Copyright Course Technology 20091 Chapter 10: Project Communications Management

Copyright Course Technology 2009 1

Chapter 10:Chapter 10:Project Communications Project Communications ManagementManagement


Importance of Good Importance of Good CommunicationsCommunications

• The greatest threat to many projects is a The greatest threat to many projects is a failure to communicatefailure to communicate

• Our culture does not portray IT Our culture does not portray IT professionals as being good professionals as being good communicatorscommunicators

• Research shows that IT professionals Research shows that IT professionals must be able to communicate effectively must be able to communicate effectively to succeed in their positionsto succeed in their positions

• Strong verbal skills are a key factor in Strong verbal skills are a key factor in career advancement for IT professionalscareer advancement for IT professionals


Project Communications Project Communications Management ProcessesManagement Processes

• Communications planningCommunications planning: determining : determining the information and communications the information and communications needs of the stakeholdersneeds of the stakeholders

• Information distributionInformation distribution: making needed : making needed information available in a timely mannerinformation available in a timely manner

• Performance reportingPerformance reporting: collecting and : collecting and disseminating performance informationdisseminating performance information

• Administrative closureAdministrative closure: generating, : generating, gathering, and disseminating information gathering, and disseminating information to formalize phase or project completionto formalize phase or project completion

Project Communications Project Communications Management Processes—Management Processes—44thth edition edition• Identify StakeholdersIdentify Stakeholders• Plan CommunicationsPlan Communications• Distribute InformationDistribute Information• Manage Stakeholder ExpectationsManage Stakeholder Expectations• Report PerformanceReport Performance



Plan Communications Plan Communications

• Every project should include some Every project should include some type of communications type of communications management plan, a document management plan, a document that guides project that guides project communicationscommunications

• Creating a stakeholder analysis for Creating a stakeholder analysis for project communications also aids in project communications also aids in communications planningcommunications planning


Communications Communications Management Plan Management Plan ContentsContents

• A description of a collection and filing structure A description of a collection and filing structure for gathering and storing various types of for gathering and storing various types of informationinformation

• A distribution structure describing what A distribution structure describing what information goes to whom, when, and howinformation goes to whom, when, and how

• A format for communicating key project A format for communicating key project informationinformation


Communications Communications Management Plan Management Plan Contents, continuedContents, continued

• A project schedule for producing the A project schedule for producing the informationinformation

• Access methods for obtaining the informationAccess methods for obtaining the information• A method for updating the communications A method for updating the communications

management plans as the project progresses management plans as the project progresses and developsand develops

• A stakeholder communications analysisA stakeholder communications analysis


Table 10-1. Sample Stake holder Table 10-1. Sample Stake holder Analysis for Project CommunicationsAnalysis for Project Communications

Stakeholders Document Name DocumentFormat

Contact Person Due

CustomerManagement

Monthly StatusReport

Hard copy Gail Feldman,Tony Silva

First of month

CustomerBusiness Staff


Hard copy Julie Grant,

Jeff Martin

First of month

CustomerTechnical Staff


E-mail Evan Dodge,

Nancy Michaels

First of month

InternalManagement


Hard copy Bob Thomson First of month

InternalBusiness andTechnical Staff


Intranet Angie Liu First of month

TrainingSubcontractor

Training Plan Hard Copy Jonathan Kraus 11/1/1999

SoftwareSubcontractor

SoftwareImplementationPlan

E-mail Barbara Gates 6/1/2000


Distribute Information Distribute Information

• Getting the right information to the Getting the right information to the right people at the right time and in right people at the right time and in a useful format is just as important a useful format is just as important as developing the information in the as developing the information in the first placefirst place

• Important considerations includeImportant considerations include– using technology to enhance using technology to enhance

information distributioninformation distribution– formal and informal methods for formal and informal methods for

distributing informationdistributing information


What Went Wrong?What Went Wrong?A well publicized example of misuse of e-mail comes from the 1998 Justice Department's high profile, antitrust suit against Microsoft. E-mail emerged as a star witness in the case. Many executives sent messages that should never have been put in writing. The court used e-mail as evidence, even though the senders of the notes said the information was being interpreted out of context. Some companies, such as Amazon.com, have established policies to encourage employees to watch their use of e-mail and delete it often. Their "Sweep and Clean" program instructed employees to purge e-mails that were no longer required for business or legal purposes. They even offered free café lattes to employees who complied immediately. Harmon, Amy, "E-mail comes back to haunt companies," November 29, 1998


Figure 10-1. The Impact of the Figure 10-1. The Impact of the Number of People on Number of People on Communications ChannelsCommunications Channels


Report Performance Report Performance

• Performance reporting keeps stakeholders Performance reporting keeps stakeholders informed about how resources are being informed about how resources are being used to achieve project objectivesused to achieve project objectives– Status reports describe where the project Status reports describe where the project

stands at a specific point in timestands at a specific point in time– Progress reports describe what the project Progress reports describe what the project

team has accomplished during a certain period team has accomplished during a certain period of timeof time

– Project forecasting predicts future project Project forecasting predicts future project status and progress based on past information status and progress based on past information and trendsand trends

– Status review meetings often include Status review meetings often include performance reportingperformance reporting


Administrative ClosureAdministrative Closure

• A project or phase of a project A project or phase of a project requires closurerequires closure

• Administrative closure producesAdministrative closure produces– project archivesproject archives– formal acceptanceformal acceptance– lessons learnedlessons learned


Suggestions for Improving Suggestions for Improving Project CommunicationsProject Communications

• Resolve conflicts effectivelyResolve conflicts effectively• Develop better communication skillsDevelop better communication skills• Run effective meetingsRun effective meetings• Use templates for project Use templates for project

communicationscommunications


Conflict Handling Modes, in Conflict Handling Modes, in Preference OrderPreference Order

• Confrontation or problem-solving: Confrontation or problem-solving: directly face a conflictdirectly face a conflict

• Compromise: use a give-and-take Compromise: use a give-and-take approachapproach

• Smoothing: de-emphasize areas of Smoothing: de-emphasize areas of differences and emphasize areas of differences and emphasize areas of agreementagreement

• Forcing: the win-lose approachForcing: the win-lose approach• Withdrawal: retreat or withdraw from an Withdrawal: retreat or withdraw from an

actual or potential disagreementactual or potential disagreement


Table 10-3. Sample Table 10-3. Sample Template for a Monthly Template for a Monthly Progress ReportProgress Report

I. Accomplishments for Month of February (or appropriate month):

Describe most important accomplishments. Relate to project's Gantt chart

Describe other important accomplishments, one bullet for each. If any issues were resolved from the previous month, list them as accomplishments.

II. Plans for March (or following month):

Describe most important items to be accomplished in the next month. Again relate to the project's Gantt chart.

Describe other important items to accomplish, one bullet for each

III. Issues: Briefly list important issues that surfaced or are still important. Managers hate surprises and want to help the project succeed, so be sure to list issues.

IV. Project Changes (Date and Description): List any approved or requested changes to the project. Include the date of the change and a brief description.


Table 10-5. Sample Template for Table 10-5. Sample Template for a Letter of Agreement for a a Letter of Agreement for a Class ProjectClass Project

I. Project Description: Describe the project's objective, scope, assumptions, costinformation, and schedule information, as shown in Figure 9-2. Be sure to includeimportant dates that the project's sponsor needs to be aware of

II. Organizational Goals and Expectations: Have the main sponsor from theorganization briefly state their goals and expectations for the project.

III. Student Goals and Expectations: Students on the project team should brieflystate their goals and expectations for the project.

IV. Meeting Information. It is a good idea for the project's sponsor and all studentson the project team to agree on at least one hour per week where all parties can meetto work on this project. The meeting place should be a convenient location withoutdistractions. Virtual meetings may be an option for some people and projects.

V. Contact Information and Communications Plan: List the sponsor's andstudents' names, phone numbers, e-mails, and important procedures forcommunications. It is a good idea to set up a web site for all project information.

VI. Signatures: Have the main sponsor and students on the project team sign theletter of agreement. Designate which student is the project manager. This studentshould be the main contact for all project information.


Figure 10-3. Gantt Chart Template for a Class Figure 10-3. Gantt Chart Template for a Class ProjectProject

Project 98 file


Table 10-6. Guidance for Table 10-6. Guidance for Student’s Lessons Learned Student’s Lessons Learned ReportReportEvery two weeks or after a major event in your group project, write a brief journal entry describing what happened and how you felt about it. At the end of the term, write a 2-3 page paper describing your lessons learned based on your group project. Answer the following questions:

•What were your roles and responsibilities on the team? How were they decided?•What did you like/dislike about the project?•What did you learn about project management and yourself by doing the project?•What did you learn about teamwork and yourself by doing the project?•What would you have done differently? What will you remember to do on the next project you work on after this experience?


Developing a Communications Developing a Communications InfrastructureInfrastructure

• A communications infrastructure is a set of tools, A communications infrastructure is a set of tools, techniques, and principles that provide a foundation for techniques, and principles that provide a foundation for the effective transfer of informationthe effective transfer of information– Tools include e-mail, project management software, Tools include e-mail, project management software,

groupware, fax machines, telephones, groupware, fax machines, telephones, teleconferencing systems, document management teleconferencing systems, document management systems, and word processorssystems, and word processors

– Techniques include reporting guidelines and Techniques include reporting guidelines and templates, meeting ground rules and procedures, templates, meeting ground rules and procedures, decision-making processes, problem-solving decision-making processes, problem-solving approaches, and conflict resolution and negotiation approaches, and conflict resolution and negotiation techniquestechniques

– Principles include using open dialog and an agreed Principles include using open dialog and an agreed upon work ethicupon work ethic

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Using Software to Assist in Using Software to Assist in Project CommunicationsProject Communications

• There are many software tools to aid in There are many software tools to aid in project communicationsproject communications

• The “What Went Right?” example on pg. The “What Went Right?” example on pg. 264 describes several new web-based 264 describes several new web-based and wireless communications toolsand wireless communications tools

• Microsoft Project includes several Microsoft Project includes several features to enhance communicationsfeatures to enhance communications


Figure 10-4. MS Project Information Saved as HTML Figure 10-4. MS Project Information Saved as HTML FileFile

Project 98 file

Copyright Course Technology2011 23

Chapter 12:Chapter 12:Project Procurement Project Procurement ManagementManagement


Importance of Project Importance of Project Procurement ManagementProcurement Management

• Procurement means acquiring goods Procurement means acquiring goods and/or services from an outside sourceand/or services from an outside source

• Other terms include purchasing and Other terms include purchasing and outsourcingoutsourcing

• By the year 2003 the worldwide By the year 2003 the worldwide information technology outsourcing information technology outsourcing market had grown to over $100 billionmarket had grown to over $100 billion


Why Outsource?Why Outsource?

• To reduce both fixed and recurrent To reduce both fixed and recurrent costscosts

• To allow the client organization to To allow the client organization to focus on its core businessfocus on its core business

• To access skills and technologiesTo access skills and technologies• To provide flexibilityTo provide flexibility• To increase accountabilityTo increase accountability


Project Procurement Project Procurement Management ProcessesManagement Processes

• Plan ProcurementsPlan Procurements: determining : determining what to procure and whenwhat to procure and when

• Conduct ProcurementsConduct Procurements: : documenting product requirements and documenting product requirements and identifying potential sourcesidentifying potential sources


Project Procurement Project Procurement Management Processes, Management Processes, Continued Continued

• Administer ProcurementsAdminister Procurements: : managing the relationship with the managing the relationship with the vendorvendor

• Close ProcurementsClose Procurements: completion : completion and settlement of the contractand settlement of the contract


Figure 12-1. Project Procurement Figure 12-1. Project Procurement Management Processes (3Management Processes (3rdrd Edition) and Key OutputsEdition) and Key Outputs

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Plan ProcurementsPlan Procurements

• Procurement planning involves identifying Procurement planning involves identifying which project needs can be best met by which project needs can be best met by using products or services outside the using products or services outside the organization. It includes decidingorganization. It includes deciding– whether to procurewhether to procure– how to procurehow to procure– what to procurewhat to procure– how much to procurehow much to procure– when to procurewhen to procure


Collaborative ProcurementCollaborative Procurement

• Several organizations, even competitors, Several organizations, even competitors, have found that it makes sense to have found that it makes sense to collaborate on procurement for some collaborate on procurement for some projectsprojects

• KodakKodak• Rental car companiesRental car companies• Frito-Lay, and its competitorsFrito-Lay, and its competitors


Procurement Planning Procurement Planning Tools and TechniquesTools and Techniques

• Make-or-buy analysis: determining Make-or-buy analysis: determining whether a particular product or service whether a particular product or service should be made or performed inside the should be made or performed inside the organization or purchased from organization or purchased from someone else. Often involves financial someone else. Often involves financial analysisanalysis

• Experts, both internal and external, can Experts, both internal and external, can provide valuable inputs in procurement provide valuable inputs in procurement decisionsdecisions


Types of ContractsTypes of Contracts

• Fixed price or lump sumFixed price or lump sum: involve a : involve a fixed total price for a well-defined fixed total price for a well-defined product or serviceproduct or service

• Cost reimbursableCost reimbursable: involve payment : involve payment to the seller for direct and indirect coststo the seller for direct and indirect costs

• Unit price contractsUnit price contracts: require the buyer : require the buyer to pay the seller a predetermined to pay the seller a predetermined amount per unit of serviceamount per unit of service


Cost Reimbursable ContractsCost Reimbursable Contracts• Cost plus incentive fee (CPIF):Cost plus incentive fee (CPIF): the the buyer pays the seller for allowable buyer pays the seller for allowable performance costs plus a predetermined performance costs plus a predetermined fee and an incentive bonusfee and an incentive bonus

• Cost plus fixed fee (CPFF):Cost plus fixed fee (CPFF): the buyer the buyer pays the seller for allowable performance pays the seller for allowable performance costs plus a fixed fee payment usually costs plus a fixed fee payment usually based on a percentage of estimated costsbased on a percentage of estimated costs

• Cost plus percentage of costs (CPPC):Cost plus percentage of costs (CPPC): the buyer pays the seller for allowable the buyer pays the seller for allowable performance costs plus a predetermined performance costs plus a predetermined percentage based on total costspercentage based on total costs


Figure 12-2. Contract Figure 12-2. Contract Types Versus RiskTypes Versus Risk


Statement of Work (SOW)Statement of Work (SOW)

• A statement of work is a description of A statement of work is a description of the work required for the procurementthe work required for the procurement

• Many contracts, or other mutually Many contracts, or other mutually binding agreements, include SOWsbinding agreements, include SOWs

• A good SOW gives bidders a better A good SOW gives bidders a better understanding of the buyer’s understanding of the buyer’s expectationsexpectations


A Common Contractual A Common Contractual RelationshipRelationship

• Time and Materials ContractTime and Materials Contract– Is essentially a cost reimbursement Is essentially a cost reimbursement

contract, but reimburses material contract, but reimburses material costs as wellcosts as well

– May be agreed to through transmittal May be agreed to through transmittal of a letterof a letter


Solicitation PlanningSolicitation Planning• Solicitation planning involves preparing Solicitation planning involves preparing

several documents:several documents:– Request for Proposals: used to solicit proposals Request for Proposals: used to solicit proposals

from prospective sellers where there are from prospective sellers where there are several ways to meet the buyers’ needsseveral ways to meet the buyers’ needs

– Requests for Quotes: used to solicit quotes for Requests for Quotes: used to solicit quotes for well-defined procurementswell-defined procurements

– Invitations for bid or negotiation, and initial Invitations for bid or negotiation, and initial contractor responses are also part of contractor responses are also part of solicitation planningsolicitation planning


Figure 12-4. Outline for a Figure 12-4. Outline for a Request for Proposal (RFP)Request for Proposal (RFP)

I. Purpose of RFP

II. Organization’s Background

III. Basic Requirements

IV. Hardware and Software Environment

V. Description of RFP Process

VI. Statement of Work and Schedule Information

VII. Possible Appendices

A. Current System Overview

B. System Requirements

C. Volume and Size Data

D. Required Contents of Vendor’s Response to RFP

E. Sample Contract


SolicitationSolicitation

• Solicitation involves obtaining proposals or Solicitation involves obtaining proposals or bids from prospective sellersbids from prospective sellers

• Organizations can advertise to procure Organizations can advertise to procure goods and services in several waysgoods and services in several ways– approaching the preferred vendorapproaching the preferred vendor– approaching several potential vendorsapproaching several potential vendors– advertising to anyone interestedadvertising to anyone interested

• A bidders’ conference can help clarify the A bidders’ conference can help clarify the buyer’s expectationsbuyer’s expectations


Source SelectionSource Selection

• Source selection involvesSource selection involves– evaluating bidders’ proposalsevaluating bidders’ proposals– choosing the best onechoosing the best one– negotiating the contractnegotiating the contract– awarding the contractawarding the contract

• It is helpful to prepare formal evaluation It is helpful to prepare formal evaluation procedures for selecting vendorsprocedures for selecting vendors

• Buyers often create a “short list”Buyers often create a “short list”


Figure 12-5. Sample Proposal Figure 12-5. Sample Proposal Evaluation SheetEvaluation Sheet


Figure 12-6. Detailed Criteria Figure 12-6. Detailed Criteria for Selecting Vendorsfor Selecting Vendors


Administer ProcurementsAdminister Procurements

• Contract administration ensures that the seller’s Contract administration ensures that the seller’s performance meets contractual requirementsperformance meets contractual requirements

• Contracts are legal relationships, so it is Contracts are legal relationships, so it is important that legal and contracting professionals important that legal and contracting professionals be involved in writing and administering contractsbe involved in writing and administering contracts

• Many project managers ignore contractual issues, Many project managers ignore contractual issues, which can result in serious problems (see What which can result in serious problems (see What Went Wrong? on pg. 465)Went Wrong? on pg. 465)


Suggestions on Change Control for Suggestions on Change Control for ContractsContracts

• Changes to any part of the project need to Changes to any part of the project need to be reviewed, approved, and documented be reviewed, approved, and documented by the same people in the same way that by the same people in the same way that the original plan was approvedthe original plan was approved

• Evaluation of any change should include Evaluation of any change should include an impact analysis. How will the change an impact analysis. How will the change affect the scope, time, cost, and quality of affect the scope, time, cost, and quality of the goods or services being provided? the goods or services being provided?

• Changes must be documented in writing. Changes must be documented in writing. Project team members should also Project team members should also document all important meetings and document all important meetings and telephone phone callstelephone phone calls


Contract Close-outContract Close-out

• Contract close-out includesContract close-out includes– product verification to determine if all work product verification to determine if all work

was completed correctly and satisfactorilywas completed correctly and satisfactorily– administrative activities to update records to administrative activities to update records to

reflect final resultsreflect final results– archiving information for future usearchiving information for future use

• Procurement audits identify lessons Procurement audits identify lessons learned in the procurement processlearned in the procurement process


Discussion QuestionsDiscussion Questions

• Discuss the scenario in the opening case. Have you Discuss the scenario in the opening case. Have you experienced similar situations? How did the parties experienced similar situations? How did the parties involved handle them?involved handle them?

• Provide examples of information technology goods and Provide examples of information technology goods and services that were outsourced. Which were for information services that were outsourced. Which were for information technology projects and which were parts of on-going technology projects and which were parts of on-going operations? Was it advantageous for the organization to operations? Was it advantageous for the organization to use outsourcing?use outsourcing?

• Some experts recommend working with preferred vendors, Some experts recommend working with preferred vendors, even if their prices may be higher than other vendors. Why even if their prices may be higher than other vendors. Why do you think this is the case?do you think this is the case?

Documents

Copyright Course Technology 20091 Chapter 10: Project Communications Management