CGMA LMS Tailor Preview-the role and skills in project management

.pdf

School

Institute of Finance and Economics, Mongolia**We aren't endorsed by this school

Course

FINANCE MA CGMA 2024

Subject

Management

Date

Dec 21, 2024

Pages

Uploaded by Khaliuka

TOPICThe role and skills of a project managerLearning objectiveAfter completing this topic, you should be able to describe the leadership and management skillsneeded by a project manager to deliver projects.IntroductionIn successful projects, project managers fulfil a vital role. Responsible for delivering the agreedproject outputs as laid out in the project initiation document (or project charter), they mustcoordinate and control the many tasks and activities involved, while motivating and managingproject staff and wider stakeholders. In this topic, we discuss the specific role of the projectmanager within a project and take a closer look at the different practical and people skills needed tocarry out the role effectively.Role of the project managerThe role of a project manager includes responsibility for three key areas. In practice, some of theactivities involved in each area may be delegated to members of the project team, but the projectmanager maintains ultimate responsibility for ensuring that they are all carried out effectively.ProductProcessDelivering the project outputs on time, within budget, and to the scope and specification requiredin accordance with the project initiation document (PID), or project charter. This is achievedthrough effective management of the Process and the People involved.●Creating the detailed project plan●Monitoring and controlling progress against this plan and ensuring that correctiveaction is taken where necessary12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12451/13

People●Providing direction and motivation to the project team, who are often sourced frommany different areas of the business●Communicating regularly with key stakeholders●Helping to prevent conflict amongst stakeholders and, where conflict does occur,ensuring there are processes in place to resolve the issues●Ensuring that any major issues are brought to the attention of the project board andseeking their support as necessaryCore project management skillsThis section looks at the core management skills required to carry out the project managementprocess. The following section considers the required people skills.Industry awarenessA project manager is not expected to be an expert in all the technical aspects of a project, and anexperienced project manager should be able to manage any project, regardless of the specificsinvolved. However, some knowledge of the industry in which the project operates can be useful inhelping the project manager to focus on key issues, plan ahead, and have meaningful discussionswith relevant stakeholders. It is therefore quite common for project managers to specialise in certainareas, such as the delivery of software solutions, financial projects, or projects in the constructionindustry.Scope controlA well-defined project scope is essential to the successful delivery of any project.Scope creepis the term used to describe additional work, features, or requirements that arerequested later and fall outside the original authorised scope as agreed upon in the project plan.Scope creep is a common cause of project failure because it can result in additional costs, or afailure to meet key project deadlines. A key project management role is to ensure that the scope isclearly defined at the outset, and that, before any scope extensions are approved, the stakeholdersare fully aware of the impact on costs and timeframes and the project board has formally justifiedand approved them.Common reasons for scope creep include the following:12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12452/13

●An inadequate initial understanding of the project requirements leading to a failure toinclude key elements in the scope●Poorly defined scope such that stakeholders have differing understandings about whatis included●Inadequate project governance structures that lack a clear process for approving scopechanges, or do not have an identifiable project sponsor with ultimate responsibility forgiving approvals●Multiple project stakeholders attempting to achieve conflicting goals●Long projects where there is more time for sponsors to refine their ideas or changetheir minds.Time managementDuring the implementation of a project, project managers do not only have multiple tasks of theirown to complete, but they also need to oversee an even greater number of tasks being carried out byother people. Ensuring that all these tasks and activities are completed on time is a major challenge.Excellent personal time management skills are clearly essential, but a project manager must also beable to reorder or reprioritise project tasks to avoid potential delays, think creatively to providesolutions where delays appear inevitable, and motivate staff to remain focussed on delivery asdeadlines approach.Budgeting and budgetary controlBecause costs are one of the key constraints on a project, another core responsibility of the projectmanager is managing the project budget. This involves drawing up the initial budget as well asmonitoring and controlling spending and providing periodic budget forecasts. Project finances aretypically recorded separately from operational spending so that they can be properly monitoredagainst budget. The project manager must also be able to discuss the project budget with keystakeholders and explain any issues to them in a clear and succinct way.In larger projects, the project manager may be assisted by a dedicated project accountant.Risk managementFrom a project management perspective, risks are those factors that could prevent the projectobjectives from being achieved. Some risk is unavoidable, and project managers need to be preparedfor risk and be able to manage it effectively.12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12453/13

There are three stages to managing risk.IdentifyEvaluateControl●The first step is to identify potential risks.●It is common to consider potential risks before a project is undertaken, but it is vitalto be alert to new risks that may arise throughout the project lifecycle. The projectmanager needs to work with the project team and other stakeholders to ensure thatall risks are identified as they emerge.●Formal risk assessments should also be carried out at every review point, each timea change is requested, and at the project end (to identify risks that may affect theoperation of the product).The likelihood of the risk and its potential impact on the project’s objectives must be assessed.Action must be taken to mitigate or control those risks that are assessed as significant.A variety of tools are available to assist with managing project risks. These are covered in anothertopic in this competency area.Quality controlIn the context of a project, quality refers to specific quality standards that may need to be adhered toand to the customer’s quality expectations for the product. Quality sits in the middle of the tripleconstraint model (covered in the previous topic) because any alteration to the key constraints ofcost, time, or scope can have an impact on the quality of the final product.The project manager must implement a robust quality control process to include the following:●Reviewing lessons learnt logs from other projects to avoid preventable problems●Setting appropriate quality standards for both management of the project (how thingsare done) and the outputs from the project (the product)●Implementing assurance and quality control processes (from completing checklists tocarrying out quality inspections)12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12454/13

●Ensuring that staff are given suitable quality trainingEffective quality management should focus on planning for quality, preventing errors, and pursuing apolicy of continuous improvement because the costs of preventing quality failures are generally farlower that the costs of rectifying them once they occur.Problem solvingNo matter how well a project is planned, inevitably there are times when events deviate from thatplan. They may be minor deviations (such as a task that takes a few hours longer than planned) tomore critical issues (such as a key supplier going out of business at short notice). Clearly, differenttypes of problems require different solutions, but the project manager’s response should be thesame:●Quickly obtain a good understanding of the problem.●Work with relevant stakeholders to develop a suitable solution.●Implement the solution or, where necessary, recommend the solution to the projectboard for formal approval.The key here is that the project manager is able to react to unforeseen problems in a calm andconstructive way, while remaining focussed on achieving the underlying objectives of the project.Knowledge checkMatch items by dragging and dropping each item into the corresponding box.QuestionReview the following list of issues that might arise during a project and match each issue tothe most relevant skill that will be needed by the project manager (PM).IssuePM skillA legal issue arises over the impact of theproject outputs on competitors.Industry awareness12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12455/13

Costs are rising due to changing exchangerates.Project outputs must meet key regulatorycriteria.The union that many key workers belongto is advocating for a labour strike.There is a delay in equipment deliverycaused by an international crisis.Company board members are arguing foradditional project outputs.Time managementScope controlBudgetary controlRisk managementQuality controlSUBMITKnowledge check feedbackUnderstanding the impact of a product on the firm’s competitors requires an understanding of thecompetitive forces operating within the industry. An unexpected delay is likely to mean reschedulingother tasks and activities requiring good time management skills. Controlling scope is an importantskill and is often required when dealing with enthusiastic members of senior management who wishto expand the project to incorporate their specific concerns. Rising costs is a common issue forproject managers to deal with and will involve reforecasting the anticipated spending and thenfinding ways to ensure the project remains within budget. Potential strike action is a risk that must12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12456/13

be identified, evaluated, and controlled. Quality control involves ensuring that the project outputsmeet required standards as well as the client’s expectations.People skillsThis section considers the different people skills needed by a project manager. However, it is firstuseful to take a closer look at one group of people with whom the project manager has significantinvolvement, the project team, because the needs of the team will create particular people skillschallenges.Project teamsA project team is typically cross-functional, made up of members of different functional units acrossthe business, who are brought together to work together for the duration of the project. This meansthat, at the start, the group may not know each other well or know how to work well together.The Tuckman model of group formation (covered in detail elsewhere in this programme) states thatteams go through five stages after they are first brought together:FormingStormingNorming●The ‘getting to know each other’ phase●Roles and responsibilities are undefined, and the team is not yet effective●Role of the team leader is vital●An often contentious phase as members get to know each other and jostle forpositions within the group●People operate as individuals rather than working together●Team leader has to work to bring the group together●Most conflicts have been resolved and roles and responsibilities are clear12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12457/13

PerformingDorming / Adjourning●The team settles down and is now able to work collaboratively towards theobjectives of the project●Team leader can focus on delegating work, just making themselves available to dealwith queries●The group is comfortable and works well together●Productivity and efficiency are high●Little external input from the team leader is required●The project is ending, and the team are sad to be separating●There may be anxiety about the futureWhen evaluating the people skills exhibited by a project manager, the particular needs of a newlyestablished project team and the importance of ensuring it quickly reaches the performing stagemust therefore also be taken into account.Change managementMost projects are done to bring about change, but change can only be achieved if all thestakeholders are fully engaged (that is, if they support the reasons for the change, believe in theproject aims, and embrace the new ways of working that it gives rise to). The role of the projectmanager in managing and embedding change is therefore key to its success. The project managermust be able to do the following:●Build the case for change.●Plan the change to maximise efficiency while minimising disruption.●Manage resistance to change at all stages of the project lifecycle.●Ensure that the change is fully embedded in the organisation’s future processes so thatthe planned benefits are realised and the project’s objectives are achieved.To achieve these goals, requires a variety of specific people skills, which are now considered in moredetail.12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12458/13

LeadershipOne critical success factor for a project manager to be successful in delivering a project isleadership. Leadershipin this context can be defined as the capacity to a generate a willing andconstructive response in the project team and inspire its members to achieve the project’sobjectives.There is much debate over whether effective leadership is an innate or learned quality. However, in aproject in which a new team is formed and members then need to start working together quickly, theproject manager must be able to lead from the outset. It is also important for the project sponsor (orproject board) to take on an overarching leadership role, guiding the project within the widerorganisational context and ensuring it remains aligned with the organisation’s strategic goals.MotivationProjects are intense environments. It is important for staff to remain focussed so that the project isdelivered on time while meeting the agreed budget, scope, and quality standards. This meanskeeping staff motivated. There are many theories of workplace motivation, but a key feature of mostmodels is the importance of understanding what matters to staff and creating an environment inwhich those needs can be met. Therefore, a project manager needs to forge positive trustingrelationships with those working on the project to understand their needs and strive to create anenvironment in which they are motivated to be effective and productive.CommunicationCommunication is the art of conveying ideas and information to others. Effective communication isessential to the successful delivery of a project.The project manager must be skilled at communicating with a range of different stakeholders —from the sponsor to the project team. Good communication helps to:●facilitate buy-in from stakeholders,●ensure differing interests are aligned,●reach solutions quickly, and●motivate staff.Some communications are formal scheduled events (such as project updates during the executionphase) while others are ad hoc, informal ones (such as when a project team needs interventions toprevent damaging conflicts during the storming stage).A formal project communication plan is often drawn up to ensure that all key stakeholders receiveappropriate information at the right intervals. Communication plans are covered in a later topic in12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/12459/13

this competency area.NegotiationNegotiation is a process through which two or more parties face a potential conflict but worktogether to reach a mutually acceptable conclusion.During any project, the project manager may need to enter into a range of negotiations, for examplewith the following:●Line managers:To get agreement for their staff to be part of the project team,particularly where there is a potential conflict over availability●Project customers:Who are often needed to carry out tasks specifically for the projectteam (such as users testing a software solution) that may need to be completed inaddition to their standard work●Project board:To agree solutions when issues arise – such as altering scope orapproving additional funding●External suppliers:Outsourcing additional or specialist resources is common in manyprojects, and project managers may be involved in the procurement process. They mayalso need to manage customer/supplier relations including running contracts andhandling conflicts.It is important for the project manager to be able to strike a balance between achieving what theywant on a particular issue and maintaining a good working relationship with the other party so thatthey can reach agreement on future occasions during the project.DelegationAlthough project managers are responsible for the delivery of project outputs, they do not usuallyhave the technical skills or the time to carry out all of the tasks required. Instead, many of the tasksare delegated to those members of the project team with suitable expertise, who are given theauthority needed to perform the work involved. In addition to technical tasks related to the specifictype of project being implemented, more general tasks may also be delegated (for example,preparing the project plan or drawing up the project budget).To delegate effectively, the project manager must ensure that the person given the task has the skillsand experience necessary to complete it. However, it is also important to make time to support staffand monitor the outputs they produce without interfering or taking over the tasks involved.12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/124510/13

Knowledge checkMatch items by dragging and dropping each item into the corresponding box.QuestionReview the following list of issues that might arise during a project and match each issue tothe most relevant people skill that will be needed by the project manager.IssuePeople skillThe staff needed for the project haveother conflicting work commitments.The project has a diverse range ofstakeholders whose interests do notalways align.Staff have been working long hours andare now tired, but a final push is needed tomeet the project deadline.The project will require staff to carry outtasks using a completely differentprocess.The project team has been assembledfrom workers in branches across thecountry, and it needs to be effectivealmost immediately.Change managementLeadershipMotivationCommunicationNegotiation12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/124511/13

SUBMITKnowledge check feedbackIf staff have to make significant changes to their ways of working, change management skills areneeded to build the case for change and later embed the new processes. Leadership is particularlycritical when new teams are created so that they can get through the forming and storming stageswithin a project’s lifecycle. Motivation skills can help keep staff focussed when the project demandsincrease. Communication skills are important in keeping different stakeholders on-side and helpingthem to understand how they are going to be affected by a project. When staff also have functionalcommitments, the project manager may need to negotiate with line management to free upsufficient time for them to perform their roles.ScenarioIntroductionIt is now time to return to Capital Foods for an opportunity to apply what you have learnt inthis topic in a fictional but real-world environment.In your role as Kit Locke, you receive ‘scene setting’ information about the company’sactivities and some potentially relevant resources (like emails, reports, meeting notes, and thelike) to complete a series of structured tasks designed to simulate what you might encounterin the workplace.Don’t forget that you are also provided with support from your virtual mentor, Bee. Just like acolleague in a real workplace, Bee is there to help you if you need it. With the first click on Bee,you’ll be greeted. Then click Got It for more detailed support like hints, explanations, andreminders.It is strongly recommended that you complete all of the task questions so that you can beconfident in your understanding of the material.Click Start the enter the scenario.12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/124512/13

STARTOnce the scenario is complete, click Next.ConclusionIn this topic on the role and skills of a project manager, we have looked at two key sets of capabilitiesthat are vital for a project manager — the core project management skills needed to manage andcontrol projects and the people skills needed to manage the project stakeholders. People skills canbe hard to define and are sometimes difficult to measure, but their importance for an effectiveproject manager cannot be overstated. Leadership qualities and specific abilities such as motivation,communication, negotiation, and delegation skills should be a prerequisite for all project managers.The project manager also needs practical skills to manage the core project constraints of cost, time,and scope while maintaining quality, managing risks, and solving problems. A range of tools areavailable to assist the project manager with these tasks.12/22/24, 12:51 PMCGMA LMS Tailor Previewhttps://learning.cgma.org/preview/#/print-preview/124513/13