Difference between revisions of "Project Management Better Practices"
From NGO Handbook
(→Plan Carefully) |
|||
| (One intermediate revision by the same user not shown) | |||
| Line 2: | Line 2: | ||
| − | While the work of NGOs is often ongoing, there are many cases in which a special project, of limited scope and duration, is undertaken. Such projects can be anything from a fundraising drive to a peacekeeping operation to the installation of a major software upgrade. This section provides a range of methodologies that can help to ensure that such projects achieve their intended goals and have a positive impact on the NGOs that undertake them and on the constituencies those NGOs serve. | + | While the work of NGOs is often ongoing, there are many cases in which a special project, of limited scope and duration, is undertaken. Such projects can be anything from a fundraising drive to a peacekeeping operation to the installation of a major software upgrade. This section provides a range of methodologies that can help to ensure that such projects achieve their intended goals and have a positive impact on the NGOs that undertake them and on the constituencies those NGOs serve. <membersonly> |
==Set goals== | ==Set goals== | ||
| Line 101: | Line 101: | ||
Once you have identified and assigned tasks and have gone through the plan to ensure that no one is over-allocated, it becomes possible to assess the total work involved, and therefore how long the project is projected to take. At this stage, project planning software can assess dependencies and calculate the project end date on the fly as you make adjustments, allowing you to tailor your plan more effectively. | Once you have identified and assigned tasks and have gone through the plan to ensure that no one is over-allocated, it becomes possible to assess the total work involved, and therefore how long the project is projected to take. At this stage, project planning software can assess dependencies and calculate the project end date on the fly as you make adjustments, allowing you to tailor your plan more effectively. | ||
| − | |||
| − | |||
| − | Cost/Benefit Analysis: In the business world, cost/benefit analyses are used to determine whether a project will bring in more money than is spent executing it. This calculation is less crucial to NGOs, but can be vital for certain types of projects such as purchasing time-saving equipment or software or mounting a fundraising campaign. | + | ''Cost/Benefit Analysis'': In the business world, cost/benefit analyses are used to determine whether a project will bring in more money than is spent executing it. This calculation is less crucial to NGOs, but can be vital for certain types of projects such as purchasing time-saving equipment or software or mounting a fundraising campaign. |
In many cases, the benefits of NGO projects are not financial. Nevertheless, almost all projects have associated costs, so it is useful to understand the basic principles associated with calculating them. | In many cases, the benefits of NGO projects are not financial. Nevertheless, almost all projects have associated costs, so it is useful to understand the basic principles associated with calculating them. | ||
Projects have two types of costs: hard and soft. | Projects have two types of costs: hard and soft. | ||
| − | + | * '''Hard costs''' are expenses that are paid out for services rendered or for items purchased. Hard costs are generally straightforward to calculate because estimates or prices are generally provided prior to purchase. It’s best to do some research to ensure that you are getting the most value for your money. Compare quotes from several providers to ensure that estimates are reasonable. | |
| − | + | * '''Soft costs''' are associated with the use of existing resources within the organization. It can be tempting to disregard soft costs because they don’t have a direct impact on the organization’s finances, but the time that people spend on projects is time that they can’t dedicate to other responsibilities. If the project workload becomes too much for the organization’s staff, additional people may need to be brought on board to pick up the slack. It is worthwhile to include both types of costs in calculations so that the full picture is visible. | |
In calculating soft costs, be careful not to leave things out. There is overhead associated with each employee beyond basic wages. There are benefits, taxes, facilities costs and technology costs. In addition to personnel-related costs, there may be maintenance costs associated with organization-owned equipment used for the project. It is important to consider the total impact on the organization of carrying out a project so that budget funds can be allocated appropriately. | In calculating soft costs, be careful not to leave things out. There is overhead associated with each employee beyond basic wages. There are benefits, taxes, facilities costs and technology costs. In addition to personnel-related costs, there may be maintenance costs associated with organization-owned equipment used for the project. It is important to consider the total impact on the organization of carrying out a project so that budget funds can be allocated appropriately. | ||
| Line 120: | Line 118: | ||
For example, take the time to look at how much money will be brought in by a gala dinner versus what is spent. Consider financial goals when adding a new administrative or fundraising position. When considering compensation packages, take into account the cost savings associated with avoiding employee turnover. Make sure that productivity tools such as computers and software are providing benefits that outweigh the investment in them. The benefits from these internal calculations can be directed toward outward-facing efforts and allow the organization to be more effective in carrying out its mission. | For example, take the time to look at how much money will be brought in by a gala dinner versus what is spent. Consider financial goals when adding a new administrative or fundraising position. When considering compensation packages, take into account the cost savings associated with avoiding employee turnover. Make sure that productivity tools such as computers and software are providing benefits that outweigh the investment in them. The benefits from these internal calculations can be directed toward outward-facing efforts and allow the organization to be more effective in carrying out its mission. | ||
| − | Project Reporting: Throughout the project, the Project Manager and Project Team should report their progress to the Project Sponsor and, if applicable, to the Steering Committee. Weekly or biweekly reports on accomplishments, timelines, planned activities, budget, issues and risks can help keep the parties overseeing a project apprised of where things stand. If they feel that the project is going astray, they can give guidance. If the project needs their assistance for the accomplishment of a task or the resolution of an issue, they can use their positions in the organization to get the Project Team what they need to move forward. | + | '''Project Reporting''': Throughout the project, the Project Manager and Project Team should report their progress to the Project Sponsor and, if applicable, to the Steering Committee. Weekly or biweekly reports on accomplishments, timelines, planned activities, budget, issues and risks can help keep the parties overseeing a project apprised of where things stand. If they feel that the project is going astray, they can give guidance. If the project needs their assistance for the accomplishment of a task or the resolution of an issue, they can use their positions in the organization to get the Project Team what they need to move forward. |
Because projects don’t always work out they way you expect them to, it can be advantageous to plan stops at the end of each project phase to consider whether it makes sense to move forward according to the initial plan. The Steering Committee should assess progress and findings to date and make a decision about whether the planned next steps make sense. For instance, if during the “initiate” phase you find that the project is going to cost three times as much as you originally thought, serious consideration will need to be given to whether the project can move forward, and if so, where the funding will come from. If you come to the end of the “planning” phase and your initial research shows that the project will have a detrimental rather than a beneficial effect, the project team should either cancel the effort or overhaul the approach and goals. | Because projects don’t always work out they way you expect them to, it can be advantageous to plan stops at the end of each project phase to consider whether it makes sense to move forward according to the initial plan. The Steering Committee should assess progress and findings to date and make a decision about whether the planned next steps make sense. For instance, if during the “initiate” phase you find that the project is going to cost three times as much as you originally thought, serious consideration will need to be given to whether the project can move forward, and if so, where the funding will come from. If you come to the end of the “planning” phase and your initial research shows that the project will have a detrimental rather than a beneficial effect, the project team should either cancel the effort or overhaul the approach and goals. | ||
| − | Issues List: An issues list can be a powerful tool for managing problems that crop up over the course of a project. The list should have an issue identifier, an issue description, and the date an issue was raised. In addition, it’s important to assign an owner (responsible person) to each issue so that everyone knows who is accountable for taking next steps toward resolution. It can be helpful to track an estimated date for resolution in order to keep things moving forward and to create a sense of urgency regarding the issue. It may also be helpful to track next steps for a given issue so that everyone knows what action is being taken. | + | '''Issues List''': An issues list can be a powerful tool for managing problems that crop up over the course of a project. The list should have an issue identifier, an issue description, and the date an issue was raised. In addition, it’s important to assign an owner (responsible person) to each issue so that everyone knows who is accountable for taking next steps toward resolution. It can be helpful to track an estimated date for resolution in order to keep things moving forward and to create a sense of urgency regarding the issue. It may also be helpful to track next steps for a given issue so that everyone knows what action is being taken. |
The issues list should be reviewed regularly by all team members. If you have a computer network (that is, you work in an office where the computers are connected to a document server), the issues list should be stored in a shared folder. If there’s no network, a particular team member should be assigned responsibility for managing and updating the list based on ongoing feedback from the rest of the project team, and updated copies of the list should be distributed to all team members at regular intervals. | The issues list should be reviewed regularly by all team members. If you have a computer network (that is, you work in an office where the computers are connected to a document server), the issues list should be stored in a shared folder. If there’s no network, a particular team member should be assigned responsibility for managing and updating the list based on ongoing feedback from the rest of the project team, and updated copies of the list should be distributed to all team members at regular intervals. | ||
| Line 130: | Line 128: | ||
As issues are resolved, track how and when they were resolved. This can become a useful reference as the project moves forward and people forget what was decided in the past. It can also become a repository of better practices as similar issues crop up over the course of the project or on future projects. | As issues are resolved, track how and when they were resolved. This can become a useful reference as the project moves forward and people forget what was decided in the past. It can also become a repository of better practices as similar issues crop up over the course of the project or on future projects. | ||
| − | Funding and Resources | + | ===Funding and Resources=== |
Often one of the most difficult tasks during the early stages of a project is securing the necessary personnel and funding to carry it out. If you are lobbying for a particular project, it is best to know what other projects the organization may be considering. Often there are limited funds and personnel available, and choices will have to be made about which projects to carry out. Keep the big picture in mind when you negotiate for money and personnel for a particular project. | Often one of the most difficult tasks during the early stages of a project is securing the necessary personnel and funding to carry it out. If you are lobbying for a particular project, it is best to know what other projects the organization may be considering. Often there are limited funds and personnel available, and choices will have to be made about which projects to carry out. Keep the big picture in mind when you negotiate for money and personnel for a particular project. | ||
Whether the project is funded from an existing budget or from a special fundraising effort, be prepared to spend time on funding questions throughout the duration of the project. Competing demands for funding will continue to emerge, and part of project management is maintaining the proper balance between the needs of the organization and those of the project. | Whether the project is funded from an existing budget or from a special fundraising effort, be prepared to spend time on funding questions throughout the duration of the project. Competing demands for funding will continue to emerge, and part of project management is maintaining the proper balance between the needs of the organization and those of the project. | ||
| − | + | ==Manage the Project== | |
Once the project is underway, you need to keep a careful eye on direction, timelines, and expenditures. | Once the project is underway, you need to keep a careful eye on direction, timelines, and expenditures. | ||
| − | + | * The tools mentioned above can help you do so; of particular importance is the project plan. Continue to update these tools as you move through the project so that you have a relatively good sense of where you stand at any given moment. | |
| − | + | * Track expenses and hours spent on the project. To do so, ensure that there is a regular, easy mechanism that allows the project team to report this information. | |
| − | + | * Be clear about who needs to sign off on what types of expenses. Major purchases should not be made in a vacuum. | |
| − | + | * Check in with team members to make sure they have the resources they need to accomplish the tasks they have been assigned. | |
| − | Balance Available Resources and Effectiveness to Stay on the Critical Path | + | ===Balance Available Resources and Effectiveness to Stay on the Critical Path=== |
Throughout the project, focus resources where they will have the most impact. | Throughout the project, focus resources where they will have the most impact. | ||
| Line 151: | Line 149: | ||
If you have the tracking capacity in place, you may want to track effort against project activities. This allows you to manage budget and effort very effectively because you know when too many hours are being spent on a given activity. If, for instance, you budgeted 3 hours a week to project reporting, but you discover you’re spending 10 hours a week and having to short-change other tasks, you may want to simplify or reduce the reporting so that your valuable time is being used in the most effective manner. | If you have the tracking capacity in place, you may want to track effort against project activities. This allows you to manage budget and effort very effectively because you know when too many hours are being spent on a given activity. If, for instance, you budgeted 3 hours a week to project reporting, but you discover you’re spending 10 hours a week and having to short-change other tasks, you may want to simplify or reduce the reporting so that your valuable time is being used in the most effective manner. | ||
| − | + | ==Measure Effectiveness== | |
| − | A project’s success is determined by what happens after the project is over, not by the mere fact that the project was completed. While it is a wonderful thing to complete a project on time and on budget, an important and often overlooked consideration is that success is defined by your return on investment, even if the return isn’t calculated in financial terms. For example, if your project aimed to improve access to education by building five new schools, success isn’t just unveiling the new buildings, it’s seeing how many children are educated in them. | + | '''A project’s success is determined by what happens after the project is over''', not by the mere fact that the project was completed. While it is a wonderful thing to complete a project on time and on budget, an important and often overlooked consideration is that success is defined by your return on investment, even if the return isn’t calculated in financial terms. For example, if your project aimed to improve access to education by building five new schools, success isn’t just unveiling the new buildings, it’s seeing how many children are educated in them. |
It’s important to have success metrics for the long-term effectiveness of the project, and those metrics should reflect the initial goals of the project, not merely its scope. Consider how to measure a project’s success as you move to implement it or carry it out — and afterward. | It’s important to have success metrics for the long-term effectiveness of the project, and those metrics should reflect the initial goals of the project, not merely its scope. Consider how to measure a project’s success as you move to implement it or carry it out — and afterward. | ||
| − | Take the time to look into outcomes after the project is complete. Generally, in business, one looks at the return on investment over a five-year period. In the NGO world as in the business world, a project’s returns are seldom realized by the end of the project. Make it part of the standard operating practice as an organization to look back on completed projects and to use predetermined metrics to measure their success at regular intervals over the years following the completion of the effort. (Generally, if you check in on project outcomes annually for five years, that should give you a clear picture, though you will want to consider what makes sense for your project.) Not only will this help you make smarter decisions about which projects to pursue in the future, but it will also help draw donations because you can demonstrate that money given to the organization has been well spent. | + | '''Take the time to look into outcomes after the project is complete'''. Generally, in business, one looks at the return on investment over a five-year period. In the NGO world as in the business world, a project’s returns are seldom realized by the end of the project. Make it part of the standard operating practice as an organization to look back on completed projects and to use predetermined metrics to measure their success at regular intervals over the years following the completion of the effort. (Generally, if you check in on project outcomes annually for five years, that should give you a clear picture, though you will want to consider what makes sense for your project.) Not only will this help you make smarter decisions about which projects to pursue in the future, but it will also help draw donations because you can demonstrate that money given to the organization has been well spent. |
| − | + | ==Publicize Success== | |
After the completion of the project, take the time to publicize accomplishments, and continue to publicize those accomplishments as you observe their ongoing impact over time. | After the completion of the project, take the time to publicize accomplishments, and continue to publicize those accomplishments as you observe their ongoing impact over time. | ||
This has a number of benefits. Donors like to hear about success and to know that their money is making a difference in the world. Potential beneficiaries of future projects will be more open to working with your organization and accepting the help you offer if they hear about the good you have done for others. And last but not least, your project team will appreciate the recognition. NGOs may not be able to offer financial rewards for going above and beyond the call of duty, but most people who choose to work for NGOs are not driven primarily by the desire to maximize their financial gains. Many people work for NGOs because they believe in making a positive difference in the world, and a meaningful way to compensate them for their hard work is to spread the message far and wide that they have made a real, measurable success at improving the world we live in. | This has a number of benefits. Donors like to hear about success and to know that their money is making a difference in the world. Potential beneficiaries of future projects will be more open to working with your organization and accepting the help you offer if they hear about the good you have done for others. And last but not least, your project team will appreciate the recognition. NGOs may not be able to offer financial rewards for going above and beyond the call of duty, but most people who choose to work for NGOs are not driven primarily by the desire to maximize their financial gains. Many people work for NGOs because they believe in making a positive difference in the world, and a meaningful way to compensate them for their hard work is to spread the message far and wide that they have made a real, measurable success at improving the world we live in. | ||
| − | Conclusion | + | ==Conclusion== |
Anyone who has spent time in the world of NGOs has seen well-intentioned projects go astray for a variety of reasons, from poor planning to lack of funds, from disagreement over goals to disappointment at unintended results. | Anyone who has spent time in the world of NGOs has seen well-intentioned projects go astray for a variety of reasons, from poor planning to lack of funds, from disagreement over goals to disappointment at unintended results. | ||
By incorporating the better practices described in this section, you can avoid many of these pitfalls and ensure that your limited resources are being used with maximum effectiveness. Clear, measurable goals help you design projects that make the right kind of difference. Through careful planning, you can be sure that you have the necessary resources to achieve the goals you’ve set and that all team members know their roles and responsibilities. Effective project management can keep your efforts on track as you traverse the critical path from planning through completion. By measuring effectiveness, you can learn exactly what has worked and what has not so that you can avoid mistakes and build on better practices for future projects. And by publicizing your success, you will make it that much easier to continue your NGO’s critical mission. | By incorporating the better practices described in this section, you can avoid many of these pitfalls and ensure that your limited resources are being used with maximum effectiveness. Clear, measurable goals help you design projects that make the right kind of difference. Through careful planning, you can be sure that you have the necessary resources to achieve the goals you’ve set and that all team members know their roles and responsibilities. Effective project management can keep your efforts on track as you traverse the critical path from planning through completion. By measuring effectiveness, you can learn exactly what has worked and what has not so that you can avoid mistakes and build on better practices for future projects. And by publicizing your success, you will make it that much easier to continue your NGO’s critical mission. | ||
| − | External Links | + | ==External Links== |
| − | Wikipedia on Project Management: http://en.wikipedia.org/wiki/Project_management | + | * Wikipedia on Project Management: http://en.wikipedia.org/wiki/Project_management |
| − | Harvard Business Review: http://www.hbr.com | + | *Harvard Business Review: http://www.hbr.com |
| − | Free Management Library: http://www.managementhelp.org | + | *Free Management Library: http://www.managementhelp.org |
| − | NGO Manager: http://www.ngomanager.org | + | *NGO Manager: http://www.ngomanager.org |
| − | Project Management Institute: http://www.pmi.org/info/default.asp | + | *Project Management Institute: http://www.pmi.org/info/default.asp |
| − | Techsoup (for articles and software): http://www.techsoup.org | + | *Techsoup (for articles and software): http://www.techsoup.org |
| − | References | + | ==References== |
| − | Bennis, Warren et al. Business: The Ultimate Resource. Cambridge, MA: Bloomsbury Publishing Plc, 2002. | + | *Bennis, Warren et al. Business: The Ultimate Resource. Cambridge, MA: Bloomsbury Publishing Plc, 2002. |
| − | Drucker, Peter F. Managing the Nonprofit Organization. New York, NY: HarperCollins Publishers, 1990. | + | *Drucker, Peter F. Managing the Nonprofit Organization. New York, NY: HarperCollins Publishers, 1990. |
| − | Harvard Business School. Harvard Business Review on Managing Projects. Boston, MA: Harvard Business School Pub. Corp., 2005 | + | *Harvard Business School. Harvard Business Review on Managing Projects. Boston, MA: Harvard Business School Pub. Corp., 2005 |
| − | Kelsall, Tim. "Lethal Aid: The Illusion of Socialism and Self-Reliance in Tanzania," Africa 71, no. 2 (2001): 337, http://www.questia.com/PM.qst?a=o&d=5001040555. (accessed February 27, 2007) | + | *Kelsall, Tim. "Lethal Aid: The Illusion of Socialism and Self-Reliance in Tanzania," Africa 71, no. 2 (2001): 337, http://www.questia.com/PM.qst?a=o&d=5001040555. (accessed February 27, 2007) |
| − | Kerzner, Harold. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. New York, NY: John Wiley & Sons, Inc., 2001. | + | *Kerzner, Harold. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. New York, NY: John Wiley & Sons, Inc., 2001. |
| − | Kerzner, Harold. Project Management Case Studies. Hoboken, NJ: John Wiley & Sons, Inc., 2003. | + | *Kerzner, Harold. Project Management Case Studies. Hoboken, NJ: John Wiley & Sons, Inc., 2003. |
Latest revision as of 07:26, 17 July 2008
This article originated as an article of the same name prepared by Jennifer Tavis for the NGO Handbook.
While the work of NGOs is often ongoing, there are many cases in which a special project, of limited scope and duration, is undertaken. Such projects can be anything from a fundraising drive to a peacekeeping operation to the installation of a major software upgrade. This section provides a range of methodologies that can help to ensure that such projects achieve their intended goals and have a positive impact on the NGOs that undertake them and on the constituencies those NGOs serve.
To read the rest of the article, please log in using your WANGO membership username and password (using the log in at the top, right-hand corner of the page). Not a WANGO member, but would like full access to the articles in the NGO Handbook? Join WANGO (http://www.wango.org/join.aspx) as an organization or individual member or purchase a year subscription for $30.
