Principles of Project Management and Risk

Executive summary

Project management is the practice of developing strategic planning to fulfil a particular organisational task and in this regard the project managers is responsible to sponsor the project, manage the internal activities, engage the stakeholders, involve the clients, arrange the organisational resources and develop good planning for successful project execution. The report is effective to analyse the project life cycle or phases of the projects, where it is possible for the manager to follow the phases for successful completion of the tasks. The study also provides a scope to analysis the principles of project management and review the triple constraint, to analyse the risk factors associated with the project. Through this study, it is possible to identify the risks factors as well as develop good planning of the project for successful execution. After analysing the risk factors, it would be possible to develop suggestions for the organisation to manage the project activities and make the project successful.

Introduction

In the recent era of globalisation, there is intense competition in the global business market and it is necessary for the multinational corporate firms to develop innovative projects for achieving the future success through technological advancement and creativity in business activities. The companies in this regard try to develop innovative projects at the workplace for running their operations sustainably and fulfil the organisational objectives uniquely (Radujković and Sjekavica, 2017). Project management is the process of leading the work of a team in the organisational workplace to achieve the specified goals and meet the success criteria at a specified time (Radujković and Sjekavica, 2017). The aim of the report is to analyse the principles of project management as well as identify the phases of project management. Through which it is possible for the business firms to handle their operations and fulfil the project aim and organisational objectives. The report also provides a scope to evaluate the project lifecycle, Triple constraint/project triangle, phases and risk analysis. After conducting the risk analysis, it would be possible to identify the existing risks of the project and develop suggested recommendations for the business firms to mitigate the risks and fulfil the project aim and objectives through following suitable project phases and conducting the project efficiently.

Principles of project management

The project managers must follow the principles of the project management in order to involve the stakeholders and lead them successfully towards achieving the project aim and objectives. The major principles are such as,

Formal project management structure

Engaged and Invested project sponsor

Clear objectives, goals and outcomes

Documented roles and responsibilities

Strong change management

Risk management

Mature value delivery capabilities

Performance management baseline

Communication plan

Formal project management structure is essential to start the project and involve the stakeholders successfully. It is also necessary to develop clear roles and responsibility of the staff members in the project as well as share the project aim and objectives, so that the stakeholders can feel engaged with the project and contribute with their full potential to achieve the project success. Hence, documented roles and responsibilities as well as Invested and engaged project sponsor are effective to start the project successfully (Abdulla, Alhashimi and Hamdan, 2019). Other principles of project management are change management practice, matured delivery of the project and risk management, so that it would be possible for the project manager to identify the existing project risk and develop creative solutions for managing change. Additionally, the performance management and creating good communication plan are also the principles of project management so that the project manager can fulfil their activities by enhancing internal communication and cooperation among the team members.

Triple constraint/project triangle

Triple constraint/project triangle refers to the boundaries of time, scope and cost that are essential factors to every project in the organisation. The major constraint of the project is such as the cost structure, project scope management and time. Time is the major project constraint, for which the project manager and the executives face difficulties to complete the project within the deadlines (Abdulla, Alhashimi and Hamdan, 2019). Due to lack of efficacy of the staff members, poor knowledge related to the project, lack of technological advancement and poor organisational infrastructure, the project managers and staff members face the problems related to time management in the project (Abdulla, Alhashimi and Hamdan, 2019). For mitigating the time constraint, it is essential for the project manager to review the performance of the staff and follow the time schedule and Gantt chart so that it would be possible to complete the project within allocated time.

In addition to this, project scope is another constraint if the project at the organisational workplace, where it is essential for the project manager to follow the project aims and objectives. It is also necessary to follow the work breakdown structure in order to manage the project scope and complete the tasks efficiently. The cost constraint also may hamper the project tasks, for which the project managers and staff members must be concerned about the allocated budget and project activities, so that they can control the cost structure and complete the project within the approved budget (Radujković and Sjekavica, 2017). Hence, the Triple constraint/project triangle is effect6iev to identify the project constraint, and develop creative ways to follow the time and cost structure to maximise the project scope.

Project lifestyle or Project phases

There are five phases of project management, through which it is possible for the corporate leader to implement the project and arrange organisational resources and improve capabilities to run thee project successfully and fulfil its aim and objectives. The project life cycle or project phases are discussed further (Radujković and Sjekavica, 2017).

Project conception and initiation

Project conception and initiation is the first stage of project management, where it is possible to initiate the project, identify the organisational needs and preferences and justify the needs successfully (Harold, 2021). In the initiation phase, documentation is arranged efficiently where general overview related to the objectives of the project, benefits, stakeholders engaged with the project as well as identifying the constraints, assumptions and strategies are documented successfully for providing clear and concise information to thee stakeholders (Radujković and Sjekavica, 2017). In this phase, the project manager tries to arrange the project team by hiring experienced staff and providing clear and concise information about the job role and individuals responsibilities of the staff.

Project definition and planning

Project planning is the second and crucial stage for maximising the aim of the project where the manager tries to develop work break down structure at the workplace, for running the project in a systematic way (Talman, 2018). Creating the task list through work breakdown structure as well as making the budgetary plan is mandatory for project planning. For successful execution, the reject managers try to arrange organisational resources, develop cost benefit analysis and estimate the cost of the project. Communication plan is also developed in this stage, through implementing Information and Communication Technology at the workplace and empowering the staff members in the project, so that they are encouraged to share their opinion and perform efficiently to fulfil the objective of the project (Ovetska, Ovetskyi and Vytiaz, 2021). Assigning the task to the team members is essential along with the risk assessment planning. The staff members are informed with clear job role and responsibilities to perform better. In this regard, time management is one of the effective planning, where Gantt chart is executed to follow the time table and complete the project tasks within effective time.

Hence, through project scope and budget, developing work break down structure, Gantt chart is well as communication plan, risk management, it is possible to strategies the project at the workplace. Through continuous communication and collaboration, the project managers try to develop suitable planning of the project and involve all the stakeholders to make the project successfully. In the recent era of digitalisation, there are several tools through which the project managers try to plan the project activities, which further maximise the efficacy of the staff to complete the task successfully. The major tools for project planning are such as Dashboard, Gantt chart, project management software, Kanban board, task list, project calendar, workload tool and resource management software (Silvius et al., 2017). These are the major software and computerised program, though which it is possible for the project manager to develop suitable planning to execute the project efficiently and fulfil its aim and objectives.

Project execution

Project execution is the third stage, where the project manager is concerned about executing the tasks and implementing the project efficiently. Task management is essential in this regard to involve the employees and guide them with effective information and data so that they can perform better. Following the project schedule and executing the tasks in the workplace further help the project manager to lead the employees and enhance their proficiency to perform (Teslia et al., 2018). Cost management is also essential to execute the project successfully where as per the budgetary plan, the organisational manager tries to implement the project as well as ensure schedule management so that the project tasks are executed within deadlines. In addition to this, the project managers try to focus on quality management and in this regard the quality management tool is utilised for better performance and ensure continuous improvement. Dashboard management provides a scope to track the real time activities and capture the performance quickly and this further influence the project manager to improve the quality of the project successfully (Komarova et al., 2020). Change management process is engaged in this phase, where the project managers try to manage changes for improving the business process, budget allocation, arranging organisational resources and enhancing the operational excellence. Procurement management and resource management through continuous improvement ensure to meet the quality of the project and complete the task efficiently.

Project performance and control

Performance monitoring and control is important after successful execution of the project where reporting, timesheet management and fulfilling the job roles and responsibilities are monitored well for controlling the whole process of the project (Banihashemi et al., 2017). Performance monitoring through reviewing the efficiency of the staff, following the project time table as well as reviewing the cost of the project are necessary to control the activities.

Project closure

Project closure is the final stage to fulfil the project aim and through project deliverables, confirming the completion of the project as well as releasing the resources, reviewing the documentation and monitoring the project success after completion is effective for the project manager to manage the project and maximise the organisational objective through creativity and innovation (Daniel and Daniel, 2018).

Project risks management

The risk management process of the project includes risk identification, risk assessment through probability and impacts of the risk factors as well as risk mitigation planning. Through these risk analysis, it is possible to identify the risk factors in the project and develop creative solutions to mitigate the risks successfully. The major risk factors associated with the project are such as,

Lack of clear roles and responsibilities deified in the project

Poor stakeholder involvement in the project

Cost constraint

Poor management of Gantt chart, lack of clear work break down structure

Internal conflicts

Lack of communication and cooperation

Lack of knowledge in utilising project management software

Lack of organisational capabilities

Poor organisational infrastructure and lack of resources

Lack of clarity of the project

Conclusion

Project management is a critical activity, where the project manager must involve the stakeholders and develop suitable project planning to fulfil its aim and objectives. For fulfilling the project scope, the project managers try to arrange the organisational resources and provide clear roles to the staff where continuous guidance and cooperation of the project manager further helps the employees to execute the project and utilise latest technology to manage the project and complete it within effective time and approved budget.

Recommendations

It is the responsibility of the project manager to mitigate thee excising risk factors through suitable project planning. In this regard, the project manager must utilise project management software to execute the project planning. The manager also needs to involve the stakeholders, mainly the employees and share the project roles and responsibilities with them, so that they can be engaged with the project and develop suitable planning to work collaboratively to meet the ultimate goal. It is also essential for the project manager to develop cost structure and Gantt chart to maintain schedule of the project to mitigate the risk of project delay and cost constraint. Additionally, it is also necessary for the project manager to provide training and development program to the staff to enhance their efficacy and knowledge regarding the particular project as well as manage change at the workplace. Implementing ICT and other communication tools is mandatory to enhance communication and ensure partnership working practice so that it would be possible to meet the project aim uniquely.

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Reference List

Abdulla, H., Alhashimi, M. and Hamdan, A.M., 2019. The Impact of Project Management Methodologies on Project Success: A Case Study of the Oil and Gas Industry in the Kingdom of Bahrain. In Handbook of Research on Implementing Knowledge Management Strategy in the Public Sector (pp. 418-437). IGI Global.

Banihashemi, S., Hosseini, M.R., Golizadeh, H. and Sankaran, S., 2017. Critical success factors (CSFs) for integration of sustainability into construction project management practices in developing countries. International Journal of Project Management, 35(6), pp.1103-1119.

Daniel, P.A. and Daniel, C., 2018. Complexity, uncertainty and mental models: From a paradigm of regulation to a paradigm of emergence in project management. International journal of project management, 36(1), pp.184-197.

Harold, K., 2021. Project management: case studies. New York: John Wiley & Sons, Inc..

Komarova, V.V., Nekrasova, O.I., Zlobina, O.G. and Milaia, A.V., 2020, March. Principles and Methods of Project Management in Organization. In International Scientific Conference" Far East Con"(ISCFEC 2020) (pp. 2190-2196). Atlantis Press.

Ovetska, O., Ovetskyi, S. and Vytiaz, O., 2021. Conceptual principles of project management for development of hydrate and other unconventional gas fields as a component of energy security of Ukraine. In E3S Web of Conferences (Vol. 230, p. 01021). EDP Sciences.

Radujković, M. and Sjekavica, M., 2017. Project management success factors. Procedia engineering, 196, pp.607-615.

Silvius, A.G., Kampinga, M., Paniagua, S. and Mooi, H., 2017. Considering sustainability in project management decision making; An investigation using Q-methodology. International Journal of Project Management, 35(6), pp.1133-1150.

Talman, J., 2018. Enhancing Teamwork in Group Projects by Applying Principles of Project Management. In Innovations in Teaching & Learning Conference Proceedings (Vol. 10).

Teslia, I., Yehorchenkov, O., Khlevna, I. and Khlevnyi, A., 2018. Development of the concept and method of building of specified project management methodologies. Восточно-Европейский журнал передовых технологий, (5 (3)), pp.6-16.