Oromia State

C1 - University
1
School of Post Graduate Studies
Department of Leadership and Change
Management

CHAPTER TWO
Dynamic Project Management
Landscape

Tesfaye Eba, PhD

 Principles of Project Management
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 Doing PM Right is an Investment in Making the
“Real Work” Matter
 People Problems Can’t Be Solved with Software
 If it Doesn’t Add Value, it Won’t Get Done
 The Best Tool is the One that Works and Gets Used
 The Best Way to Communicate is the Way That Gets
You Heard
 Choosing the Right Tools and Processes is the PM’s
Most Important Job

Tesfaye Eba, PhD

 Project Management Approaches
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Two common approaches to project management

Traditional Project Management
Agile Project Management

Tesfaye Eba, PhD

 When the 5 processes occur one after the other
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Tesfaye Eba, PhD

 Agile Project Management
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After the project is INITIATED, the Planning

- Executing – Monitoring & Controlling and
Closing are repeated several times.
After multiple iterations there is a final
closing.

Tesfaye Eba, PhD

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Tesfaye Eba, PhD

 Features of this approach
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During initiating and planning you still set an overall goal

You also plan what you are trying to achieve with each
iteration, and develop a detailed plan for that iteration.
The executing process can be easier as it will be made up of
smaller / more focused groups (specific skills)
You monitor and control the project more closely and
communicate faster and more frequently
Each iteration has a closing process that accepts it’s specific
deliverables

Tesfaye Eba, PhD

 Quality Management
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The project result must fulfil a number of quality

requirements.
When managing a project, it is particularly
important for quality requirements to be
determined, agreed upon and recorded in writing

Tesfaye Eba, PhD

 Quality Management…
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Quality in project plans:
 Establish the desired quality of the project result and
the intermediate products.
 Establish the desired quality of the carrying out of
the various activities in the project.
Quality in progress monitoring:
 Test the (intermediate) results.
 Address any quality problems.
Quality in the project reporting:
 Confirm that the desired quality has been attained.
 Address any complaints (particularly in the follow-up phase).

Tesfaye Eba, PhD

 Risk Management
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For each identified risk, evaluate the probability

of occurrence
For each identified risk evaluate the impact if
the risk should occur
Prioritise your risk handling effort based on
both (1) probability and (2)impact

Tesfaye Eba, PhD

 Assigning Probabilities
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What is the likelihood that something will go
wrong?
Establish a scale that reflects the perceived
likelihood of a risk
– Probability scales are commonly used
– Can be qualitative or quantitative
e.g. highly improbable, improbably,
moderate, likely, highly likely
0-100% probability

Tesfaye Eba, PhD

Scale of Probability
 Assessing Impact
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What is the damage or impact if something does

go wrong?
Three factors can be used to assess impact
– Nature of the risk (i.e. the problems that are
likely if it occurs)
– Scope of the risk (i.e. how serious is the risk
and how much of the project will be affected?)
– Timing of the risk (i.e. when and for how long
will the impact be felt)

Tesfaye Eba, PhD

Evaluation of Impact
Risk matrix
 Risk Management Strategies
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After identifying and quantifying risk, you must decide
how to respond to them
Four main strategies:
Risk avoidance: eliminating a specific threat or risk, usually
by eliminating its causes. EX: Use a different vendor/service
provider….. If the cause of the situation (Vendor not meeting
deadline).
Risk acceptance: The risk might be so small the effort to do
anything is not worth while.
Risk transference: shifting the consequence of a risk and
responsibility for its management to a third party. Ex. Insurance
Risk mitigation:
Reducing the likelihood an adverse event will occur.
Reducing impact of adverse event.
Tesfaye Eba, PhD
 Risk Monitoring
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Should be done periodically
– (e.g., when certain milestones are reached,
at the end of project phases, at steering
committee meetings, etc.)
Useful to regularly assess and update project
risk exposure
Senior management should be involved in
monitoring and should be aware of
exposures
Listen to the project group

Tesfaye Eba, PhD

 Procurement Management
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The process of establishing a relation between the owner

and the contractors to execute the project work
The following are the usual steps in contracting:
1. Work packaging and scheduling
2. Preparation of Tender Documents
3. Determination of Contractor's Qualifications
4. Tender Invitation
5. Tender submission
6. Tender Opening
7. Evaluation and recommendation
8. Award of contract
9. Signing of Agreement with detailed contract conditions.
Tesfaye Eba, PhD
 Procurement Management
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 Procurement Planning: determining what, when, and how much to
procure
 Solicitation planning: documenting product requirements and
identifying potential sources
 Solicitation: obtaining quotations, bids, offers, or proposals as
appropriate
 Source selection: choosing from among potential vendors
 Contract administration: managing the relationship with the
vendor
 Contract close-out: completion and settlement of the contract
 Make-or-buy analysis: determining whether a particular product or
service should be made or performed inside the organization or
purchased from someone else.
 Often involves financial analysis

Tesfaye Eba, PhD

 Types of Contracts
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Unit price contracts

Time and material contracts
Cost reimbursable
Fixed price or lump sum

Tesfaye Eba, PhD

 Solicitation Planning
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 Solicitation planning involves preparing several documents:
Request for Proposals: used to solicit proposals from prospective
sellers where there are several ways to meet the sellers’ needs
Requests for Quotes: used to solicit quotes for well-defined
procurements
Invitations for bid or negotiation and initial contractor responses
are also part of solicitation planning
Request For Qualification: used to get a set of interested vendors
 Solicitation involves obtaining proposals or bids from
prospective sellers
 Organizations can advertise to procure goods and services in
several ways
Approaching the preferred vendor
Approaching several potential vendors
Advertising to anyone interested
 A bidders’ conference can help clarify the buyer’s expectations

Tesfaye Eba, PhD

 Source selection
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Source selection involves

Evaluating bidders’ proposals
Choosing the best one
Negotiating the contract
Awarding the contract
It is helpful to prepare formal evaluation
procedures for selecting vendors
Buyers often create a “short list”

Tesfaye Eba, PhD

 Contract administration
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Contract administration ensures that the

seller’s performance meets contractual
requirements
Contracts are legal relationships, so it is
important that legal and contracting
professionals be involved in writing and
administering contracts
Many project managers ignore contractual
issues, which can result in serious problems

Tesfaye Eba, PhD

 Contract close-out
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Contract close-out includes

Product verification to determine if all work was
completed correctly and satisfactorily
Administrative activities to update records to reflect
final results
Archiving information for future use
Procurement audits identify lessons learned
in the procurement process

Tesfaye Eba, PhD

 Project Management Institute
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Project Management Institute (PMI®)

Not-for-profit professional association
Over 80,000 members worldwide
Established 1969
Global Organization Headquartered in:
 Newtown Square, Pennsylvania USA

Tesfaye Eba, PhD

 PMP Certification Requirements
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Four main requirements for earning PMP

certification
 Having experience working in the field of project
management. You need 4,500 hours with a
baccalaureate degree and 7,500 without a degree
 Signing a PMP Certificate and Candidate
Agreement and Release form
 Completing the PMP Certification Exam
Application and paying a fee of $555 for non-PMI
members and $405 for members
 Passing the PMP exam

Tesfaye Eba, PhD

 ! !
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Tesfaye Eba, PhD

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