The Kloppenborg text has additional readings available at the end of chapter 14. From any of these journal artic

The Kloppenborg text has additional readings available at the end of chapter 14. From any of these journal articles,i need a summary of the article along with relevant points made by the author. In addition, kindly offer a critique of the article and give an application of the concept being discussed in the summary. Please provide me a summary with approximately 2-3 pages in length, the summary should be in APA format.


CHAPTER
14
Determining Project Progress
and Results
CHAPTER OBJECTIVES
After completing this
chapter, you should
be able to:
Develop and demonstrate use of a change
control system.
Demonstrate how to
monitor and control
project risks with
various resolution
strategies.
Create and present a
project progress
report.
BEHAVIORAL OBJECTIVES:
Describe the importance of formal
reporting and
communications.
Demonstrate negotiating skills.
Manage conflicts
during the project
execution
TECHNICAL OBJECTIVES:
Describe project
quality control tools,
including how and
when to use each.
Calculate current
project schedule and
budget progress, and
predict future progress, using earned
value analysis.
Document project
progress using MS
Project.
Wavebreakmedia/Shutterstock.com
CORE OBJECTIVES:
The fundamental reason for determining project progress and results comes down
to one thing presenting actionable, decision-making information to project leaders.
A major U.S. electric utility company is continuously faced with the daunting
task of managing over 1,200 simultaneous projects in all phases of planning, execution, and completion over a geographic area consisting of five states. These
projects are supported by over 40 departments within the utility and hundreds
of external contractors and equipment suppliers. Over 85 percent of these projects take place over multiple years. There are over 15,000 activities tracked for
active projects every month. Today, many of these projects are related to SmartGrid efforts to fundamentally change the way the electric utility system delivers
power to homes, schools, and businesses.
This utility regularly sets the standard for its industry each year by completing
over 90 percent of its projects on time and utilizing its annual project budget
within just a few percentage points. How is this accomplished?
By identifying and collecting just the right amount of financial, scheduling,
resource, and risk management data, and by focusing intently on turning raw
data into actionable information for the groups leading and supporting the
456
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4.3 Direct and Manage Project Work
4.5 Monitor and Control Project Work
4.6 Perform Integrated Change Control
5.6 Control Scope
6.6 Control Schedule
7.4 Control Costs
8.2 Manage Quality
Scope Backlog
Burn Up Chart
Earned Value Analysis
8.3 Control Quality
9.6 Control Resources
10.2 Manage Communications
Progress Report
10.3 Monitor Communications
11.6 Implement Risk Responses
11.7 Monitor Risks
13.2 Manage Stakeholder
Engagement
13.3 Monitor Stakeholder
Engagement
PMBOK® GUIDE
Topics:
Direct and manage
project work
Monitor and control
project work
Perform integrated
change control
Monitor risks
Manage
communications
Monitor
communications
Manage quality
Control quality
Control scope
Control schedule
Control costs
CHAPTER OUTPUTS
Progress report
Scope backlog
Burndown chart
Earned value analysis
Change request
Change Request
projects, the utility s project controls staff can continuously find and highlight the
information that requires leadership attention and project team action.
With the large number of projects being managed, the focus on individual projects
decreases and management of the entire group of projects as a portfolio becomes paramount. The actionable information presented highlights significant issues for individual
projects, but more important, forecasts trends over the entire portfolio and extended
spans of time, helping turn earned-value statistics into meaningful strategies.
Presenting valuable decision-making data to the multiple resource and leadership groups required to support a project provides the critical linkage between
the feedback of raw data and the ability to successfully control a single project
or an entire multiyear portfolio. Project data collection and management present
the opportunity to simultaneously manage an organization s profit, people, and
planet objectives in an optimal way.
As you move forward with this chapter and your own projects, consider the
use and impact of the project information that needs to be collected. What are
the key factors for your project financial, environmental, resource management,
scheduling, risk identification, stakeholder management, or others? Who needs
the project progress data, and exactly what do they need to know to make
good decisions and successfully achieve organizational objectives?
Identifying, collecting, managing, and presenting data that allow you to control
critical aspects of your projects are fundamental elements of project success.
Paul Kling, director project management and controls,
Power Delivery Engineering, Duke Energy
T
he word determine in the context of “determine project progress and results” has
multiple meanings. While each offers a slightly different perspective, collectively,
they help a project manager understand what she needs to do to ensure that her project
457
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458
Part 4 Performing Projects
is progressing adequately and will yield the intended results in the end. Determine can
mean the following:
To
To
To
To
To
give direction to or decide the course of
be the cause of, to influence, or to regulate
limit in scope
reach a decision
come to a conclusion or resolution1
Project managers, in the course of planning, give direction to a project. Many projects
also require replanning due to any number of causes. Project managers sometimes can
influence only how work is accomplished (when people do not report to them), but
they may be able to regulate or demand the work to be accomplished at a certain time
or in a specific manner. To be successful in influencing and regulating project work, the
project manager needs to consider the stakeholder priorities and communications needs,
as discovered in Chapter 6, and use those to design the monitoring and control mechanisms described in this chapter. Many stakeholders on projects attempt to persuade the
project manager and team to deliver more scope, but one important role of the project
manager is to jealously guard the agreed-upon scope. Throughout a project, decisions
will be made. In such instances, the project manager can do one of the following:
Personally make these decisions
Be part of a group that makes decisions
Delegate decisions to others
Facilitate the process by which each decision is made
Often, project managers need to follow up to ensure that decisions are made and then
carried out. Finally, the project manager is responsible for making sure that the project is
satisfactorily completed.
14-1 Project Balanced Scorecard Approach
To successfully accomplish all five aspects of project determination (direct, regulate,
limit, decide, and conclude) in managing project progress, a project manager can think
in terms of a balanced scorecard approach. The concept behind a balanced scorecard is
that an organization needs to be evaluated from the perspectives of customer, internal
business, financial, and growth and innovation. If one considers a project as a temporary
organization, the same perspectives make sense when monitoring and controlling a project. Exhibit 14.1 shows a project balanced scorecard approach to project determination.
When a project manager seeks to monitor and control a project, different critical
aspects are often interrelated, and thus, their impacts on each other must be considered.
For example, a proposed change may impact the scope, quality, schedule, and/or cost.
However, to understand project control, one must consider each aspect individually
before assessing the impact on all other factors. This chapter begins with the project
manager controlling internal project issues. The next major section of this chapter deals
with the customer-related issues of quality and scope. The final sections deal with the
financial issues of resources, schedule, and cost. The project manager can utilize a number of tools to manage schedule overloads and conflicts and to reprioritize the work.
Earned value and project scheduling software such as MS Project can prove to be useful
to manage these issues. Growth and innovation include issues of participant development covered in Chapter 5 and managing project knowledge covered in Chapter 15.
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Chapter 14 Determining Project Progress and Results
459
EXHIBIT 14.1
BALANCED SCORECARD APPROACH TO PROJECT DETERMINATION
INTERNAL PROJECT
CUSTOMER
FINANCIAL
Direct and manage project work
Manage quality
Control resources
Monitor and control project work
Control quality
Control schedule
Perform integrated change control
Control scope
Control costs
Implement risk responses
Monitor risks
Manage communication
Monitor communication
Source: Adapted from Kevin Devine, Timothy J. Kloppenborg, and Priscilla O’Clock, “Project Measurement and Success:
A Balanced Scorecard Approach,” Journal of Healthcare Finance 36 (4) (2010): 38–50.
14-2 Internal Project Issues
While all aspects of a project are important and interrelated when determining progress
and results, a logical starting place is with the project work that needs to be accomplished. Closely related are the risks that may impede the work and adequate communication. Collectively, these form the project’s internal issues. These issues can be
envisioned as the project’s nerve center. Problems in any of them travel to all other project areas just as nerves in a body carry information throughout. When dealing with this
project nerve center, project managers direct and manage project work; monitor and
control the project work; perform integrated change control; implement risk responses
monitor project risks; and manage and monitor communications.
14-2a Direct and Manage Project Work
Directing and managing project work is performing the work as defined in various components of the project management plan, including approved changes with an intent to
accomplish project objectives. When project managers authorize project work, they should
empower others to the extent possible, yet control them to the extent necessary. It should
be clear who is allowed to authorize each portion of work to commence. The project management plan identifies work to be accomplished, but the project manager or her appointee must tell someone when it is time to perform the work. Often, spending limits are
intertwined with work authorization (e.g., “Please perform this activity and do not spend
more than $X on it. Report back to me for approval if you need to spend more.”).
The work to be performed can come from one of several sources. The primary source is
the work package level of the work breakdown structure. However, approved corrective
actions, preventive actions, and defect repairs may also trigger work to be authorized.
When directing project work, trade-offs are often present both between projects and
other work within the project itself. Organizations often have many projects and a variety of other work that must all be accomplished. Some work is of higher priority than
other work. A project manager needs to understand where her work fits in the priority.
If her project is relatively low in priority, she may have trouble getting people and
resources to perform the project-related activities as per the planned schedule. In a case
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460
Part 4 Performing Projects
like that, the project manager and sponsor should have open and transparent communications so the sponsor can either help the project manager secure the resources needed
or understand that the project could be delayed.
Projects often are resource-constrained or time-constrained. In resource-constrained
projects, the project is limited by budget constraints. In this case, the project schedule
gets extended. When a project is time-constrained or its completion date is nonnegotiable, organizations may have to expend more resources to complete the project, and project cost is likely to exceed the planned cost. In both the resource- and time-constrained
projects, project scope is often not compromised. However, one should remember that
the project manager should have some leeway with one of the three constraints. If all
the three constraints (cost, time, and scope) are fixed, it is unlikely that the project manager and the team will be successful in completing the project within time, on budget,
and with the promised scope and acceptable quality.
As the project progresses, are there changing priorities that impact project importance?
Remember, any proposed change to the project scope, quality, schedule, or budget needs to
be processed through the integrated change control system described later in this chapter.
Projects are undertaken with scope goals and with constraints on cost, schedule, and
quality. Exhibit 14.2 gives an example of Tatro, Inc., dealing with project trade-offs.
Well-developed project charters, effective stakeholder management, and clear communications help the project manager make sensible trade-off decisions. Sometimes, an
owner representative works closely with the project manager to make these decisions.
Skills an owner representative can use when working closely with a project manager to
make these trade-off decisions effectively are shown in Exhibit 14.3.
14-2b Monitor and Control Project Work
Monitoring and controlling project work includes a series of activities such as identifying
work packages for tracking, reviewing, and documenting the progress to ensure that the
project execution meets performance objectives as defined in the project plan. The term
monitor refers to reviewing the progress and capturing project performance data with reference to the project plan; developing performance measures; and communicating performance information. Control means assessing actual performance obtained from
monitoring a work element and comparing it with planned performance, determining variances, analyzing trends to identify and implement process improvements, evaluating possible alternatives, and finally, recommending appropriate corrective action as needed.
A variance is a measurable departure from a planned baseline or expected value.
Variance is often measured in quantitative terms, but qualitative measures cannot be
EXHIBIT 14.2
PROJECT TRADE-OFF DECISIONS AT TATRO, INC.
Tatro, Inc., is a company that describes itself as a designer, builder, and caretaker of fine landscaping. It has both commercial and private (homeowner) clients. Landscaping projects for private
homes often cost well over $100,000. Homeowners who contract for landscaping projects of this
magnitude are ultra-successful people who will not change their mind once they decide they want
something special. These clients tend to focus closely on the process of a project. They wish to have
polite, skilled workers with no interruptions. The reason they wish to have the project completed is
to create a “wow factor.” Therefore, they will rarely compromise at all on either scope or quality, but
they will often compromise on the necessary cost and schedule.
Source: Chris Tetrault, president, Tatro, Inc. Reprinted with permission.
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Chapter 14 Determining Project Progress and Results
461
EXHIBIT 14.3
USEFUL OWNER REPRESENTATIVE SKILLS IN PROJECT
TRADE-OFF DECISION MAKING
Partnership
Building trust
Improving relations
Collaborating
Creating alliances
Assuring quality
Management
Planning
Managing change
Aligning resources
Leadership
Communicating
Team building
Technical
Project management
Knowledge of criteria
Source: Adapted from Denis R. Petersen and E. Lile Murphree, Jr., “The Impact of Owner Representatives in a
Design-Build Construction Environment,” Project Management Journal 35 (3) (September 2004): 35–36.
ruled out. Monitoring and controlling activities allow a project manager to keep an eye
on many project activities that can indicate how well the project performance is progressing. This prepares her to act if necessary to get the project back on track. The most
difficult part of monitoring and controlling is figuring out what metrics to keep, what
to measure, and how to report the results to various decision makers as necessary.
Monitoring and controlling are not activities that are done only once. Monitoring and
controlling activities occur along with project execution. Monitoring and controlling are
a continuous, overarching part of an entire project’s life cycle, from project initiation
through project closing. Since the purpose of monitoring and controlling project work
is to be able to take corrective action, these activities need to be timely. In fact, the
reverse of an old adage is in order. Instead of shooting the messenger when there is
bad news, reward the messenger if the message is delivered quickly enough to bring the
project back into control and at low cost.
To the extent possible, letting people self-control their work adds to their enthusiasm.
In other words, make them responsible and accountable by empowering people and delegating the work. That said, the project manager is ultimately accountable for all of the
project results and needs to develop a sense for how much control is necessary, given the
work and the person performing it.
TYPES OF PROJECT CONTROL While this section deals with monitoring and controlling project work, the remainder of this chapter deals with monitoring and controlling each of the other project management knowledge areas. Two types of control are
used extensively on projects and both compare actual performance against the project
plan. One type is steering control, in which the work is compared to the plan on a continual basis to see if progress is equal to, better than, or worse than the project plan.
Adjustments can be made as often as necessary. The second type of control is go/no-go
control. Go/no-go control requires a project manager to receive approval to continue.
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462
Part 4 Performing Projects
EXHIBIT 14.4
RESULTS OF MONITORING AND CONTROLLING A PROJECT
Phase:
Approval
to proceed
Initiating
Planning
Charter
Executing
Project
plan
1
2
Closing
Project
deliverables
3
Administrative
closure
4
Monitoring and
controlling project
This control is often used at milestones (such as those developed in the project charter)
or when someone needs to determine if a key deliverable is acceptable or not. If it is
acceptable, the project continues as planned. If not, either the work needs to be redone
or the project could even be cancelled. For both types of control, resulting change
requests can include corrective actions, preventive actions, or defect repair.
The results of monitoring and controlling project work, schedule, budget, risks, or
anything else can range from minor to major, depending on how close the actual progress is to the plan. This can be seen in Exhibit 14.4.
Depending on the extent to which actual progress performance varies from planned
performance, the results of monitoring and controlling activities can suggest anything
from modifying the charter to transferring project deliverables as planned. Some of the
monitoring and controlling decisions are listed below:
1. If the actual progress is very different from the original intent, perhaps the project
charter needs to be revisited to ensure that the project still makes sense.
2. If progress is somewhat different from what was planned but the charter is still a good
guide, perhaps the project plan needs to be adjusted.
3. If the project plan is still a useful guide, perhaps minor adjustments need to be made
in day-to-day instructions within the project executing stage.
4. Finally, if the results indicate the customer is ready to accept the project deliverables,
perhaps it is time to proceed into the project closing stage.
PERFORM INTEGRATED CHANGE CONTROL George and John are new project
managers fresh out of college. Both are approached by internal customers of their projects (managers of departments where the project deliverables will be used). Their customers tell them what a fantastic job the two of them are doing. The customers then say,
“This is great! Could you add these couple of little improvements to it? Then it would be
even more valuable to me.” George, wanting to please his customer, says, “Yes, we can
add that little bit.” John’s immediate answer is, “Let’s see what impact that might have
on the schedule, budget, quality, and project team. I will be happy to consider it, but
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Chapter 14 Determining Project Progress and Results
463
I want to be sure to deliver the project results we promised on time and on budget.”
George, in his eagerness to please the customer, made a classic mistake. Many great projects have been derailed because someone stroked the ego of a project manager who then
agreed to changes without understanding their impact.
Perform integrated change control is reviewing all change proposals, estimating their
impact on project goals wherever appropriate, approving or declining changes, and managing changes to deliverables, schedules, budgets, and the project management plan.
Change control is a process wherein change proposals to various project planning elements are acknowledged, formally documented, and either approved or declined after
review. Change control includes considering the impact of any change, deciding whether
to agree to the change, and then documenting and managing that change. An observant
project manager will ensure that changes that were not approved are not somehow
slipped in anyway by a stakeholder who does not take no for an answer. Proposed
changes are documented in a change request such as the one shown in Exhibit 7.14.
The decision to approve the proposed change needs to be made by the appropriate
person or group responsible for it. Generally, if the proposed change requires a modification to the project charter (or contract for an external project), then the sponsor and/
or customer would decide. If the change does not rise to that level, often a project manager is empowered to make the decision. Some organizations use a change control board,
which consists of a formal group authorized and responsible for reviewing, evaluating,
approving, delaying, or rejecting any changes to any aspect of the project plan by following
a formal communication method of documenting the decision process. The change control board often consists of the project manager, sponsor, project core team, and perhaps
other key stakeholders. Since some changes have far-reaching impacts, it is often wise to
include people with diverse knowledge and skills on the change review board.
Change is a reality on virtually all projects. While we cannot predict or plan what
changes will occur, we can plan for how we will deal with those changes. Some projects
are easier than others to plan, especially the later phases of the project. If the planning
team can plan most details at the outset, change control may be the primary method
they use for handling change. On other projects, where it is difficult to plan the later
phases or parts in detail until results from the early parts of the project are known,
change control is still used, but it is not enough. What is also used in these cases is the
rolling wave planning described in Chapter 9. The early parts of the project are planned
in detail, and the later parts are planned in less detail until later when additional detail is
added. Often, a detailed plan for the following section of the project is required before
being allowed to proceed. Agile projects are planned in a rolling wave fashion.
14-2c Monitoring Project Risk
During project planning, the project team normally develops a risk management plan
that is used to guide risk monitoring and response activities. They also normally create
a risk register to record each identified risk, its priority, potential causes, and potential
responses. The risk management plan and risk register are used to monitor and implement responses to project risks and to resolve them when they occur.
Monitor risks is the process of adhering to the risk response plan of tracking identified risks, identifying new risks, monitoring residual risks, and evaluating the effectiveness of the risk response process throughout the project. On some projects, the
majority of risk events that materialize are ones that the project team has previously
identified. Efforts needed on these risks largely include tracking the identified risks, executing the response plans, and evaluating their effectiveness. Project managers know it is
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464
Part 4 Performing Projects
wise to consider multiple responses to a given risk. This is true both because some risks
cannot be fully handled with just one strategy and because the first strategy may not
always be the best strategy.
On other projects, however, many unanticipated risks may materialize. This could be
partly due to poor or incomplete risk planning. It could also be partly due to events that
would have been so unlikely that the team could not have been expected to plan for
them. In either event, specific contingency plans may not be in place to deal with these
risks. Identifying these new risks is vital—and the sooner the better. Two categories of
project management methods can help to deal with previously unidentified risks. First,
the project team in planning may recognize that unknown risks may surface, and they
may add a contingency reserve of time, budget, and/or other resources to cover these
unknowns. Good project management practice suggests a need for this. The amount of
cost and budget reserves that are included can vary extensively based upon the customer’s perception of risk and the type of project that is involved. Competitive pressures
often dictate a lower limit on reserves than project managers may prefer.
The second category of project management methods includes a number of good
practices that project managers often employ anyway. These practices can be classified
according to whether the project team has full, partial, or no control over the events, as
shown in Exhibit 14.5. Note especially the second column, which deals with risks partially within a project manager’s control. A project manager cannot completely control
many situations, but by using good leadership and ethics, the project manager can certainly help create a situation in which others want to help the project.
14-2d Implement Risk Responses
Implement risk responses is the process where when a risk event occurs or is quite
likely to occur soon, the person assigned to that risk executes the strategy identified in
EXHIBIT 14.5
RISK EVENT RESOLUTION STRATEGIES
RISKS WITHIN PROJECT CONTROL
RISKS PARTIALLY WITHIN
PROJECT CONTROL
Understand and control WBS
Establish limits to customer expectations
Understand project context and
environment
Closely monitor and control activity
progress
Build relationships by understanding
project from client’s perspective
Actively monitor project environment
Closely manage all project changes
Use honesty in managing client
expectations
Understand willingness or reluctance of
stakeholders to agree to changes
Document all change requests
Work with client to reprioritize cost,
schedule, scope, and/or quality
Increase overtime to stay on schedule
Carefully escalate problems
Isolate problems and reschedule other
activities
Build team commitment and enthusiasm
RISKS OUTSIDE PROJECT CONTROL
Research challenging issues early
Source: Adapted from Hazel Taylor, “Risk Management and Problem Resolution Strategies for IT Projects: Prescription and Practice,” Project Management
Journal 37 (5) (December 2006): 55–60.
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Chapter 14 Determining Project Progress and Results
465
the risk management plan. Exhibit 11.12 outlines the most typical strategies with examples of each. One core team member should be assigned to each risk. That person should
be alert to any trigger condition that suggests the risk event may happen and be prepared
to implement the response strategy quickly. Possible outcomes of implementing a risk
response include updates to the risk register, approved change orders, and perhaps lessons learned so that both this project and future projects may avoid that same risk event
in the future.
14-2e Manage Communications
Manage communications as defined in Chapter 6 is all the work connected with the
project communications plan, starting with planning for it; generating it; organizing
and sharing it; and, finally, storing and disposing of it. This includes determining project
information needs and establishing an information system as described in Chapter 6.
Then, while the project is under way, the project manager and team need to determine
any additional information needs that were not already uncovered, collect information
on