MANAGING PROFESSIONAL SERVICES PROJECTS:PROJECT MONITORING AND CONTROL

6. PHASE III: PROJECT MONITORING AND CONTROL

The project workplan and budget (see Section 5) are used as the basis for project monitoring and control. The three main purposes of project monitoring and control are to:

1. Manage the project within the constraints of budget, time, and resources

2. Manage changes that will occur

3. Manage communications and expectations

Project monitoring helps the project manager balance constraints, anticipate / identify changes, and understand expectations. A well-designed project monitoring process provides:

• Timely information regarding actual vs. planned results

• An early warning of potential project problems

• A basis for assessing the impact of changes

• An objective basis for project decision making

Project monitoring also is used to set up ongoing channels of communication among project stakeholders. The major deliverables are project progress reports and status updates; detailed work- plans (updated as necessary); and cost and schedule performance reports.

Organizing for Project Implementation

An important element of project monitoring and control is the organization that is put in place to support it. Typically the project-implementation structure consists of at least two entities: the project steering committee and the project office.

The Project Steering Committee

The project steering committee is made up of the key stakeholders in the project. It usually is chaired by the project sponsor, and the membership is made up of individuals who are in a position to help move the project along when barriers are encountered or changes are necessary. The committee members typically are project supporters, although antagonists may also be included to ensure that their views are heard and, to the extent possible, accommodated. The project manager is often a member of the committee.

The steering committee has a number of roles. It provides direction to the project; reviews deliv- erables, as appropriate; receives periodic reports regarding project progress, status, difficulties, and near-future activities; helps clear roadblocks as they occur; and provides final approval that the project has been completed satisfactorily.

The Project Office

The project office is led by the project manager. Depending on the size and complexity of the project, the office may be staffed by appropriate technical and administrative personnel to provide assistance to the project manager.

The primary role of the project office is to ensure that the project is proceeding according to plan and that the deliverables are of acceptable quality. This is accomplished by periodic (e.g., weekly or biweekly) review of project progress with respect to plan, as well as review of deliverables as they are produced. The project office maintains and updates the master project workplan and budget and routinely reports progress and difficulties to interested stakeholders, including the steering committee.

The office also takes the lead in ensuring that any actions necessary to correct project problems are effected in a timely manner.

Project Monitoring

Project monitoring takes a number of forms, including:

• Informal monitoring

• Project workplan and budget maintenance

• Project status reporting

• Status meetings

Informal Monitoring

Informal project monitoring entails ‘‘walking the project’’ on a periodic basis, daily if possible. It may involve observing deliverables; holding ad hoc meetings with team members; and communicating informally and frequently with stakeholders. Much can be learned about how the project is doing simply by talking with project team members and other stakeholders.

Project Workplan and Budget Maintenance

Maintenance of workplans and budgets is a routine and ongoing activity. Project plans should be updated on a regular basis to reflect corrective actions and proactive strategies being implemented. Plan maintenance involves updating the detailed workplan’s latest estimate to reflect current status and the time / cost necessary to complete the project. Plan maintenance should occur at least biweekly and should not alter the baseline workplan and budget—unless variances have become large and persistent or the scope of the project has changed. If rebaselining is necessary, it should only be done with sponsor / steering committee approval and may require approval by the person who approved the original project workplan and budget if he or she is other than the sponsor / steering committee.

Project Status Reporting

Status reports provide project leaders and other interested parties with an objective picture of progress, variances, and trends, as well as an audit trail and record of project progress. These reports provide leaders with an opportunity to understand and rectify variances and formulate appropriate actions to identified strengths, vulnerabilities, and risks.

Status reports may be assembled in a variety of configurations, depending on the audience being served. Typical configurations of status report packages include project team leader reports, project manager reports, and steering committee reports.

Status Meetings

Status report packages typically are delivered at status meetings. Team leader report packages are delivered on a regular basis to the project manager to cover completed, current, and planned work. The team leader reports are consolidated by the project office and the overall project status report is presented by the project manager to the steering committee at its regular meeting. The report to the steering committee focuses on overall project status and specific issues or roadblocks that need to be cleared. A key role of the steering committee is to take the lead in resolving issues and clearing roadblocks so the project can proceed as planned.

Project Control

Project control involves three main activities:

1. Identifying out-of-control conditions

2. Developing corrective actions

3. Following up on corrective action measures

Identifying Out-of-Control Conditions

An activity or task is in danger of going out of control when its schedule or budget is about to be exceeded but the deliverable(s) are not complete. Adequate monitoring of project schedule and budget will provide an early warning that a potential problem exists. An activity or task that is behind schedule and is on the critical path requires immediate attention because it will impact the overall timetable for project completion, which ultimately will adversely impact the budget for the task, the activity, the phase, and the project. Oftentimes, exceeding the budget or missing the scheduled com- pletion date for a particular task or activity may be an early warning sign that a significant problem

is developing for the project. Either of these signs requires an immediate investigation on the part of the project manager to determine the underlying reasons.

Developing Corrective Actions

Once the project manager determines the cause of an overage in the budget or a slippage in the schedule, he or she must determine an appropriate response and develop a specific corrective action plan. Sometimes a problem is caused by an impediment that the project manager alone can not resolve. In these instances, the project manager should engage the help of the steering committee. One of the responsibilities of the steering committee is to provide ‘‘air cover’’ for a project manager when he or she encounters complex difficulties.

In other cases, the impediment may have been anticipated and a corrective action plan formulated as part of the project’s risk-management plan. In these cases, all that may be required is to execute the corrective action specified in the plan.

Following up on Corrective Action Measures

To ensure that the desired outcome of the corrective action is being achieved, it is important to employ project monitoring techniques when executing a corrective action plan. The walking-the- project technique mentioned earlier is an example of an effective follow-up technique. More complex corrective actions may require a more formal status-reporting approach.