1

Unit One
An Overview of Project and Project Cycle
 Outline

⚫ What is a project?
⚫ Reasons for project planning
⚫ Steps involved in proper project
planning
⚫ Project lifecycle
⚫ Project cycle management tools
⚫ Project success factors
⚫ Project risk management
 What is a
project ?

⚫ A project is a temporary endeavor with a

defined beginning and end period,

undertaken to meet unique goals and
objectives.
⚫ A series of activities aimed at bringing

about clearly specified objectives within

a defined time period and with a defined
budget.
 What is a
project ?

⚫ Project goals are broad, overarching

statements that define what the project aims
to accomplish in the long run.
 Focus: the desired end result
 Example: Improve customer satisfaction
Increase sales
 What is a
project ?

⚫ Project objectives are SMART statements

that outline how the project will achieve its

goals.
• Focus: the steps , activities or tasks
required
 Example: Reduce customer complaint
response time by 30% within the next six
months
 Increase online sales revenue by 15%
 What is a
project ?

 Specific: Clearly define what needs to be

achieved.
 Measurable: Include criteria or KPIs to
track progress.
 Achievable: Ensure objectives are realistic
within constraints like time and resources.
 Relevant: Align objectives with
overarching project goals.
 Time-bound: Set a clear deadline for
 Project planning

⚫ Planning is a fundamental management

function that involves determining in
advance
 what activities need to be
accomplished,
 when they should occur,
 how they will be carried out, and
 by whom
to attain the specified
objectives.
 Project planning

⚫ Key features of planning:

 Goal-oriented: Planning focuses on
defining project goals and identifying
actions to achieve them.
 Decision-making: It involves logical
thinking and rational decision-making
to select the best course of action
among alternatives.
 Continuous process: Planning is
ongoing, adapting to changing
circumstances and ensuring alignment
with objectives.
 Reasons for project
planning
⚫ The reasons for planning are:
 To minimize uncertainties
 To increase the effectiveness and

efficiency of operation
 To work towards a common goal
 To establish a means of project
monitoring and control
 Activity Plan

⚫ Define the activities and tasks needed to achieve our

goal/objective
⚫ Organize & prioritize activities and tasks
⚫ Identify which tasks depend on others
⚫ Assign team members to activities
⚫ Define dates to begin and finish
Activity Plan
 Steps in project planning

⚫ Project planning is a structured process

that involves defining objectives, strategies,
schedules, and budgets to achieve project
goals.
1. Define Objectives
 Clearly identify the project's desired
outcomes.
 Use SMART criteria (Specific, Measurable,
Achievable, Relevant, Time-bound) to
ensure objectives are actionable.
 Steps in project planning:

2. Develop a Strategy
• Outline the paths to be followed and
actions to be taken to achieve the
objectives
• Create a Work Breakdown Structure
(WBS) to divide the project into
manageable activities and tasks.
• Assign roles and responsibilities to team
members based on their skills
 Steps in project planning:

3. Create a Schedule
• Establish a timeline for tasks and
milestones using tools like Gantt charts
or calendars.
• Define start and end dates for each task
while considering dependencies between
the tasks
4. Determine the Budget
• Estimate costs for labor, materials, and
other expenses.
• Allocate funds for each phase of the
project and include contingencies for
Steps in project planning
 Steps in project planning:

5. Assess risks
• Identify potential risks that could impact
timelines, costs, or quality.
• Develop mitigation strategies for each risk
identified
6. Stakeholders mapping and
communication
• Share the project plan with stakeholders
to align expectations
 Steps in project planning:

 Stakeholder mapping is categorizing

stakeholders based on their level of
influence and interest in the project.
• High Influence, High Interest: closely
manage
• High Influence, Low Interest: keep
satisfied with regular updates.
• Low Influence, High Interest: keep
informed about project progress.
• Low Influence, Low Interest: monitor
with occasional updates
 Project scheduling

⚫ Split project into activities and estimate time and resources

required to complete each activity
⚫ Organize activities concurrently to make optimal use of
workforce
⚫ Minimize activity dependencies to avoid delays caused by one
activity waiting for another to complete
 Project Management
• Project management is the structured process
of planning, organizing, and supervising tasks
to achieve specific goals within defined
constraints such as scope, time, and budget.
Core areas of project management
1. Scoping: Identifying project objectives,
estimating resources, and securing budgets.
2. Planning and delivery: Developing project
plans, assigning tasks, monitoring progress,
and resolving bottlenecks.
3. Reporting and closure: Communicating
updates to stakeholders, managing budgets,
and conducting post-project reviews
 Benefits of project management

 Improved time and budget management -

Ensures projects are completed within the
allocated time and budget
 Enhanced productivity - Provides clear
roadmaps, enabling teams to focus on tasks
without wasting time deciding what to do next
 Optimizes workflows to improve the overall
quality of work
 Risk identification and its better
management - Identifies potential risks early,
allowing mitigation before they escalate
 Benefits of project management

 Improved communication and

collaboration
 Facilitates clear communication
 Promotes accountability and transparency
 Increased customer satisfaction

 Strategic Alignment - Aligns projects with

organizational goals
 Competitive advantage – delivering
superior products or services while
maintaining efficiency
 Project success factors

⚫ Stakeholder involvement
⚫ Executive management support
⚫ Clear statement of requirements
⚫ Proper planning
⚫ Realistic expectations
⚫ Competent, hard working and focused
staff
⚫ Ownership
⚫ Clear vision and objectives
 The triple constraint

⚫ It is the interdependence of time, scope, and

cost.
 Scope: deliverables and activities required
to achieve a project's goals.
 Time: schedule or timeline for completing
the project. It includes deadlines and
milestones that must be met
 Cost: budget allocated for the project, which
determines the resources available for its
execution
 The triple constraint

How the Triple Constraint Works

⚫ Any change to one constraint affects the other
two
 Scope and time: Reducing the project scope
can shorten the project duration, while
increasing the scope may require more time.
 Scope and cost: Expanding the scope typically
increases costs, while reducing scope can lower
costs.
 Time and cost: Shortening the project timeline
often requires additional resources, increasing
costs
The triple constraint
 Project Lifecycle (PLC)

o The project lifecycle is a structured

framework that outlines the stages a
project undergoes from initiation to
completion.
 It typically consists of four or five phases
1. Initiation stage
 Define project goals, objectives, scope,
feasibility and success criteria
 Identify stakeholders and resources
required
2. Planning stage
 Develop a detailed project roadmap or
action plan.
 Outline tasks, timelines, resource
1/25/2019
 Project Life Cycle (PLC)

3. Execution stage
 Implement the project plan by performing the
tasks outlined.
 Maintain effective communication and
coordination to achieve deliverables
4. Monitoring and controlling stage
• Track project progress, identify any
deviations and make necessary adjustments
to keep the project on course.
5. Closure stage
 Complete all project tasks, obtain client
approval and conduct a thorough review to
capture valuable insights for future projects.
1/25/2019
 Project Cycle Management (PCM): Key
Tools and Approaches

 PCM is a structured approach to

managing projects from initiation to
completion, ensuring that objectives are
met efficiently, within budget, and on time.
1. Logical Framework Approach (LFA)
• It is a widely used tool in PCM.
• It outlines project goals, objectives,
activities, indicators, and assumptions.
• It is typically presented as a matrix, helps
to align goals with measurable outcomes.
 Project Cycle Management (PCM): Key
Tools and Approaches

Relationship Between Objectives and Outcomes

• Project objectives are specific, measurable,
achievable, relevant, and time-bound (SMART)
goals that a project aims to achieve.
• Objectives provide a clear direction for the scope
of work.
• Project outcomes are the changes or results that
occur as a result of achieving the project objectives.
• Outcomes demonstrate the impact of the project
and are often used to evaluate its success.
• Objectives lead to outcomes: Project objectives
are the steps or achievements needed to reach the
desired project outcomes.
 Project Cycle Management (PCM): Key
Tools and Approaches

2. Quality Assessment Criteria

• Quality assessment criteria ensure that
projects meet established standards and
objectives.
• These criteria often include:
 Alignment with organizational goals
 Stakeholder satisfaction
 Adherence to timelines and budgets
 Risk management effectiveness
 Project Cycle Management (PCM): Key
Tools and Approaches
3. Institutional Capacity Assessment
• Institutional capacity assessment evaluates an
organization's ability to implement and sustain
projects.
• This involves analyzing:
 Human resources (skills and expertise)
 Financial resources (budget availability)
 Infrastructure (tools and technologies)
 Governance structures (decision-making
processes).
• Such assessments often use surveys and SWOT
analyses.
 Project Cycle Management (PCM): Key
Tools and Approaches

4. Economic and Financial Analysis

• Financial analysis is conducted from the
perspective of investors or beneficiaries.
• Its primary goal is to assess whether the
project provides a reasonable return on
investment.

• Economic analysis takes a broader perspective,

focusing on the project's impact on the entire
economy and society.
• It aims to determine whether a project
contributes positively to national economic
welfare.
 Project Cycle Management (PCM): Key
Tools and Approaches

5. Promoting Participatory Approaches

• Participatory approaches involve stakeholders
at all stages of the project cycle to enhance
ownership and relevance.
• Techniques include:
• Workshops for collaborative planning.
• Feedback mechanisms during implementation.
• Community engagement for monitoring and
evaluation.
 PCM helps to ensure that

 Projects are part of the country policy

objectives
 Projects are relevant to the real problems
of target groups /beneficiaries
 Projects are feasible (objectives are
realistic)
 Managing the scope of the project

⚫ Project scope management is the processes to

ensure that the project includes all of the

work required to complete the project
successfully.
 Governmental projects

⚫ Legal constraints on government projects

 Laws, statutes, directives, regulations,
budgets, and policies
⚫ Accountability to the public
 Accountable to legislative & judicial bodies,

interest groups, the press and the public

⚫ Utilization of public resources
 Objective is provision of public good
 Project Risk Management

 Risk is a situation where there are more than

one possible outcomes to a decision and the

probability of each specific outcome is known
or can be estimated.
 Role of Risk Management

⚫ This encompasses the overall process of

managing risks, including identifying,
analyzing, mitigating, reporting, and
monitoring risks

1. Risk identification - This involves

documenting potential risks and
categorizing the actual risks a project can
face.

2. Risk appraisal - Once risks are identified,

they need to be analyzed to determine their
 Role of Risk Management

3. Focus on the downside of risk - RM

primarily focuses on mitigating the negative
impacts of risks, which are often referred to
as the "downside" of risk.
4. Exploit opportunities arising from risks -
RM also involves identifying and exploiting
opportunities that arise from risks.
• Risk-taking for strategic advantage
• Innovation and adaptation
 Three types of risks

1. Risk that can be eliminated

2. Risk that can be transferred
3. Risks that can be managed by the
institution
⚫ Risk in itself is not bad; risk is essential to
progress, and failure is often a key part of
learning.
⚫ But we must learn to balance the possible
negative consequences of risk against the
potential benefits of its associated
opportunity.
⚫ That is why we need to manage risk.
1/25/2019
 Qualitative Vs. Quantitative Risk
Analysis
 Risk analysis involves evaluating potential
risks to determine their likelihood and impact.
 There are two primary approaches to risk
analysis: qualitative and quantitative.
 Qualitative risk analysis relies on expert
judgment and subjective assessments to
evaluate risks.
 It is faster to implement and can be
performed with minimal data.
 But, the assessment can be influenced by
personal biases and experiences of the
evaluators.
41
 Qualitative Vs. Quantitative Risk
Analysis

⚫ Quantitative risk analysis uses numerical

data and statistical methods to assess risks.
 It aims to assign objective, measurable
values to risks.
 It provides more objective and detailed
information, making it suitable for critical
decisions.
 It requires advanced tools and expertise,
making it more complex and time-
consuming.
 It highly dependent on the availability of
reliable and accurate data. 41
 Risk Quantification Tools and
Techniques
 Risk quantification tools and techniques are
essential for identifying, analyzing, and
managing risks in projects.
 Some key tools and techniques:
1. Top ten risk item tracking
2. Expert judgment
3. Risk matrix
4. Delphi technique
5. SWOT Analysis

41
 Top Ten Risk Item Tracking

⚫ This is a qualitative risk analysis tool used to

identify and monitor the top ten risks in a project
over time.
⚫ It involves periodic reviews of the top risks,
tracking their rankings, frequency of appearance,
and progress made in resolving them.
⚫ Steps:
1. Identify risks: List all potential risks that could
affect the project.
2. Rank risks: Assess each risk based on its
likelihood and potential impact, then rank them
accordingly.
3. Select top ten: Choose the ten highest-ranked
risks for special attention.
4. Monitor and review: Regularly review 42the top
 Example of Top 10 Risk Item
Tracking
Let's say you're managing a construction
project
Risk item Current
ranking
Previous
ranking
Number of Risk resolution
times on list progress
Weather Delays 1 2 5 Implemented weather-
resistant materials.
Supply Chain Disruptions 2 1 6 Established backup
suppliers.
Labor Shortages 3 3 4 Increased recruitment
efforts.
Budget Overruns 4 5 3 Conducted cost-benefit
analysis.
Regulatory Changes 5 4 2 Engaged legal counsel
for compliance.
Equipment Failure 6 6 5 Scheduled regular
maintenance.
Environmental Concerns 7 8 3 Conducted
environmental impact
study.
Project Scope Creep 8 7 4 Established clear scope
boundaries.
Stakeholder Conflict 9 9 2 Facilitated stakeholder
meetings.
Cybersecurity Threats 10 New 1 Implemented
cybersecurity measures.

42
 Expert Judgment

⚫ Many organizations rely on the intuitive

feelings and past experience of experts to
help identify potential project risks.
⚫ Experts can categorize risks as high,
medium, or low with or without more
sophisticated techniques.

44
 Risk matrix

⚫ A visual tool that categorizes risks based on

their likelihood and impact.

⚫ Helps prioritize risks by assigning them to

different levels of severity for mitigation
planning.

44
 Delphi Technique

⚫ Involves gathering opinions from a panel of

experts to reach a consensus on risk-related
issues.

⚫ Useful for estimating impacts and

probabilities in complex scenarios.

44
 SWOT Analysis

⚫ Focuses on identifying strengths, weaknesses,

opportunities, and threats related to a
project.

⚫ Helps pinpoint vulnerabilities that could lead

to risks.

44
 Decision Trees and Expected
Monetary Value
(EMV)
⚫ A decision tree is a diagramming method used
to help you select the best course of action
in situations in which future outcomes are
uncertain.
⚫ EMV is a type of decision tree where you
calculate the expected monetary value of a
decision based on risk event probability
and monetary value.

45
Expected Monetary Value (EMV)
Example

46
 Risk Response Strategies

⚫ After identifying and quantifying risk, we must

decide how to respond to them.
⚫ Some risk response strategies for threats:
o Risk avoidance
o Risk transference
o Risk Mitigation
o Risk Acceptance
 Some risk response strategies for

opportunities:
o Exploit
o Share
o Enhance
47
 Risk Response Strategies: For Threats

 Risk avoidance: eliminating a specific

threat or risk, usually by eliminating its
causes.
 Risk can be avoided by removing the cause of
the risk or executing the project in a
different way while still aiming to achieve
project objectives.
⚫ Not all risks can be avoided or eliminated,
and for others, this approach may be
too expensive or time‐consuming.
⚫ However, this should be the first strategy
considered.
48
 Risk Response Strategies: For Threats

 Risk transference: shifting the consequence

of a risk and responsibility for its management
to a third party.
⚫ It involves finding another party who is
willing to take responsibility for its
management, and who will bear the liability of
the risk should it occur.
⚫ The aim is to ensure that the risk is owned and
managed by the party best able to deal with it
effectively.
⚫ Risk transfer usually involves payment of a
premium, and the cost‐effectiveness of this
49
 Risk Response Strategies : For Threats

 Risk mitigation: reducing the impact of a risk

event by reducing the probability of its
occurrence.
⚫ Risk mitigation reduces the probability and/or
impact of an adverse risk event to an acceptable
threshold.
⚫ Taking early action to reduce the probability
and/or impact of a risk is often more effective than
trying to repair the damage after the risk has
occurred.
⚫ Risk mitigation may require resources or time and
thus presents a trade-off between doing nothing
versus the cost of mitigating the risk.
50
 Risk Response Strategies: For
Threats
 Risk acceptance: accepting the
consequences should a risk occur.
⚫ This strategy is adopted when it is not
possible or practical to respond to the
risk by the other strategies, or a response
is not warranted by the importance of the
risk.
⚫ When the project manager and the project
team decide to accept a risk, they are
agreeing to address the risk if and when it
occurs.

51
Risk Response Strategies: For
Opportunities
⚫ Exploit : The aim is to ensure that the
opportunity is realized.
⚫ This strategy seeks to eliminate the
uncertainty associated with a particular
upside risk by making the opportunity
definitely happen.
⚫ Exploit is an aggressive response strategy,
best reserved for those “golden
opportunities” having high
probability and impacts.

52
 Risk Response Strategies: For
Opportunities

⚫ Share : Allocate risk ownership of an

opportunity to another party who is best
able to maximize its probability of
occurrence and increase the potential
benefits if it does occur.
⚫ Transferring threats and sharing
opportunities are similar in that a third
party is used.
⚫ Those to whom threats are transferred take on
the liability and those to whom opportunities
are allocated should be allowed to share in
the potential benefits.
53
 Risk Response Strategies: For
Opportunities
⚫ Enhance: This response aims to modify the
“size” of the positive risk.
⚫ The opportunity is enhanced by increasing its
probability and/or impact, thereby maximizing
benefits realized for the project.
⚫ If the probability can be increased to 100
percent, this is effectively an exploit response.

54