PLANNING AND PROJECT

MANAGEMENT
Reporter: Mr. Melgazar D. Monsanto

Projects are described as the “cutting edge of

development” or as “building blocks of
development.” By Ernesto Franco
 THE CONTEXT TO PROJECT MANAGEMENT:
UNDERSTANDING CORPORATE PLANNING

A Basic Starting Point:

Defining Functional Relationships
Corporate Planning is the context of project
management; its proper understanding
will make interlocking relationships
clearer when we focus on projects.
Plan a plan,
Program a plan, and
Projecticize a program.
Planning process is of course continuous and
never-ending.
-such as in the form of a plan, a program, or a
project
-are interim and tentative
-results always require constant updating and
change.
-the assumptions used in the planning process
inevitably undergo revisions and trigger a
chain reaction throughout the stages or
sequences of a plan.
 Implementing Development:
People Needs
Development is the assessment of needs of people
and responding to these needs in the most
efficient, effective, and responsive ways.
Each society or each organization can go through:
1. National Planning - for whole societies such as through the
institutionalized Planning Agency, like the National Economic
and Development Authority for the Philippines or Corporate
Planning – for whole organizations or institutions or even sectors
or regions, such as Government Departments, Business
Corporation or Universities and Hospitals
2. Programming - which breaks down
the chosen strategies in the Long-
Range Plan into cluster of
Intermediate-phrased Programs.
3. Project Management – which
identifies projects for immediate
implementation from the Programs.
 The Concept of
Corporate Planning
Corporate planning is the total planning.
A formal and systematic process to
ensure that long-range, intermediate and
annual planning is carried out regularly
within the organization. Programs and
projects that evolve out of these processes
just have logical and contributory linkages
to the goals and objectives of the corporate
plan.
Three levels of planning make up
corporate planning:
Firstly, Strategic or long-range planning.
 This is made by top management and senior
divisional heads.
Secondly, tactical or development planning.
 This is made by operating management. It is
intermediate in terms of scope and consists of
programs.
Thirdly, annual operating planning.
 This is made by all functional units within the
strategic, policies and guidelines mandated by top
management.
TOTAL MANAGEMENT
PERFORMANCE
 Larger Systems and
Larger Issues
The process of Strategic Planning
1. For determining what the organization
might do, we make an analysis of the
external environment in which the
organization operates. This type of
analysis should cover a minimum span of
5-10 years’ projection, and should
probably be repeated once every three
years.
This may include:
1.1 An evaluation of the country’s national
economic and social development plans.
 Firstly, what are the blueprints of national
regional development?
 Secondly, what are the principal development
thrusts of these plans? Any program to
projects selected thereafter should conform to
these thrusts.
Principally, they are:
– Countryside development.
– Technology thrusts including urbanization
and industrialization.
– Government reforms.
– Social equities thrust.
– Self-reliant and efficient economy.
– Expanded exports drive and enlarged foreign
investments.
– Asian thrust.
 Principal areas of concern of
Philippine development are:
 A concern to reduce poverty.
 A concern to minimize social
injustice.
 A concern to enlarge power-sharing
in national affairs.
 A concern to develop indigenous
processes of development.
Thirdly, what are the undergirding principles or
development we can discern because of these
plans and thrusts?
Principally, they are:
 The centrality of the rural sector in Philippines
development.
 A deep-seated concern for an improved quality
of life among the rural masses.
 Participatory power-sharing and decision-
making in self-induced development.
 Integration of national and regional goals and
development efforts.
 Building of self-reliant economy.
 Modernization of international and trade
relations.
 Lessons From
National Planning
1.The basic guidelines for policies, programs, and
projects.
2.The strategy for development
3.A number impact and projects are focused,
including family planning; the pan-Philippine
highway; energy development; integrated steel
mill; low-cost housing; and textbooks
production and distribution.
4.The plan also identifies a number of national
development targets and defines the framework
for regional development.
WHAT THE ORGANIZATION CAN DO
WHAT THE ORGANIZATION MIGHT DO
WHAT THE ORGANIZATION
WANTS TO DO
DETERMINING WHAT THE ORGANIZATION
SHOULD DO
 Tactical or
Development Planning
Programs cover a wider scope of activities and a broader range of
goals than projects. They are usually managed by divisions or
functional units of an organization and make up the
maintenance system of the organization. Goals and objectives
for programs are deemed achievable within 5 to 10 years
although in business the common time span is 3 to 5 years.
 Organizational design including issues
 Information systems
 Management control system
 Reward system
 Staffing and management development
 Leadership issues
 Resources-allocation
 Different elements of
organizational strategy
Basic Strategic Major
Influences Determine Purposes Determine Policies
1. External 1. Survival, 1. Clientele
Environment 2. Growth rate and 2. Product or service
2. Internal resources, Diversification scope,
3. Values of owners/ 3. Stability, 3. Bases of competition
4. Social 4. Profitability 4. Resource-allocation
responsibility 5. Market share policies
of owners/ 6. Social contribution 5. Risks,
6. Time horizon
 PROJECT
MANAGEMENT
II. Projects As the Flesh and Bones of Plans
A. Key Concepts
 Three key concept of project
management are:
1. The single point of integrative management
2. Integrative planning control
3. Multi-disciplinary skills and time-bound:
B. Characteristics of Projects
 These key concepts give projects the
following characteristics:
– Projects are non-traditional, innovative
processes for development.
– Projects are complex efforts.
– A project is the process of creating a specific
result.
– A project has a life cycle.
– Projects need multi-disciplinary skills.
 Functional Versus Project Management

 1. Specific life cycle 1. Continues life from year to year

 2. Definite start and completion points, 2. No specific characteristics tied to calendar
with calendar dates dates other than fiscal year budgets.
 3. Can be abruptly terminated if goals are not 3. Assurance or continued function, even in
met; always terminated when project is completed. major reorganization.
 4. Often unique, not done before. 4.Usually performing well-known functions,
and tasks only slightly different from past
efforts.
 5. total effort must be completed within fixed 5. maximum work is performed within
budget and schedule annual budget ceiling.
 6. Prediction of ultimate time and cost is difficult. 6. Prediction of annual expenditures relatively
simple.
 7. Involves multi-disciplinary skills from different 7. Involves a few closely-related skills
departments or organizations which may change and discipline within one well-defined
from one life-cycle phase to the next. and stable organization.
 8. Rate and type of expenditures constantly 8. Relatively constant rate and type of
changing. expenditures.
 9. Basically dynamic in nature 9. Basically steady-state in nature.
 Advantages of Project Management
1.The advantages of using project management
• Project commitments are made only to achievable
technical, cost, and scheduled goals, and
• Every project is planned, scheduled and controlled so that
commitments are in fact achieved.
2. The advantages of appointing a Project Manager
• Accountability is placed on one person for overall results
of the project.
• Assurance that decisions are made on the basis of the
overall good of the project, rather than for the good of one
another contributing functional department.
• Coordination of all functional contributors to the project.
• Proper utilization of integrated planning and control
methods and the information they produce.
3. the advantages of integrated planning
and control of all projects
• Assurance that the activities of each
functional area are being planned and
carried out to meet the overall needs of the
project.
• Assurance that the effects of favoring one
project over another are known, such as in
resources allocation.
• Early identification of problems that may
jeopardize the success of the project,
thereby allowing prompt corrective action
THE PROJECT CYCLE
 A. A Suggested Project Cycle

Stage1. Project Selection and

Development
Stage II. Project Implementation
Stage III. Project Termination &
Evaluation
Stage IV. Project Recycling
PROJECT MANAGEMENT CYCLE
IV. Improving Project Management
in Your Organization
1. Through Management Development and Training
• Establish development and training programs.
• Develop policies and procedures:
– Selection criteria for project Managers
– Career development of staff.
– Performance evaluation of project managers.
2. Through Organization of Responsibilities
– Establish central operations planning control office.
– Established policies on reporting relationships.
– Develop responsibility matrices to clarify relationships
– Develop job specifications.
3. Through Improved Systems, Methods and Procedures
a. Establish procedures for coordination of plans and actions
among all functional units.
- Prior to commitment
- During Submission of project proposal
- During Implementation of projects
b. Introduce new or revised procedures on
- Price quotations and schedules
- Authorization or project
-Project cost accounting
-Manpower expenditures
-Project breakdown schedules and network planning methods
- Adequacy of project files
-Project evaluation and review
c. Implement integrative, multi-project information systems.
d. Establish project control room and related support procedures
 PLAN ELABORATION
The Department of Education, Culture and Sports
(DECS) elaborates on the government process of
breaking down plans into projects.
The process of plan elaboration includes two steps:
FIRST: Programming
The task of dividing up the plan into broad action areas
each of which aims at accomplishing specific
objective(s).
SECOND: Project Identification
The second step in plan elaboration is project
identification. A project is any unit of expenditure
which is administered or accounted for as an
identifiable group of activities.
 Steps in Programming and
Project Identification
Step I: Identify sub-objectives.
Step II: Relate Targets and Provisions to
Sub-Objectives
Step III. Determine Administrative Body.
Step IV. Regionalize Program.
Step V. Analyze Packages of Action and
Identify projects
 Classification of Projects
Projects may be classified as to their:
• Status – A project is either new or already,
existing or on-going.
• Organization - A project is managed by
either an existing organization or a new
one.
• Sector – A project belongs to an
elementary, vocational, agricultural,
general secondary or college/university
level: or the public or private sector.
• Origin – A project may be initiated by the
school, division, regional or national level.
 Stages of a Project
1. Pre-Study Stage
2. Project Study Stage
3. Implementation Stage
4. Evaluation Stage
 Management Mistakes
Many Filipino school principals and university presidents-especially
from fa,ily-owned, religion-affiliated institutions demonstrate a
number of management mistakes also common with state
university officials:
1.Short attention span – meaning, the executive pays attention just
for a short while, then turns around and forgets about it
completely. Too much politics.
2. Wrong emphasis – such as the politician’s smile, not the genuine
attitude, and Filipinos are quick to spot the hypocrite and the
actor from the genuine article.3.
3. Rigor mortis – if there are too many procedures, too many rules,
too much control, too much fear of mistake, then the faculty
and staff will not move or do anything and things just float
along.
 HISTORY OF EDUCATIONAL
PLANNING IN THE PHILIPPINES
 According to the Department of Education, today’s
educational planning in the Philippines can claim an
unbroken history even before the establishment of
our formal educational system.
 During the pre-Spanish era and the period of more
than four centuries when the Philippines was a
possession of Spain and of the United States there
was a long and routine sort of educational planning
though it was not visible enough to compare with
the present educational planning activities.
HISTORY OF EDUCATIONAL PLANNING
IN THE PHILIPPINES

 At a minimum, they had to estimate how many

students there would be, how many classroom,
teachers, desks and books would be needed to
serve them adequately; how much money these
would require, where the money would come
from; and how and when it would be spent. This
process was educational planning which was
taken for granted as a normal part of the school
administrators’ job. Much more in some
instances. It was abused that it led to wasteful
imbalances of our much limited school inputs.
 1. Organization and Process of Overall Development Planning
1.1 In 1993, Commonwealth Act No. 2 was passed which created
the National Education Council (NEC). It was the central
authority responsible for the “formulation of definite and
consistent national economic policies and the preparation of
comprehensive economic and social development plan”.
 The formulation of any set of policies or any program in
the council, was usually the concern of any or all of the
following four groups:
• The Council proper composed of Congressional members, appointive
members from the Executive Branch and representatives of the private
sector;
• The technical staff for the council, composed of members of its three
main offices: National Planning, Foreign Aid Coordination and
Statistical Coordination and Standards;
• Other departments, offices and agencies of the government, particularly
the Budget Commission, Central Bank, Department of Finance.
Presidential Economic Staff and
• The private Sector.
1.2 The law required approval by the President of
both policies and programs of the Council before
they could be implemented by the government’s
departments, offices, and agencies. The National
Economic Council was under the Office of the
President and headed by a chairman with cabinet
rank. He was directly responsible to the
President of the Philippines
1.3 Aside from NEC, there were planning
committees set up in some of the departments or
agencies of the government.
 1962- the Program Implementation Agency (PIA) was created
through Executive Order No. 17 to meet the need for an
implementing authority to push through development plans.
 1966- the PIA was changed to PES, Presidential Economic
Staff. These two agencies – the NEC and the PES, the one on
planning and the other on programming, stood head above all
other government executive departments, corporations, financial
institutions, chartered cities and local governments in matters
pertaining to these two functions.
 On the regional level, planning was undertaken by the various
regional development authorities.
 On the local level, a provincial economic planning was set
under the auspices of the defunct Emergency Administration.
The NEC coordinated the planning activities of these agencies.
1.4 The NEC was basically an advisory body with no
executive functions (with the exception of foreign
aid). In order to coordinate the implementation of
development projects, a Development Council,
composed of heads of executive departments
concerned with the economic and social
development, head of major government agencies
and legislative leader. This Council was presided
over by the President himself, who required the
members to submit in person progress reports on the
different major projects. The Chairman of the NEC
acted as Executive Secretary of the Development
Council. The Secretariat of the NEC had an
integrated Social Development Division located at
the Office of National Planning which also dealt
with education.
 1.5 Executive Order No. 53, dated December 8, 1966
created the Manpower Development Council under the
Office of the President of the Philippines to undertake the
responsibility of assessing human resources and
forecasting the needs for trained personnel at various
occupational levels.
1.6 With the proclamation of Martial Law in 1972 and the
implementation of the Integrated Reorganization Plan,
the National Economic and Development Authority
(NEDA) was created for the purpose of recommending
continuing coordinated and fully integrated social and
economic plans and programs.
 -This body is primarily charged with the task of
overseeing government development programs. It is
central agency for national development planning
and coordination of program implementation.
 Development of Educational Planning
In 1954, the defunct Congress of the Philippines created the Board of
National Education through Republic Act No. 1124, Its broad
functions were:
 to formulate the objectives and basic policies of
education in conformity with the Constitution;
 to coordinate the objectives, functions, and activities of
different types of educational institutions; and
 set up general goals of accomplishments for the entire
school system.
 The Board aside from being the highest policy making
body in education has been known as the first official
planning body for education. Initially, its activities that
were concentrated on the public school system were
integrated with the national development plan.
 Republic Act No. 4372 amended Republic Act No. 1124 and provided
among others the following additional functions of the Board of National
Education;
• To establish guidelines, policies, and criteria on the basis of which
the examination, evaluation and approval of textbooks by the
Board of Textbooks shall be made.
• To compile educational statistics, keep records on education,
conduct researches, surveys, and studies on educational conditions
and problems, evaluate the effects of national educational policies
and undertake such other activities as to effectively carry out all
purpose of this act.
• To secure data and information from all government offices and
entities and educational institutions, public and private, and to
consult and confer with the offices and personnel thereof, on such
matters as may be necessary for the Board to discharge its
functions.
• To submit an annual report to the President and to Congress not
later than January thirty-first of each year which shall include a
compilation of the national educational policies formulated by the
Board, an evaluation of the national educational system, and
recommendation to the Executive and Legislative branches of the
government on the improvement of the educational system of the
country.
 Operational planning then in the Department
of Educational originated from its three bureaus.
Although in principle these bureau-sectoral
plans were consolidated at the level of the
Secretary of Education, in practice they were
submitted to the Office of the President with
hardly any substantial change and were not
coursed through the Board of National
Education unless they involved changes in
curricula and standards.
 The following were the basic criteria by the Bureau of
Public Schools for 1965-1970 was such a resource-
oriented program. It was formulated by an Ad-Hoc
Committee on Educational created by the Director of
Public Schools in 1964. In the Bureau of Vocational
Education, an attempt was made to relate projected
occupational requirements to vocational-technical
education, but the conclusions were primarily directed
towards the cost of vocational education and did not
establish actual physical targets.
 It can be said that in the past years the partial
educational planning in the Philippines, both of policy
and implementing levels, was more concerned with
“humanistic values”, quality of instruction, and “cost-
determination”, than integration into the general strategy
for accelerated economic development, according to the
DECS.
 Through the Office of the Division of
Educational Planning, the Department of
Education conducted a comprehensive
review of the educational system in
coordination with the Presidential
Commission to Survey Philippine Education
(PCSPE).
 One of the concrete measures recommended by the
PCSPE was to expand the planning Division.
Consequently, Educational Decree of 1972 provides
in part…….”the National Board of Education (NBE)
shall be assisted by an office of planning and
research known as planning Service in the
Department of Education , the Planning Service of
the Department of Education and Culture secondary
and higher education. “The proposed Division of
Planning and Programming of the Department of
Education was expected to consolidate the Plans of
the Bureaus into Five-Year Department of Education
Report which would establish priorities.
 HOW JAPANESE SEE PHILIPPINES
 Firstly, while we had an early start with American assistance
on industrialization in the 1960s, we have not been able to
exploit this early lead. Our development has fallen off;
government protection through tariffs of so-called infants
industries (owned by selfish family elites) have made these
industries inefficient, labor salaries cheap, and our products
low in quality.
 Secondly, since our industries needed overseas materials we
depended on foreign exchange. But crises like political
events (Aquino Assassination, Marcos overthrow, etc.) have
paralyzed these situations, resulting in gross illiquidity and
financing problems.
 Thirdly, although we have a big population, our
consumptions levels are low and purchasing power weak,
discouraging local manufactures.
 And fourthly, our elite families and their professional
managers (who have little authority) prefer overnight riches
to long-term rewards such as through equipment
investments.