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Public Entities Risk Management Forum

Office of the Accountant GeneralNational Treasury

Project Risk Management

Jeets HargovanGovernment Technical Advisory Centre

(former Technical Assistance Unit)

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1. Wild enthusiasm2. Disillusionment3. Confusion4. Panic5. Search for the guilty6. Punishment of the innocent7. Promotion of non-participants

The 7 Phases of a Project

Outline of PresentationFood for thoughtProposed PPM ModelPPM Logical StructureProposed P M ModelPlacematsP M Framework and MethodologyThe 5 PhasesRisk Management in PPMConclusion

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Food for Thought

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Food for Thought

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Triple Constraint (traditional)

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Triple Constraint (traditional)

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Which PPM• Options

– Project and Programme Management– Programme and Project Management– Programme, Portfolio and Project Management – Etc . . . . . .

• Current Framework:

“Programme and Project Management”

• It is not linked to Budget Programmes

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Which PPM - 2• Currently toolkits ONLY focus on Project

Management• Based on Project Management Body of

Knowledge (PMBOK) standards (3rd Edition) (as opposed to PRINCE2 (PRojects IN Controlled Environments – UK Government Standard)

• Programme Management (from a national development perspective) being led by Presidency (e.g. Jobs Programme)

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Objectives set for PPM•The overall objective of the PPM initiative was the development,

implementation and support of a PPM framework and its associated

methodologies and tools across the South African public service.

•More specifically this includes:– The development of a PPM framework, guidelines and tools

• Alignment to South African frameworks and tools (IDIP, DPSA, PPP)

– Piloting and testing the PPM approach

– Development of an introduction to PM e-training module

– Support to NSG (PALAMA) – Alignment of material • Introduction to Project Management

• Advanced Project Management

– Development of a roll-out strategy and plan for Project Management • Include consultation with DPME and DPSA

– Full roll-out and ongoing management and support

– Included in FOSAD service delivery plans & Outcome 12

PPM Logical Structure

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Project Management Framework

Project Management Methodology

People & Organisation Change Framework

Framework & Methodology

Smaller Projects Guide

Health Check Guide

Project Start Up Guide

Charter Writing Guide

Project Sponsorship Guide

Project Planning Guide

Concept Phase Tools

Definition Phase Tools

Planning Phase Tools

Implementation Phase Tools

Close-Out Phase Tools

Smaller Project Tools

Checklists

Guides Tools

Placemats

Project Management Summary Guide

PPM Office Set Up Guide

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Framework

9 knowledge areas

Management

People and Organisational change

Phases

5 key phases each with a unique purpose and outputs

Proposed PM Model

Project Management Toolkit

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Sections:1) Framework & Methodology

2) Guides

3) Concept Phase Tools

4) Definition Phase Tools

5) Planning Phase Tools

6) Implementation Phase Tools

7) Close-Out Phase Tools

8) Smaller Projects Tools

P M Place Mat

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Other Placemats

• Executive Sponsor• Health Check Guide• Project Sponsor• Project Start Up Success Factors• Smaller Project Placemat

P M Framework

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Link to P M Knowledge Areas

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P M Methodology – 5 Phases

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The 5 phases cover what is necessary to complete a projectThe Concept & Definition Phases emphasise upfront planning and team building

– The Concept Phase involves inventing & evaluating an initial idea and establishing it as a project

– The Definition Phase involves starting the project and describing it in broad strokes

– The Planning Phase involves describing the project in detail

– The Implementation Phase involves doing and finishing the actual work

– The Close-Out Phase involves winding down the project after the work is complete

Concept

Definition

PlanningImplemen-tation

Close-Out

How the Phases Work

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Concept Phase Objectives

1.1 to 6.1 BusinessCase #1

Definition PhaseObjectives

ImplementationPhase Objectives

Close-Out PhaseObjectives

1.1 to 6.1

1.1 to 9.4

1.1 to 6.2

Charter

Work Performed

ProjectClosed

#2

Concept

Definition

Planning

Implementation

Close-Out

#4

Planning PhaseObjectives

1.1 to 8.1 ProjectPlan

Objective Steps Key Outputs

Checkpoint

Project End

#3

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• The purpose of the Concept Phase is to determine that a project is needed and, on a high-level, specify what the project should accomplish and who needs to be involved.

• Projects will vary in terms of complexity, but all should have some level of initial concept definition. For some projects, it may take only a few days to complete this phase, for others, it could take months. The key questions that should be answered during the concept phase include:– What is to be done?– Why is it to be done?– How will it be done?

• The main objective of this phase is to obtain official approval to formally initiate a project, and build the foundation for commitment among project partners and key stakeholders. This is accomplished through the creation and sign-off of the Business Case.

Concept Phase

Concept Phase

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1. Concept

4. Implementation 5. Close Out

3. Planning2. Definition

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• Each project is unique and must be individually defined. The purpose of the Definition Phase is to define and add structure to the project.

• The main objectives include determining the governance structure, hiring the project manager and core project team, and documenting the high-level scope of the project.

• The phase ends with a clear documentation of the project outcomes and outputs, as well as the articulation of the key constraints for the project in terms of time, budget and number of resources. This is accomplished through the development of the Project Charter.

Definition Phase

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1. Concept

4. Implementation 5. Close Out

3. Planning2. Definition

Definition Phase

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• The purpose of the Planning Phase is to ensure that all aspects of the project are identified, planned and appropriately documented. The main objectives include defining the scope of the project in detail and determining the required resources, time and money. The processes that will be used to monitor and control the project are also developed and documented as part of this phase. The phase ends with a clear documentation of all project processes and management plans, which is accomplished through the creation of the Project Plan.

• A number of the objectives and steps provided below may be conducted concurrently, however, project participants should understand the interdependencies and linkages between various steps and how they come together to form the Project Plan.

Planning Phase

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1. Concept

4. Implementation 5. Close Out

3. Planning2. DefinitionPlanning Phase

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• The purpose of the Implementation Phase is to execute the tasks and activities that have been planned and documented in the Project Plan.

• The main objectives of this phase include carrying out the work needed to complete project outputs and achieve project outcomes, while monitoring and controlling project’s progress and performance. The end of this phase is marked with the completion of all project objectives and outputs.

Implementation Phase

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1. Concept

4. Implementation 5. Close Out

3. Planning2. Definition

Implementation Phase

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• The completion all project deliverables does not signify the end of the project. The purpose of the Close-Out Phase is to complete all outstanding project activities, arrange for knowledge transfer, and facilitate the transition to operations.

• Furthermore, one of the main objectives of the Close-Out phase, in addition to documenting the formal acceptance of project results, is to identify, capture and properly archive the knowledge / lessons learnt and experiences gained as a result of having completed the project. The end of this phase marks the end of the project.

• In addition to releasing the project’s physical and closing project’s financial assets, special attention should be paid to the project’s human resource assets. It is important to ensure that project team members are appropriately recognised and rewarded for their accomplishments and that their transition to the next engagement is made as smooth as possible.

Close Out Phase

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1. Concept

4. Implementation 5. Close Out

3. Planning2. DefinitionClose Out Phase

Risk Management in the PPM Framework

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And Finally – Some things may not change

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We are only fixing the world – one step at a time

Conclusion

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Thank You