, there exists a need to prepare for potential risks so that they do not cause significant challenges that lead to the failure of the project.
In the control stage, certain priorities tend to apply to each variable, based on the nature of the project in progress (Turner 2016, p. 100). Certain compromises that arise in the process of the implementation of the project include but not limited to the following. Firstly, there tends to arise the increased emphasis in quality.
As a result, the project takes a long time to complete and the cost of implementing it to conclusion increases (Turner 2016, p. 100). Secondly, increased emphasis on meeting the budget estimates for the project leads to tend to compromise its quality, narrowing its scope, as well as increasing the period for the project.
Thirdly, when the manager places emphasis on meeting the deadline for the project, there results in a drop in quality of the outcome and a narrow scope of operations (Turner 2016, p. 101). Finally, insisting on the maintenance of the scope of the project tends to lead to increased cost of operations as well as the time for the completion of the said project.
Therefore, the implementation of the control process in risks management is very vital for the assurance of the project aim. However, none of the compromises mentioned above is bound to occur, though project managers need to be aware of the existence of such tensions (Turner 2016, p. 101). Therefore, a balance is necessary to negotiate with the project sponsors to lobby for approval of the changes.
Therefore, the control process in the management of risks for a given project is a function served by the project manager, with the assistance of the rest of the stakeholders (Alotaibi & Mafimisebi 2016, p. 95). However, it is important to inform the sponsors of the project about any changes deemed necessary in the process.
Additionally, the stakeholder management applies the P3M methodologies to execute their roles effectively in achieving the aims of the project (Alotaibi & Mafimisebi 2016, p. 95). The stakeholders responsible for the implementation of the project have the power to modify the regulations in any way deemed necessary depending on the risk anticipated. Based on the stakeholder theory, the stakeholder management is a very critical position in the management of the project.
Reflection
In the PMIBoK the areas related to the P3M covered include the project scope management, project quality management, project cost management, as well as project risk management (Alotaibi & Mafimisebi 2016, p. 95). Additionally, the research also assessed the relative status of the stakeholder management, as well as the project procurement management.
Each of the areas mentioned above underwent a detailed analysis and the information regarding the contribution of each of them to the management process assessed (Alotaibi & Mafimisebi 2016, p. 96). As a result, the research employed a basic approach in handling the issues pertaining all of the areas related to P3M above.
In conclusion, the roles of the risk management involve informing the management about the status of the project in terms of the budget estimates, as well as the cost of operations. In particular, it gives the opportunity for the management to predict the future of the organization (Alotaibi & Mafimisebi 2016, p. 96). It affects the application of the P3M methodologies. Additionally, stakeholder management entails the team that implements the proposals as well as preparing to solve the problems that arise in the process.
Reference List
Alotaibi, A.B. and Mafimisebi, O.P., 2016. Project Management Practice: Redefining Theoretical Challenges in the 21st Century. Project Management, 7(1).
Austin, S., Newton, A., Steele, J. and Waskett, P., 2002. Modelling and managing project complexity. International Journal of project management, 20(3), pp.191-198.
Ballesteros, A.K. and Chavarria, F., 2016. Human Competencies of an Effective Project Manager: The role of the Professional Bodies of Knowledge and Formal Education Providers in the development of soft skills.
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA. (pg 5-10)
Chaves, M.S., de Araújo, C.C.S., Teixeira, L.R., Rosa, D.V., Júnior, I.G. and Nogueira, C.D., 2016. A new approach to managing Lessons Learned in PMBoK process groups: the Ballistic 2.0 Model. International Journal of Information Systems and Project Management, 4(1), pp.27-45.
Haimes, Y.Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Meredith, J.R. and Mantel Jr, S.J., 2011. Project management: a managerial approach. John Wiley & Sons. Pg 7-10
Opentextbc.ca. (2017). 5. Stakeholder Management | Project Management. [online] Available at: https://opentextbc.ca/projectmanagement/chapter/chapter-5-project-stakeholders-project-management [Accessed 5 Jan. 2017].
Petit, Y., 2012. Project portfolios in dynamic environments: Organizing for uncertainty. International Journal of Project Management, 30(5), pp.539-553.
Thomas Donaldson and Lee E. Preston, 1995. The stakeholder theory of the corporation: concepts, evidence, and implications pp. 65-91
Turner, R., 2016. Gower handbook of project management. Routledge.
