Achieving Stakeholder Satisfaction Through Project Control

This article is another excerpt from one of my favorite Project Management books: The Portable MBA in Project Management by Eric Verzuh.

The project control process is designed to spot problems early, while they are still small enough to correct. It is an iterative feedback loop in which the project manager uses measurement and testing to evaluate deviations from the plan as to cost, schedule, quality, and risk. These deviations may or may not result in corrective action. The key is to monitor closely enough and often enough to spot such deviations before they get out of control. There are five steps in the project control process:

1. Define what will be measured and/or tested and how often. This should incorporate business requirements, cost constraints, technical specifications, and deadlines, along with a preliminary schedule for monitoring that includes who is responsible for it.
2. Monitor progress and evaluate deviations from the plan. During each reporting period, two kinds of information are collected:  (1) Actual project data, which include time, budget, and resources used, along with completion status of current tasks.  (2) Unanticipated changes, which include changes to budget, schedule, or scope that are not results of project performance. For example, heavy rain may delay the completion of a housing project.  Earned value analysis, described later in this chapter, is a useful method for evaluating cost and schedule deviations.
3. Report progress. Keep reports succinct and timely. Do not delay a report until after a problem is “fixed” to make the report look better. Likewise, avoid lengthy reports that delay the dissemination of important information to others in the organization.
4. Analyze the report. Look for trends in the data. Avoid trying to “fix” every deviation. If there is no trend to the deviation, it likely does not require corrective action at this time.
5. Take action where necessary. This includes updating the project plan and notifying any stakeholders who are affected by the changes. If the changes are big enough, they will require stakeholder approval in advance.

Stakeholders Influence Project Control

The factors that a project manager monitors and reports on to stakeholders depend on who the stakeholders are. For example, consider a major upgrade to computer systems at an international airport. Stakeholders on this project include the Federal Aviation Administration and several major airlines. The FAA is concerned most with safety and wants to see data that show the project is meeting objectives to prevent computer system failure in the future. The airlines are also concerned about safety, but they are equally concerned about the amount of airport downtime during the project because they want to minimize the amount of time their planes stay onthe ground. The project manager must monitor both safety, which is the primary objective of the project, and airport downtime, which occurs because of the project itself.

Another example of the influence stakeholders have on project reporting is determining reporting periods. Reporting periods define the frequency that progress is formally monitored and a status report is produced. The size, speed, and complexity ofthe project influences length ofa reporting period, but so do stakeholders. Consider these factors:

• The need for information at the executive level: This information usually relates to big picture questions such as “Will we deliver on time?” or “Are we on budget and on schedule?” Project managers demand and use monitoring information more frequently than executives, but knowing when their superiors expect accurate updates will affect the monitoring cycle.
• New information about activities or schedule: The project schedule will change. As the project progresses, the project team gets a better picture of what is required to complete the project and can, therefore, improve its original estimates. Ifstakeholders dictate an aggressive schedule, more frequent reporting will uncover significant deviations sooner. Because trends are more useful for understanding a project’s trajectory, frequent reporting periods provide earlier warnings that schedule targets may be missed.
• Resource mix: Changes in the quality or quantity of resources assigned to a project can have dire consequences on the team’s ability to complete it on time and on budget. The monitoring plan can allow you to stay on top of getting the right people, materials, and equipment to the right place at the right time.
• Major events: Whether positive or negative, major events can change the assumptions on which the project objectives are based. Many major events that will affect the project are known in advance. These can include the end of a project phase, selection of a major subcontractor, and external events such as political elections. You know the event is important to the project, so schedule time to assess the impact. 

Related posts:

1. Maintaining Project Control
2. Agile Project Management
3. What is Risk?
4. Project Management on a Budget
5. What if…There was No Project Management?