PMGT 5871 Project Process

Planning and Control

Week 8 –
Planning HR &
Governance

Kestrel Stone

The University of Sydney Page 1

 Lecture Topics

1. PM in today’s workplace 8. Planning HR & Governance

2. PM Bodies, Methodologies, 9. Planning Risk & Procurement

Standards & Simulation Preview
10. Soft Skills for Project Managers
3. Business Case, Initiating Projects &
Developing the Project Charter 11. Implementation Phase
4. Scoping Projects, Stakeholders & 12. Earned Value Management
Planning Communication
13. Closure & Simulation – Part 1
5. [BREAK] (Initiation & Planning)
6. Scheduling 14. Simulation – Part 2
(Implementation Phase)
7. Planning Cost & Quality

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Organisation structures
 Organisation structures

– The structure of the organisation affects project team

composition and the choices that the project manager
has regarding:
Leadership = managing down
• Who is in the governance structure Governance = managing up

• Who is on the team

• How those people should be managed

– Three organisation structures:

• Functional

• Projectised

• Matrix

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© Elemental Projects 2016
 Organisation structures

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© Elemental Projects 2016
 The role of the Project Management Office (PMO)

– Facilitate project execution

– Metrics, reporting, risks and issues, quality
– Enhance capability
– Policies, guidelines, standards, coaching,
knowledge management, lessons learnt
– Support achievement of project objectives
– Schedules, budgets, communication, business
case and benefits, procurement

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 3 types of PMO

Supportive Facilitative Directive Assume

Provide
Provide expert responsibility
specific
advice, assist for specific
services to
in project project
assist in project
communication management
execution
activities

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 Project Governance

– “…the processes by which organisations are directed, controlled and held to

account. It encompasses authority, accountability, stewardship, leadership
direction and control exercised in the organisation”
Australian National Audit Office (ANAO), 2003

– “The processes whereby decisions important to the future of an organisation

are taken, communicated, monitored and assessed”
- Prof Stephen Bartos, Aust. National Institute for Governance, 2005

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 Project Governance

– Project Governance extends the principle of Governance into the

management of individual projects.
– A Project Governance Structure is different to an Organisation Structure
in that it defines accountabilities and responsibilities for strategic
decision-making for each project.
– Necessary because the project is a temporary organisation and
therefore often does not reflect the reporting relationships that exist in
the organisation's usual operational environment (BAU)
– Gives authority to project management processes such as change control
and enables strategic (project) decision-making

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 Definitions of goverance
PMBoK Guide, 5th Edition
- Project Management Institute
(USA)
• A framework in which the
project manager and
sponsors can make
decisions that satisfy both
stakeholder needs and
expectations and
organizational strategic
objectives or address
circumstances where these
may not be in alignment
The University of Sydney
Managing Successful
Programmes
- Office of Government
Commerce (UK)
• The control framework
through which [projects]
deliver their … objectives
and remain within corporate
visibility and control
Directing Change: A guide to
governance of project
management
- Association for Project
Managers (UK)
• Ensures that an
organisation’s project
portfolio is aligned to the
organisation’s objectives, is
delivered efficiently and is
sustainable
• Also supports the means by
which the board, and other
major project stakeholders,
are provided with timely,
relevant and reliable
information.
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 Purpose of project governance

– Ensures projects align with business goals / objectives

– Ensures stakeholders are involved and represented
– Provides a framework for monitoring project performance
– Provides a decision-making framework to control project management activities in relation to
required organisational standards, such as:
– Deciding whether projects should continue or not
– Project management standards
– Financial standards and processes
– Contract and vendor management
– Audits and reviews
– Risk management
– Reporting standards
– Multilevel change management approaches
o Project & Program scope, plus
o Organisational change

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 Elements of project governance

Structure Composition Process Information

• Organisational • The people who • The activities, • The information
entities responsible make up each of inputs and enabling effective
for providing project the governing outcomes that project governance
governance entities comprise project
• Communication governance
channels between
those entities
• Other entities
supporting the
governance process
(e.g. the Project
Management
Office)

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Planning HR
 Planning HR

– Human Resource Management involves organising, managing and leading

the people on the project team
– I.e. everyone who contributes to the project work
– This includes:
– Internal staff/employees
– Contract staff, suppliers, volunteers, etc.

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© Elemental Projects 2016
 The HR Management Plan

– Documents how internal staff will be selected, seconded, on-boarded,

allocated work, managed, performance reviewed, rewarded & off-
boarded
– Supported by HR sub-plans such as:
– Skills Domain Matrix
– Make/Team/Buy Plan
– Organisation Breakdown Structure (OBS)
– Roles & Responsibilities Table
– Responsibility Assignment Matrix (RAM)
– Gantt of Resources

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© Elemental Projects 2016
 Organisation Breakdown Structure (OBS)
– Hierarchy chart documenting the project’s governance structure
– Illustrates the reporting relationships and lines of authority:
– Within the project team
– May include the governance structure (above the project team)
– May also include projects in the broader organisation (around the project team)

Project OBS Program OBS

Steering
Committee
PMO

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© Elemental Projects 2016
ACTIVITY

• Develop the OBS for the case study

 Skills Domain Matrix

– A tool for determining how many resources are required, and with what skill
sets
– Helps to inform resourcing decisions such as “make” vs “buy”

WBS Engineering Testing Marketing Legal Learning &

development
Plan 2w
Design 8w 5w 2w
Prototype 12w
Test 2w 4w
Rollout 15w 2w
Train 4w
Close 1w
TOTAL TIME 22 weeks 4 weeks 20 weeks 7 weeks 4 weeks

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© Elemental Projects 2016
 Make/Team/Buy Plan
– For each item on the WBS, the project team will either:
– Develop the products/services in-house using employees (make)
– Partner with another organisation to share the cost of development and the proceeds (team)
– Outsource/procure the required products/services (buy)
– The decision to make, team or buy determines what type of work is involved in producing
a given item of scope (i.e. technical work and/or procurement work

Make: unpack this WBS Buy: these items contain

item to define the technical procurement activities around
activities involved in finding and selecting a
developing the supplier, establishing a
products/services contract, monitoring contractor
performance, etc.

Team: involves partnering/teaming. These items contain some

technical work and some procurement activities (Joint Venture/
The University of Sydney Partnership/ Alliance Contracts, Memorandums of Understanding Page 19
(MOUs), etc.) © Elemental Projects 2016
 Roles & Responsibilities Table

– Table documenting the names of the people assigned to roles within the
project
– Role description
– Responsibilities within the project
– Who they report to on the project
– Level of authority/financial delegation

Financial
Name Project Role Responsibilities Reports to Authority delegation

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© Elemental Projects 2016
 Responsibility Assignment Matrix (RAM)

– Intersection of WBS and OBS

– Defines who in the OBS is responsible for each item on the WBS
– May also define who else is involved with each activity
– A RACI Chart is a form of RAM and defines:
– Who is responsible (R)
– Who provides approval/sign-off (A) WBS Responsible
– Who will be contributing to the work (C) Define Ben
– Who needs to be kept informed (I) Design Carlos
Develop Carlos

Basic RAM Test Dina

RACI Chart WBS Ann Ben Carlos Dina Ed

Define A R I I I
Design I A R C C
Develop I A R C C
The University of Sydney Test A I I R PageI 21
© Elemental Projects 2016
 Resource Levelling

– Prevents over-allocating
work to team members
– Ensures that all team
members are being fully
utilised (no idle hours)
– Levels out peaks and
troughs in workload

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© Elemental Projects 2016
 Gantt of Resources

– Shows availability of resources

– Can flag over-allocations to support resource-levelling

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Screenshot from Zoho (www.zoho.com) © Elemental Projects 2016
ACTIVITY

• In teams, develop the:

1. Roles & Responsibilities Table

2. RACI chart
Questions

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