PROPS Manual for Project Managers for Project... · PROPS Manual for Project Managers 3 Introduction This guide describes the project flow in PROPS from the project manager’s viewpoint

1PROPS Manual for Project Managers

PROPS Manual for Project Managers

CONTENTS

INTRODUCTION .................................................................................................... 3

PROJECT MANAGEMENT MODEL ............................................................................. 7

PRESTUDY PHASE ............................................................................................... 11

PHASE START-UP AND TEAMBUILDING................................................................. 17

COACHING, INTEGRATION AND CONTROL ............................................................. 23

PROJECT ANALYSIS ............................................................................................. 29

FEASIBILITY STUDY PHASE .................................................................................. 37

PHASE START-UP AND TEAMBUILDING................................................................. 43


PROJECT SPECIFICATION AND PLANNING .............................................................. 55

PROJECT RESOURCE PROCUREMENT ...................................................................... 69

2 Contents

EXECUTION PHASE .............................................................................................. 75

PHASE START-UP AND TEAMBUILDING ................................................................. 81


PROJECT VERIFICATION ....................................................................................... 97

HAND-OVER OF PROJECT OUTCOME................................................................... 103

CONCLUSION PHASE .......................................................................................... 107

PROJECT TERMINATION ..................................................................................... 113

HAND-OVER OF EXPERIENCE .............................................................................. 119

PROJECT CLOSURE ............................................................................................. 123


Introduction

This guide describes theproject flow in PROPS fromthe project manager’sviewpoint. It is intended toserve as a guideline for projectmanagers in their work.

A graphical overview of thephases, activities anddocuments in a project isshown in the general projectmodel PROPS, depicted as aU in three different colors:red, blue and yellow. The bluepart of the U symbolizes theproject management modeldescribed in this guide.

In the blue part of thegeneral PROPS model, the project manager’s activities areindicated by light blue rectangles, all with a specific name. Allthese activities are described in the guide.

One activity – Project Termination – in the conclusion phase isgrey, indicating that it should not be performed in allprojects, but only when the project is terminated before it hasbeen fully completed, that is, without having reached its goal.

The reports and steering documents connected to the projectmanager are indicated by the document symbols. Thesedocuments are described in PROPS Document Guide.

4 Introduction

The green hexagon symbolizes the project outcome. The expected projectoutcome should be defined for all projects. This can be a product or aservice, implementation of a customer order or an organizationalchange, or a change aiming to improve the performance in theorganization. During the course of the project, the project outcomeshould be analyzed, defined, implemented andhanded over to the customer and to a receiving unitwithin the organization.

In order to emphasize the importance of a properhand-over, the project outcome in the model exitsfrom the U in two directions – to the customer(left) and to the receiving unit (right).

The execution of a project also leads to otherresults, such as competence development and experiences,observations and suggestions for improvements. Theseexperiences should be transferred to the organization to bemade use of in future operations. To indicate this, the hand-over of experiences is also shown in the project model.

How to Use This Guide

In this guide, all activities in the project management model aredescribed. There is a checklist for each activity. The checklists shouldnot be used as a prescriptive set of instructions, but as a support forthe project manager and as a source of inspiration. Only activitiesconsidered relevant for the specific project should be performed.

The items in the checklists are not sequential in time. Some should beperformed in parallel, and some should be repeated several times. Thechecklists give suggestions on WHAT to do. They give few, if any,suggestions on methods and tools for HOW to perform the differentactivities. The methods and tools to be used must be decided for eachproject.

All activities in the manual are part of the project managementprocess. This process can be divided into nine different parallelsubprocesses. In the activity checklists, headings with blue frames areinserted, referring to these subprocesses. More information about theproject management processes can be found in the guide

Project Management Knowledge Areas.


The PROPS guides provide descriptions of different key elements inproject management in a multiproject organization from fourdifferent perspectives: the business perspective, the humanperspective, the project organizational perspective and the singleproject flow perspective. More information about the perspectives canbe found in the guide

Introduction to PROPS.

Other PROPS Guides describing the Single Project Flow

The PROPS Manual for Project Managers is part of the single projectflow in PROPS. Other guides describing the single project flow inPROPS are:

PROPS Document Guide, describing the documents included in thegeneral project model.

PROPS Manual for Project Sponsors, describing the project steeringmodel – the red-framed part of the general project model.

PROPS Applied, describing the project work model – the yellowpart of the general project model – as well as examples of differentapplications for different project types.

6 Introduction


Definition

The project management model is adescription of all project managementactivities and documents in all the phases ofa project. The blue part of the general projectmodel PROPS represents the projectmanagement model.

Purpose

The purpose of the project managementmodel is to ensure a business-focused andefficient project management, resulting inhigh-quality project performance andshortened project lead-time.

Project Management Model

8 Project Management Model

The general project management modelprovides a shared view on projectmanagement and a commonterminology. This ensures well-functioning communication within theproject organization, as well as betweenthe project and the organization inwhich it operates. People with differentproject roles can more easily betransferred from one project to another,without loosing tempo adapting to anew terminology and a new projectculture.

Project managers can use theircompetence and skills for leading andinspiring the project team, instead ofspending time on establishing projectmanagement routines.

The project management model includes nine projectmanagement processes:

Project Management Knowledge Areas

In PROPS, the blue part of the U symbolizes the projectmanagement model and describes the project managementactivities in the project. It is divided into four largelyconsecutive phases, each of which has its own nature andcharacteristics:• Prestudy Phase• Feasibility Study Phase• Execution Phase• Conclusion Phase


A common model for projectmanagement promotes and encourages abusiness-focused behavior in all projectsand in all phases of the individual project.It facilitates negotiations and businessdecisions, and inspires customers andsubcontractors with confidence.

By using the same templates for projectmanagement documents in all projects,project follow-up and monitoring withinan organization will become moreefficient.

Project Management Function

The project manager is responsible for the activities in theproject management model.

The project management model describes all projectmanagement activities during the entire lifetime of theproject, from the initiation of the prestudy phase to projectclosure.• Prestudy Phase

• Feasibility study phase

• Execution phase

• Conclusion phase

Project Organization and Roles

10 Project Management Model


Definition

The prestudy phase is the preparatory phasein the project model, before the project isformally started. During the prestudy phase,the business opportunity for the expectedoutcome of the potential project is assessed.All the relevant commercial, technical andorganizational aspects are considered andaddressed.

Purpose

The purpose of the prestudy phase is toensure that a business idea is technically andcommercially feasible, that it will fulfill theexpressed and unexpressed requirements andneeds of the customer, and will be alignedwith the organization’s business direction.

Prestudy Phase

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E To establish, in a formal and structuredway, the viability of a businessopportunity during a prestudy, willcreate a foundation of managementconfidence and commitment uponwhich the project will rest.

Allowing ideas for businessopportunities to be tested and analyzedin prestudies promotes an environmentthat fosters creativity. This allows theorganization to acknowledgeentrepreneurs and support businessopportunities, and proves thatmanagement is open and believes in thefuture.

Preconditions

The precondition for starting the prestudy phase is anAssignment Specification for a prestudy.

Prestudy Phase Organization

A team consisting of experts performs the prestudy work.

If the prestudy is performed as a part of the organization’sregular operations, the three functions of the projectorganization – the project steering function, the projectmanagement function and the project executing function –are perhaps not fully developed.

Complex prestudies that require comprehensive work can berun as projects on their own.

Analysis of a Business Idea

In the prestudy phase, a business idea is assessed from atechnical and commercial perspective. Stakeholders shouldbe identified. Their expressed and unexpressed requirementsand expectations on the potential project and its expectedoutcome should be collected and analyzed. The resources andthe competence needed for the project should be identified.

In order to decide whether or not to make these resourcesavailable for the potential project, the project’s alignmentwith the organization’s business direction should beestablished.

The prestudy also includes the preparation of a budget and atime-schedule for the feasibility study phase, as a basis forthe decision to start the feasibility study. The prestudy workshould be documented and handed over to the projectsponsor as a basis for the tollgate 1 decision.

An Active Project Steering Function

Since a number of decisions may have to be made atmanagement level also between the tollgates, an active andpresent project steering function is required during theprestudy. This includes decisions during contract


A prestudy is an investigation of abusiness idea. The vital aspect is tounderstand the risks and opportunitiesrelated to it. In order to fully benefitfrom all ideas in an organization, a largenumber of prestudies should be started,out of which only a small number shouldand will result in a project.

A prestudy can be initiated to evaluate arequest for quotation from a customerand to assess its alignment with theorganization’s business direction, the costfor submitting a tender and the businessopportunity of a potential order.

All relevant commercial, technical andorganizational aspects of the potentialproject and its expected outcome shouldbe considered. This will ensure that thebusiness risk is fully understood by theproject sponsor.

negotiations with the customer and subcontractors, orstrategy decisions on whether or not to apply externalprovisioning or incremental development.

To Terminate a Prestudy

The project sponsor is responsible for making the tollgate 1decision. This responsibility includes the decision toterminate the prestudy if this turns out to be what bestserves the organization and the customer.

The decision to terminate a prestudy before or at tollgate 1is a decision to start project conclusion. This includesdeciding how to take care of the result from the prestudywork. Experiences and observations made should bedocumented and lessons learned transferred to theorganization in order for future prestudies to be able to fullybenefit from the experiences made.

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E Project Steering Function

The project sponsor (or the sponsor for the prestudy) isresponsible for:• making the tollgate 0 decision, if applicable,• ensuring that the Assignment Specification for the

prestudy is prepared, and ordering the prestudy work,• appointing a person to be responsible for the prestudy,• taking the financial responsibility for the prestudy,• making the tollgate 1 decision,

(If the project scope has changed because of what has comeout of the prestudy work, the tollgate 1 decision may bemade by a person different from the sponsor for the prestudyphase. This person will be the project sponsor.)• performing the other activities described for the prestudy

phase in the project steering model.


The person appointed responsible for the prestudy phasemanages and controls the prestudy work. This can be thefuture project manager, a person especially appointed for theassignment, or an expert in the organization with theauthority to perform such work.

The project manager (or the person responsible for theprestudy) is responsible for:• performing the activities in the prestudy phase of the

project management model.

Project Executing Function

All prestudy team members are responsible for:• taking an active part in the prestudy work.



Managers, in their roles as resource owners, are responsiblefor:• supporting their own personnel in the prestudy work,• contributing with their competence in

– assessing the coherence between the potential project’sneed for resources and the resources available in theorganization,

– analyzing the competence development needed in thepotential project,

– supporting the project manager when he or shesuggests a strategy for the potential project,

• taking an active part in estimating the workload for thepotential project.

Managers, in their roles as receivers, are responsible for:• formulating the receiving unit’s requirements on the

project and the project outcome, related to the futuremanagement of the project outcome,

• evaluating the implications of the expected projectoutcome for the receiving unit.

Prestudy Phase

During the prestudy phase, the following activities in theproject management model should be performed:• Phase Start-Up and Teambuilding

• Coaching, Integration and Control

• Project Analysis

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Definition

Phase Start-Up and Teambuilding is arecurrent activity in the project managementmodel during which the current phase of theproject is planned and resources are securedand committed to the project and itsoutcome.

Purpose

The purpose of the activity Phase Start-Upand Teambuilding is to create a solidfoundation for the current phase of theproject, and to create and maintainconfidence in and commitment to the projectand its outcome.

Phase Start-Up and Teambuilding

TG0

Prestudy Phase

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E Spending time on the activity PhaseStart-Up and Teambuilding will create agood working climate and give theproject manager a chance to build anefficient and motivated team. In order tomeet the needs of project members fromdifferent cultural and organizationalbackgrounds, teambuilding activitiesshould be adapted to the composition ofthe project organization, and comprise abalance between socializing and work-related activities.

Information meetings and teambuildingactivities will reduce the risk offrustration and duplication of workbecause of misunderstandings andignorance.

Involving project members in thebreakdown of objectives and detailedplanning of their own tasks will increaseconfidence in the project plans, andcreate teams aligned with the projectgoal.

Prestudy Phase

During the activity Phase Start-Up and Teambuilding in theprestudy phase, the projectmanager should perform therelevant tasks in the projectmanagement processes asdescribed in the checklistbelow:

Integration Management

• Analyze the preconditions for the prestudy phase in theAssignment Specification for the prestudy.

• Ensure that the prestudy objectives are communicated andunderstood.

• Ensure that the constraints for the prestudy work, such assecurity measures, policies and standards that must beadhered to, are communicated and understood by all.

• Ensure that experiences from previous prestudies andprojects are identified and made available for the prestudyteam members.

• Identify stakeholders and establish procedures forinvolving the different prestudy stakeholders in theprestudy work, such as prestudy meetings and meetingswith and reporting to the sponsor for the prestudy.

Customer Reporting

• If applicable, plan and establish customer contacts.


During the activity Phase Start-Up andTeambuilding, all teams entering theproject should be informed about thebusiness context in which the projecttakes place. Project members should begiven the opportunity to fully understandthe prerequisites for and constraints onthe project in order to be able to focus onwhat is most essential.

To ensure that project members obtain abusiness-oriented attitude to the work,everyone involved in the current phase ofthe project should participate in thedetailed planning and budgeting of theirown work.

Spending time on the activity Phase Start-Up and Teambuilding will mean less timespent on problems and conflict-solvinglater in the project. Expenses formisunderstandings and for duplication ofwork will be minimized.

Confirmation and Breakdown of Objectives

• Analyze the preconditions for the prestudy phase, and therequirements on the prestudy outcome.

• Involve the prestudy members when breaking down theprestudy objectives.

Quality System Establishment and Verification

• Establish and implement:– Security measures– Prestudy work model, methods, tools, etc.– Reviews of the prestudy outcome

Prestudy Planning

• Prepare detailed plans for the prestudy phase:– Break down the prestudy work and identify and

describe the work packages.– Find dependencies between the work packages and

sequence them.– Estimate the duration of each work package.

• Prepare a time-schedule for the prestudy and ensure thatit is within the time limits set in the AssignmentSpecification for the prestudy.

Prestudy Budget

• Establish, document and communicate procedures to befollowed in the accounting system.


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• Identify the resources needed in the prestudy phase(human resources, tools, equipment, material, etc.).

• Estimate the amount of work and the competence needed.• Prepare a budget for the prestudy and ensure that it is

within the cost limit set in the Assignment Specificationfor the prestudy.

Prestudy Organization Establishment and Teambuilding

• Establish the prestudy organization.• Gather the members of the prestudy team for start-up

meetings. Communicate the prestudy plans.• Make sure that all prestudy team members are involved in

the work and allowed to contribute, and that they fullyunderstand their tasks.

• Perform activities to create a good working climateencouraging excellence, trust and respect among all thoseinvolved in the prestudy.

Information Management

• Make sure that the information needed is available forprestudy members and other stakeholders.

• Establish guidelines for information distribution and fordifferent types of meetings.

Uncertainty Management

• Communicate the identified risks and opportunities.• Encourage all prestudy team members to anticipate and

identify risks and opportunities and to report them.

Project Steering Function

The project sponsor and the rest of theproject steering group are responsiblefor:

• supporting the project managerduring the activity Phase Start-Up andTeambuilding by actively showingtheir support and commitment.


The project manager is responsible forthe activity Phase Start-Up andTeambuilding.


The subproject manager is responsiblefor the activity Phase Start-Up andTeambuilding in his or her subproject.

The project members are responsible for:

• participating in teambuildingactivities,

• keeping themselves informed aboutsecurity regulations, reportingroutines, delivery dates, etc.



Internal Staff Acquisition

• Negotiate with the resource owners for the resourcesneeded in the prestudy phase. See to it that experts areengaged to cover all aspects of the potential project.

• Prepare and sign resource contracts for the prestudy phasewith the managers acting as resource owners.

External Staff Acquisition

• Follow the organization’s routines for procurement whenengaging subcontractors and consultants for the prestudywork.


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Definition

Coaching, Integration and Control is acontinuous activity in the projectmanagement model during which the projectmanager steers the project toward its goal bycoaching the project team and managing theinterfaces between stakeholders, whilekeeping full control over time, costs andresults.

Purpose

The purpose of the activity Coaching,Integration and Control is to ensure that theproject is managed in a formal andstructured manner that fulfills theorganization’s and the customer’s demands.

Coaching, Integration and Control

nment fication

Prestudy Phase

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E The project manager must possess goodleadership and human skills in order tobe able to encourage and coach theproject team in its efforts to reach theproject goal. Initiatives forimprovements should be encouraged,and good performance and competencedevelopment within the teamacknowledged.

The project organization should becontinuously adjusted in order to allowpeople to make use of their knowledgeand experiences in the best possible wayfor the project and the organization.

In a working climate in which all projectmembers are committed to their tasksand respect each other’s work, high-quality results will be deliveredwhenever and wherever needed, andhanded over in accordance with theagreements made.

For efficient and smooth cooperation andintegration, communication paths mustbe clear and understood. Informationmust be available simultaneously withinthe entire project organization, and itmust be reliable and kept up-to-date.

Prestudy Phase

During the activity Coaching,Integration and Control in theprestudy phase, the projectmanager should perform therelevant tasks in the projectmanagement processes asdescribed in the checklistbelow:


• Ensure that the constraints on the prestudy work, such assecurity measures, policies and standards, arecommunicated and understood.

• Ensure that experiences from previous prestudies andprojects are identified and taken into account in theprestudy work.

Contacts with the Project Steering Function

• Ensure that the prestudy has access to people with theauthority to:– initiate and order work packages,– provide the prestudy with human resources with

appropriate skills and competence,– manage the interfaces between work packages, and

make sure that the dependencies are clearly understood,– implement, verify and communicate any changes to the

prestudy budget, plans and specifications.• Report progress to the project sponsor according to the

agreements made.


During the activity Coaching, Integrationand Control, the business focus in theproject organization is maintained whilethe project performance is measured,analyzed and improved. This will ensurethat the best possible strategy is applied,and that resources are used in a way thatis beneficial to both the project and theorganization.

In a working climate that rewardsinitiatives, project members willcontribute by identifying and suggestingtimesaving, cost-reducing and quality-improving measures.

Customer Reporting

• Report progress to the customer according to what hasbeen agreed with the customer.

• Ensure that customer contacts are carried out as agreed.Continuously evaluate and improve the management ofthe customer interface.

Scope Control

• Ensure that all efforts are focused and aligned with theobjectives set for the prestudy.

• Collect data on the results achieved.• Suggest changes and corrective action regarding the scope

of the prestudy.• The sponsor for the prestudy must confirm any major

changes affecting the limits of the prestudy.

Quality Control

• Monitor prestudy performance. Check that the agreedworking methods are adhered to, and that the tools areused.

• Continuously compare the results achieved with theprestudy sponsor’s requirements and with the customer’sneeds.

Milestone Review

• If applicable, perform milestone reviews and decide onrelevant action.


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• supporting the project manager in theactivity Coaching, Integration andControl,

• making decisions on suggestions fromthe project manager on matters thatare beyond the authority of theproject manager.


The project manager is responsible forthe activity Coaching, Integration andControl.


The subproject manager is responsiblefor:

• the activity Coaching, Integration andControl in his or her subproject,

• reporting the progress of his or hersubproject to the project manager.

The project team members areresponsible for:

• reporting progress to the projectmanager or, if applicable, to thesubproject manager.

Schedule Control

• Gather reports on prestudy performance. Compare theresults achieved with what has been planned.

• Gather information about the actual status of, andpreconditions for, the remaining work.

• Use any deviations from the time-schedule as a basis forcontinuous improvement of the prestudy plans.

Cost Control

• Continuously monitor the consumed resources and thereported costs for the prestudy work through the planningsystem and the cost accounting system.

• Continuously evaluate working methods and the use ofresources in the prestudy work and suggest improvementsto ensure an efficient use of resources and a reduction ofprestudy costs.

Coaching

• Continuously work on creating a good working climate bylistening and giving feedback, support andencouragement. Make sure that all members of theprestudy team are involved and allowed to contribute.

• Ensure that the work environment encourages excellence,trust and respect among all those involved in the prestudy.

• Ensure that the roles held by individual members of theprestudy team are clearly defined and that all teammembers understand the responsibilities attached to theirroles.

• Continuously work on developing individual and teamskills and improving team performance.



Prestudy Closure

• If the prestudy team leaves the project after the prestudyphase has been concluded, see to it that– the team members’ efforts are properly acknowledged,– the competence development that has taken place, at

the individual as well as at the team level, iscommunicated to the team members’ resource owners,so that it can be benefited from by both the individualand the organization,

– the experiences the team members have made aretaken into account and communicated.

Communication Control

• Ensure complete and relevant communication within theprestudy organization. Pay particular attention to theinterfaces between functions and units wheremisunderstandings and conflicts occur frequently.

• Ensure that the relevant descriptions of prestudyprocedures are available for those who need them.

Meetings

• Inform about the progress in meetings that are open toeveryone involved in the prestudy.

• Make sure that the prestudy team members are aware ofany decisions that will have impact on their work.

• Take minutes of meetings. Particularly stress decisionsmade, outstanding issues and agreed action. Distributethe minutes to relevant stakeholders as agreed.

Risk Response Control

• Act on risks related to the prestudy work when theyoccur.


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• Encourage prestudy members to anticipate and identifyrisks and opportunities and to report them.

• Perform risk and opportunity identification whensignificant decisions are made. Analyze the identified risksand opportunities and their consequences.

External provisioning:

Subcontract Administration

• If subcontractors are engaged in the prestudy, collectinformation on subcontractor performance, progress,quality, cost and time according to the procedures definedin the contract with the subcontractor.

• Verify that the performance of the subcontractor meets thecontract requirements. Give feedback to subcontractorsand inform about any action agreed on.


Definition

Project Analysis is an activity in the prestudyphase during which a rough estimate is madeof the different implementation alternativesopen to the project.

Purpose

The purpose of the activity Project Analysis isto identify and describe the business realityof the expected project outcome, and toprovide a basis for a business assessment ofthe different strategies for how to continuethe project.

Project Analysis

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E The level of confidence in the futureproject is based on the confidence in theprestudy team’s reliability, expertise andprofessionalism. Therefore, it isimportant that experts representing allaspects of the project outcome areinvolved in the project analysis andallowed to contribute.

To increase the level of confidence and toprevent any future changes in therequirements on the project and itsoutcome, the activity Project Analysisshould include an identification ofinternal and external stakeholders andhow these can affect the project in thefuture.

Prestudy Phase

During the activity ProjectAnalysis in the prestudy phase,the project manager shouldperform the relevant tasks inthe project managementprocesses as described in thechecklist below:

Assignment Analysis

• Analyze the Assignment Specification for the prestudy.• Analyze the preconditions for the business opportunity –

and the consequences for the organization of a potentialproject and its expected outcome.

• Identify what previous projects and prestudies can provideinformation and valuable experience. Analyze the ProjectSpecifications, Final Reports and other project documents.

Identification of Project Interfaces

• Identify internal and external stakeholders and analyzetheir impact on the potential project and its expectedoutcome.

• Identify the organizational, technical and interpersonalinterfaces.


The activity Project Analysis should resultin a clearly formulated businessopportunity, based on differentimplementation alternatives open to theproject and its outcome. This will create afoundation on which the businessassessment of the potential project isbased. It is important that all aspects ofthe potential project are elucidated.Technical, commercial, product andorganizational experts participate in theanalysis.

During the activity Project Analysis, allproject stakeholders should be identifiedand involved to ensure that they willcontribute to successful projectcompletion.

Requirement acquisition

• Formulate requirements related to the project outcomeby identifying and analyzing the expressed andunexpressed needs of the customer and otherstakeholders, while taking the technical development,competitors, the market, etc. into consideration.

Identification of Alternative Solutions

• Outline the features of the expected project outcome.• Formulate different implementation alternatives for the

expected project outcome.

Intellectual Property Rights

• Investigate whether any intellectual property rights(patents, copyrights, trademarks, registered names,licenses, etc.) are applicable for the expected projectoutcome. This includes protecting results from projectdevelopment work or avoiding infringement on therights of others.

Project Strategy Analysis

• Formulate the requirements related to processes andproject performance by analyzing the expressed andunexpressed needs of the customer and otherstakeholders.

• Analyze alternative strategies for how to fulfill therequirements:– Analyze the external and internal constraints on the

project.– Investigate what provisioning and product

development strategies are recommended in theorganization for the area in question.

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The prestudy sponsor is responsible for:

• providing the prestudy team with thebackground information needed tocomplete the assignment,

• supporting the project manager in theactivity Project Analysis to ensure asolid foundation for the tollgate 1decision.


The person responsible for the prestudyphase is responsible for the activityProject Analysis.


The prestudy team members areresponsible for:

• providing the knowledge andinformation needed to conclude theactivity Project Analysis,

• taking an active part in the ProjectAnalysis.

– Investigate whether external provisioning is analternative to in-house development.

– Evaluate different development technologies. Ifincremental development is an option, strategies forthis should be outlined already at this early stage.

– Analyze existing work models (or PROPS applications)for the suggested strategies.

Intellectual Property Rights

• Ensure that all tools, equipment, etc. used in the projectare legally purchased or licensed by the performingorganization.

• Analyze how the intellectual property rights related topurchased products and tools will affect the possibility ofusing these products and tools in the project or the projectoutcome.

For Each Implementation Alternative:

Work Breakdown

• Make a work package decomposition of the project at ahigh level.

Project Time-Schedule

• Outline a rough time-schedule for the project.

For each implementation alternative:

Resource Planning

• Identify the resource requirements (human resources,tools, equipment, material, etc.).

• Identify where external provisioning is a cost-efficientalternative to in-house development.



• Estimate the amount of work and the competenceneeded, and make a rough estimate of the total projectcost.

Cost-Benefit Analysis

• Estimate tangible and intangible costs and benefits, andassess the relative desirability of the alternative.

Organizational Analysis

• Identify what constraints will limit the projectorganization’s options, such as organizational structurewithin the performing organization, collectiveagreements, culture, personal preferences anddependencies on key personnel. Analyze their effects onthe project’s interfaces.

• Identify the effect these constraints have on differentimplementation alternatives.

• Analyze the need for training and recruiting.

Communication Analysis

• Identify what constraints will affect the communicationoptions of the potential project, such as geographicalspread, culture, language, information technology andsecurity demands.

• Identify the effect these constraints have on differentimplementation alternatives.

• If applicable, establish a strategy for handlingconfidential information, for instance if external supplierswill be used in the potential project.

• Establish a strategy for managing the communicationflow particularly important to the potential project.

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Risk and Opportunity Identification

• Identify major risks and opportunities for the differentalternatives. Consider, for instance:– Technology– Experience and competence– Customer– Geographical spread– Different organizational, regional and national cultures– Market and competition

Security Analysis

• Analyze the security demands on the potential project andsuggest a strategy for security classification.

External Provisioning:

Pre-Selection of Suppliers

• Initiate an analysis of the supplier market.• Collect supplier data.• Make a preliminary evaluation and pre-selection of

possible suppliers.

Pre-Selection of Objects

• Identify and make a preliminary evaluation of possibleprocurement objects.

• Investigate whether similar objects have been procuredbefore within the organization.


Elaboration of Requirements

• Formulate requirements on procurement objects at alevel of detail and quality sufficient for continuednegotiation and evaluation.

Elaboration of Negotiation Framework

• Compile negotiation requirements and formulatenegotiation objectives and strategy.

Prestudy Documentation

• Document the result of the prestudy and hand it over tothe project sponsor according to the procedures defined inthe Assignment Specification.

Feasibility Study Quality Planning

• Identify what quality standards are applicable andrequired for the feasibility study.

• Suggest which processes, working methods and toolsshould be used in the feasibility study phase.

Feasibility Study Schedule Development

• Estimate the time needed for the feasibility study.

Feasibility Study Cost Budget

• Estimate the amount of work needed and the cost for thefeasibility study.

• Identify the resources and competence needed for thefeasibility study.

Feasibility Study Staff Acquisition

• Identify a person who will be responsible for thefeasibility study phase.

Preferably, this is the same person as the future projectmanager.

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Definition

The feasibility study phase is the phase inthe project model during which the projectis outlined and preparations for successfulproject completion are made.

Purpose

The purpose of the feasibility study phase isto decide on a project strategy, define theproject goal and prepare project plans inorder to provide a solid foundation forsuccessful project execution and completion.

Feasibility Study Phase

38 Feasibility Study Phase

In order to ensure full commitment tothe project goal and confidence in theprojects plans, it is important to involveall those who will perform projectexecution in the specification andplanning of the project.

All the stakeholders with an interest inthe project and its outcome should beidentified and involved to make sure thatall aspects of the project are consideredand to limit the risk of future changes tothe project scope.

The project sponsor should take anactive part in the definition the projectgoal and strategy, thus demonstratinghis or her confidence in andcommitment to the project.

Preconditions

The preconditions for starting the feasibility study phase are:• a tollgate 1 decision to start the feasibility study,• an Assignment Specification for the feasibility study.

Feasibility Study Phase Organization

A team consisting of people from all the competence areasinvolved carries out the feasibility study work.

Complex feasibility studies that require comprehensive workat many levels can be run as projects on their own.

A Basis for Successful Project Execution

During the feasibility study the project scope is defined, theproject goal is formulated, the project organization defined,and risks and opportunities assessed. A quality system forthe project is defined to ensure that the project outcome andperformance will be aligned with the organization’s and thecustomer’s quality demands.

Project plans are prepared at a level detailed enough toestablish realistic time and cost limits for the project andensure proper control over it. Internal and external resourcesneeded in the project are identified and agreements forprocurement made.

The feasibility study work is documented in the ProjectSpecification, which will be handed over to the projectsponsor for the tollgate 2 decision.


During the feasibility study phase, the project sponsor mayhave to make a number of strategic decisions. In order toensure control of the business decision process, it isimportant that the project sponsor is closely involved in theproject work.

In the case of customer order driven development orcustomer order projects, such decisions may involve tendersubmission or contract approval. For product provisioningprojects, the project sponsor may have to take part in


In the feasibility study, the organization’scosts for project execution and itsduration are calculated.

The documented result from thefeasibility study is assessed at tollgate 2.After tollgate 2, this will constitute thebasis for the business agreement betweenthe project sponsor and the projectmanager.

The result from the feasibility study canbe used as a basis when a business case ora tender to a customer is formulated.However, market analyses and businessagreements with the customer, and otheractivities related to the commercialaspects of the project, are often performedby someone in the project steeringfunction, or by a unit in the organization,external to the project.

decisions regarding different strategies in the project, forexample decisions on using new technologies, externalprovisioning or new development models, such asincremental development.

To Terminate a Feasibility Study

The project sponsor is responsible for making the decisionto terminate the feasibility study if this turns out to bewhat best serves the organization and the customer.

A decision to terminate a feasibility study before or attollgate 2 is a decision to start project conclusion. Thisincludes deciding how to take care of the results achieved inthe feasibility study. Experiences and observations madeshould be documented and lessons learned transferred to theorganization in order for future projects to be able to fullybenefit from the experiences made.



The project sponsor is responsible for:• ensuring that the Assignment Specification for the

feasibility study is prepared, and ordering the prestudywork,

• appointing the project manager,• taking the financial responsibility for the feasibility study,• making the tollgate 2 decision and approving the Project

Specification,• performing the other activities described for the feasibility

study phase in the project steering model.


The feasibility study work is managed and controlled by aperson appointed responsible for the feasibility study phase.It is advisable that this is the project manager for projectexecution.

The project manager (or the person responsible for thefeasibility study) is responsible for:• performing the activities in the feasibility study phase of

the project management model.


The project team members are responsible for:• supporting the project manager in the feasibility study

work,• planning their own tasks and delivering results according

to specifications from the project manager.



Managers, in their roles as resource owners, are responsiblefor:• support their own personnel and the project manager in

the feasibility study work,• contributing with their competence when the project

manager suggests a strategy, methods and tools for theproject,

• supporting the project manager when he or she preparesthe quality plan,

• taking an active part in the activityProject Resource Procurement.

Managers, in their roles as receivers, are responsible for:• supporting the project manager in evaluating the

consequences of the requirements on the project for thereceiving unit,

• suggesting, developing and evaluating the proceduresand resources needed for the hand-over of the projectoutcome to the receiving unit.


During the feasibility study phase, the following activitiesin the project management model should be performed:• Phase Start-Up and Teambuilding

• Coaching, Integration and Control

• Project Specification and Planning

• Project Resource Procurement• Preparation of the Project Specification Project Specification

in PROPS Document Guide



Definition


Purpose



TG1



Spending time on the activity PhaseStart-Up and Teambuilding will create agood working climate and give theproject manager a chance to build anefficient and motivated team. In order tomeet the needs of project members fromdifferent cultural and organizationalbackgrounds, teambuilding activitiesshould be adapted to the composition ofthe project organization, and comprise abalance between socializing and work-related activities.




During the activity Phase Start-Up and Teambuilding in thefeasibility study phase, theproject manager shouldperform the relevant tasks inthe project managementprocesses as described in thechecklist below:


• Ensure that the feasibility study objectives arecommunicated and understood.

• Ensure that the constraints for the feasibility study work,such as security measures, policies and standards thatmust be adhered to, are communicated and understood byall.

• Ensure that experiences from previous projects areidentified and made available for the project teammembers.

• Establish procedures for involving the different projectstakeholders in the feasibility study work, such as projectmeetings and meetings with and reporting to the projectsponsor and the rest of the project steering group.

Customer Reporting

• If applicable, plan and establish customer contacts.






• Analyze the preconditions for the feasibility study phase,and the requirements on the feasibility outcome.

• Involve the project members when breaking down thefeasibility study objectives.


• Establish and implement:– Security measures– Feasibility work model, methods, tools, etc.– Reviews of the feasibility study outcome

Feasibility Study Planning

• Prepare detailed plans for the feasibility study phase:– Break down the feasibility study work and identify

and describe the work packages.– Find dependencies between the work packages and


• Prepare a time-schedule for the feasibility study andensure that it is within the time limits set in theAssignment Specification for the feasibility study.

Feasibility Study Budget

• Establish, document and communicate procedures to befollowed in the accounting system.












• Identify the resources needed in the feasibility studyphase (human resources, tools, equipment, material, etc.).

• Estimate the amount of work and the competence needed.• Prepare a budget for the feasibility study and ensure that

it is within the cost limit set in the AssignmentSpecification for the feasibility study.

Feasibility Study OrganizationEstablishment and Teambuilding

• Establish the feasibility study organization.• Gather the project team members involved in the

feasibility study for start-up meetings. Communicate thefeasibility study plans.

• Make sure that all project team members involved in thefeasibility study work are allowed to contribute, and thatthey fully understand their tasks.

• Perform activities to create a good working climateencouraging excellence, trust and respect among all thoseinvolved in the feasibility study.


• Make sure that the information needed is available forproject members and other stakeholders, for instance bysetting up a project library.

• Establish guidelines for information distribution and fordifferent types of meetings.

Uncertainty Management

• Communicate the identified risks and opportunities.



• Encourage all project members to anticipate and identifyrisks and opportunities and to report them.


• Negotiate with the resource owners for the resourcesneeded in the feasibility study phase. See to it thatexperts are engaged to cover all aspects of the project.

• Prepare and sign resource contracts for the feasibilitystudy phase with the managers acting as resource owners.

External Staff Acquisition

• Follow the organization’s routines for procurement whenengaging subcontractors and consultants for thefeasibility study work.



Definition


Purpose


Coaching, Integration and Control

ress rt



The project manager must possess goodleadership and human skills in order tobe able to encourage and coach theproject team in its efforts to reach theproject goal. Initiatives forimprovements should be encouraged,and good performance and competencedevelopment within the teamacknowledged.





During the activity Coaching,Integration and Control in thefeasibility study phase, theproject manager shouldperform the relevant tasks inthe project managementprocesses as described in thechecklist below:


• Ensure that the constraints on the feasibility study work,such as security measures, policies and standards, arecommunicated and understood.

• Ensure that experiences from previous projects areidentified and taken into account in the feasibility studywork.


• Ensure that the project has access to people with theauthority to:– initiate and order work packages,– provide the feasibility study with human resources

with appropriate skills and competence,– manage the interfaces between work packages, and

make sure that the dependencies are clearly understood,– implement, verify and communicate any changes to the

feasibility study budget, plans and specifications.• Report progress to the project sponsor according to the

agreements made.




Customer Reporting

• Report progress to the customer according to what hasbeen agreed with the customer.

• Ensure that customer contacts are carried out as agreed.Continuously evaluate and improve the management ofthe customer interface.

Scope Control

• Ensure that all efforts are focused and aligned with theobjectives set for the feasibility study.

• Collect data on the results achieved from, for instance,milestone reviews, the project library, Progress Reportsand personal contacts with the project members.

• Suggest changes and corrective action regarding the scopeof the feasibility study.

• The project sponsor must confirm any major changesaffecting the time and cost limits of the feasibility study.

Quality Control

• Monitor project performance. Check that the agreedworking methods are adhered to, and that the tools areused.

• Continuously compare the results achieved with theproject sponsor’s requirements and with the customer’sneeds.

Milestone Review

• Perform milestone reviews. Decide on actions, such as:– Acceptance decisions– Decisions on rework– Decisions on improvements of performance– Process adjustments














Schedule Control

• Gather reports on project performance. Compare theresults achieved with what has been planned.

• Gather information about the preconditions for theremaining work.

• Identify any deviations from the time-schedule and theirunderlying causes. Analyze the consequences.

• Use deviations from the time-schedule as a basis forcontinuous improvement of the feasibility study plans.

Cost Control

• Continuously monitor the consumed resources and thereported costs for the feasibility study work through theplanning system and the cost accounting system.

• Continuously evaluate working methods and the use ofresources in the project work and suggest improvementsto ensure an efficient use of resources and a reduction ofproject costs.

Coaching

• Continuously work on creating a good working climate bylistening and giving feedback, support andencouragement. Make sure that all project team membersinvolved in the feasibility study are involved and allowedto contribute.

• Ensure that the work environment encourages excellence,trust and respect among all those involved in thefeasibility study.



• Ensure that the project roles are clearly defined and thatall project members understand the responsibilitiesattached to the roles they hold.


Changes in the Project Organization

• Continuously evaluate the project organizationalstructure to ensure that it meets the needs of the projectand its stakeholders.

• When teams leave the project, see to it that– the team members’ efforts are properly acknowledged

by their organization and by the project,– the competence development that has taken place, at




• Ensure complete and relevant project communication.Pay particular attention to the interfaces betweenfunctions and units where misunderstandings andconflicts occur frequently.

• Ensure that the relevant descriptions of projectprocedures are available for those who need them.

Meetings

• Inform about the progress in meetings that are open toeveryone involved in the feasibility study.

• Make sure that the project team members involved in thefeasibility study are aware of any decisions that will havean impact on their work.


• Arrange meetings with members of the project team atregular intervals in order to win their commitment. Makesure that they are aware of any decisions that will have animpact on their work.

• Take minutes of meetings. Particularly stress decisionsmade, outstanding issues and agreed action. Distributethe minutes to relevant stakeholders as agreed.


• Communicate the major risks and opportunities identifiedfor the project and ensure that activity lists andcontingency plans are known, understood and kept up-dated.

• Act on risks related to the feasibility study work whenthey occur.

• Perform risk and opportunity identification whensignificant decisions are made. Encourage projectmembers to anticipate and identify new risks andopportunities and to report them. Analyze the identifiedrisks and opportunities and their consequences.



• If subcontractors are engaged in the feasibility study,collect information on subcontractor performance,progress, quality, cost and time according to theprocedures defined in the contract with the subcontractor.

• Verify that the performance of the subcontractor meets thecontract requirements. Give feedback to subcontractorsand inform about any action agreed on.


Definition

Project Specification and Planning is an activityin the feasibility study phase during whichthe project is specified and described.During this activity, the foundation for theproject is created, and the ProjectSpecification, which describes the businessagreement between the project manager andthe project sponsor, is prepared.

Purpose

The purpose of the activity ProjectSpecification and Planning is to create a solidand unambiguous foundation for the project,which will give all stakeholders, both insideand outside the project organization, a sharedview on the project and its outcome, and theopportunities it brings about.

Project Specification and Planning

56 Project Specification and Planning

All relevant stakeholders, both insideand outside the project organization,should be involved when the project isspecified and planned. This will createan understanding of the project’sstrategy, goal and plans, as well asalignment with the project’s businessdirection.

An understanding of the constraints andquality demands, as well as commitmentto the working methods used, is essentialfor high-quality performance, loyalty toproject management and confidence inthe project plans.

Participating in the activity ProjectSpecification and Planning will create anunderstanding of the project, and howthe role and responsibilities of eachindividual project member relate to oneanother.


During the activity ProjectSpecification and Planning in thefeasibility study phase, theproject manager should performthe relevant tasks in the projectmanagement processes asdescribed in the checklist below:

Assignment Analysis

• Analyze the Assignment Specification for the feasibilitystudy and the preconditions for the project.

• Ensure that the relevant historical data are available in theproject (estimating data, constraints, etc.).

• Analyze information about relevant previous projects, infor example Project Specifications, Final Reports and otherproject documents that can provide valuable information.

Identification of Project Interfaces

• Identify internal and external stakeholders and analyze theimpact they could have on the project.

• Identify project interfaces (organizational, technical andinterpersonal) with the customer and other relevantstakeholders.

• Analyze the project’s connections to other projects andoperations within the organization.

• Decide whether a separate quality plan should be preparedor not. Decide on who should be on the distribution list.


During the activity Project Specificationand Planning, it should be verified thatthe business case on which the project isbased is aligned with the performingorganization’s business direction. Thesuggested implementation alternativeshould prove that it is able to fulfill thecustomer’s needs and requirements.

The activity includes setting up a projectorganization in which the organization’sresources are used in an optimal way, andidentifying the risks and opportunitiesthe project brings about.

Project Specification and Planning includesa definition of the project goal and itstime and cost limits. It gives the projectmanager a means for describing his or hercommitment toward the project sponsor.


• Involve the project steering function in the specificationand planning of the project so that strategic decisionscan be made whenever needed.

Preparation for Hand-Over of Project Outcome

• Prepare for the activity Hand-Over of Project Outcome byinvolving all functions concerned with the futurehandling of the project outcome.

Customer Contacts

• Decide on routines for how to involve the customer andother external stakeholders in the specification andplanning of the project.

• Report to the customer according to the agreementsmade.

Requirements and Expected Project Outcome

• Analyze and describe the requirements, expectations andneeds as formulated by the project sponsor and/or thecustomer. Discuss the requirements with the customerand the project sponsor.

• Compare the requirements with the project’s ability tomeet them.

• Define the expected project outcome. Identify thealternatives, and estimate and assess their tangible andintangible costs and benefits.

Formulation of Project Goal

• Decide and formulate the project goal as regards time,costs and expected outcome in measurable terms.

• Ensure that the project goal meets the requirements.



The project sponsor is responsible for:

• creating an understanding for thebusiness reality for the project byproviding the backgroundinformation needed for thespecification and planning of theproject,

• taking an active part in theformulation of the project strategyand goal,

• supporting the project managerduring the activity Project Specificationand Planning.


The project manager is responsible forthe activity Project Specification andPlanning.


The subproject manager is responsiblefor the activity (Sub)project Specificationand Planning in his or her subproject.


• supporting the project manager in theactivity Project Specification andPlanning,

• providing the project manager withtheir professional knowledge.

Project Scope Definition

• Define what is specifically included in or excluded fromthe project in relation to its goal, in order to elucidate theproject scope and to avoid any future shifts in the level ofambition.

• Make references to alternative solutions and approachesand how they are taken into account and included in theproject scope development.

• Define quality requirements on the project outcome, suchas product performance quality, reliability, robustness andusability.

• Analyze internal and external quality requirements on theproject performance, and formulate quality objectives inmeasurable terms.

Configuration Identification

• Determine the structure of the project outcome, selectconfiguration objects and their physical and functionalcharacteristics, including interfaces.

• Make sure that products and services provided bysuppliers are included in the configuration identificationand control.

• Allocate identification numbers to the configurationobjects and their documents.

Change management and configuration control

• Identify and document procedures for reviews andapproval of changes to processes, requirements and projectoutcome.

Quality Objectives for the Project Outcome

• Analyze quality requirements on the project outcome,such as product performance quality, reliability,robustness and usability.



• Define how the quality objectives for the projectoutcome will be measured and ensure that they aretraceable to the customer.

• Perform a cost-benefit analysis, that is, developmentversus correction, benefits of increased customersatisfaction versus cost of overkill, etc.

Quality Objectives for the Project Performance

• Define measurements by which to measure progress.

Strategy Analysis

• Investigate alternative strategies for how to reach theexpected project outcome.

• Identify similar assignments and ensure that feedbackfrom previous projects is made use of.

• Benchmark for new techniques, methods or work forms.

Project Strategy and Quality System

• Choose a strategy for reaching the project goal. Identifythe relevant project processes, for instance an existingPROPS application.

• Decide on the relevant quality assurance framework forthe project, such as:– Policies, principles and standards that should be

adhered to in the project– Assessments, audits and reviews– Security demands

• Decide on or define:– Operative processes– Methods and tools– Measurements– Verifications– Validations– Handling of intellectual property rights issues– Acceptance criteria, etc.


• Define and describe appropriate support activities, suchas:– Configuration management– Handling of changed requirements

Tailoring

• Tailor the defined processes to the needs of the project.Use the relevant instructions for the tailoring, anddocument any deviations from established processes.

• If incremental development is applied, define how toapply the processes for the different increments.

• If appropriate, investigate and describe how externalproducts, technology or services should be integrated intothe organization’s procedures and routines.

Work Package Definition

• Break down the project work into clearly defined workpackages. Include project management activities, qualityassurance activities, as well as activities in theprocurement process.

• Label each work package with a unique name and astructure code.

• Specify input, activities to perform, deliverables and costelements (human resources, equipment, premises, testsites, purchases, travel costs, services, etc.) for each workpackage.

Activity Sequencing

• Identify mandatory, logical and external dependencies andinterconnections among the work packages. Review forconsistency.

• Create a logical network.PROPS Terminology


Estimating Preparations

• Consider relevant information sources. Check estimatesbased on past experience relevant to the current project.Document input to ensure traceability to origins.

• Collect input data (planning constants, resourcecapability and project team competence), constraints andassumptions, and decide on estimating method.

• Involve all the people with relevant experiences andcompetence in the estimating process. If a work packageis assigned to a unit, involve personnel from that unit inthe estimating.

• If applicable, involve the customer or other stakeholdersin the estimating.

Time Estimating

• Quantify all work packages as regards:– Size– Complexity– Level of confidence

• Estimate for each work package:– Duration

The lead-time needed to complete the work package.– Effort

The amount of work required to complete the workpackage in terms of man-hours.

• Document the result of the estimating to ensuretraceability.

Definition of Project Milestones

• Identify the critical path and critical activities, that is,the activities leading up to the earliest possible date ofproject completion.

• Divide the project into stages or increments.

Project Time-Schedule

• Create a project time-schedule.


Milestone Definition Chart

• Identify and define particular events – project milestones– in the project when specific input or decisions arerequired, or at major deliveries.

• Prepare a project milestone definition chart.• If applicable, position the project milestones in the time-

schedule.

Delivery Plans

• Compile deliveries in a delivery plan. Describe whatdeliverables are needed, when and by whom, as well aswho will complete them.

• Identify and schedule the objects to be procured, payingparticular attention to objects critical to time, cost andquality.

Resource Planning

• Identify resource requirements (human resources, tools,equipment, material, etc.). Take constraints into account,such as limited resources and dependency on keypersonnel, cultural considerations, internationalagreements, governmental regulations, funding, and theproject’s impact on the environment.

• Analyze the critical path and consider the effects oflimited resources and key personnel.

• Make a resource summary, based on the logical network andthe estimated effort. Specify the total need for resources,as well as for different resource categories.

Estimating Preparations

• Consider relevant information sources. Check estimatesbased on past experience relevant to the current project.Document input to ensure traceability to origins.

• Collect information on resource rates, such as staff cost perhour, fixed price per deliverable, material costs, trainingcosts, travel costs, costs for equipment, currencyfluctuations.

PROPS Terminology


• Involve all the people with relevant experiences andcompetence in the estimating process. If a work packageis assigned to a unit, involve personnel from that unit inthe estimating.

• If applicable, involve the customer or other stakeholdersin the estimating.

Cost Estimating

• For each work package, estimate the cost for each costelement (human resources, equipment, premises, testsites, purchases, travel costs, services, etc.). Allocatesufficient costs for quality assurance activities.

• Take external economic aspects into account in theestimating (inflation, taxation, exchange rates, etc.).

Project Budget

• Calculate the project cost, as well as the cost for a specificproject milestone, from the price given to each workpackage. Prepare a time-phased project budget (costbaseline).

• Ensure that the budget is consistent with therequirements in the Assignment Specification. If there isa mismatch, either adjust the budget for the project orchange the contents of the work packages.

Project organizational structure

• Identify what constraints will limit the projectorganization’s options, such as organizational structurewithin the performing organization, collectiveagreements, culture, personal preferences anddependencies on key personnel. Analyze their effects onthe project’s interfaces.

• Identify relevant units within the organization thatsupport the project (for instance in monitoring resources,time and costs).


• Based on previous project experience, define a projectorganizational structure tailored to suit the project needsand the organization’s policies and requirements.

• Design the project organizational structure so that it– encourages efficient communication and cooperation

between all project stakeholders,– is appropriate for the project scope and the size of the

project team,– is appropriate for local conditions and the division of

authority and responsibilities between the project andthe organization in which it operates,

– takes special consideration to critical interfaces.• If applicable, identify subprojects.

Project Roles

• Identify roles and responsibilities in the projectorganization.

• Define the project manager’s responsibilities andauthority. Define the balance of authority andresponsibilities between the project organization and theorganization in which it operates.

Staffing of Project Organization

• Appoint project management staff members. Payparticular attention to functions dealing withimplementing and monitoring the project quality system.

• Identify which units (functional units, subprojects, teamsor subcontractors) are responsible for which workpackages.

• In large projects, appoint subproject managers.• Identify when teams and team members will enter or leave

the project.• Staff the project organization by negotiating with the

resource owners for resources to the project. In largeprojects, this is the responsibility of the subprojectmanagers.

• Analyze the need for training and recruiting.


• Prepare a project organization overview showing theorganization of the project’s three functions - the projectsteering function, the project management function andthe project executing function - as well as the relevantstakeholders outside the project organization.

Communication Framework

• Decide on a project identification system, and establish aproject identity that will be used in the organization’sreporting and document management system.

• Establish a project library, computerized or manuallyhandled.

• Decide on what tools to use in the project for planning,documentation and communication. Identifystandardized templates and forms.

Communication Analysis

• Analyze the stakeholders’ information andcommunication requirements and needs.

• Analyze communication constraints, such as geographicaland organizational spread, access to databases, externalparties and security demands.

• Analyze cultural differences, such as differences innational, regional and organizational culture, and therisks and opportunities these differences will bring about.

Communications Planning

• Decide on communication systems for differentinformation categories and stakeholder groups. Definemedia, language and structure of documents to ensurecompatibility.

• Define who sends what information to whom. Refer tothe relevant document control and security procedures.


• Define which information will be formally communicated,the media used, and how often it will be distributed. Takethe needs of the project and of the individuals involvedinto account.

• Define how often and when meetings should take place,and their purpose.

Risk and Opportunity Identification Preparations

• Choose a method for risk and opportunity analysis.Appoint a process leader.

• Select participants in the risk and opportunity analysisafter careful consideration, and make sure to include keypersonnel.


• Base the risk and opportunity identification on historicaldata and experiences from similar projects. Carry out theanalysis according to the method chosen.

• Take applicable requirements, current and anticipated,into account.

• Identify:– Stakeholder risk tolerance– What is most sensitive to risks and deviations - time,

costs, quality or functionality?• Consider the risks and opportunities the project presents.

Risks include not only risks as regards time, costs andproject outcome, but also security, professional liability,information technology, safety, culture, health and theenvironment.

• Identify:– Potential risk and opportunity events– Risk symptoms, that is, how to determine when limits

are exceeded in an unacceptable way• Specifically evaluate risks as regards activities and costs

that involve significant uncertainties.


Risk and Opportunity Quantification

• For each event, estimate the probability of its occurrenceand its impact on the project. Categorize the events:– Opportunities to pursue– Risks to avoid– Risks to mitigate (that is, to prevent the risk event

from occurring, or to reduce its effects)– Acceptance (that is, opportunities to ignore and

threats to accept)

Risk and Opportunity Response Development

• For each relevant risk or opportunity:– appoint a person to manage the identified risk or

opportunity,– decide on action to be taken during the course of the

project in order to eliminate the risks or to benefitfrom the opportunities,

– prepare a contingency plan for what to do if and whensomething occurs, if applicable,

– decide on alternative strategies, if applicable.

Preparation of Project Specification

• Gather the results of the different project managementprocesses performed during the activity ProjectSpecification and Planning. Resolve any inconsistencies.

• Document the results achieved in the ProjectSpecification.



Definition

Project Resource Procurement is an activity inthe feasibility study phase during which theresources needed in the project are identified,procured and tied to the project by means ofinternal or external agreements andcontracts.

Purpose

The purpose of the activity Project ResourceProcurement is to ensure that the competenceand resources needed to reach the projectgoal are secured and available for the projectwhenever needed during project execution.

Project Resource Procurement

TG2

70 Project Resource Procurement

Clearly described commitments betweenthe project manager and the resourceowners will reduce the risk ofoverbooking the staff and the risk ofpoor work because of too manysimultaneous assignments.

Resource contracts should be formulatedas win-win agreements with resourceowners, who can use these contracts as abasis when planning their operations.

Suppliers and partners benefit from clearand business-oriented agreements, inwhich their assignments are clearlyspecified in terms of requirements onresults and performance.


During the activity ProjectResource Procurement in thefeasibility study phase, theproject manager should performthe relevant tasks in the projectmanagement processes asdescribed in the checklist below:

Allocation of all Relevant Resources

• Indicate how and from where project resources will beobtained.

• Identify which needs are best met by externalprovisioning of resources (human resources, tools,equipment, material, etc.).

Internal provisioning:

Resource contract preparation

• Prepare Assignment Specifications for subprojects andteam tasks.

• Negotiate for project resources with the resource owners.• Prepare preliminary resource contracts.


Procurement Planning

• Plan the procurement activities and decide on aprocurement strategy.


During the activity Project ResourceProcurement, the project manager securesresources and results through businessagreements and contracts. Theseagreements provide a basis for the projectsponsor to assess the project from abusiness perspective. The introduction ofresource contracts between the projectmanager and the resource owners will alsoserve as a means for raising businessawareness within the organization.

External provisioning should be based ona thorough evaluation of suppliers andprocurement objects, and clearly statedrequirements on contracted development.This will ensure long-term relations withpartners and suppliers that will bebeneficial to the organization, as well asthe suppliers and the customer.

Formal resource contracts reduce the riskof misunderstandings and changes in therequirements on the project and itsoutcome, and prepare for a smooth hand-over to the customer.

Supplier and Object Evaluation

• Collect information about possible suppliers. Consider:– Financial stability and survival prospects– Company profiles regarding technical skills,

organization, relations, marketing strategy, etc.– Quality systems and ability to fulfill quality

requirements• Evaluate potential procurement objects and, if applicable,

the supplier’s manufacturing processes.

Requirement Specification ofProcurement Objects and Suppliers

• Compile commercial conditions and technicalrequirements. Ensure that the customer’s requirementsare taken into account. Include delivery dates andrequirements on, for example, documentation of theobject.

• Consider requirements for right to access to subcontractorpremises for purpose of verification.

• Define evaluation criteria for objects and subcontractors.Prepare a statement of work.

PROPS Terminology

• Prepare and describe a procedure for quality assurance ofthe subcontracted development.

Request for Quotation

• Prepare a request for quotation.• Decide on receivers of the request. Select the suppliers

assessed to fulfill the most important requirements.• Clarify all requirements, including legal, commercial and

other terms, with the suppliers.• Prepare for further negotiations, including clarification of

intellectual property rights, know-how, licenses and otherrights of use.


Tender Evaluation

• Analyze the supplier’s proposals. All deviations from therequirements in the request for quotation should beidentified and taken into account, as well as the result ofany pre-contract negotiation.

• Calculate costs related to potential procurement objects.Compare the alternatives.

• Identify the prerequisites for reaching the businessagreement.



The project sponsor and the rest of the project steeringgroup are responsible for:• supporting the project manager during the activity

Project Resource Procurement,• ensuring that the project has access to managers with the

authority to make business agreements and sign contractswith suppliers if the project manager lacks the authorityto do so.


The project manager is responsible for the activity ProjectResource Procurement.

If the project manager lacks the authority to make businessagreements and sign contracts with suppliers, he or sheshould submit such agreements for approval to a personwith the authority needed.


The subproject manager is responsible for the activity(Sub)project Resource Procurement.

If the subproject manager lacks the authority to makebusiness agreements and sign contracts with suppliers, he orshe should submit such agreements for approval to a personwith the authority needed.




Definition

The execution phase is the phase in theproject model during which the project isexecuted and the outcome is handed over tothe customer and to the receiver.

Purpose

The purpose of the execution phase is toensure that the project is managed,performed and completed in a manner thatfulfills the organization’s and the customer’srequirements.

Execution Phase

Phase start-up & teambuilding

Assignment Specification

Progress Report

Pro

ject specificatio

n & p

lanning

Co

aching, integ

ration &

contro

l

76 Execution Phase

The project manager’s skills asteambuilder and coach are essential forsuccessful project execution. Thisincludes giving and receiving feedback,acknowledging good performance, andactively intervening when conflictsoccur.

Spending time on teambuildingactivities during project start-up willpromote teamwork and create an openworking climate, in which projectmembers are encouraged to bringforward suggestions for improvements.

A clear leadership and a structured wayof working, with defined roles andresponsibilities, will inspire the projectteam and other project stakeholders withconfidence.

Preconditions

The preconditions for starting the execution phase are:• a tollgate 2 decision to start project execution,• an approved Project Specification.

Execution Phase Organization

During the execution phase, the project organization is fullyestablished. All three functions of the project organization -the project steering function, the project managementfunction and the project executing function - are establishedand staffed as defined in the Project Specification.

Successful Project Execution

An active project management during the project executionwork includes to:• start up the project and build the project team,• confirm and review the project’s budget, time-schedule

and other plans,• actively coach, integrate and control the different parts of

the project, and steer the project toward its goal,• hand over the project outcome to the receiving unit and

the customer,• gradually phase out human resources and project assets

when these are no longer needed in the project.


During the execution phase, the project sponsor may have tomake a number of strategic decisions. In order to ensurecontrol over the business decision process and to ensure shortlead-times between suggestion and decision, it is importantthat the project steering function is closely involved in theproject work.

To Terminate a Project

The project sponsor is responsible for making the decision toterminate the project if this turns out to be what best servesthe organization and the customer.


The execution phase is the phase duringwhich the project outcome is developedand handed over to the customer and thereceiver. The procedures for customeracceptance of the project outcome shouldbe defined at an early stage to ensure anefficient and rapid hand-over to thecustomer. This will promote a fruitful,long-term business relationship.

In order to ensure customer satisfactionand full control over the project’s costsand lead-time, the project managementfunction should ensure that changedrequirements are handled in a formal andstructured way. Risks should be avoidedand opportunities benefited from.

Project members’ business-orientedattitudes should be encouraged. Ideas forimprovements of plans and workingmethods, and shortening of lead-timesand reducing costs should be promoted.

A decision to terminate the project at a tollgate or betweentwo tollgates is a decision to start project conclusion. Thisincludes deciding how to take care of the results achieved inthe project. Experiences and observations made should bedocumented and lessons learned transferred to theorganization.

78 Execution Phase


The project sponsor is responsible for:• being the primary risk taker for the project and taking the

financial responsibility for the project and its outcome,• making the tollgate 3, 4 and 5 decisions,• performing the other activities described for the execution

phase in the project steering model.


The project manager, together with relevant members of theproject staff, is responsible for:• performing the activities in the execution phase of the



The project team members are responsible for:• planning and performing their own tasks and delivering

results according to specifications from the projectmanager,

• suggesting improvements of plans and working methodsto shorten lead-times and reduce costs.

Managers, in their roles as resource owners, are responsiblefor:• providing the project with the necessary human resources,

competence, equipment, premises, methods and tools inaccordance with the agreements made with the projectmanager,

• supporting their own personnel and the project managerin the project work,

• delivering results to the project in accordance with theresource contracts signed with the project manager orsubproject managers.



Managers, in their roles as receivers, are responsible for:• ensuring that the hand-over of the project outcome is

prepared, establishing the receiving unit, and definingacceptance criteria,

• participating in change control regarding therequirements on the project that will affect the receivingunit,

• supporting their own personnel in the acceptanceprocedure during the hand-over of the project outcome,

• taking over the responsibility for the project outcome.

Execution Phase

During the execution phase, the following activities in theproject management model should be performed:• Phase Start-Up and Teambuilding• Coaching, Integration and Control

• Project Verification

• Hand-Over of Project Outcome

80 Execution Phase


Definition


Purpose



TG2

Execution Phase


Spending time on the activity PhaseStart-Up and Teambuilding will create agood working climate and give theproject manager a chance to build anefficient and motivated team. In order tomeet the needs of project members fromdifferent cultural and organizationalbackgrounds, teambuilding activitiesshould be adapted to the composition ofthe project organization, and comprise abalance between socializing and work-related activities.



Execution Phase

During the activity Phase Start-Up and Teambuilding in theexecution phase, the projectmanager should perform therelevant tasks in the projectmanagement processes asdescribed in the checklist below:


• Ensure that the project’s goal, scope, strategy and plans arecommunicated and understood.

• Ensure that the constraints on the project arecommunicated and understood by all. This includes theorganization’s security measures, policies, regulations,principles and standards, as well as laws and regulationsregarding trade, the environment, intellectual propertyrights, etc.

• Ensure that experiences from previous projects areidentified and made available for the project teammembers.

• Establish procedures for involving the different projectstakeholders in the project work, such as project meetingsto resolve conflicting responsibility issues, changes to riskexposure, and progress reporting techniques.

• Plan project steering group meetings.• Plan project progress meetings, risk assessments, project

audits, etc.

Customer Reporting

• If applicable, plan follow-up meetings with the customer.






• Analyze the preconditions for the current phase andspecify the results to be achieved.

• Formulate short-term objectives to focus efforts.• Communicate task priorities and time requirements.• Involve the project members to ensure that they

contribute and are confident in their ability to reach theobjectives set for their tasks.

Change Management

• Ensure that the procedures for change management areunderstood, implemented and adhered to.


• Communicate the quality objectives and the effects theywill have on the project in terms of measurements,working methods, etc.

• Ensure that the project’s quality system is implemented,understood and adhered to, as defined in the ProjectSpecification.

Detailed Project Planning

• Together with the subproject managers, if applicable, andteam leaders responsible for the activities or workpackages, plan the work for the near future in detail:– Break down the work and define the work packages.– Find dependencies between work packages and













• Prepare detailed time-schedules and ensure that they donot risk the project time limit.

Budget Control Initiation

• Establish, document and communicate procedures to befollowed in the accounting system and verify that theprocedures are implemented, understood and adhered to.

Project Organization Establishment

• Establish the project organization.• Communicate roles and responsibilities and ensure that

they are clear, understood and accepted.• Ensure that the project members feel motivated to fully

participate by identifying and introducing motivatingfactors.

Teambuilding

• Perform teambuilding activities, for instance by arranginga start-up workshop, a kick-off. Make sure that all projectteam members are involved and allowed to contribute.

• Perform activities to create a working climate encouragingexcellence, trust and respect among all project teammembers.

Communication and Reporting

• See to it that the project library is established and inworking order.

• Establish information and reporting paths and routinesand ensure that reporting is focused on meaningful andrelevant hard and soft data.



• Ensure that the reporting routines are established,understood and adhered to.

• Implement communication activities and ensure that theappropriate competence and technique forcommunication and information distribution is availablefor the project.


• Establish and review the communication systems toensure that these meet the requirements of the project.

• Make sure that the information needed is available forproject members and other stakeholders.

• Establish guidelines for different types of meetings.


• Communicate the identified risks and opportunities.• Initiate activities for risk prevention and mitigation as

defined during risk analyses.• Maintain contingency plans for anticipated risks and

ensure that they are known, understood and kept up-dated.

• Encourage all project members to anticipate and identifyrisks and opportunities and to report them.

Internal Provisioning:

Verification of Availability of Internal Resources

• Sign resource contracts with the managers acting asresource owners.

In large projects, subproject managers are responsible forstaffing their own subprojects.


• If applicable, prepare Assignment Specifications for teamtasks and appoint team leaders to be responsible for workpackages in the project execution, including to:– ensure that the work packages are identified, described

and understood,– estimate costs,– prepare a work package budget.

External Provisioning:

Control of Subcontracted Development Contract

• Establish routines for reporting and meetings withsubcontractors. Ensure that management of subcontractorsis fully integrated in the overall management of theproject. The control of the subcontracted developmentcontract starts at the placing of the contract, or of otheragreements, such as a letter of intent.

• Inform the project team about any legal implications ofagreements and particularities in the contracts withsubcontractors and suppliers.


Definition


Purpose


Coaching, Integration and ControlExecution Phase


The project manager must possess goodleadership and human skills in order tobe able to encourage and coach theproject team in its efforts to reach theproject goal. Initiatives forimprovements should be encouraged,and good performance and competencedevelopment within the teamacknowledged.




Execution Phase

During the activity Coaching,Integration and Control in theexecution phase, the projectmanager should perform therelevant tasks in the projectmanagement processes asdescribed in the checklist below:


• Manage the interfaces between work packages, and makesure that the dependencies are clearly understood.

• Arrange project meetings at which conflictingresponsibility issues and changes to risk exposure arehandled.


• Ensure that the project organization has access to peoplewith the authority to:– initiate and order project work packages,– provide the project with human resources with

appropriate skills and competence.• Report progress once a month (or as stipulated in the

Project Specification) in Progress Reports to the projectsponsor and the other members of the project steeringgroup. Present the report at a project steering groupmeeting.

• Implement the decided action and inform the projectorganization and other relevant stakeholders about anychanges and improvements.




Contacts with Other Important Stakeholders

• Maintain contacts with resource owners, the receiver andsuppliers.

Customer Contract Administration and Control

• Report progress to the customer according to what hasbeen specified in contracts and agreements with thecustomer, and analyze the customer’s reactions. This isespecially important if it is likely that the project willnot meet the customer’s expectations.

• Ensure that customer contacts are carried out accordingto plans. Continuously evaluate and improve themanagement of the customer interface.

• Before implementation of any suggested changes to theproject scope, ensure that the customer and other relevantstakeholders approve any changes that affect therequirements and agreements.

Implementation of Changes

• Collect suggestions for improvements, including riskidentification reports and change requests.

• Suggest action that must be decided on at managementlevel. The project sponsor must approve any action thataffects the project’s time and cost limits.

• Implement and communicate changes and improvementsaccording to the suggested action.

• Decide on action (within the project’s time and costlimits) for improvements of the project’s plans, strategyand working methods, taking implications for all projectprocesses and objectives into account.

Suggestions for Improvements

• Inform process and methods owners in the organizationabout observations made in the project. Includesuggested improvements of processes and tools.














Project Scope Control

• Ensure that all efforts are focused and aligned with theproject goal.

• Collect data on the results achieved from, for instance,milestone reviews, the project library, Progress Reportsand personal contacts with the project members.

• Assess process output and plan for the remaining work.

Configuration Status Accounting

• Ensure that the configuration management procedures areadhered to and that the status of all versions of theproducts in the process of being developed – and thelocation of all copies – is known.

Configuration Control

• Suggest changes to the project scope.• Collect change requests related to the configuration of the

project outcome. For each request:– document and justify the change,– evaluate the consequences of the change,– approve or disapprove the change (The project sponsor

must confirm any major changes to the project scope.),– implement and verify the change.

Quality Control

• Monitor project performance. Check that the workingmethods are adhered to and that the tools are used.

• In order to reach the prescribed quality level, performplanned quality assurance activities on the projectoutcome, such as measurements, assessments, audits andreviews as specified in the Project Specification.



• Continuously compare the results achieved with thedocumented project requirements and with thecustomer’s needs.

Milestone Review

• Perform project milestone reviews. Decide on actions,such as:– Acceptance decisions– Decisions on rework– Decisions on improvements of performance– Process adjustments


• Collect change requests related to the project’s qualitysystem and strategy. Suggest improvements.

Schedule Control

• Gather reports on project performance. Compare theresults achieved with the project plans.

• Review and evaluate progress of activities and workpackages. Pay particular attention to activities critical tothe project lead-time, and activities involving newtechnology.



• Analyze project progress trends and make forecasts for theremainder of the project. Actively search foropportunities to shorten lead-times and reduce costs.


• Use any deviations from the project time-schedule as abasis for continuous improvements of the project plans.Identify and involve the personnel affected when action isneeded to recover from delays.


• Suggest changes and corrective action to the project time-schedule.

Resource Management

• Collect data on consumed resources from theorganization’s planning and control systems.

• Identify and analyze any deviations from the resourceplan. Identify the underlying causes for shortages andexcesses.

Cost Control

• Ensure that project funds are released in accordance withthe agreements made.

• Continuously monitor the reported costs for the projectthrough the planning system and the accounting system.

• Carry out reviews of project costs on a regular basis or onrequest from stakeholders.

• Identify the underlying causes for any deviations from thebudget. Take action to ensure that unfavorable variancesdo not affect the project budget.


• Analyze project cost trends, using techniques such asearned value to anticipate possible risks and opportunities.

• Continuously evaluate working methods and the use ofresources in the project work and suggest improvementsto ensure an efficient use of resources and a reduction ofproject costs.

• Suggest changes and recommend corrective action to theproject resource plan and budget.

PROPS Terminology


Coaching

• Continuously work on creating a good working climateby listening and giving feedback, support andencouragement. Make sure that all members of theproject team are involved and allowed to contribute.

• Ensure that the work environment encourages excellence,trust and respect among all those involved in the project.

• Ensure that project roles are clearly defined and that allproject members understand the responsibilities attachedto the roles they hold.


• Monitor the personnel’s efficiency. Give feedback.Acknowledge and reward good teamwork.

• Arrange training for individuals or teams lackingimportant skills, knowledge or competence.

Changes in the Project Organization

• If new teams enter the project, see to it that they areproperly introduced to and informed about routines andprocesses. Perform teambuilding activities.

• When teams leave the project, see to it that– the team members’ efforts are properly acknowledged

by their organization and the project,– the competence development that has taken place, at





• Continuously evaluate the project organizational structureto ensure that it meets the needs of the project and itsstakeholders.

• Suggest improvements of the project organization.


• Ensure complete and relevant project communication. Payparticular attention to the interfaces between functionsand units where misunderstanding and conflicts occurfrequently.

• Monitor and review communication systems to ensurethat they meet the requirements of the project. Ensurethat information paths and reporting routines aresatisfactorily defined and used.

• Ensure that the relevant descriptions of project proceduresare available for those who need them.

Meetings

• Inform about the project progress in meetings that areopen to everyone involved in the project.

• Arrange meetings with the members of the project teamat regular intervals in order to win their commitment.Make sure that they are aware of any decisions that willhave an impact on their work.

• Take minutes of meetings. Particularly stress decisionsmade, outstanding issues and agreed action. Distribute theminutes to relevant stakeholders as agreed.



• Communicate the major risks and opportunitiesidentified for the project and ensure that activity listsand contingency plans are known, understood and keptup-dated. Make sure that any action agreed on isimplemented.

• Encourage project members to anticipate and identifyrisks and opportunities and to report them.

• Act on risks when they occur.


• Perform risk and opportunity identification regularlywhen project progress is analyzed or at other occasionswhen significant decisions are made.

• Monitor the project’s risk and opportunity situation, andreport on risks and opportunities in Progress Reports.



• Collect information on subcontractor performance,progress, quality, cost and time according to theprocedures defined in the contract with the subcontractor.

• Analyze information related to the subcontractor, findsolutions to problems and develop the businessrelationship and cooperation within the project scope.

• Verify that the performance of the subcontractor meetsthe contract requirements. Give feedback tosubcontractors and inform about any action agreed on.

• Handle suggested changes to contracts in accordancewith the procedures described in the contract with thesubcontractor.


Invoice handling

• Handle invoice requirements according to theorganization’s procedures and the procedures described inthe contract with the subcontractor.

Acceptance

• Control and perform acceptance tests of objects deliveredby the subcontractor according to the proceduresdescribed in the contract with the subcontractor.


Definition

Project Verification is an activity in thebeginning of the execution phase duringwhich the project strategy and plans areassessed. Action is taken to secure theproject’s ability to reach its goal.

Purpose

The purpose of the activity Project Verificationis to create a basis for the tollgate 3 decisionand to ensure that the decided projectstrategy will lead to the fulfillment of theproject goal.

Project Verification

98 Project Verification

During the activity Project Verification,everyone involved in the project shouldbe given a chance to evaluate and verifythe project’s ability to reach its goal.Project plans should be revised in orderto give a true and up-to date picture ofthe project.

A visible and thorough Project Verificationwill inspire the project sponsor, theproject steering group and the customerwith confidence in the project.Commitment, alignment and businessfocus will increase within the projectteam, and the project manager will beable to steer the project toward its goalin a confident and forceful manner.

Execution Phase

During the activity ProjectVerification in the executionphase, the project managershould perform the relevanttasks in the projectmanagement processes asdescribed in the checklistbelow:

Project Interface Management

• Ensure that all interfaces and dependencies are understoodand taken into account.

Preparation for Project Hand-Over

• Prepare for the hand-over of the project outcome to thereceiving units within the organization, by describingacceptance procedures.

• Analyze and define the need for training personnel (and/orthe customer) to handle and maintain the projectoutcome.

• If applicable, prepare for product substitution byanalyzing the need for phase-in phase-out activities.

• Define, in cooperation with the customer, acceptanceprocedures for the project outcome.

• Make sure that the procedures and the criteria are fullyunderstood and agreed on by the customer and affectedproject members.


The activity Project Verification allows a re-evaluation of the project from a businessperspective. Input to the activity is theestablishment of the project and theproject performance after tollgate 2.

The Project Verification should include anassessment of risks and opportunities. Inorder to provide a true and completepicture of the project’s ability to reach itsgoal, all resource contracts should beeffectuated and, if applicable, revised.

The Project Specification and otherrelevant documents should be updatedaccording to the findings during theactivity Project Verification, and besubmitted to the project sponsor forapproval at tollgate 3.

Scope Verification

• Communicate the requirements on the project outcomeand verify that they are understood and accepted.

• Ensure that the definition of the project scope isunderstood and accepted by the project members withinthe different functions of the project organization, and byother relevant stakeholders.

• Analyze whether it is likely that the project outcome, aswell as intermediate deliverables, will fulfill thecustomer’s requirements, and be delivered on time,within budget.

• Establish change control procedures, verify that theprocedures are understood and used, and that they areappropriate.

• Consider changes to the definition of the project scope.

Verification of Project Strategy and Quality System

• Verify that the working methods used are understood andadhered to, and that they will lead to the planned results.

• Collect results from quality control measurements andquality audits. Verify that the measurements are relevantand valid.

• Suggest improvements of and changes to the projectstrategy and quality system.

Verification of Time-Schedule

• Gather reports on project performance. Compare theresults achieved with the project plans.




• acting on suggestions forimprovements and suggested changesto requirements that affect theproject’s strategy and plan.


The project manager is responsible forthe activity Project Verification.


The subproject manager is responsiblefor the activity (Sub)project Verification inhis or her subproject.


• reporting status and results in theirwork,

• making forecasts related to thecompletion of their work,

• providing the project manager withfeedback regarding plans, budget andworking methods,

• suggesting measures for shorteninglead-times and reducing costs.

• Review and evaluate the progress of activities and workpackages. Pay particular attention to activities that arecritical to the project lead-time, and activities involvingnew technology.



• Analyze project progress trends and make forecasts for theremainder of the project. Actively search for opportunitiesto shorten lead-times and reduce costs.

Verification of Project Milestones and Delivery Plans

• Verify the project milestone criteria. Specify deliverablesin detail, and update delivery plans.

Verification of resource plans and budget

• Verify that the procedures for reporting in the costaccounting system ensure adequate control over resourcesupply. Verify that the estimated costs for resources arevalid.

• Verify that the remaining resources are sufficient to reachthe project goal.

• Ensure that all project resources are used in a skillful andefficient manner.

• Update the resource plans and the project budget.

Verification of Project Organizational Structure

• Carry out planned reviews of the project’s organizationalstructure to confirm its validity and adequacy.

• Suggest changes in the project organization.



• Document the project organization (state individuals byname, role and function, and organizational structure)and make the list available for the project team.

Human Resource Management

• Collect performance reports. Monitor the efficiency andeffectiveness of teams and individuals and takeappropriate action.

• Give feedback. Acknowledge and reward good teamworkand individual efforts.

• Ensure that the leadership style applied by the projectmanager is understood and accepted by all projectmembers.

Information Distribution

• Confirm the validity and adequacy of the communicationand information systems. Ensure that the appropriatecompetence and techniques are available within theproject, such as:– communication skills, to ensure that different types of

information are received and understood correctly,– information retrieval systems (manual filing systems,

software applications for word processing, calculation,project management, engineering drawings, etc.),

– information distribution systems (hard copydistribution, shared access to electronic network anddatabases, e-mail, video conferencing, etc.),

– a project library, computerized or manually handled.

Risk Control

• Ensure that activity lists for risk prevention andmitigation are valid and in use and adhered to.


• Verify that contingency plans are valid and ensure thatthey are known, understood and up-dated.

• Monitor the project’s risk situation and perform a new riskand opportunity identification, if applicable.

Internal provisioning:


• Verify the availability of resources. If necessary,renegotiate with the resource owners. Sign resourcecontracts and update resource plans.


Negotiation

• Perform contract negotiations with selected suppliers.

Signing of contracts

• Sign the contracts made with the selected suppliers.• Inform the project team about any legal implications of

agreements and particularities in the contracts withsubcontractors and suppliers.

Revision of Project Specification

• Decide on changes to the project’s goal, strategy,organization and working methods, taking implicationsfor all project processes and objectives into account.

• Revise the project’s time-schedule, budget and other plansas a result of the decided changes. Update the ProjectSpecification and other project documents.

• Prepare for the tollgate 3 assessment.


Definition

Hand-Over of Project Outcome is an activity inthe execution phase during which the projectoutcome is formally handed over to andaccepted by the customer. The activity alsoincludes the formal hand-over of theresponsibility for the project outcome to thereceiver, who will manage it after the projecthas been concluded.

Purpose

The purpose of the activity Hand-Over ofProject Outcome is to ensure that the businessagreement with the customer can be ended,and that the responsibility of the continuedmanagement of the outcome is defined, andaccepted and understood by all thoseinvolved.

Hand-Over of Project Outcome

Phase

TG5

104 Hand-Over of Project Outcome

A clear and efficient hand-over, inaccordance with the routines andacceptance procedures described at anearly stage of the project, will mean thatdisagreements and misunderstandingsare avoided. A positive climate in thefuture business relationship with thecustomer will be created.

A clear and efficient internal hand-overto the receiving unit will give theproject team members a chance to fullyfocus on new assignments. If the internalhand-over fails, the result will beprolonged, never-ending projects. Thiswill reduce the positive effects of projectmanagement within the organization,and decrease commitment to futureprojects.

Execution Phase

During the activityHand-Over of ProjectOutcome in theexecution phase, theproject managershould perform therelevant tasks in theproject managementprocesses asdescribed in thechecklist below:

Hand-Over to Customer and Acceptance

• Ensure that the project team performs all activitiesincluded in the hand-over of the project outcome, such asinstallation, testing, integration and training, and thatthey are in accordance with the agreements made.

• Assist the customer in performing inspections, inaccordance with the routines specified in the contract withthe customer, in order to determine whether the resultsachieved correspond to the requirements. Such inspectionscan include reviews, audits and walk-throughs.

• Ensure that the handling of non-conforming products isdecided on and, if applicable, that measurements of theperformance of the project outcome are initiated.

• Ensure that the obligations toward the customer arefulfilled, that all outstanding issues are taken care of, andthat the business agreement with the customer can beended.


A clear and formal hand-over of theproject outcome is a prerequisite forending the business agreement with thecustomer, including the final payment. Along and inefficient hand-over can becostly and it may endanger customersatisfaction and the profitability of theagreement.

Discussions with the customer duringhand-over often provide a goodopportunity for finding businessopportunities for suitable follow-upprojects.

In order to eliminate the risk for costlywarranty activities, the hand-over shouldaim for an understanding with thecustomer regarding future support andmaintenance.

A defined acceptance procedure, duringwhich the receiving unit takes on theresponsibility for the project outcome, isa prerequisite for the organizationgaining full control of costs and incomefrom it.

Hand-Over to Receiver

• Ensure that the project team performs all activitiesincluded in the hand-over of the project outcome to thereceiving unit, such as installation, testing, integration,training, transfer of information and know-how.

• Assist the receiving unit in performing inspectionsaccording to routines specified in the ProjectSpecification to determine whether the project outcomecorresponds to the requirements. Such inspections caninclude reviews, audits and walk-throughs.

• If applicable, ensure that performance measurements areinitiated, and that the handling of non-conformingproducts is decided on.

• If applicable, ensure that a formal acceptance from thereceiving unit is received.

Ending of Business Agreements with Subcontractors andSuppliers

• Analyze what problems and possibilities procured objectsinvolve from a life-cycle perspective on the projectoutcome.

• Ensure that all products provided by suppliers andsubcontractors are fully integrated into the projectoutcome, and that the future handling of such objects isdefined and clear.

• Ensure that the management of all objects provided bysuppliers and subcontractors is fully implemented in theorganization’s operations system and that all mattersregarding the maintenance, support and sales of suchobjects are specified.

• Identify the organization that will manage therelationship with the supplier in the future and makesure that the roles and responsibilities are clear andunderstood by all.

106 Hand-Over of Project Outcome



• formally ending the businessagreement with the customer.


The project manager is responsible forthe activity Hand-Over of Project Outcome.



• participating in acceptance tests,customer training and other activitiesduring the hand-over, according tothe agreements made with thecustomer and the receiving unit.

Managers, in their roles as receivers, areresponsible for:

• taking part in the activity Hand-Overof Project Outcome,

• taking over the responsibility for theproject outcome.


• Perform formal acceptance procedures for all procuredobjects.

• End (or transfer to the receiving unit) all businessagreements made in the project with the suppliers andsubcontractors. Formally recognize the acceptanceaccording to the organization’s routines.


Definition

The conclusion phase is the phase in theproject model during which the experiencesmade in the project are documented andlessons learned transferred to theorganization. All outstanding issues aretaken care of, and the project is formallyclosed.

Purpose

The purpose of the conclusion phase is toensure that the organization will have accessto and be able to learn from the experiencesmade and the competence developmentachieved in the project.

Conclusion Phase

108 Conclusion Phase

The conclusion phase provides astructured way to allow project membersto share experiences and present theirachievements. This will ensure that theexperiences made in the project are fullyappreciated and will be useful for theorganization.

During the conclusion phase, individualand team efforts should beacknowledged and rewarded. This willencourage project members and showthe rest of the organization that effortspay off.

Allowing the project team members tospend time on celebrating success andsaying goodbye will encourage them andmake it easier for them to fully focus onnew assignments.

Preconditions

The conclusion phase is initiated either as a result of atollgate 5 decision to start project conclusion, or as a resultof a decision made by the project sponsor to terminate theproject.

Conclusion Phase Organization

Although most project members have left the project alreadyduring the execution phase, they should be allowed to spendtime to contribute to the hand-over of experience in theconclusion phase.

If a decision has been made to terminate the project beforetollgate 5, the project executing function will still be fullystaffed when the project conclusion phase is initiated. Theproject manager should then ensure that all project membersreturn to their regular positions in the organization as soonas possible after having fulfilled their responsibilities in theproject.

To Make Experience and Competence Development Visible

The project manager and the project staff carry out the workin the conclusion phase. Project conclusion includes to:• ensure that the organization is given full opportunity to

learn from experience,• hand over competence developed in the project. This

means, for instance, to inform resource owners about theperformance and achievements of the project members,and to encourage project members to actively look for newassignments in which their competence can be useful,

• document experiences in a Final Report and transfer thelessons learned,


The conclusion phase provides astructured way of ensuring continuouslearning. It is in the organization’sbusiness interest to ensure that thecompetence development and know-howachieved in the project are transferred tothe organization and made use of infuture projects.

An analysis of project cost and timeexpenditure should be used to evaluateand update the estimating routines anddata in order to ensure more accurateestimates in the future.

It is important to emphasize learning alsoin the business processes. By comparingthe actual market situation andprofitability of the project with what wasforeseen, the marketing and salesorganizations will be given anopportunity to evaluate their estimatingand analysis routines.

• formally close the project, that is, taking care of alloutstanding issues and closing all processes, as well asproject accounts and reporting channels.

Project Termination

If the project is terminated before it has been completed,that is, if the project sponsor has decided to close theproject before it has reached its goal, it is particularlyimportant to learn from experience. To terminate theproject will require strong leadership skills. Thetermination will mean a period of grief and emptiness forthe project members, who often have been working veryhard before the decision is made.

The project manager should ensure that the result is takencare of according to what has been decided in the decision toterminate the project.

It should be emphasized that competence and skillsdevelopment also takes place in projects where a decisionhas been made to terminate the project before tollgate 5,sometimes even more so than in “successful” projects. Thisshould be made visible to the organization, and especially tothe resource owners for the project team members.



The project steering group should not be dissolved until theproject is formally closed.

The project sponsor is responsible for:• performing the activities described for the conclusion

phase in the project steering model,• declaring the project closed.


The project manager, together with relevant members of theproject staff, is responsible for:• performing the activities in the conclusion phase of the


After the activity Project Closure, the project managementfunction is dissolved, and the project manager returns to hisor her regular position in the organization.


When a decision is made to terminate the project beforetollgate 5, all project team members are responsible for:• closing their own activities and handing over the results

achieved in the project according to what has beendecided in the decision to terminate the project.

All project members are responsible for:• contributing to the hand-over of experience in the

conclusion phase.

Managers, in their roles as resource owners, are responsiblefor:• ensuring that the project manager will have access to the

project members in order to collect information for theFinal Report,



• being available for meetings with the project manager (orsomeone else in the project management function) toobtain all relevant information on performance andcompetence development of their own personnel duringthe course of the project,

• acknowledging their own personnel for their performancein the project.

Managers, in their roles as receivers, are responsible for:• supporting the project manager with input to the Final

Report,• making sure that the project’s obligations toward the

customer have been fulfilled and that all outstandingissues are taken care of.

Conclusion Phase

During the conclusion phase, the following activities in theproject management model should be performed:• Hand-Over of Experience

• Project Closure• Preparation of the Final Report

If a decision has been made to terminate the project beforetollgate 5, the following activities in the projectmanagement model should be performed during theconclusion phase:• Project Termination

• Hand-Over of Experience

• Project Closure• Preparation of the Final Report

Final Reportin PROPS Document Guide



Definition

Project Termination is an activity in theconclusion phase during which the project isterminated, if a decision has been made toterminate the project before it has reached itsgoal. The activity includes phasing out allproject resources, taking care of the resultsachieved in the project, and ensuring that allstakeholders involved in the project areinformed about project termination.

Purpose

The purpose of the activity ProjectTermination is to ensure that a project will bedissolved in an organized and efficient way ifa decision has been made to terminate theproject before it has reached its goal. Theresults achieved and the experiences made inthe project should be made use of in theorganization.

Project Termination

114 Project Termination

In most cases, a decision to terminate aproject to which people have committedthemselves will mean a feeling of failureand grief. It is the responsibility of theproject manager and of all othermanagers involved in the project tosupport and encourage the project teammembers, and to make sure that they aregiven new assignments in which theycan make use of their experience in thebest possible way.

The purpose of the project, as well as itscontribution to the organization’sbusiness direction, should be understoodby all project members. This will makeit easier for them to understand andaccept the decision to terminate theproject, since they will realize that thepreconditions for it have changed.

Focusing on positive experience andensuring that the results achieved in theproject are acknowledged and made useof in the best possible way is importantand will make it easier for everyone tolook forward and feel committed to newassignments.

Conclusion Phase

During the activity ProjectTermination in the conclusionphase, the project managershould perform the relevant tasksin the project managementprocesses as described in thechecklist below:


• Plan meetings with and reporting to the project sponsorand the other members of the project steering group.Ensure that they take upon themselves to remain andsupport the project during the termination of the project.

Contacts with External Parties

• Decide on and plan meetings with the customer,subcontractors and suppliers, if applicable.

• Decide how all project assets should be phased out ortransferred to other operations in the organization.

Hand-Over of Experience and Project Closure

• Perform the activitiesHand-Over of Experience (including the preparation of the Final Report) andProject Closure.

115 PROPS Manual for Project Managers

The decision to terminate a projectshould always be based on an assessmentof the business reality of the project andits alignment with the organization’sbusiness direction.

When a decision is made to terminate aproject before it has reached its goal. allproject team members and other projectstakeholders should be given theopportunity to understand the basis forthe decision. If this is not the case, thereis a big risk of loosing tempo andefficiency in the organization.

To inspire the organization in futureassignments and to avoid mistakes beingrepeated, it is important to highlightgains instead of failure, and to focus onwhat has been achieved in terms ofcompetence development, experience andan understanding of the business reality.

Formulation of Project Termination Goal

• Analyze the preconditions for project termination andformulate a goal for the work in terms of performanceand expected result, time and costs. It is best for everyoneinvolved if the project is closed as fast as possible. On theother hand, project members should be given time tofind new interesting assignments and to say goodbye.

Project Termination Planning

• Break down the project termination work into workpackages. The work also includes the activitiesHand-Over of Experience(including the preparation of the Final Report) andProject Closure.

• Estimate the duration of the conclusion phase andprepare a plan for it.

Project Termination Budgeting

• Identify the resources needed for project termination(human resources, tools, equipment, material, etc.).People who are available in the project and cannot bephased out early should be made use of in the work in thebest possible way.

• Estimate the amount of work and the competenceneeded.

• Prepare a budget for project termination and ensure thatit is within the limits set by the project sponsor.




• giving the project manager all thesupport needed during ProjectTermination.


The project manager is responsible forthe activity Project Termination.


The subproject manager is responsiblefor the activity (Sub)project Termination ofhis or her subproject.


• closing their own tasks,

• handing over the results achieved inaccordance with the decisions made.

If the terminated project is large, inpossession of equipment and other assets,and if subcontractors are involved, ProjectTermination can be performed as a projecton its own.


Identification of Support

• Identify suitable organizations that can be of support andassistance in the work, such as human resource units,unions and internal job centers.

Transfer of Internal Resources

• Negotiate with the project team members’ resourceowners about new assignments for their own personnel.Identify new assignments within other parts of theorganization or in other projects for those who cannot goback to their previous tasks. This also applies forsubcontractors.

• If the project termination is part of a larger re-organization, it is important to ensure that managersacting as resource owners remain within the organizationand support their own personnel during projecttermination.

Project Organization Dissolution

• Make sure that all project members are given theopportunity to discuss their future tasks with theirmanager (resource owner) or, if that is not possible, withsomeone in the project management team. If needed,experts should be involved to support the project managerin such meetings.

• Be available for personal talks if needed. Treat everyproject member as an individual. Collective solutionsshould be avoided.

• Ensure that resource owners are available for their ownpersonnel.

• Arrange a “funeral feast” and make it a farewell party, togive everyone involved something positive to remember.


Phase-Out Strategy

• Decide how the results achieved in the project should beused or stored for later usage. Results that can be usefulin other operations should be transferred, and results thatshould be destroyed for security reasons or other reasonsshould be taken care of according to the organization’sroutines.


• Inform all project members about the project terminationat the same time. Make sure that the project team isgiven time to discuss the situation. Never deliver adecision to close a project on a Friday or just before avacation.

• In order to avoid rumors and a negative climate, makesure that the necessary information is available for allproject members and other stakeholders.

• Arrange regular information meetings with all projectmembers. Communicate the project conclusion plans andprogress.

• Make sure that all members of the project team areinformed about how to close their own activities and howto hand over the results achieved and to whom.

• Identify all information belonging to the project (paper-based and electronic) and how it should be stored ordestroyed.

Planning of Termination of Supplier Agreements

• Identify all personnel and project assets that will beaffected by the termination of the project. Identifypossible receivers of the results achieved in the project.This also includes subcontractors and results delivered bysubcontractors.


• Identify the result that has been achieved in the project sofar, including procured objects and results achieved bysubcontractors.

• Negotiate with subcontractors and suppliers about how toend business agreements, or transfer such agreements toother parts of the organization’s operations.

Ending of Agreements with Subcontractors and Suppliers

• Follow the organization’s routines for closing contractswith subcontractors and suppliers, if applicable.


Definition

Hand-Over of Experience is an activity in theconclusion phase during which all theexperience, competence and know-howachieved in the project are transferred to theorganization, to be made use of in ongoingand future projects and operations.

Purpose

The purpose of the activity Hand-Over ofExperience is to ensure continuous learningwithin the organization and enhancedperformance within the organization and itsongoing and future projects.

Hand-over of Experience

120 Hand-over of Experience

Project work provides an opportunityfor efficient and fast on-the-job-trainingat the individual and team level, as wellas at the organizational level.

Project members at all levels of theproject organization should beacknowledged for their efforts.Information on good performanceshould be transferred to their managersin the organization. Rewards and othermotivating factors will make it visiblefor the entire organization that effortspay off.

It is important to be honest and to lookcritically back on the project, identifythe underlying causes of the problemsand to suggest alternative action. Thisrequires an open climate and a culturethat encourages everybody to bringforward suggestions for improvementsand ensures that such suggestions leadto action.

Conclusion Phase

During the activityHand-Over of Experiencein the conclusion phase,the project managershould perform therelevant tasks in theproject managementprocesses as described inthe checklist below:

Post-Project Situation

• Collect information on the situation after the hand-over ofproject outcome. Such information could be in the form ofcustomer evaluation reports, in-service performance,comments from end-users, sales reports, reports fromhelp-desk or other maintenance, and reports regardingimproved performance.

Project Result Analysis

• Arrange conclusion seminars in order to discuss and sharethe experiences made. Make a complete review of theproject performance. Take all relevant records intoaccount, including Progress Reports, project diaries andinput from stakeholders.

• Analyze the results achieved as regards project outcome,time and costs. These should be compared with theoriginal goal, quality objectives and time and cost limitsas stated in the Project Specification at tollgate 2. Discussthe reasons for any deviations, and comment on whetherthe organization’s requirements on the projectperformance have been fulfilled.


In a business where development is fastand where technology is constantlychanging, learning from experience isessential. The competence developmenttaking place in the project is an asset thatshould be held in trust by theorganization to be of best possible use andbenefit to its customers.

The business performance should beevaluated. The business case and themarket situation on which the projectwas based should be compared with thesituation at project conclusion. Estimateson project cost and profitability should beassessed and the data updated.

All project team members should beencouraged to transfer knowledge ofopportunities that might lead to newbusiness opportunities for theorganization.

• Analyze any special difficulties or action taken during thecourse of the project, and state the effects of this action.

• Discuss the effectiveness of tools, equipment, workingmethods and processes that have been used.

Transfer of Experience

• Document the information gained during the hand-overof experience in the Final Report. Suggest improvements.Highlight experiences that can be made use of in ongoingand future projects.

Final Reportin PROPS Document Guide

• Distribute the Final Report to the target group,including all project members.

Project Kick-Out

• Transfer information on the project team members’performance in person in meetings with their resourceowners.

• Arrange a farewell meeting, and give a brief presentationof the contents of the Final Report. Special considerationshould be given to feedback from the customer.

• Express thanks to all project members and comment ongood performance.

Evaluation of Subcontractor Performance

• Evaluate the performance of subcontractors.

122 Hand-over of Experience


The senior manager acting as multiproject manager isresponsible for:• creating an environment that encourages continuous

learning,• acknowledging good performance and suggestions for

improvements,• making Final Reports and other relevant project

documents available for ongoing and future projects.


The project manager is responsible for:• the activity Hand-Over of Experience, including the

preparation of the Final Report.


All previous and current project members are responsiblefor:• participating in the activity Hand-Over of Experience in

order to transfer the experiences made and lessons learnedin the project.

Resource owners and receivers are responsible for:• ensuring that previous project members among their own

personnel are given time to participate in the activityHand-Over of Experience,

• being available for meetings with the project manager (orsomeone else in the project management function) toobtain all relevant information about the employeeperformance and competence development during thecourse of the project,

• acknowledging their own personnel for their performancein the project.


P R O P SP R O P S

Documents

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