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Q.1 As a project manager in banking sector, what will be your role in project development as well as management? ( 10) Description The role of the Project Manager is to plan, execute, and finalize projects according to strict deadlines and within budget. T his includes acquiring resources and coordinating the efforts of team members and third-party contractors or consultants in order to deliver  projects according to plan. The Project Manager w ill also define the project’s ob jectives and oversee quality control throughout its life cycle. Responsibilities as a Project Development and Management • Direct and manage project development from beginning to end. • Define project scope, goals and deliverables that support business goals in collaboration with senior management and stakeholders. • Develop full-scale project plans and associated communications documen ts. • Effectively communicate project expectations to team members and stakeholders in a timely and clear fashion. • Liaise with project stakeholders on an ongoing basis. • Estimate the resources and participants needed to achieve project goals. • Draft and submit budget proposals, and recommend subsequent budget changes where necessary. • Where required, negotiate with other department managers for the acquisition of required personnel from within the company.

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Q.1 As a project manager in banking sector, what will be

your role in project development as well

as management? (

10)

Description

The role of the Project Manager is to plan, execute, and finalize projects according to

strict deadlines and within budget. This includes acquiring resources and coordinating

the efforts of team members and third-party contractors or consultants in order to deliver

 projects according to plan. The Project Manager will also define the project’s objectives

and oversee quality control throughout its life cycle.

Responsibilities as a Project Development and Management

• Direct and manage project development from beginning to end.

• Define project scope, goals and deliverables that support business goals in

collaboration with senior management and stakeholders.

• Develop full-scale project plans and associated communications documents.

• Effectively communicate project expectations to team members and stakeholders

in a timely and clear fashion.

• Liaise with project stakeholders on an ongoing basis.

• Estimate the resources and participants needed to achieve project goals.

• Draft and submit budget proposals, and recommend subsequent budget changes

where necessary.

• Where required, negotiate with other department managers for the acquisition of 

required personnel from within the company.

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• Determine and assess need for additional staff and/or consultants and make the

appropriate recruitments if necessary during project cycle.

• Set and continually manage project expectations with team members and other 

stakeholders.

• Delegate tasks and responsibilities to appropriate personnel.

• Identify and resolve issues and conflicts within the project team.

• Identify and manage project dependencies and critical path.

• Plan and schedule project timelines and milestones using appropriate tools.

• Track project milestones and deliverables.

• Develop and deliver progress reports, proposals, requirements documentation,

and presentations.

• Determine the frequency and content of status reports from the project team,

analyze results, and troubleshoot problem areas.

• Proactively manage changes in project scope, identify potential crises, and

devise contingency plans.

• Define project success criteria and disseminate them to involved parties

throughout project life cycle.

• Coach, mentor, motivate and supervise project team members and contractors,

and influence them to take positive action and accountability for their assigned

work.

• Build, develop, and grow any business relationships vital to the success of the

project.

PROJECT MANAGER AS A WHOLE

Project Managers are individuals responsible for planning, monitoring and controlling all

aspects of a project. They must motivate and synchronize the assigned resources to achieve

the goals of the project, while coping with the constraints of time, cost and consistent quality.

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Project Managers manage projects from start to finish.

PROJECT MANAGER ROLES FOR CREDIT CARD PRODUCT

For example: a bank’s offering of a new credit card. The credit card is the product. However,

in order to get into the credit card business, several projects have to be undertaken. Shown

below (within each of the functional areas) are some or these project types.

· Marketing projects

· Conducting a market research project to determine the market segments to pursue

· Design the credit card – a design team is assembled to hire a design company and

oversee the creation of the physical card and some of the advertising themes

· IT and systems projects

· Order taking systems

· Transaction processing projects

· Complaint handling and management

· Product launch projects

· Creating and managing advertising and public relations programs for print media

and television

· Writing and designing inserts for direct mail campaigns

(b) Explain the criteria for the selection of project

manager, with examples. (10) 

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Project Manager selection criteria cannot be associated with other simple job descriptions, as the

subject post must possess some special skills in order to lead the team and project. Following criteria

and requirements must be fulfilled in order to be selected as a Project Manager for any organization.

Personal Skills

Project Managers must be able to motivate and sustain people. Project team members will look to the

project manager to solve problems and help with removing obstacles. Project managers must be able to

address and solve problems within the team, as well as those that occur outside the team. There are

numerous ways, both subtle and direct, in which project managers can help team members.

Some examples include the following:

Manage by example (MBE). Team members will be closely watching all actions of the project manager.

Therefore, project managers must be honest, direct, straightforward, and knowledgeable in all dealings

with people and with the project.

A good manager knows how to work hard and have fun, and this approach becomes contagious.

A positive attitude. Project managers must always have a positive attitude, even when there are

substantial difficulties, problems, or project obstacles. Negative attitudes erode confidence,

and a downward spiral will follow.

Define expectations. Managers who manage must clearly define

what is expected of team members. It is important to do this in

writing—get agreement from the individual team members. This

leaves no room for problems later, when someone states “It’s not

my job.” Performance expectations must be defined at the start

of the project.

Be considerate. Project management is a demanding job with a

need for multiple skills at many levels. Above all, be considerate

and respectful, and give people and team members the time and

consideration they deserve. Make people aware that their efforts

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are appreciated and the work that they do is important, because

it is. A letter, personal word, or e-mail of appreciation goes a

long way.

Technical Skills

There is no hard and fast rule. It really depends on the type and size of 

projects, their structure, resources available, and the project environment.

Questions that project managers should ask include the following:

1. What types of technical problems require management?

2. Who will solve them?

3. Is it done with quality and satisfaction?

4. Who can I rely on in my project team?

5. What outside resources, if any, can I draw on for assistance?

As with all employees, project managers should have the technical

knowledge and skills needed to do their jobs. If managers lack these

skills, training is one option; being mentored or coached by a more

experienced individual is another. Senior management should ask the

question, Do your project managers need more technical skills than

they already possess?

On larger complex projects, such as systems integration projects or

multiple-year projects, there are frequently too many complex technologies for the project manager to

master. Technical training that provides breadth may be useful. On smaller projects, the project

manager

may also be a key technical contributor. In this case, technical training

may enhance the abilities of project managers to contribute technically,

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but it is unlikely to improve their management skills.

One thing is abundantly clear—the project manager is ultimately

responsible for the entire management of the project, technical or otherwise, and will require solutions

to the technical issues that will occur.

Management Skills

Project managers need other key skills besides those that are purely

technical to lead and deliver on their projects successfully. A good

project manager needs to understand many facets of the business

aspect of running a project, so critical skills touch on expertise in the

areas of organization, communication, finance, and human resources.

The following are examples of the management topics used in training

effective project managers:

Project planning, initiation, and organization

Recruiting people and keeping them

Effective project negotiation

Software tools for project management

Accurate estimating and cost control

Project execution and control

Developing powerful project presentations and reports

Personal and project leadership

Managing risk and making decisions

Effective problem management

Performance management

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Managing the projects within the organization

Project management professional (PMP) exam review

Growing and sustaining a high-performance team

Managing change within an organization

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QUESTION 2

Conflict Resolution in Project ManagementAmy Ohlendorf 

Information Systems Analysis

MSIS 488, Fall 2001

Introduction | Project Management Overview | Understanding Conflict |

Approaches to Conflict Resolution | Conclusion | References 

 Introduction 

Conflict in project management is inevitable. The potential for conflict in information

systems development projects is usually high because it involves individuals from

different backgrounds and orientations working together to complete a complex task.

The cause of conflict in team projects can be related to differences in values, attitudes,

needs, expectations, perceptions, resources, and personalities. Proper skills in dealing

with conflict can assist project managers and other organization members to handle

and effectively resolve conflicts which can lead to a more productive organization as a

whole.

 Project Management Overview 

Project management is a methodological approach to achieving agreed upon results

within a specified time frame with defined resources. (1) It involves applying

knowledge, skills, tools, and techniques to a wide range of activities in order to meet

the requirements of a project. The major objectives of project management include

performance, cost, and time goals. (2) The focus is to meet customer expectations,

deliver projects within budget, and complete projects on time. Project management is

helpful in achieving these objectives by organizing, planning, monitoring, controlling,and correcting the project activities. These activities consist of creating a workable

project environment, keeping the work environment healthy, planning the essential

activities to build the information system or product, and controlling execution of the

plan. (3) 

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Using project management principles brings value to an organization. Applying these

principles give managers the ability to establish success measures, quantify value

proportionate with cost, use optimal organizational resources, allow customer focus

and alignment, incorporate quality principles, implement the practice of strategic

plans, resolve problems more quickly, work within the scope of the project, address

future risk before becoming a problem, and create a higher quality product the firsttime. The time and resources put into project management will make up for the cost

over the life of the project. (4, 5) 

Project management relies on proven and repeatable processes and techniques. These

processes and techniques are utilized to coordinate resources to accomplish

predictable results. (5) Although success is never guaranteed, a project is more likely

to be successful when conventional project management processes are practiced. The

four phases of the project management process are explained below. (6) 

1.  Project InitiationThe first phase of the process involves performing activities to evaluate the

project size, scope, and degree of difficulty and to establish procedures for

supporting later project activities. Examples of activities at this phase are

forming a project initiation team, building the customer relationship,

developing effective management procedures, and constructing a project

workbook.

2.  Project Planning

The second phase of the process involves defining clear, distinct activities and

work required to complete the activities for each individual project. Examples

of activities at this phase are defining the project scope, defining the work 

breakdown structure, estimating resource requirements, outlining

communication procedures among managers, team members, and the customer,

identifying and evaluating risk, and developing a Baseline Project Plan.

3.  Project Execution

The third phase of the process involves implementing the plans created in the

earlier phases, Project Initiation and Project Planning. Examples of activities at

this phase are executing the baseline plan, managing changes to the baseline

plan, monitoring project progress, and communicating project status to

managers, team members, and the customer.4.  Project Closedown

The final phase of the process involves bringing the project to an end.

Examples of activities at this phase are evaluating team members, conducting

final project reviews, and closing the customer contract.

The project manager is responsible for carrying out the initiation, planning, execution,

and closedown phases of a project. The success of a project relies strongly on the

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project manager. The role of this person is to evaluate project feasibility and to create

the plan of activities required to meet the objectives. This individual must be able to

build an environment in which the project can be executed while protecting the

environment from factors that could impede progress, planning the work that has to be

completed to reach the goal, and keeping the course of the project in control. (7) It is

important for a project manager to possess a diverse set of skills - management,leadership, technical, customer relationship, and conflict management.(6) 

Managers spend 42% of their time on reaching agreement with others when conflict

occurs. (8) Conflict management within a team environment requires the ability to

solve problems, set goals, compromise, settle personality differences, and resolve

conflicts. Training for project managers in this area is necessary for their success, as

they are typically responsible for handling conflict during a project. (9) The remainder

of this paper will address conflict and its resolution in project management.

Understanding Conflict 

Conflict is "a situation of competition in which the parties are aware of the

incompatibility of potential future positions and in which each party wishes to occupy

a position which is incompatible with the wishes of the other."(10) Conflict is viewed

as a cycle: "As with any social process, there are causes; also, there is a core process,

which has results or effects. These effects feed back to effect the causes." (11) To

understand conflict further, the situation must include elements of interdependence,

emotions, perceptions, and behaviors. (12) For example, conflict occurs between

parties whose tasks are interdependent, who are angry with each other, who perceive

the other party as being at fault, and whose actions cause a business problem.

Conflict can be constructive and healthy for an organization. It can aid in developing

individuals and improving the organization by building on the individual assets of its

members. (13) Conflict can bring about underlying issues. It can force people to

confront possible defects in a solution and choose a better one. (14) The

understanding of real interests, goals and needs is enhanced and ongoing

communication around those issues is induced. In addition, it can prevent premature

and inappropriate resolution of conflict. (15) Constructive conflict occurs when

people change and grow personally from the conflict, involvement of the individuals

affected by the conflict is increased, cohesiveness is formed among team members,

and a solution to the problem is found. (10) However, if conflict is not managed

properly, it can be detrimental to an organization by threatening organizational unity,

business partnerships, team relationships, and interpersonal

connections. (16) Deconstructive conflict occurs when a decision has not been found

and the problem remains, energy is taken away from more important activities or

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issues, morale of teams or individuals is destroyed, and groups of people or teams are

polarized. (10) 

Destructive conflict has a predictable pattern known as the Drama Triangle. (17) By

learning how to identify these unproductive roles and how to effectively handle each

role player, managers can prevent some conflicts from occurring and resolve thosethat do. Most individuals know how to assume the following three roles:

1.  Persecutor refers to a person who uses aggressive behavior against another

person, attacking the intended victim. An attack can be direct or indirect and be

physical, verbal, or both. The persecutor's actions deliver a message that "you

are not okay" while making the persecutor feel righteous and superior.

2.  Victim refers to a person who uses nonassertive behavior so others view them

as "I'm not okay." This behavior encourages others to either rescue or persecute

the victim. Victims will feel helpless, inadequate, sad, scared, or guilty. The

victim role is often used because the individual is feeling stressed, has low self-esteem, or is being persecuted by another.

3.  Rescuer refers to a person who uses either nonassertive or agressive behavior.

Individuals become rescuers because they will not say "no" and unwillingly

assume the responsibility of solving the victim's problem. In contrast, others

will assume the rescuer role to demonstrate superiority over the victim.

These roles are learned in early childhood and are used throughout adulthood. They

involve the perception of oneself or someone else as inadequate or not acceptable. The

aggressive and nonassertive behaviors that are present in these roles lead to win-lose

outcomes and do not provide an opportunity for a win-win resolution.

It is important for a project manager to understand the dynamics of conflict before

being able to resolve it. The internal characteristics of conflict include perception of 

the goal, perception of the other, view of the other's actions, definition of problem,

communication, and internal group dynamics. (18) 

  Perception of the goal becomes a problem when success becomes competitive

or "doing better than the other guy." The focus is placed on the solution rather

than attaining the goal.

  Perception of the other can create conflict when the attitude becomes "us versusthem." Similarities and differences are emphasized causing division within a

group.

  View of other's actions can be a problem when the situation is competitive

instead of cooperative. Behavior can be suspicious in a competitive

environment.

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  Definition of problem can result in conflict when the size of the problem is

escalated, issues are misconstrued, and original issues are lost.

  Communication in a competitive environment can cause mistrust and

information may be withheld or may be lacking. Communication is not open

and honest.

  Internal group dynamics can be negative when the group structure iscentralized and rigid rather then safe and open. Conformity is emphasized and

tasks dominate over the needs of the team members.

These characteristics can strongly influence the behavior style of group members and

affect the potential outcome of the conflict. In some instances, the project manager's

lack of skills to effectively manage and resolve conflict can be the problem.

 Approaches to Conflict Resolution 

In Project Management: A Systems Approach to Planning, Scheduling, and Controlling, five modes for conflict resolution are explained and the situations when

they are best utilized are identified. (19) These modes are Confronting,

Compromising, Smoothing, Forcing, and Avoiding.

Confronting is also described as problem solving, integrating, collaborating or win-

win style. It involves the conflicting parties meeting face-to-face and collaborating to

reach an agreement that satifies the concerns of both parties. This style involves open

and direct communication which should lead the way to solving the problem.

Confronting should be used when:

  Both parties need to win.

  You want to decrease cost.

  You want create a common power base.

  Skills are complementary.

  Time is sufficent.

  Trust is present.

  Learning is the ultimate goal.

Compromising is also described as a "give and take" style. Conflicting parties bargain

to reach a mutually acceptable solution. Both parties give up something in order toreach a decision and leave with some degree of satisfaction. Compromising should be

used when:

  Both parties need to win.

  You are in a deadlock.

  Time is not sufficient.

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  You want to maintain the relationship among the involved parties.

  You will get nothing if you do not compromise.

  Stakes are moderate.

Smoothing is also referred to as accommodating or obliging style. In this approach,

the areas of agreement are emphasized and the areas of disagreement are downplayed.Conflicts are not always resolved in the smoothing mode. A party may sacrifice it's

own concerns or goals in order to satisfy the concerns or goals of the other party.

Smoothing should be used when:

  Goal to be reached is overarching.

  You want to create obligation for a trade-off at a later time.

  Stakes are low.

  Liability is limited.

  Any solution is adequate.

  You want to be harmonious and create good will.  You would lose anyway.

  You want to gain time.

Forcing is also known as competing, controlling, or dominating style. Forcing occurs

when one party goes all out to win it's position while ignoring the needs and concerns

of the other party. As the intesity of a conflict increases, the tendency for a forced

conflict is more likely. This results in a win-lose situation where one party wins at the

expense of the other party. Forcing should be used when:

  A "do or die" situation is present.  Stakes are high.

  Important principles are at stake.

  Relationship among parties is not important.

  A quick decision must be made.

Avoiding is also described as withdrawal style. This approach is viewed as postponing

an issue for later or withdrawing from the situation altogether. It is regarded as a

temporary solution because the problem and conflict continue to reoccur over and

over again. Avoiding should be used when:

  You can not win.

  Stakes are low.

  Stakes are high, but you are not prepared.

  You want to gain time.

  You want to maintain neutrality or reputation.

  You think problem will go away.

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  You win by delaying.

Researchers examined the impact of the conflict resolution styles used by individuals

in shaping their work environment and affecting the level of ongoing conflict and

stress. (20) Results of the study showed that individuals who use a certain style to

conflicts can create environments with varied degrees of conflicts. Individuals whouse more of a confronting style create an environment with lower levels of task 

conflict, which reduces relationship conflict and stress. Whereas, individuals who use

more of the forcing or avoiding styles tend to create an environment with more task 

conflict, which increases relationship conflict and stress. The study suggests conflict

develops not only in environmental circumstances but in the styles used by individuals

when confronted with a conflict. The manner in which a person responds to

organizational dissension and uncertainty will influence the responses of others and

the individual's work experience.

Another study went a step further and examined the relationship between the threeforms of organizational justice (procedural, distributive, and interactional) and the

conflict resolution styles. (21) The researchers concluded that higher interactional

 justice was related to greater use of the confronting style when distributive justice was

low and procedural justice was high. Use of the avoiding style was positively related

to distributive justice. This study suggests when employees perceive organizational

 justice, they are likely to use more cooperative modes, such as confronting,

smoothing, and compromising, in dealing with conflict. Results from this study have

implications for organizations. Managers at all levels of an organization should be

attentive to enhancing employee perceptions of organzational justice in order to

encourage the use of more cooperative styles for organizational conflict management.

Barki and Hartwick tested a model of how members of information systems

development (ISD) projects perceive interpersonal conflict and examined the

relationships between interpersonal conflict, conflict management styles, and ISD

outcomes. (22) In the study, interpersonal conflict was defined as "a phenomenom

that occurs between interdependent parties as they experience negative emotional

reactions to perceived disagreements and interference with the attainment of their

goals." The results suggest that individuals' assessments of interpersonal conflict were

formed based on disagreement, interference, and negative emotion. Interdependence

was not a factor in their assessment. Negative emotion was found to be a significant

part of an individuals' perception of interpersonal conflict. Although conflict

management styles were shown to have positive effects on ISD outcomes, the

negative effects of interpersonal conflict on the outcomes were not alleviated.

Regardless of how the conflict was managed or resolved, the study demonstrated that

the impact of interpersonal conflict was perceived to be negative. The researchers

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concluded that management and satisfactory resolution of interpersonal conflict are

important. However, prevention of interpersonal conflict should be the greater focus.

Al-Tabtabai and colleagues undermine the modes of conflict resolution and propose a

conflict resolution technique using a cognitive analysis approach. (23) This approach

identifies a main source of conflict as the cognitive differences between parties.Feedback is presented that gives analysis of each individual's judgement and

comparisons with the counterpart's judgement. This cognitive feedback provides

insight to conflicting parties and gives them an opportunity to reach an acceptable

resolution to the conflict. The proposed systematic methodology to conflict resolution

identifies and measures the cues, distal variable, and judgements and determines the

relationships between these variables. The six steps of this methodology are listed

below.

1.  Indentification of the Conflict Domain

2.  Generation of Conflict Cases3.  Exercise of Judgement

4.  Analysis of the Results

5.  Communication of the Judgement Differences (Cognitive Feedback)

6.  Negotiation Among Conflicting Parties

The use of the cognitive analysis approach resulted in more agreement among the

parties in conflict. Cognitive feedback provided information on reasons why the

disagreement occurred among the parties and on areas that needed to be addressed to

reach an agreement. This approach allowed the project members involved in the

conflict to concentrate on the real differences that provoked the disagreement rather

than only discussing the effects of the conflicting situation. The findings from this

study suggest the use of cognitive feedback can be effectively applied to conflict

resolution.

Active listening is a proven technique managers can use to help resolve

conflict. (17) Developing this skill takes practice, but it can be extremely effective

when mastered. Listening allows the conflict to take its natural course by giving

individuals the opportunity to disagree, express strong opinions, and show passion for

ideas. A respect for individual differences is demonstrated and an environment of 

understanding is fostered. Listening is helpful in achieving a winning resolution by

enabling an employee to identify the criteria that is considered an acceptable outcome.

When a manager is able to understand the needs and interests of individuals, the

chances of satisfactorily resolving the conflict for both parties are increased. As a

result of this process, trust and a relationship bond will form preparing individuals to

listen also to the needs of the manager. (15) 

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An awareness of the potential approaches to conflict resolution and the understanding

of their consequences can provide project managers with a invaluable set of tools to

create an optimal work environment.

Common Causes of 

Project Failure

OGC Best Practice

This document is primarily aimed at those

managing or otherwise involved in the

delivery of projects across Government.

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:12 p1. Lack of clear links between

the project and

the organisation's key strategic priorities,

including agreed measures of success.

2. Lack of clear senior management and

Ministerial ownership and leadership.

3. Lack of effective engagement with

stakeholders.

4. Lack of skills and proven approach to

project management and risk management.

5. Too little attention to breaking development

and implementation into manageable steps.

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6. Evaluation of proposals driven by initial

price rather than long-term value for

money (especially securing delivery of 

business benefits).

7. Lack of understanding of, and contact with

the supply industry at senior levels in the

organisation.

8. Lack of effective project team integration

between clients, the supplier team and the

supply chain.

Common Causes of 

Project Failure

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 p1. Lack of clear links between

the

project and the organisation's

key strategic priorities, including

agreed measures of success.

Do we know how the priority of this

project compares and aligns with our other

delivery and operational activities?

Have we defined the critical success factors

(CSFs) for the project?

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Have the CSFs been agreed with suppliers

and key stakeholders?

Do we have a clear project plan that covers

the full period of the planned delivery and

all business change required, and indicates

the means of benefits realisation?

Is the project founded upon realistic

timescales, taking account of statutory lead

times, and showing critical dependencies

such that any delays can be handled?

Are the lessons learnt from relevant projects

being applied?

Has an analysis been undertaken of the

effects of any slippage in time, cost, scope

or quality? In the event of a problem/conflict

at least one must be sacrificed.

2. Lack of clear senior management

and Ministerial ownership and

leadership.

Does the project management team have a

clear view of the interdependencies between

projects, the benefits, and the criteria against

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which success will be judged?

If the project traverses organisational

boundaries, are there clear governance

arrangements to ensure sustainable

Key questions to address

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 palignment with the business

objectives

of all organisations involved?

Are all proposed commitments and

announcements first checked for

delivery implications?

Are decisions taken early, decisively,

and adhered to, in order to facilitate

successful delivery?

Does the project have the necessary approval

to proceed from its nominated Minister either

directly or through delegated authority to a

designated Senior Responsible Owner (SRO)?

Does the SRO have the ability, responsibility

and authority to ensure that the business

change and business benefits are delivered?

Does the SRO have a suitable track record

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of delivery? Where necessary, is this being

optimised through training?

3. Lack of effective engagement

with stakeholders.

Have we identified the right stakeholders?

Have we as intelligent customers, identified the

rationale for doing so (e.g. the why, the what,

the who, the where, the when and the how)?

Have we secured a common understanding

and agreement of stakeholder requirements?

Does the business case take account of the

views of all stakeholders including users?

Do we understand how we will manage

stakeholders (e.g. ensure buy-in, overcome

resistance to change, allocate risk to the

party best able to manage it)?

Has sufficient account been taken of 

the subsisting organisational culture?

Whilst ensuring that there is clear accountability,

how can we resolve any conflicting priorities?

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 p4. Lack of skills and proven

approach to project management

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and risk management.

Is there a skilled and experienced project

team with clearly defined roles and

responsibilities? If not, is there access

to expertise, which can benefit those

fulfilling the requisite roles?

Are the major risks identified, weighted

and treated by the SRO, the Director,

and Project Manager and/or project team?

Has sufficient resourcing, financial and

otherwise, been allocated to the project,

including an allowance for risk?

Do we have adequate approaches for

estimating, monitoring and controlling

the total expenditure on projects?

Do we have effective systems for

measuring and tracking the realisation

of benefits in the business case?

Are the governance arrangements robust

enough to ensure that "bad news" is

not filtered out of progress reports to

senior managers?

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If external consultants are used, are they

accountable and committed to help

ensure successful and timely delivery?

5. Too little attention to breaking

development and implementation

into manageable steps.

Has the approach been tested to ensure

it is not 'big-bang' (e.g. in IT-enabled

projects)?

Has sufficient time been built-in to allow

for planning applications in Property &

Construction projects for example?

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pHave we done our best to keep

delivery

timescales short so that change during

development is avoided?

Have enough review points been built-in so

that the project can be stopped, if changing

circumstances mean that the business

benefits are no longer achievable or no

longer represent value for money?

Is there a business continuity plan in the

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event of the project delivering late or failing

to deliver at all?

6. Evaluation of proposals driven by

initial price rather than long-term

value for money (especially securing

delivery of business benefits).

Is the evaluation based on whole-life value

for money, taking account of capital,

maintenance and service costs?

Do we have a proposed evaluation approach

that allows us to balance financial factors

against quality and security of delivery?

Does the evaluation approach take account

of business criticality and affordability?

Is the evaluation approach business driven?

7. Lack of understanding of, and

contact with the supply industry

at senior levels in the organisation.

Have we tested that the supply industry

understands our approach and agrees that

it is achievable?

Have we asked suppliers to state any

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assumptions they are making against

their proposals?

Have we checked that the project will

attract sufficient competitive interest?

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pAre senior management

sufficiently engaged

with the industry to be able to assess

supply-side risks?

Do we have a clear strategy for engaging

with the industry or are we making sourcing

decisions on a piecemeal basis?

Are the processes in place to ensure that all

parties have a clear understanding of their

roles and responsibilities, and a shared

understanding of desired outcomes,

key terms and deadlines?

Do we understand the dynamics of 

industry to determine whether our

acquisition requirements can be met,

given potentially competing pressures

in other sectors of the economy?

8. Lack of effective project team

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integration between clients, the

supplier team and the supply chain.

Has a market evaluation been undertaken

to test market responsiveness to the

requirements being sought?

Are the procurement routes that allow

integration of the project team being used?

Is there early supplier involvement to help

determine and validate what outputs and

outcomes are sought for the project?

Has a shared risk register been established?

Have arrangements for sharing efficiency

gains throughout the supply team been

established?

If the answers to the above questions are

unsatisfactory, projects should not be

allowed to proceed until the appropriate

assurances are obtained.

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pExplanatory notes

Office of Government Commerce,

Trevelyan House, 26 - 30 Great Peter Street, London SW1P 2BY

Service Desk: 0845 000 4999 E: [email protected] 

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W: www.ogc.gov.uk 

About OGC

OGC - the UK Office of 

Government Commerce -

is an Office of HM Treasury.

The OGC logo is a registered

trademark of the Office of 

Government Commerce.

OGC Service Desk 

OGCcustomers can contact the

central OGCService Desk about

all aspects of OGCbusiness.

The Service Desk will also channel

queries to the appropriate

second-line support. We look 

forward to hearing from you.

You can contact the Service Desk 

8am - 6pm Monday to Friday

T: 0845 000 4999

E: [email protected] 

W: www.ogc.gov.uk 

This document is printed on material comprising

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75 per cent post consumer waste and 25 per cent

ECF pulp.

© Crown Copyright 2005.

CP0015/01/05

1. An acquisition-based project is one which

has a significant element dependent on the

supply of goods and/or services by a third

party supplier or suppliers. Whilst it is not

essential for the goods or services to be

provided by a single supplier, the contribution

of the third party supplier or suppliers should

be considered significant, if a failure to deliver

on their part attracts public criticism.

2. An IT-enabled project is any business change

activity, including programmes and projects,

where the use of IT is critical to its success.

3. A project is defined as a unique set of 

co-ordinated activities with a finite duration,

defined cost and performance parameters

and clear outputs to support specific

business objectives.

4. By value for money is meant "the optimum

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combination of whole-life cost and quality,

fitness for purpose to meet user

requirements". Government Accounting.

5. The list of Common Causes of Project Failure

has been agreed by the NAO and OGC.

OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:12 p

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