controlling projects

Controlling Projects
Even projects that are well organized and carefully planned need to be controlled through all stages of their life-cycle. Controlling Projects is the last in a series of three modules that together comprise the project management course. Controlling Projects explains how to select and apply a practical and effective series of project controls to suit the needs of each project. Only by monitoring and forecasting progress against the agreed project plans and by taking the appropriate corrective action can the project be protected against events which might otherwise overtake it, and come to dictate its fate.

Success in project management is not achieved simply by using the right tools and techniques, although these are important. Organizing Projects explains how to build and motivate an effective project team by adopting a flexible management framework that adapts to the needs of each project. Planning is essential. If you have no definition of the project and no plan, then the chances for success are minimal as it will be virtually impossible to communicate your intentions, either to the project team or to the stakeholders. All aspects of Planning Projects are dealt with in this eponymous second module of the course.

Thorough planning of the work required to complete the project should be undertaken - to precisely the level of detail required. Once this overall project plan has been agreed it is known as a baseline plan and it represents the original agreements in terms of overall timescales and budget. Once the plans are agreed, the necessary work can be defined and the tasks allocated. All of the key responsibilities must be clearly communicated to achieve the goals outlined in the plans. This definition of responsibilities is particularly important in relation to those staff involved in managing the project.

Budgetary and expenditure control mechanisms must be clearly defined, as it is important that the work of the project is not subjected to bureaucratic delays in releasing funds. It is also vital that the projects budget is carefully monitored to identify any deviations from the planned budget. From the beginning of project work the actual progress against the plans must be accurately monitored. This auditing must be maintained throughout the life cycle of the project so that any significant deviations are identified and addressed as soon as possible. Periodic updating of 'time and costs to complete' estimates should be carried out. The information gathered concerning project progress should be converted into an updated copy of the plan, highlighting areas of slippage and over-spend.

Measuring, Evaluating & Correcting.
The effective control of a project involves three distinct activities: Measuring, Evaluating and Correcting Together, these three activities form the essential elements of a project control system. Your objective is to regulate the activities, resources and events in order to achieve the results as defined by the project plans.

Each comparison activity should provide an understanding of to what extent the project is in line with the plans. Where progress deviates significantly, and this usually means outside of a pre-determined tolerance limit, it is important to identify the underlying causes and take corrective action. Control places the emphasis very much on the present; this means that the reporting mechanisms are very time-sensitive. It is only by applying these ‘here and now’ control mechanisms that you will be able to take appropriate action as and when deviations occur. If the reporting mechanisms provide feedback a significant time after the event then you will not be able to control your project you will just have an historical account of how out of control it became. The best control systems are often the simplest, as making the data collection processes complex only increases both the costs and possibility of error.

Time Cost & Performance.
The effective control of a project is based on the three distinct activities: Measuring, Evaluating and Correcting. In turn these three activities are based on three resource parameters, namely Time, Cost and Performance. These three resource parameters need to be analyzed in an integrated way, otherwise many battles may be won but the war may still be lost. Think about what happens if decisions about the status of a project are made with reference to only two of these parameters.

A current analysis of Project Phoenix reveals that at the current time point the plans indicate a total expenditure of $725,000. Actual expenditure to date is $730,000.
Together, these figures indicate an overspend against the plan of $5,000. In other words an overspend of around 0.7%. The pre-determined tolerance for this part of the project is 2.5% - so there appears to be no need for reference to a higher authority. This may seem very comforting. However, without including the third parameter, performance, this analysis is meaningless. Only if performance to date is 100% in line with the plan can the previous findings be validated. The same logic undermines any analysis that is not based on a full and accurate comparison of all three performance parameters against those in the plan.

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