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Danica Hullov

Project Management
1. Introduction
It was at the end of the 1960s and beginning of the 1970s when the attention
of research institutions in the USA was drawn to the issue of project
management. Initially, the research was sparked by the needs of outer space
observation and exploration programs. Later, it became clear that project
management could be useful in coping with more extensive changes in other
aspects of human life.
The need for project management is increasing hand in hand with the
development of information technologies, the shortening of the production
cycle and the development of products, competition for resources, and
continual organizational transformations. That means that the demand for
project management arises not only in extensive (and expensive)
international projects, but also in implementing changes of significantly less
importance.
Nonprofit, nongovernmental organizations (NPOs) are established and
exist thanks in large part to projects. They approach smaller or bigger
problems and seek alternative, innovative, though practical solutions, use and
administer all accessible resources, and influence and change the quality of
life within a given environment. NPOs are often referred to as project-type
organizations. Depending on the size of the organization and the level of its
professionalization, NPOs implement one or more projects in parallel.
However precisely a project is planned, during its implementation it
cannot be enclosed within a social vacuum. It is influenced by a number of
internal and external factors. The task of a project manager is to take these
factors into account and work with them. The more projects an organization
works on, the more difficult it is to consider and create appropriate
conditions for all of them. This is the task of project management.
This chapter begins with an overview of the basic concepts of project
management, including the definition of a project, its general features, and
the different types of projects. Subsequent sections outline the phases of the
project cycle, the processes of planning and administration, the
organizational structures surrounding and supporting a project, and the roles
of the actors involved. The following sections describe the basic project
management tasks and the tools available to managers. Different NPOs
undertake these tasks and apply these tools in different ways. The next

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section, therefore, is devoted to exploring these differences. The chapter


concludes with a reminder that projects and their successful management
ultimately depend on the people involved in them.

2. Project Management Concepts


What Is a Project?
The dominant word within the term project management1 is, namely, project.
This word has its origin in an Anglo-Saxon word project, which means a
process of planning and administering extensive operations. However, it does
not refer to project documentation.
A project consists of:

A specific, defined problem,


Justification for why it should be solved,
Written concrete and clear way to solve the problem,
Progression of steps that need to be taken in order to reach the
objective,
Start and end points for the steps leading to the solution,
Specification in writing of duties and responsibilities,
Achievable and realistic aims, the results of which are measurable,
and
Specification of individual budget items and their costs.

Limited aims and resources, uniqueness, and uncertainty characterize a


project. In the first place, it is a set of activities designed to achieve a
concrete objective, whether it be creating a product or developing and
implementing a technology or service. The activities have a clearly
determined beginning and end, a limited store of financial and nonfinancial
resources available, and a set of quality expectations. A project is likewise a
unique set of activities, which differ from routine activities in terms of not
only content, but also objective. This particular set of activities has no pattern
1

Project management is a philosophy of approaching a project with a clearly set target,


which must be achieved within given parameters of time, cost and quality. It includes not
only managing but also organizing and coordinating individual projects. It is a
superstructure of project management. Final results and changes in an organization are
achieved through deliberate coordination, administration and influence over individual
projects that are linked together. In this sense, project management is systematically applied
in project-type organizations where more than one project are implemented at the same
time.

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in the past and will not be repeated exactly in the future. Because of its
uniqueness, therefore, a project entails significant elements of uncertainty
and risk.
A project requires integration of the effort and experiences of a number
of specialists from different areas of expertise. Reaching the objective
depends on interconnected, discrete activities that bring out new, as yet
unknown problems.
A project is not periodically repeated work, such as everyday routine
bookkeeping, dealing with the mail, etc.

The Form of a Project


Figure 1: The form of a project
- Evaluation before, during and at the
end of a project
- Evaluation from outside and inside
(contractor, audit)
- Time schedule and forms of
evaluation
- Evaluation of strong and weak
points

Evaluation
Resources,
budget
- Analyzing
resources
- Budget categories
- Budget items
- Preparation and
adjustment of
budget
- Projection of
resource liquidity
- Monitoring and
reports
- Distributing
competencies and
responsibilities

Source: Own Figure

Target

Follow the SMART


principle:
- Specific
- Measurable
- Achievable
- Realistic
- Time-limited
- Evaluation of the target
- Attractiveness
- Competitiveness of a
project

Problem
description

Method
According to the Gantt`s
scheme:
- Define tasks
- Arrange completion of tasks
- Adjust schedule
- Define human and
organizational resources for
the tasks
- Media plan (effect on the
public)

- Description of a
problem
- Beneficiaries of a
project
- Who implements?
- Why are these
implementors most
appropriate?
- Why this particular
problem?
- Why this particular
solution?

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In terms of the scope of a project, there are at least three categories/types of


projects. The complex type is connected with special organizational
structures, high expenses, a variety of resources, and a large number of
subprojects. Due to these demands, the complex project is usually devised for
the long term future. The special project type is usually medium term in
duration and therefore requires fewer activities, only temporary employees,
and appropriate resources and cost. Finally, the simple project type refers to
small, short term (lasting only few months) projects with a simple objective.
Thus, there are few activities connected with the project and it can usually be
done by only one person applying standard methods.
The administration of small projects undertaken by individuals is not in
any way different from that of more extensive projects. The determination of
basic requirements must be as clear as in big projects. Nevertheless, it is
obvious that in small projects the objectives and requirements are less
demanding.
Management represents gradually performing work such as organizing,
planning, decision taking, communicating, motivating, and monitoring while
using all resources in order to reach the goal of an organization
(Management represents achieving targets through other people, Drucker).
From the perspective of concepts, it is necessary to distinguish between
the traditional, general administration still essential in the ordinary, routine
and repeated activities of an organization and the administration of unique,
time-limited tasks with determined resources, in other words, project
management.
The core of project administration can be found in the answers to the
eight questions (8W in German):
Why? (Warum?)
What? (Was?)
How? (Wie?)
Where? (Wo?)
Who? (Wer?)
When? (Wann?)
How much? (Wieviel?)
How good? (Wie gut?)

Why is the project created? What is its purpose?


What has to be done?
How to do it? What procedures, methods and
techniques to use?
Where is the project going to be implemented?
Which organizations and individuals will take part
in the preparation, financing, and implementation
of the project?
When will the project be started and when will it
end?
How much will the project cost?
What qualitative changes should be achieved by
the project?

The term project management can be considered in a strict or a broad


sense. The strict sense means the philosophy of approaching project
administration with a clearly set objective that must be reached within the

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required time, resources and quality. This refers to a specific methodology


for two fundamental activities: project planning and the administration of its
implementation. Planning is not a description of what is going to happen, but
what should happen. Through administration of project implementation, the
planned circumstances are achieved and the unplanned ones are prevented.
The broader sense of the term project management includes, in
addition to management, also organizing and coordinating. It is a
superstructure for the management of a number of individual projects. The
final outcomes and changes within an organization are achieved through aimconscious influencing of individual projects, which are interconnected and
strategically administered and coordinated. In this case, project-type
organizations that implement several projects in parallel systematically
apply project management.

3. Phases of a Project Cycle


Since projects include unique activities, there is a certain element of
uncertainty. Organizations performing such activities typically divide a
project into smaller parts, i.e., phases, which are easier to cope with. This
enables an organization to cancel a project in case the level of risk becomes
intolerable. The phases of a project also facilitate the monitoring of
intermediate results of a project and the adjustment of future steps. The
separate phases together represent a project cycle. Compact parts of a project
or its individual phases can be independent sub-projects that have the
characteristics of a project. Phases also enable the creation of appropriate
connections with the activities routinely carried out by an organization.
A project represents a system of activities that begin and end at certain
moments. These two points in time represent the beginning and the end of a
project cycle. The phases of a project cycle represent certain degrees of
development of the final product of a project. Projects are distinguished
according to size, level of difficulty and basis and character of outputs. There
are several types of project cycles.
The phases of a project cycle can be illustrated by the clearly arranged
model of Burton and Michael (1992). A generalized form of a project cycle
includes the following phases: conceptual, conclusive, executive and final.
According to these authors, projects are differentiated by size and level of
difficulty. However, it is less obvious that there are certain proceedings
common to all projects. All projects are planned and executed in the
following four phases: preliminary planning, detail planning,
implementation, and final evaluation.

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Identification/determination of problems

Completion and
evaluation of a
project

Planning of a
project

Realization /
implementation of a
project

Phase 1: Elaboration of complex input information for a project


Preliminary planning: defining basic conditions and intentions and setting
parameters of feasibility of a project
Phase 2: Preparation of a detailed assessment of project needs
Detail planning: elaboration of methods for a project; setting a time schedule
of tasks and resources
Phase 3: Project implementation
Implementation: monitoring and control of work progress; adjusting the plan
if necessary, documentation of progress and changes
Phase 4: Final evaluation
Presentation of final report, evaluation by the participants in the project,
elaboration of material
Identification and Definition of the Problem/Preliminary Planning
This is probably the most important phase of the whole project. Here it is
determined what must be done and whether it should be done at all. An
environment for a project is created in this phase. This phase results in a clear
concept of a final product or output of the project.
Planning/Detail Planning of a Project
The result of this phase is a detailed layout of the concept of the final product
of a project so that implementation can be started.

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Realization/Implementation of a Project
A person or a team coordinates activities according to a detailed plan. The
result of this phase is an implemented new service, adopted and exploited
methods, etc.
Evaluation/Completion of a Project
The whole project is documented through regular reports regarding the
course of the work. Information from these reports is evaluated for the
purpose of future use.

4. Project Planning and Administration


If a project is to be a complex and meaningful set of activities bringing about
change with a long-term effect, the change must be the subject of long-term
planning. This means that managers are expected to work on it over a long
time frame. It obviously follows that a project is one of the ways of
expressing an organizations strategy or mission.

The Terms Used in Planning


A plan is a set of decisions aimed at reaching a given result. The result is
commonly referred to also as purpose, aims and intentions. The term
means can be defined as a mission, programs/projects and
activities/resources.

Results versus Means


Project planners should remain firm when setting the targets that are to be
reached, or the results to be achieved, and flexible when determining the
means that are to be used in order to reach the target.
The relationship between the terms used for results and means in project
planning are illustrated in the following diagram:

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Figure 2: Results and means in project planning


Planning downwards

Implementation upwards

purpose

aim

tasks

mission

programs/
projects

Activities/
resources

RESULTS

MEANS

WHY

HOW

conclusions/results invariable

means/methods: flexibe

Source: Own Figure

The purpose of an organization is fulfilling the mission it was established for.


Common examples for a purpose solving a crime problem (Victim Support
Fund), increasing the number of people, who live in harmony with nature
(The Tree of Life), and increasing the importance of visual art (museum).
The mission is a major means used by an organization to fulfill its
purpose. An organization has only one purpose, but very often it exploits
several means in order to reach its aim. The most frequently cited goals of
nonprofit organizations are education, training, counseling, advocacy,

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prevention, research, information exchange, publishing, health service, etc.


Defining the mission statement of an organization is not always
identical with its definition of purpose. The mission represents the means,
while the purpose stands for results. A mission statement contains words
such as to secure or by the means of referring more to means rather
than to results.

Criteria for Choosing a Project


A project is a planned process aimed at a concrete problem. A project
suitable for a particular organization must therefore be apt to solve the
concrete problem and must be in agreement with the overall purpose of the
organization. In addition, the project has to be feasible and there have to be
people in the organization that care enough about solving the problem so that
they will support the project.

Aspects of a Problem
A real problem has a number of basic aspects such as indicators of
symptoms, symptoms, reasons for symptoms, and system and basic
problems. The solution is different for each part of a problem. The choice of
which aspect of a problem to solve is up to an organization. Yet, the choice
should be deliberate, based on the criteria mentioned above.
Table 1: Aspects of a problem
Aspects of a problem
Symptom indicator
Symptom
Reason for a symptom
System, fundamental
problem

Problem
The homeless
Unemployment
Lack of working skills
Changing economy, shifting
of employees, change in the
needs of employers

Solution
Temporary home
Temporary employment
Practical course
Global economic planning at
government level

Source: Own Table

Project Plan
A project plan is set in advance; it lays out the progression of an activity
within the context of a presumed environment. It determines the required
results and the means to be used in order to achieve these results. Planning a
project will help to save time and achieve the desired results in increasing the
effectiveness of the implementation of the project. It is also valuable with

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regard to decreasing uncertainty, hierarchize project activities, and


monitoring project implementation. Good planning requires time, but also
saves it. If sufficient time is dedicated to planning, more will be achieved in a
short time, with better results. If planning is not undertaken, a project may
take longer to complete and the results may be worse.
Planning also helps to hierarchize activities. In order to be successful, the
difference between many trivial and a few absolutely necessary activities
must be understood. According to Parets principle, by focusing on a few
absolutely necessary activities, the majority of desired results will be
achieved.
Figure 3: Parets Principle
80% time for many trivial
activities
20% time for a few
absolutely necessary
activities

20 % results

80 % results

Source: Parets principle rule 80/20.

The project planning process includes the following stages: setting the targets
of a project and defining strategies leading towards achieving them,
elaboration of an activity plan, the creation of a project organizational
structure and setting up a project team, and the elaboration of implementation
plans, i.e., time plan including overlaps (Gantts graph, network diagram),
expenses plan, resource allocation, matrix of responsibilities (explicit
distribution of responsibilities and competencies among the individual
subjects participating in a project). The concluding stages are the
specification of tools and techniques of project administration and the
identification of possible limits and risks of a project and suggesting ways to
eliminate these influences.
The planning process is the most difficult part of project management,
which to a large extent predetermines the final impact of an implemented
project. The following principles are essential to the planning process:

Planning is not a description of what will happen but what is


required to happen.
The one who does not plan does not know where he made mistakes.
The rougher the planning, the higher the probability of accidental
events occurring.
Planning should be as detailed as necessary, not as detailed as
possible.

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Project versus Program


Programs have a long-term character and require ongoing or permanent
financial support. Programs represent a wide range of activities, which have
the following common features. They are generally characterized by long
term collaboration with partner organizations while they are not restricted
with regard to their geographical location or their time horizon.
In contrast with a project, which must be administered using project
management methods, programs can be administered by the more traditional
methods.
Projects are either part of programs or they are a direct result of an NGO
strategy. When projects are part of programs, the following features bind
them. Because a program may consist of a set of mutually connected
projects, the projects represent the programs building blocks. These building
blocks (projects) are joined together into a complex system by constantly
occurring activities. It has to be acknowledged that projects and programs are
interlinked according to the principle of cause and effect. Programs as well as
their projects very often exploit the same resources

Management of Project Implementation


As noted above, the management of project implementation is a process
supposed to achieve a state in which the events expected to happen will
happen and unplanned events will not occur.
It is important to understand the difference between common, continuous
administration of processes and project management. Unlike general
administration, project management is aimed at reaching the target during a
certain time, within a certain budget, taking into account all the procedural
and technical requirements. Employees and managers participating in project
implementation must at the same time also perform ordinary duties related to
the functioning of an organization. However, project management is
characterized by a clearly set beginning and end and by the uniqueness of the
processes it administers. This fact practically excludes the possibility of
routine administration, repetition and correction of previously taken wrong
decisions.
Within the process of project administration, the following activities are
typical:

Realization of implementation plans and coordination of the people


participating in its realization;
Identifying and analysing up-to-date figures;
Administration, monitoring, and continuous evaluation, analysis and
correcting of the project progress - control of the set targets,

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deadlines and using resources and costs;


Solving conflicts and non-standard situations;
Technical and administrative support for a project;
Coordination of gradual integration of the system:
Final evaluation of intermediate phases of a project and proposals
for corrections or adjustments.

5. Organizational Structures in Project Management


The duration of a project is limited from its beginning to its end. Despite
that, an institution tends to expect the project to live forever. This is the
reason why it is so difficult to organize and administer a project within a
large organizational complex. Although no organizational form is perfect for
project implementation, it is necessary to seek the most appropriate
organizational support structure for every project.
Practically all organizations have a certain formal structure with some
management hierarchy. The formal arrangement of the organizational
structure is not always flexible in reacting to current needs or changes.
In order to ensure a successful project management structure working
towards the projects objectives, it is necessary to select an organizational
model that takes into account the complexity and range of the project to be
implemented.2 Within the chosen model of project management structure, it
is essential, first of all, to delegate competencies and responsibilities.
When choosing a project management structure, its strong and weak
points (virtues and imperfections) must be taken into account. However,
there must be a willingness to select a model that enables the most efficient
management of available resources human, financial and material.

Basic Forms of Project Organization


There are three basic forms of project organizational structure: functional,
project, and matrix. These organizational structures entail different types of
cooperation among individual project teams. Most project teams have
members from different areas of specialization with sufficient know-

It should be pointed out here that because of the unique nature of projects, it is practically
impossible to copy or shift models of project management structures from one environment
to another.

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ledge and skills for doing project work. Within a project team, superior
inferior relations tend to be suppressed; members usually have significant
competencies and responsibilities.
Functional Organization Structure Project Coordination
This model of organizational arrangement calls for hardly any internal
changes to an organizational structure itself. It is suitable for managing and
coordinating smaller projects, which can be implemented by one department
or a branch in which all the people of a certain qualification are concentrated.
It does not put special demands on coordination, yet it is not suitable for
bigger or more complex projects.
Project coordination is done by an individual employee of a division or
branch as an addition to the employees routine work in an organization. The
coordinator is subordinate to a manager at a particular level (e.g., the chair of
the board of directors, the director of the organization, the division manager).
The project coordinators mission is to supervise project planning and
implementation and ensure good working relationships among individual
departments, branches and divisions.
Figure 4: Project Coordination
PROJECT CO-ORDINATION
Organisation Director
Project co-ordinator

Financial
Department

Public
Relation

Education
programs

Requalification
programs

Publishing
Department

Human
Resources

Language
programs

Source: Own Figure

Figure 2 can be more easily grasped when one considers the following
example situation in which a short visit by project partners is prepared (this
visit may be the beginning of another project). The objective, time, available
resources, and main topics and activities of interest to the partners are clear.
The coordinators task is to convey all this information to the right places.
Therefore, he should approach the colleagues, who have seminar rooms at

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their disposal, and then precede to inform colleagues about the meeting
schedule, the topics, and extent of all the departments presentations. At the
same time he should consider consulting with the PR department on the
organization of the press conference and gathering promotional materials.
However, this person has no authority to make changes or decisions, thus
the coordinator is ultimately not responsible for achieving the projects
objective. The coordinators task is to provide information to the right places.
This model of organization is used in cases in which the procedures are clear
and central rectifying requirements are not demanding. This is a common
type of organizational structure, used most often for small, short-term
projects. It can be utilized by small, inexperienced NGOs as well as highly
professional nonprofit organizations in short-term projects. In bigger
projects, the limited authority of the coordinator could lead to serious
problems in its implementation and threaten the general feasibility of the
project.
Project Organization
This type of organizational structure is found in the case in which a separate
project subdivision is created by a special project group or unit within an
existing organizational structure. All, or almost all, people working on a
project are subordinate to the project leader.
Figure 5: Module of project organization structure
PROJECT ORGANISATION
Director

Financial
department

Public
Relations

Educational
programs

Publishing
Department

Project
manager

Project 1

Project 2

Source: Own Figure

This separate project subdivision has been given authority and autonomy
within a primary organization. The project managers authority and
responsibilities are at the same level as other department managers in the
organizations administration.

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This structure is used if the size of the project makes it worthwhile. An


organization must have a sufficient number of specialists who may be
transferred from one department to another on a full-time basis.
In some cases, if the project to be implemented is to be long-term and
extensive, an economically and legally independent organization is
established. It comprises a few smaller or larger groups with project
organizational structure. The whole organization has a horizontal structure,
and all specialized departments maintain the operations of an organization as
a whole. Project teams are flexibly connected horizontally. They are
established upon the start of a project and dissolved its end.
The following are steps to be taken in the creation of project teams:
A project manager is appointed leader of an organizational structure and
thus chooses the appropriate colleagues, who meet the criteria of
specialization
The high professional level of the people working in a project team
guarantees that after finishing one project they will begin working on
another. Working on several projects in parallel is not rare. This can be
elucidated by considering the following example.
A new educational project is being prepared. The organizations
management chooses a suitable project manager (organizational skills,
expertise, and experience). The project manager invites a group of specialists
from other departments into the project. The project group, under supervision
of the project manager, directly participates in the creation of a plan and the
subsequent implementation of a project.
A new educational module is expected to be implemented within a year.
The project team consists of five people. Apart from the project manager,
who works in the department of educational programs, there is also one
person from the PR department, one person from the publishing department,
and another two people from the educational programs department. Three
people work on a full-time basis (educational programs) and two people
work part-time (PR, publishing department). Both of the part-time team
members are involved in two other projects as specialists. The project
manager works in close connection with the financial department (continuous
and final financial reporting, accounting). At meetings, the project manager
informs the organizations management about the project, the use of financial
resources, changes in the project, etc. The project manager much coordinates
with other project managers because there are many people working on this
project in parallel with other projects.
This organizational structure is typical for the majority of nonprofit
organizations. After all, nonprofit organizations are often called project-type
organizations. This type of structure is not suitable for small, short-term
projects, or for start-up NGOs. It is an organizational form more appropriate
for extensive and long-term projects.

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Matrix Organizational Structure


The matrix organizational structure includes the advantages of the two types
mentioned above. The team leader is responsible for completing the project,
guaranteeing the quality, meeting deadlines, costs, etc. The project
management unit is responsible for executing the project by exploiting
specialists from other fields or departments. Therefore, people working on
the project are answerable to two chiefs to the head of a unit (the vertical
structure is maintained for problem-solving) and to the project manager
(horizontal relations of subordination).
Figure 6: Model of organizational structure of a matrix organization
Organization Management

Department 1

Department 2

Department 3

Department 4

A1

A2

A3

A4

Project B

B1

B2

B3

B4

Project C

C1

C2

C3

C4

Project A

Source: Own Figure

The following example will clarify this figure. In a situation where an


organization is preparing an extensive informational project with the
possibility of involving all the divisions throughout the country, each
division will provide a certain number of employees for project purposes. In
all the divisions at least one employee will be involved in creating databases;
some branches also employ specialists software, graphics, sociology, etc.
Apart from this, all the divisions implement their own individual projects in
parallel.
This may be the most demanding form of project structure. Managing a
matrix organization can be very difficult if the responsibility for the project

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and its key tasks are divided, or the roles are not clearly defined.
This model is suitable for big, extensive projects. It places high demands
on the maturity of the team, personal responsibility, independence and the
ability to cooperate. It is often used by highly professionalized nonprofit
organizations, which also have large networks of branches or affiliates.
In the implementation of any project, two basic interests must be
considered: the effective administration of the organizations operations and
the effective administration of the project process. Provided these two
interests are taken into account, an optimal organizational structure should be
achieved. The establishment of such an optimal organizational structure is
neither simple nor straightforward. It is influenced by a number of factors
that are often overlooked, such as habits, social relations, cultural traditions,
etc.
In practice, pure forms of these organizational structures are very
rarely encountered; modified versions are most common. Immensely
important is a wise union of flexibility of organizational structure together
with firmness and stability.

6. Actors, Project Manager and Project Team


Actors
Any project involves a number of participants, none of which should be
overlooked; the project manager and project team, the donor organizations
(responsible for monitoring and financial flows), the target beneficiary
groups (involved in the project in the identification phase and in the
implementation phase in particular), and the project partners. The
stakeholders3 are indispensable even if they do not necessarily participate.
However, they may take part in the decision-making process, while they
influence this process they are at the same time influenced by it. This
relationship of mutual dependence is especially evident when the
stakeholders are local and central administrative bodies that want to know the
programs implemented and the methods used in their jurisdiction.
Therefore it is very important that all the responsibilities and authority
3

Stakeholder (in a community) is any institution, organization or individual that can claim
anything with regard to the community. They have the right to participate in making
decisions concerning resources; they use or provide services or are directly affected by
activities within the community (Bryson, 1988). Concerning decision-making, there are
three basic categories of stakeholders: 1) those who are formally responsible for the
decision, 2) those who will be affected by the decision, and 3) those who are able to hinder
or influence the realization of the decision (Potapchuk, 1991).

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among them are clearly defined and respected. This section describes the
responsibilities and authority of the project manager and the project team.

Project Manager
A project manager is key to the successful planning and resulting
implementation of a project. The manager should be involved in a project
from the very beginning until its completion. A good manager does not
conduct planning alone, but rather employs key cooperators from the
preliminary planning stage and all the way through any needed modifications
to the primary plan. The difference between a good and bad manager is often
depicted in one single word: planning.
As the top administrator, the project manager is responsible for the
selection of appropriate projects in pursuit of the main strategic objectives of
an organization, the choice of project managers or coordinators for individual
subprojects, and the availability of the resources for project operations.
The project manager leads a team that is supposed to complete the tasks
leading towards the projects objectives. The tasks are unrepeatable, and the
objectives are ideally specific, measurable, acceptable, real, and possible to
control under normal circumstances. In order to achieve such objectives, a
project manager should be more of a leader than a manager. Several
management resources offer the comparison: A manager does things the
right way. A leader does the right things.
Managers who want to improve should evaluate their efficiency and effectiveness.
Efficiency means doing the right things. Effectiveness means the most effective use of
resources to do the things the right way. Efficiency is more important than effectiveness
since a human being must first of all do the right thing. Only then is it important whether it
is done effectively.(Stewart, 1985)

The following functions of management or typical activities are


performed by the project managers:

Anticipating and planning. Managers should look toward the future.


They must anticipate what will happen in order to be ready for it.
Organizing. Managers must create a system of professional relations
that fits the mission of an organization. The organizational structure
should make preparation and fulfilment of plans easier.
Leading. Managers should be an example for their subordinates.
They must encourage and inspire everyone who works for them.
Coordination. A manager should make the work of a project team fit
the overall plan of an organization. Information flow within an
organization is immensely important.
Control. A manager and the project team must be able to determine
whether what happened was supposed to happen.

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511

Coordination
Coordination is an important project management function and therefore
deserves additional attention here. Coordination requires information. If
project managers do not have exact and up-to-date information regarding
what is supposed to be done within individual departments, what is actually
being done and what changes may have an influence on these activities,
coordination is impossible. Information is key to effective coordination.
Good coordination, therefore, depends on whether employees have the ability
to acquire and elaborate information.
If an organizations activities are routine and predictable, some
information may be elaborated in advance. Decisions may also be taken in
advance in order to fit the system of regularly repeated situations. Decisions
may be laid out in the form of rules, regulations and procedures. However,
many activities are non-routine and unpredictable, therefore information
must be acquired and elaborated while performing a particular activity.
Decisions must be taken along the march.

Project Team
A project team is the expression of a managers role regarding redistribution
of labour, synergy and the need to cope with the interdisciplinary character of
each project. The selection of project team members is not a random choice,
but a deliberate one. A project manager chooses a mosaic of team members
ensuring that all meet standards of professionalism.
As an organic system, a project team also has its own dynamics and goes
through certain stages of development. In general. there are the following
stages:

Forming: The group is not yet a group, but rather a set of


individuals. The purpose, the name, the leader and the teams
duration are the main issues to be determined during this phase.
Individuals are trying to find their own identity within the group.
Storming/fermenting the process: The group undergoes a conflict
phase, the purpose of which is to reach some basic (often disputable)
agreement. Everything is challenged purpose, leadership, roles and
norms. Hidden programs surface, and personal hostility may
appear. However, if the process is careful and deliberate, fermenting
leads to the formation of real objectives and procedures. The main
point of this phase is to build up trust inside the group.

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Norming: The group sets norms and patterns of behaviour.


Individuals, using various experiments, test the nature of a group in
an attempt to determine the level of his/her obligation towards the
group.
Performing: This phase, i.e., optimal performance, is achieved if the
previous stages have been successfully completed.

In a group for which the objectives have been clearly set and the members
consider these objectives important; the first phases can pass within few
hours, usually during the first meetings. In most cases, however, these phases
last longer. This must be taken into account in the preparation of the projects
and programs that have led to the groups formation. For example, the
manager of a new project team consisting of members from different
departments of the organization who have worked together before must allow
some time for the group to mature and develop.

7. The Manager and Project Management


The manager responsible for project implementation must act keeping in
mind that she/he is expected to finish the project in a given time frame, while
not exceeding the budget, but at the same time achieving all projects
objectives.
The everyday task of a project manager is constrained by three
fundamental parameters efficiency (quality), terms (time), and expenses.
Different strategies for monitoring and evaluating a projects progress place
emphasis on different parameters (see Figure 4):

Balanced control strategy in which all three parameters are equally


represented;
Control strategy focused on time in which the primary stress is on
meeting deadlines, while the issues of expense and quality are not
emphasized;
Control strategy focused on expenses and resources in which the
issues of expenditures and exploiting available resources are
dominant and the other two parameters - deadlines and quality - are
of lesser importance;
Control strategy focused on quality in which quality is the most
dominant aspect.

It is important to realize, however, that none of these three parameters may


be omitted.

Project Management

Figure 7: Managers
implementation

513

attitudes

towards

evaluation

during

project

TIME
When does it have to be done?

EXPENSES
How much is it going to
cost ?

Deadline

Sources Quality
Expensess

QUALITY - EFFICIENCY
What is to be achieved?

Deadline

Sources
Expenes

Quality

Deadline

Deadline

Sources Quality

Sources Quality

Expenses

Expenses

Source: Own Figure

Experience has shown that either it is a problem to stick to the planned


schedule, or additional resources are required, or there is pressure for
increased quality. The major challenge of project management is to satisfy all
the requirements at the same time, not fulfilling one at the expense of the
others.
Therefore, when starting to prepare a project it is necessary (from a
project management point of view) to undertake the following tasks. The key
activities to be included into a project have to be identified, the time of
duration of individual activities has to be specified, and finally, the
relationships among individual parts or activities have to be outlined.
As an example, the local government is interested in surveying the needs
of the community. The government representatives want to find out whether
the services are in accordance with the requirements of the citizens.
Important tasks will be designing the key activities and subsequently
determining the projects overall duration. The table below is the output of
the first task.

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Table 2: Key Activities


Activity
A

C
D

Description of activity
Determination of project targets
In order to define the key information, it is necessary to discuss the
project targets with the top management of the government and elected
representatives in the region.
Questionnaire proposal
The survey will be conducted through personal contact with a selected
group of respondents, and their answers will be recorded in a structured
questionnaire.
Determination of the method for selecting the group of citizens
It would be useful to discuss this issue with external consultants.
Pre-test
Before the survey is fielded, it is necessary to prepare a pre-test to verify
the strategy for selecting the citizens and the appropriate character of
the questions.
Adjusting the questionnaire and the method of selection of the
respondents
The results of a pilot research and eventual adjustments will be taken
into account in preparation of the final version of the questionnaire and
process of selection of the group of citizens.
Recruiting volunteers who will carry out the research
On the basis of the results of the pilot research, we should recruit a
sufficient number of volunteers who will carry out the research.
Training the volunteers
Before the research begins, it is necessary to train and prepare the
volunteers.
They need to be explained their role, the way they will ask the questions,
and how the whole research will be realized.
Printing the questionnaires
For the main research a sufficient number of questionnaires must be
printed.
Choosing the respondents
Choice of the respondents who will represent the sample for the
research.
Carrying out the survey
The research itself and recording the answers are done directly in the
field.
Gathering of information
Transferring information from the questionnaires into computer systems
for the purpose of analyses.
Volunteers reports
The volunteers personally hand in the results, possibly give feedback
from the respondents.
Analyses of the collected information
The team of experts and the project manager do computer data
analyses.
Writing a report
The manager is responsible for writing a report including qualitative as
well as quantitative conclusions, information concerning the credibility of
the submitted figures, and the expenses. The report is submitted to the
administrative body that ordered it.

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Source: Own Table

A list of activities together with a description such as that provided in the


above table creates an overall image of a project. However, the project
manager must also determine (as precisely as possible) the duration of each
individual activity, as shown in the table below.
Table 3: Duration of activities
Activity
A
B
C
D
E
F
G
H
I
J
K
L
M
N

Name of activity
Determination of project targets
Questionnaire proposal
Determination of the method for selecting the
group of citizens
Pre-test
Adjusting the questionnaire and the method of
selection of the respondents
Recruiting volunteers who will carry out the
research
Training the volunteers
Printing the questionnaires
Choosing the respondents
Carrying out the survey
Gathering of information
Volunteers reports
Analyses of the collected information
Writing a report

Duration of an activity
3 days
6 days
4 days
10 days
5 days
10 days
1 day
5 days
8 days
15 days
5 days
2 days
10 days
2 days

Source: Own Table

Once the duration of the individual activities is determined, the time frame
for the whole project should be calculated. This is often a very demanding
task. It may seem that once the duration of individual tasks is known, it is
simple to determine the duration of the whole project. However, merely
doing a sum of the figures would lead to an incorrect result. As the following
table illustrates, some activities may be carried out in parallel, whereas some
depend on the result of previous activities or can be carried out
independently from the others.

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Danica Hullov

Table 4: Interdependency of activities


Activity

Name of activity

A
B
C

Setting the project targets


Questionnaire proposal
Determination of the method for selecting the
group of citizens
Pre-test
Adjusting the questionnaire and the method of
selection of the respondents
Recruiting volunteers who will carry out the
research
Training the volunteers
Printing the questionnaires
Choosing the respondents
Carrying out the survey
Gathering of information
Volunteers reports
Analyses of the collected information
Writing a report

D
E
F
G
H
I
J
K
L
M
N

Depends on completion of
the activity
None
A
A
B,C
D
D
E,F
E
E
G,H,I
J
J
K
L,M

Source: Own Table

Net Graphs
Most probably, net graphs are familiar to many, although they may have
different names. For example, a car map is actually a net graph of roads,
connecting cities and towns. This kind of graph helps users find the most
optimal way from one place to another. There is a similar optimal path for
a project manager. Drawing a net graph is not too demanding a task;
however, several rules must be followed.
A net graph must contain a starting and a finishing point (knot). Each
knot (point) with the exception of a starting point - must follow at least one
activity. After each knot (point) with the exception of a finishing point at
least one activity must follow. Any two knots (points) may be connected only
by one activity. In addition to the sequence of activities, the graph also
indicates the duration of individual activities.
An important analytical step is to determine the optimal path, i.e., the
longest variation of project implementation, with a minimum time reserve
left. A net graph relating to the local government needs an assessment survey
project described in the previous tables. This may be created in the following
way, with the letters indicating separate activities and the numbers indicating
the duration of each task (see Figure 9):

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517

Figure 8: Basic features of a net graph

Event

Event
Activity

Start of

Completion

activity X

of activity X

Source: Own Figure

Figure 9: A net graph of a research project the critical way

Start

Finish

Source: Own Figure

Using a net graph enables a manager to work with information that will be
helpful in setting the overall time frame of project implementation,
determining the priority of activities in order to finish the project in time. The
net graph is also invaluable in outlining the influence of the duration of
individual activities on the duration of the whole project, ad finally
monitoring the project progress.

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Danica Hullov

Gantts Diagram
The information resulting from a net graph allows the presentation of
projected deadlines with the help of a Gantts diagram. Te horizontal time
axis shows the duration of project implementation, while the vertical axis
represents the particular activities. Gantts diagram serves as an excellent
project monitoring tool.
Although Gantts diagram provides the same information as a net graph,
it is regarded as more practical. It must be mentioned, however, that
completion of a Gantts diagram without a time net graph may be extremely
difficult.

8. Tools of Project Management


Tools enable a manager to attain the sought-after objective. In project
management and for a project manager these tools include principles,
procedures, methods and techniques.

Principles
A principle is a fundamental idea, a solid point of every meaningful action,
and an output of a scientific work. Principles are independent, many times
verified truths. Their applicability in a certain environment is therefore
straightforward since this environment has already verified them.
Dolank, Mkota and Nmec (1996) offer five principles for project
management that are especially significant for project preparation:
1. Ask relevant questions.
According to this rule, a project manager and the project team
should bring forward questions relating to the objectives
(effectiveness and quality of the work, ways and means used,
communication, etc.).
2. Never presume anything; everything has to be verified.
The second rule deals with argument-based decisions, not just blind
estimations. Levels of tolerance of the possibility of failure should
be clear in advance.
3. Keep bearing in mind the question: what is the purpose of the project.
Following this rule, people working on a project should be aware of
the sense of their action; they should know the because to every
why.

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519

4. Identify internal/external effects of a project.


This rule is a reminder of the need to identify the internal and
external impact of the project on people in an organization where
the project is being realized, or on people outside the organization
who are affected by the project.
5. Approve individual phases of a project.
The fifth rule takes into account the diversity of large systems. For a
project, this means monitoring and assessment at least at the end of
each phase.
The sixth principle should also be mentioned since its importance grows
alongside with the size of a project. The rule is: Use a compact vocabulary
of a project. If understanding of certain terminology is not clear, there is an
increased danger of conflict and also damage within a project.

Procedures
Procedures within a project represent a set of consecutive steps specific to
each project. Procedures are based on the competence of a project manager
and the members of a project team, i.e., their level of knowledge of a
particular area and their creative initiative. This includes, for example, the
use of specific forms, processes, or agreed-upon means of communication.

Methods
Methods are verified procedures. Depending on a project, some methods can
be more or less suitable. For instance, the brainstorming which is a method
of trying to solve the problem by intense thinking about it, often used during
discussions and meetings. This method is popular in innovational projects.
Some methods are used in the design stages, some in the final stages of a
project. For example, the logical frame method is often used for defining a
project. This method has been developed by the specialists of the World
Bank and the American firm Team Technologies, Inc. It is used for:

Delineation of purpose, outputs, results and activities, required


objectives;
Determining what, how and what to use to measure the outputs;
Estimation of conditions and risks when pursuing the objectives,
results and activities;
Brief presentation of a project;
Framing the monitoring of the achieved objectives;
Further delineation of activities and targets as the basis for the
matrix of responsibility, the time schedule and other planning

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Danica Hullov

documents.

Techniques
Various kinds of technology are used in order to support project activities. In
the first place, a technique is the project managers approach towards
resource utilization. It also refers to supporting computer techniques and
information technologies.

9. Project Management in Nonprofit Organizations


A typology of nonprofit organizations is not as clearly elaborated as it is in
the cases of types of airplanes, chemical substances, or languages. It is
almost as difficult as sorting, for example, mental illnesses and disorders or
musical styles. The classification criteria are typically unclear, and many
hybrids exist that can belong to various subgroups at the same time.
Despite these difficulties, there are a number of traditional criteria that
can be used to define at least approximate borderlines:

Public welfare: organizations for public interest (also general


interest) vs. organizations for mutual interest (i.e., members);
Major activities: service organizations (directly providing services)
vs. organizations focused on advocacy (private or public interests);
Support vs. direct implementation: grant-making institutions vs.
organizations implementing programs;
Target of an activity: organizations serving the public vs. mediating
organizations;
Independence: independent organizations vs. organizations creating
networks, divisions, umbrella structures, etc.
Criteria of formality: formally registered organizations vs. informal
entities (groups or associations).

On the basis of these criteria, nonprofit organizations can be divided into the
following categories commonly used in Europe (see introduction of this
book): Membership organizations, Interest organizations, Service
organizations, and Support organizations.
These different types of organizations have many common, but also
different project management approaches as described below.

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521

Membership Organizations
Membership organizations tend to design and implement mainly smaller and
short-term projects. In the project cycle, they pay attention to all four phases.
The identification and evaluation phases are managed easily and at low cost,
since these organizations have good knowledge of their members needs. The
project teams tend to be smaller, comprised of both professionals and
volunteers, and they are organized mainly in the functional/project
coordination or project organizational structures.

Interest Organizations
In contrast to membership organizations, interest organizations implement
mainly larger, long-term projects. Like member organizations, however,
interest organizations also pay attention to all four phases of the project
cycle. Since the problem identification phase is critical, they engage in
extensive marketing research and analysis. Equally important are the
planning and monitoring/evaluation phases. The project teams tend to be
composed of internal and external specialists, with a high level of
professionalism. As such, this type of organization utilizes mainly the project
and matrix organizational structures.

Service Organizations
Like interest organizations, service organizations are engaged in primarily
larger and long-term projects. Although they give attention to all four phases
of the project cycles, the problem identification and the monitoring and
evaluation phases tend to be very important. As with member organizations,
a mix of professionals and volunteers make up the project teams, but, like
interest organizations, the project and matrix structures are favoured over
other project organizational structures.

Support Organizations
Nonprofit support organizations design and implement programs. In the
project cycle, the most important phases are problem identification, focusing
on the target group and social needs analyses, and monitoring and evaluation.
The program teams are highly professional, created by consultants, external
advisors, and evaluators. This type of organization mainly exploits the
project organizational structure.

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10. Conclusion
This chapter has dealt briefly with the topic of project management. Project
management has been defined here as the process by which the project
manager plans and monitors project tasks and the resources, i.e., people,
money, equipment, and time, on which the organization draws to carry out
the project. It is also a skilful use of techniques to achieve a required result to
a set level of quality, within a given budget and within a certain time frame.
Bringing a project to a successful conclusion relates directly to management
by objective, i.e., its success is measured by the degree to which it achieves
the objectives set. Project management helps to ensure success in meeting
objectives.
Since nonprofit organizations are so-called project-type organizations,
the topic of project management is fundamental for their operations and
sustainable development.
A nonprofit organization is often compared to a lively organism. It is not
a static, unchanging structure. Rather, it develops, rises and falls, and adjusts
to circumstances. Every organization goes through its life cycles.
A model NGO is said to go through six stages of development (lessstructured group surrounding a charismatic leader, structured group with a
defined mission, registered organization, professionalized organization,
organization with a levelled labour distribution, organization with vertical or
horizontal branch structure). An organization can decide whether to remain
longer at one particular stage or to come back to a lower level.
Certainly, each stage of development is reflected in the quality and
extent of the organizations projects. It is often said that changes cannot be
done because there is not enough money. Paradoxically, the money itself
does not cause changes. Regardless of the size and difficulty of projects,
people and their interest and willingness to participate in projects are always
the most important. If enthusiastic people are not involved, there is no stateof-the-art technology or a great budget that can guarantee the projects
success.

Suggested Readings
Drucker, P.F. (990): Managing of nonprofit organizations. Prague
Koonty, H./Weihrich, H. (1993): Management. Victoria Publishing
Kotler, P. (1991): Marketing Management. Victoria Publishing
Lock, D. (1996): Project Management. Gower

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Milogrom, P./Roberts, J. (2000): The Decision Taking Models in Economy and


Management. Prague
Newbold, R.C. (1998): Project Management in the Fast Lane. CRC Press LLC
Palmer, S./Reaver, M. (2000): The Role of Information in Manager Decision-Taking.
Prague
Rizzo, T. (1998): The Critical Chain in R&D: The One-project Solution. Avraham Y
Goldratt Institute
Scheinkopf, L.J. (1999): Thinking for a Change. CRC Press
Turner, J.R. (1993): The Handbook of Project-Based Management: Improving the
Processes for Achieving Strategic Objectives. McGraw-Hill

References
Adirondack, S.M. (1998): Just about Managing? Prague
Armstrong, M. (1999): Personal Management. Prague
Burton, C./Michael, N. (1992): A Practical Guide to Project Management. How to
Make it Work in Your Organization. London
Clelend, D.I. (1989): Project Management Strategic Design and Implementation.
TAB BOOKS, INC., Blue Ridge Summit PA
Dolanskz, V./Mkota, V./Nmec, V. (1996): Project Management. Prague
Drucker, P.F. (1992): Management: The Future Starts Today. Prague
Halukov, M./Kollr, F. (1999): Project Management. Bratislava
Horning, M. (1993): Project Management Training Materials, Support Centers of
America. Washington
Collective of Authors (2000): Textbook for Advanced Nonprofit Organizations.
Bratislava
Collective of Authors (1998): Textbook for Nonprofit Organizations. Bratislava
Rosenau, M.D. (2000): Managing of Projects. Prague
Wisniekwski, M. (1996): Methods of Manager Decision-Taking. Prague

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