Professional Documents
Culture Documents
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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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.
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
Target
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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Identification/determination of problems
Completion and
evaluation of a
project
Planning of a
project
Realization /
implementation of a
project
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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.
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Implementation upwards
purpose
aim
tasks
mission
programs/
projects
Activities/
resources
RESULTS
MEANS
WHY
HOW
conclusions/results invariable
means/methods: flexibe
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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
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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20 % results
80 % results
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:
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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
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
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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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
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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.
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)
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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:
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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.
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
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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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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
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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Name of activity
A
B
C
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
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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Event
Event
Activity
Start of
Completion
activity X
of activity X
Start
Finish
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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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.
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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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:
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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.
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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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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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