data collection

Prevailing Culture.
The accuracy and timeliness of the data collection procedures will also be influenced by a series of practical issues and the overall attitude of project management staff. The mechanisms that the organization already has in place to support project related work may well influence the practical results of applying a 'planned' reporting structure. If a variety of suitable forms and reports are already in use then the adoption or adaptation of these may well streamline and enhance practical data collection. Project team members will almost certainly develop an individual, or even a collective, attitude towards the value and importance of the data collection and reporting mechanisms being applied. The more positive this is the better the implications for the quality and timeliness of future project data. One factor that can greatly influence the project team member’s attitude towards the data collection exercise is the perceived objectivity of those staff collecting and reporting the data. If project staff develop a mistrust of the data collection and reporting process then they may start to adjust their figures to correct for misrepresentation. Another important factor that can influence project staff attitude towards the data collection process is the way that it is acted upon by management. For example, if management respond in a very negative way to reported overruns; then it will increase the likelihood that staff will attempt to disguise such occurrences in the information they report.

Over Reporting Kills Projects.
It is essential that all project management staff are aware of the concept of 'over-reporting' which is very common problem in project environments. This is illustrated by the following example: Early on in the project, the natural optimism that is a characteristic of most people has resulted in a report of 'progress to date' being ahead of actual progress. Later on, as the work of the project becomes more advanced, a variety of factors may lead to the continued over-reporting of progress. Optimism may still be an issue. However, there may also be a desire to maintain the rate of progress that was reported earlier. In this way the over-reporting of progress may continue well into the project, and unless there are adequate checks and balances built into the control mechanism the fact that real progress is significantly behind that being reported may not be detected. As the deadline date for some of the tasks is reached the reported progress will suddenly falter significantly as the team has no room for manoeuvre. They cannot report that the task is complete or that negative progress has been made. It is often only at this very late stage that over-reporting is detected, often with disastrous results.

Introducing Variance.
The difference between the costs detailed in the plans and the actual costs, at any given point in time is called variance. In order to calculate variance, up to date and accurate information is essential - providing a clear picture of the extent to which tasks are complete and the expense incurred to date. Note that a positive variance indicates that a project is under-spending; whereas a negative variance indicates that a project is suffering from over-spend. Variance is usually expressed as a percentage, enabling the divergence between planned and actual costs to be quantified in proportional terms. The calculation and use of variance figures is fully explained later in this course. In the example shown on the previous page the 'actual cost' has been established as 10,000 units (example B) and you can see the effect on the variance by altering the estimated 'cost to complete' in examples A & C.

Project Control - Key Factors.
Project controls should be designed to enable the accurate monitoring of a project, enabling rapid identification of any significant deviations from the plans. The control framework applied to a project should also facilitate prompt corrective action, where this is necessary. Without effective project control the planning exercise is largely superfluous, as there will be no means by which to monitor and ensure project progress. The control framework will vary from project to project, reflecting the size and complexity of the project and the extent to which the different levels of management are involved in it. Short projects subject to a high degree of change and uncertainty will require shorter reporting cycles than projects of a longer duration that are relatively stable. Progress information should be distributed to all relevant project staff, across departmental divisions. This will minimize the duplication of effort and cross checking that would otherwise be required. It is often advisable to run a short training session - so that all key staff understand how the project information is expected to flow. Project control can be applied in a variety of ways and the general management style of each project manager will play a key role in the approach taken.

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