11.
Project Communications
Management
Communications Management
• The processes required to ensure
timely and appropriate generation,
collection, distribution, storage,
recovery, and ultimate disposition of
project information
Why Do We Manage Communications?
• Project Managers spend most of their time
communicating
• Communication is complex; requiring
choices between:
– Sender-Receiver models
– Choice of media
– Writing style
– Presentation techniques
– Meeting management
Communication Model
• Encode – Translate thought to language
• Message – Output of encoding
• Medium – Method to convey message
• Noise – Interference with transmission/understanding
• Decode – Translation back to thought/idea
Noise
Message
Encode Decode
Sender Noise MEDIUM Receive
Decode rEncode
Feedback -
Message
Communication Model
• Communications model implies feedback
required
• Key Terms
– Nonverbal – 55% of Communication
– Paralingual – Pitch and tone of voice
– Active listening – Receiver confirms message
and asks for clarification
– Effective listening – Receiver pays attention,
thoughtfully responds, and provides feedback
How Do We Manage Communications?
• Five processes
– Identify Stakeholders
– Plan Communications
– Distribute Information
– Manage Stakeholder Expectations
– Report Performance
Plan Distribute Manage Report
Identify Stakeholder
Stakeholders Communication Information Performance
s Expectations
Identify Stakeholders
Inputs Tools & Techniques
Project Charter Stakeholder analysis
Expert Judgment Stakeholder
Procurement Outputs
Documents Register
Enterprise Stakeholder
Environmental Management
Factors Strategy
Organizational
Process Assets
Plan Distribute Manage Report
Identify Stakeholder
Stakeholders Communications Information Performance
Expectations
Plan Communications
Inputs Tools & Techniques
Stakeholder
Register Communications
requirement analysis
Stakeholder Communications
Management Communications technology Outputs
Management
Strategy Plan
Communications models
Enterprise
Environmental Communications methods Project
Factors Document
Updates
Organizational
Process Assets
Plan Distribute Manage Report
Identify Stakeholder
Stakeholders Communications Information Performance
Expectations
Com Requirement Analysis
• Who needs to know and how much?
• Communicate good and bad, but not too
much to affect the team
• Communication channels grows
exponentially not linearly as team members
are added!
# of Com Channels = N(N-1)/2
Where N = # of Stakeholders
Communications Mgmt Plan
• Who, what, when, and how information is to be
distributed
Information
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Type
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D
Charter Revision
Project Plan Revision
Launch Plan Revision
Product Specifications Revision
Schedule Monthly
Weekly Updates Weekly
Project Minutes Weekly
Project emails As-Appropriate
Project Memos As-Appropriate
Vendor Info As-Appropriate
Progress Update Quarterly
Contractor Info
Distribute Information
Tools & Techniques
Communications methods Outputs Organizational
Project Process Assets
Inputs Information distribution tools
Management Plan Updates
Performance
Reports
Organizational
Process Assets
Plan Distribute Manage Report
Identify Stakeholder
Stakeholders Communications Information Performance
Expectations
Distribution Techniques - Written
• PM Sort and Distribute
– Small projects only, issues with timely delivery of info
• Document Control Sort & Distribute
– Mid sized projects, issues with retention of staff
qualified to sort info
• Document Control Notification
– Daily list of all docs received emailed to team, who
are directed to central location for document review
Distribution Techniques - Verbal
• Where do team members get their information?
– 7% from words
– 38% from tone
– 55% non-verbal signals
• Your presentation style is extremely important
Manage Stakeholder Expectations
Stakeholder Register Tools & Techniques
Organizational
Stakeholder
Communications methods Process Assets
Management Strategy
Inputs Outputs Updates
Interpersonal skills
Project Management
Change Requests
Plan Management skills
Project
Issue Log
Management Plan
Change Log Updates
Organizational Project Document
Process Assets Updates
Plan Distribute Manage Report
Identify Stakeholder
Stakeholders Communications Information Performance
Expectations
Why Manage Stakeholders?
• We Retain
– 10% from reading
– 20% hearing
– 30% read and hear
– 50% that we discuss
– 80% of experiences
– 90% that we teach
Agreements without documentation will come
back to haunt you!
Report Performance
Tools & Techniques
Outputs
Variance analysis
Performance
Forecasting methods reports
Project Management
Plan Communications methods
Inputs Organizational
Work Performance Reporting systems
Process Assets
Information
Work Performance Change
Measures Requests
Budget Forecasts
Organizational
Process Maps
Plan Distribute Manage Report
Identify Stakeholder
Stakeholders Communications Information Performance
Expectations
Performance Reports
• Common Types
– Gantt Charts
– S-Curves
– Histograms
– EVA Tables
12. Project Risk Management
Risk Management
• The process involved with identifying,
analyzing, and responding to risk. It
includes maximizing the results of
positive risks and minimizing the
consequences of negative events
Why Do We Manage Risk?
• Project problems can be reduced as much
as 90% by using risk analysis
• Positives:
– More info available during planning
– Improved probability of success
Key Terms
• Risk Tolerance – The amount of
acceptable risk
• Risk Adverse – Someone that does not
want to take risks
• Risk Factors
– Probability of occurrence
– Range of possible outcomes
– Expected timing of event
– Anticipated frequency of risk events from that
source
How Do We Manage Risk?
• Use the six risk management processes
– Plan Risk Management
– Identify Risks
– Perform Qualitative Risk Analysis
– Perform Quantitative Risk Analysis
– Plan Risk Responses
– Monitor and Control Risks
Plan Risk Identify Perform Perform Plan Risk Monitor
Management Risks Qualitative Quantitativ Responses and
Risk e Risk Control
Analysis Analysis Risks
Plan Risk Management
Tools & Techniques
Project Scope Planning Meetings and
Statement Inputs Analysis
Cost Management Outputs Risk
Plan Management
Schedule Plan
Management Plan
Enterprise
Environmental Factors
Organizational
Process Assets
Plan Risk Identify Perform Perform Plan Risk Monitor and
Management Risks Qualitative Quantitative Responses Control Risks
Risk Analysis Risk Analysis
What is a Risk Management Plan?
• Methodology – Approach, tools, & data
• Roles & Responsibilities
• Budgeting – Resources to be put into risk
management
• Timing – When and how often
• Risk Categories – Risk Breakdown
Structure (RBS)
• Definitions – Risk probabilities and impact
What is a Risk Mgmt Plan (Cont’d)?
• Probability and Impact Matrix
• Stakeholder tolerances
• Reporting formats
• Tracking
Risk Breakdown Structure
• Lists categories and subcategories where
risks may arise
Identify Risks
Risk Management Plan
Activity Cost Estimates
Activity Duration Tools & Techniques
Estimates Documentation Reviews
Inputs
Scope Baseline Information Gathering
Techniques Outputs
Stakeholder Register
Checklist Analysis Risk Register
Cost Management Plan
Assumption Analysis
Schedule Management
Plan Diagramming Techniques
Quality Management Plan SWOT Analysis
Project Documents Expert Judgment
Enterprise Environmental
Factors
Organizational Process
Assets
Plan Risk Identify Perform Perform Plan Risk Monitor and
Management Risks Qualitative Quantitative Responses Control Risks
Risk Analysis Risk Analysis
Information Gathering Techniques
• Brainstorming
• Delphi technique
– Successive anonymous questionnaires on
project risks with responses summarized for
further analysis
• Interviewing
• Root cause identification
• Strengths, weaknesses, opportunities, and
threats (SWOT) analysis
Diagramming Techniques
• Cause and Effect Diagrams
– Also known as Ishikawa or fishbone
Testing Inadequate Project
Time Prioritization
Product
Delivered
Late
Personnel Materials Insufficient Bad Specs
Resources
Potential Causes Effect
Risk Register
• List of
– Identified risks
– Potential responses
– Root causes
• Updated risk categories (if required)
Perform Qualitative Risk Analysis
Inputs Tools & Techniques
Risk probability and impact
Risk Register
statement
Risk Management Outputs
Probability and impact matrix
Plan
Risk data quality Risk Register
Project Scope Updates
Statement assessment
Risk categorization
Organizational
Process Assets Risk urgency assessment
Expert Judgement
Plan Risk Identify Perform Perform Plan Risk Monitor and
Management Risks Qualitative Quantitative Responses Control Risks
Risk Analysis Risk Analysis
Methodologies
• Probability and Impact Matrix
– Based on Failure Modes and Effects
Analysis (FMEA)
– From 1950’s analysis of military
systems
Probability and Impact Matrix
• Define Probability Scale & Impact Scale
Impact Scale Probability Scale
Consequence Health and Safety Likelihood of Occurrence
Likelihood Class (events/year)
Fatality or multiple fatalities
Extreme expected <0.01% chance of
Not Likely (NL) occurrence
Severe injury or disability likely; or
High some potential for fatality 0.01 - 0.1% chance of
Low (L) occurrence
Lost time or injury likely; or some
potential for serious injuries; or 0.1 - 1% chance of
Moderate small risk of fatality Moderate (M) occurrence
First aid required; or small risk of 1 - 10% chance of
Low serious injury High (H) occurrence
Negligible No concern Expected (E) >10% chance of occurrence
Example
Defined conditions for impact scales of a risk on major project
objectives (Examples for negative impacts only)
Example
Detection difficulty is a measure of how easy it would be to detect
that the event was going to occur in time to take mitigating
action( how much warning would we have?) the detection scale
would range from 5= no warning to 1= lots of time to react
Risk severity matrix
5
Red zone
The risk severity matrix provides a basis for prioritizing which
User Interface
risks to address. Redbacklash
zone risks receive first priority followed
problems
4 Yellow zone
Likelihood
by yellow zone risks. Green zone risks are typically
considered inconsequential and ignored unless their status
Green zone
3
changes.
System
2 freezing
A risk with an impact in the “1” zone with a very low probability
Hardware
and1 an easy detection score might score a 1 (1X1X1=1).
malfuncti
Conversely, a high-impact risk with a high oningprobability and
impossible
1 to detect
2 would
3 score 125 4 (5X5X5=125).
5 This
Impact scores
broad range of numerical allows
Failure mode for
and easy
effectsstratification
analysis (FMEA)
Impact × Probability × Detection = Risk Value
of risk according to overall significance
Risk Register Update
• Add
– Probability and Impact Matrix results
– Perform quality check on results
– Categorize the risks to make them easier
to handle
– Perform urgency assessment to determine
which risk need immediate attention
Perform Quantitative Risk Analysis
Inputs Tools & Techniques
Data gathering and
Risk Register representation techniques
Risk Management Quantitative risk analysis Outputs
Plan and modeling Risk Register
Expert Judgment Updates
Cost Management
Plan
Schedule
Management Plan
Organizational
Process Assets
Plan Risk Identify Perform Perform Plan Risk Monitor and
Management Risks Qualitative Quantitative Responses Control Risks
Risk Analysis Risk Analysis
Quantitative Risk Analysis
• Analyze numerically the probability and
consequence of each risk
• Decision Tree analysis
– Diagram that describes a decision and
probabilities associated with the choices
• Expected Monetary Value Analysis (EMV)
Expected Monetary Value (EMV)
Building
Cost Probability
Optimistic Outcome $150K 0.2 $30K
Likely Outcome $225K 0.5 $113K
Pessimistic $300K 0.3 $100K
Outcome
Expected Value $243K
Decision Tree Analysis
Decision Decision Chance Net Path
Definition Node Node Value
Strong
65%
Demand
$200 $80
EMV of New Bldg
New Node = $41.5!
Plant 35%
Weak
-$120 Demand -$30
$90
Build or
Upgrade
Plant 65%
Strong
Upgrade
Demand $70
Plant $120
-$50 EMV of Upgrade
Node = $49!
Weak
35%
Demand $10
$60
Plan Risk Responses
Inputs Tools & Techniques
Strategies for negative risks
or threats
Strategies for positive risks Outputs
Risk Register Risk Register
or opportunities
Updates
Risk Management Contingent response
Plan strategy Risk-related
Contract
Expert Judgment Decisions
Project Management
Plan Updates
Plan Risk Identify Perform Perform Plan Risk Monitor and
Management Risks Qualitative Quantitative Responses Control Risks
Risk Analysis Risk Analysis
Strategies
• Negative Risks (or Threats)
– Avoid
– Transfer
– Mitigate
– Acceptance
• Positive Risks (or Opportunities)
– Exploit
– Share
– Enhance
– Acceptance
Monitor and Control Risks
Tools & Techniques Outputs
Risk reassessment Risk Register
Updates
Risk audits
Organizational
Variance and trend analysis
Risk Register Process Assets
Inputs Technical performance
Project Management Change Requests
measurement
Plan
Reserve analysis
Work Performance Project Management
Information Status meetings Plan Updates
Performance Reports
Project Document
Updates
Plan Risk Identify Perform Perform Plan Risk Monitor and
Management Risks Qualitative Quantitative Responses Control Risks
Risk Analysis Risk Analysis
13. Project Procurement
Management
Project Procurement Management
• The processes to purchase or acquire
the products, services, or results
needed from outside the project team to
perform the work
Why Procurement Management?
• All projects will need to acquire some
resources from outside
• Not understanding the different ways to
contract could result in unnecessary risk for
the project
How Do We Manage Procurement?
• Four processes
– Plan Procurements
– Conduct Procurements
– Administer Procurements
– Close Procurements
Plan Conduct Administer Close
Procurements Procurements Procurements Procurements
Plan Procurements
Scope Baseline
Requirements Tools & Techniques
Documentation Procurement
Make or Buy Analysis Management Plan
Teaming Agreements
Expert Judgment
Risk Register
Contract Types Procurement
Risk-Related Contract Inputs
Outputs Statements of Work
Decisions
Activity Resource Make or Buy
Requirements Decisions
Project Schedule Procurement
Documents
Activity Cost Estimates
Source Selection
Cost Performance
Criteria
Baseline
Change Requests
Enterprise Environmental
Factors
Organizational Process
Assets
Plan Conduct Administer Close
Procurements Procurements Procurements Procurements
Contract Types
• Fixed Price (Lump Sum) Contracts
• Cost-Reimbursable Contracts
– Cost Plus Fee (CPF)
• Cost Plus Percentage of Cost (CPPC)
– Cost Plus Fixed Fee (CPFF)
– Cost Plus Incentive Fee (CPIF)
• Time and Material (T&M) Contracts
Conduct Procurements
Tools & Techniques
Project Bidder Conference
Management Plan Outputs
Inputs Proposal Evaluation Selected Seller
Procurement Techniques
Documents Procurement
Independent Estimates Contract Award
Source Selection
Criteria Expert Judgment Resource Calendars
Qualified Sellers List Advertising Change Requests
Seller Proposals Internet Search Project Management
Project Documents Procurement Negotiations Plan Updates
Make-or-Buy Decisions Project Document
Updates
Teaming Agreements
Organizational Process
Assets
Plan Conduct Administer Close
Procurements Procurements Procurements Procurements
Types of Scopes of Work
• Performance
– What the project wants, how accomplished
and project needs defined by seller
• Functional or Detailed
– Defines what end product should be as
well as minimum requirements
• Design
– Defines exactly what is required and how
to accomplish it
Procurement Documents
• Request for Proposal (RFP)
– Asks for the price and how/who will do the
work
• Invitation for Bid (IFB)
– One simple price to do the work
• Request for Quotation (RFQ)
– Price per unit quote
Negotiating Tactics
• Attacks – Argue a point
• Personal Insults –
Attack other sides
negotiator
• Good Guy/Bad Guy
• Deadline – The offer
stands until…
• Lying
• Limited Authority – I
need to check with____
These are all tactics, but not necessarily good tactics!
Administer Procurements
Tools & Techniques
Procurement Contract change control
Documents system
Project Procurement performance Procurement
Management Plan review Documentation
Contract Inputs Outputs Organizational
Inspections and audits
Process Assets
Performance Performance reporting Updates
Reports
Payment systems Change Requests
Approved Change
Requests Claims administration Project Management
Records management Plan Updates
Work Performance
Information system
Plan Conduct Administer Close
Procurements Procurements Procurements Procurements
Contract Closure
Inputs Tools & Techniques Outputs
Project Procurement audits Closed
Management Plan Procurements
Negotiated Settlements
Organizational
Procurement Records management Process Assets
Documentation system Updates
Plan Conduct Administer Close
Procurements Procurements Procurements Procurements
Procurement Terms
• Arbitration – Third party dispute resolution
• Breach/Default – When a contract provision is
not met
• Indemnification – Who is liable
• Liquidated Damages – Estimated damages for
specific types of defaults as defined in the
contract
• Material Breach – A violation of the contract of
sufficient magnitude that the contract cannot be
completed
Procurement Terms
• Termination – Stopping the work before it is
completed
• Waiver – Statements in the contract that indicate that
rights cannot be ignored or modified without written
agreement between the two parties
• Time is of the essence – Seller is placed on notice
that delivery agreements are strictly binding
• Work for Hire – At the end of the contract the work
product generated will be owned by the buyer
