Effective rotary project_management
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This document summarizes a presentation given at a 2013 Rotary International convention about effective project management. It discusses a project in Kenya called the Maji Mazuri Project that established a sanctuary for AIDS orphans. The project utilized international project management standards to plan for self-sufficiency in areas like energy, water, food, and commerce. It created a detailed work breakdown structure with dependencies to guide execution and control costs and schedule. The project highlights the importance of sustainability and post-project support.
Effective rotary project_management
- 1. 2013 RI CONVENTION Effective Project Management (& The Maji Mazuri Project) Fred Abrams, PMP, CPL – Rotary Club of Dayton Ohio USA Rakhee Kantaria – Rotary Club of Muthaiga, Nairobi, Kenya
- 2. 2013 RI CONVENTION Session Objective • Understand how to apply the international (ISO) standards for effective project management to volunteer-run Rotary projects: – Planning for control of cost and schedule – Managing risks that can derail the project • Become the best possible steward of the donated money you are spending.
- 3. 2013 RI CONVENTION Session Outline • Defining the project • What Rotary says about project management • The ANSI/ISO Standard for project management • Managing the Maji Mazuri Project • Lessons Learned
- 4. 2013 RI CONVENTION The Project Scope • 1997 Visit To Kenya By Dayton Rotary – Goal: A Project to Help Vulnerable Children – Beneficiary Organization – Primary host for visit – Picked a Host Nation Rotary Club Partner – Defined the project • Five Years and Three Rotary Matching Grants in Execution – Total (RI and non-RI) Budget: $368,217 • RI Grant Content: $211,295 • Outside of RI Grants: $156,922 – Managed as one consolidated project
- 5. 2013 RI CONVENTION The Challenge What We Found and How to help? Vulnerable Children – AIDS Orphans Surviving in The Mathare Valley Slum
- 7. 2013 RI CONVENTION How To Help ? • Changing The Slum? – Overwhelming Challenge • Helping The Children? – Rescue Kids and Establish A Sanctuary • Safe and Self-Sufficient – Provide Quality Healthcare and Education
- 8. 2013 RI CONVENTION Some Project Highlights • Visit By RI President Banerjee – Dec 2011 – First project featured in his opening plenary comments in Bangkok (June 2012) • Feature in “The Rotarian” March 2012 • Visit by RI President Tanaka – July 2012
- 10. 2013 RI CONVENTION Rotary Foundation Guidance • RI Document 605A – “Communities In Action – A Guide to Effective Projects” – Top Level Guidance • RI Document 1000 – new in 2012 – “Grant Management Manual” – Focus on new “Global Grants” – Chapter 3 is project management – Sustainability Required
- 11. 2013 RI CONVENTION RI Document 605A (A Guide To Effective Projects) • Chapter 2 – Choosing A Project – Fit the overall interest of the club – Sustainable: long term solutions to chronic problems • Chapter 3 – Making A Plan (4 pages) – Scope appropriate to club’s resources – Project Work Plan & Detailed Budget • Tasks, responsibilities, resources, budget, timing • Chapter 4 – Taking Action – Raising Funds – Managing Activities (especially managing volunteers)
- 12. 2013 RI CONVENTION RI Document 1000 • Chapter 1 – Planning a Global Grant Project – Develop Project Plan (Sustainable Solutions) – Financial Management Plan (Budget/Financing) • Chapter 3- Implementing, Monitoring, Evaluating (2 pages) – Monitor how closely you are following the plan, adjust – Evaluate against goals – Disciplined financial recordkeeping – Have technical reviews and site visits
- 13. 2013 RI CONVENTION What Does Rotary mean by Sustainability? • Economic – Self-Sufficient Operations • Environmental – Local resources and Low Pollution • Cultural – Include local leaders and diverse cultures • Social – Training to prepare workers, men and women
- 14. 2013 RI CONVENTION International Standard For Project Management • The Project Management Institute (PMI) – Source of ANSI/ISO Standard (www.pmi.org) – Guide to The Project Management Body of Knowledge – PMBOK® Guide (587 Pages) – Training and International Certification in the standards (Project Management Professional –PMP) • Some Key Elements of Effective Project Management • Rigorous Requirements Process and Scope Definition • Rigorous planning considering dependencies and risks – Based on, and controlled by a Work Breakdown Structure-WBS • Project Scope is controlled, Changes are analyzed
- 15. 2013 RI CONVENTION The Work Breakdown Structure -WBS • Foundation of Effectively Planning, Executing and Controlling Projects • Logical Grouping of the work to be done – All work on a specific element is under one heading – Not necessarily a timeline listing • Costs, Schedules, Responsibilities and Risks are tied to individual lines in the WBS – Work Packages – each with a budget and risk analysis – Dependencies among WBS activities is depicted • Schedule reflects dependencies
- 16. 2013 RI CONVENTION Why Projects Fail - Two Key Reasons • Planning did not consider risks to cost and schedule and adjust accordingly • Once planned, the scope of the project was not controlled in a disciplined manner – Changes made without re-planning and modifying the WBS and its work packages
- 17. 2013 RI CONVENTION Defining Our Project • The Beneficiary Organization – Maji Mazuri: 20+ years of success – Head-start Center and Micro-enterprise in the Slum – Owned Farmland in countryside SW of Nairobi • Ambitious Goal – Create a self-sufficient sanctuary for AIDS orphans rescued from the slum • Energy, Water and Food Self-Sufficient • Cost Reducing and Revenue Generating Business Model – Farm industry and a Farm industry Building • Provide Health Care and Education – Long Term: Build and equip a clinic and school
- 18. 2013 RI CONVENTION Determining The Scope - Sustainability • Cannot depend on charity to operate site • Economic: Reduce Costs of Operation – Diesel Generator for electric to pump water • Replace with Wind and Solar (Environmental Sustainability) – Cooking Fuel – wood and charcoal • Replace with bio-gas (Environmental Sustainability) – Food for children – extensive purchases • Increase on-site food production – Barn and Animals – Irrigation (efficient micro-drip) – Assure adequate water (pumping and rainwater harvest) – Greenhouses for high yields
- 19. 2013 RI CONVENTION Sustainability • Develop Sources of Revenue – Water Sales – Farm Product Sales – Farm Services Sales
- 20. 2013 RI CONVENTION Self-Sufficiency: Emphasis on Sustainability • Food Self-Sufficiency – Needs Water – Need Water Self-Sufficiency • For People – Water Purity Essential • Crops and Animals – Efficient Use Essential – Need Barn and Greenhouses – Needs Cooking Fuel –Need Self-Sufficiency • Dependence on wood and charcoal expensive – Needs Cooking and Serving Equipage – Needs Refrigeration • Needs electricity
- 21. 2013 RI CONVENTION Our Top Level WBS • 1.0 Management • 2.0 Energy Self-Sufficiency • 3.0 Water Self-Sufficiency • 4.0 Facilities and Infrastructure • 5.0 Food Self-Sufficiency • 6.0 Child Health • 7.0 Education & Training • 8.0 Commerce (Revenue Generation)
- 22. 2013 RI CONVENTION Management Dimensions • 1.1 Project Management – 1.1.1 Project Plans – 1.1.2 Project Meetings • 1.1.2.1 Local (Dayton) • 1.1.2.2 On Site (Kenya) • 1.2 RI Grant Management – 1.2.1 Grant Proposals – 1.2.2 Grant Reporting • 1.3 Financial Management – 1.3.1 Fund Raising – 1.3.2 Budget Execution • 1.4 Website Management
- 23. 2013 RI CONVENTION Our WBS – Detail Examples • 2.0 – Energy Self-Sufficiency – 2.1 Electrical • 2.1.1 Wind Turbine • 2.1.2 Solar Cells • 2.1.3 Charge Controller and Battery Bank • 2.1.4 Inverter • 2.1.5 Power Distribution • 2.1.6 Building wiring and lighting – 2.1.6.1 Existing Structures – 2.1.6.2 New Barn – 2.1.6.3 New Farm Industry Building – 2.1.6.4 New Clinic – 2.1.6.5 New School – 2.2 Fuel • 2.2.1 Animal Bio Gas Plant – 2.2.1.1 Anaerobic Digester – 2.2.1.2 Bio Gas Distribution – 2.2.1.3 Bio Gas Stoves • 2.2.2 Bio Gas Toilets – 2.2.2.1 Anaerobic Digester – 2.2.2.2 Bio Gas Distribution – 2.2.2.3 Bio Gas Bladder Storage • 2.2.3 Generator Conversion to Diesel/Biogas • 2.2.4 Bio Gas Sales Note: Construction Non RI Budget Segregation
- 24. 2013 RI CONVENTION Our WBS – Detail Level • 3.0 Water Self Sufficiency – 3.1 Borehole • 3.1.1 Pump • 3.1.2 De-Fluoridation – 3.2 Rainwater Harvest • 3.2.1 Collection & Storage – 3.2.1.1 Existing Buildings – 3.2.1.2 New Barn – 3.2.1.3 New Farm Industry Building – 3.2.1.4 New Clinic – 3.2.1.5 New School • 3.2.2 Pumping • 3.2.3 Chlorination – 3.3 Micro-Drip Irrigation • 3.3.1 Phase One • 3.3.2 Phase Two – 3.4 Solar Hot Water • 3.4.1 Phase One • 3.4.2 Phase Two
- 25. 2013 RI CONVENTION The Planning Process • Have a good definition of dependencies • Application to this project – Food and Subsistence Depends on Water – Water Supply depends on • Collection and Ability to Pump and Store – Ability to Pump depends on electricity • Cannot afford to run diesel generator • Top Priorities – Phase One – Electric Power – Wind and Solar – Rainwater Harvest – Micro-drip Irrigation for crop yields – Build a barn for animals
- 26. 2013 RI CONVENTION Water Self-Sufficiency Food Self-Sufficiency Cooking Grow Food Crops Water Self-Sufficiency Food Self-Sufficiency Cooking Water Self-Sufficiency Food Self-Sufficiency Grow Food Crops Cooking Water Self-Sufficiency Food Self-Sufficiency Grow Food Crops Cooking Water Self-Sufficiency Food Self-Sufficiency Water Self-Sufficiency Food Self-Sufficiency Grow Food Crops Water Self-Sufficiency Food Self-Sufficiency Grow Food Crops Water Self-Sufficiency Food Self-Sufficiency Cooking Grow Food Crops Water Self-Sufficiency Food Self-Sufficiency Raise Animals Power
- 27. 2013 RI CONVENTION Electrical Power Rainwater Harvest Irrigation Barn Water Self-Sufficiency Borehole Pump Grow Animal Feed Animals Manure Distribution Pump Bio-Gas Plant Food Self-Sufficiency Cooking Grow Food Crops Fertilizer Eggs Milk MeatDe-Fluoridation Chlorination Equip Kitchen/ Dining Hall RI Grant Funded Outside of Grant Methane Water Self-Sufficiency Food Self-Sufficiency Cooking Water Self-Sufficiency Food Self-Sufficiency Grow Food Crops Cooking Water Self-Sufficiency Food Self-Sufficiency Grow Animal Feed Grow Food Crops Cooking Water Self-Sufficiency Food Self-Sufficiency Water Self-Sufficiency Food Self-Sufficiency Grow Food Crops Water Self-Sufficiency Food Self-Sufficiency Grow Animal Feed Grow Food Crops Water Self-Sufficiency Food Self-Sufficiency Cooking Grow Animal Feed Grow Food Crops Water Self-Sufficiency Food Self-Sufficiency Borehole Pump Rainwater Harvest Borehole PumpBorehole Pump Rainwater Harvest Borehole Pump
- 28. 2013 RI CONVENTION Agile Project Management (For Those Familiar with Project Management) • We actually used agile techniques – A detailed planning horizon • The entire five year project was laid out at the beginning in three phases (and grants) • 1.Electrical and Water projects (including irrigation) plus barn • 2.Bio Gas, Solar Hot Water, Greenhouses, Road, Farm industry • 3.Constructing and Equipping Clinic and School • Detailed planning commenced as we progressed closer to the planning horizon – Asked: Does anything from prior phase need more attention? (…and it did!)
- 29. 2013 RI CONVENTION Issues • Rotary International Money cannot be spent on construction (e.g. building the barn) or on interior finishing of a structure (e.g. wiring for lights inside a building). • Resolution – Find a donor to pay for construction of barn – Mid Term: Donor for Farm Industry Building – Long Term: Donors for clinic and school – Use Dayton Rotary funds for wiring
- 31. 2013 RI CONVENTION Self-Sufficiency - Food • Barn: Get Bid, Raise Money, Contract – Outside of RI Grant – Non-Rotarian Donor • Greenhouses (Frame and Plastic-not construction) – Place in next grant application – Include rainwater harvest, irrigation, bug screens • Animals: Provide after Barn Built – Heifer International • Church Adoption of Project via Heifer – Rotary Inner Wheel, other donors.
- 33. 2013 RI CONVENTION Self-Sufficiency -Food • Implement Bio-Gas for cooking – Anaerobic Digester for cow manure • Put in second grant application – Expand to Bio-Gas Toilets • Put in long-term plan (third grant) – Bladder Storage of methane • Put in long term plan (unfunded option) – Increased Capacity and pump to allow sales • Put in long term plan (unfunded option)
- 34. 2013 RI CONVENTION Self-Sufficiency - Food • Provide for farm industries – Processing crops – Preparing animal feed • Silage Production, Hay baling • Sunflower seed processing – Sell services for revenue generation – Construct a farm industry building • Outside of RI Grant
- 35. 2013 RI CONVENTION Economic Sustainability Inter-relationships • Grow Sunflowers/Harvest Seeds – Use Rotary Provided Press to extract oil • Use oil for cooking – reduce expense of purchase • Make “Sun Butter” – Consume or sell • Sell oil not needed – generate revenue – Use residue as chicken feed • Reduce cost of feeding chickens • Eggs and meat for children – reduce food costs • Sell excess in marketplace – generate revenue
- 36. 2013 RI CONVENTION The Big Plan • Expand Irrigation as water availability increases • Provide solar hot water for kitchen and hand washing • Add refrigeration and freezer
- 37. 2013 RI CONVENTION New Demands - (Scope Increases) • Greenhouses very successful – Double the number • Power demands grow more than expected – Increase solar and batteries, larger inverter and decrease pump electrical load
- 38. 2013 RI CONVENTION Risk Management (Beyond Technical Risks) • Risks can be negative or opportunity • Task Duration – How long will something take • Especially where other tasks depend on it’s completion to start • Task Cost – Changes in exchange rate and Cost Inflation • From Quote to Funds Available – Contingency Reserve in quotes • Risk is the product of the likelihood it happens and the impact if it happens. • Identified Risks should be constantly monitored
- 39. 2013 RI CONVENTION HOW RISKY IS EACH TASK?
- 40. 2013 RI CONVENTION Risk Distribution • What most people think Most Likely Optimistic -Less Cost -Less Time Pessimistic -Higher Cost -Longer Time
- 41. 2013 RI CONVENTION Duration and Cost– The Reality Likelihood Duration Or Cost Worst Case Best Case
- 42. 2013 RI CONVENTION Duration & Cost Likelihood Duration Or Cost Most Likely “MODE” Worst Case Average “MEAN” Midpoint “MEDIAN” 80% RESERVE HOW RISKY IS THIS ACTIVITY?
- 43. 2013 RI CONVENTION Cost Risk • Exchange Rate – RI Provides a value to use for each country • Inflation • Planning for risk – Cannot pad RI Grant quotes – Can have quotes include contingency reserve – “Quote Valid” timeframes awaiting funding – Best to include things in the grant budget than can be dropped off if higher priority needs demand more money. Things you want to do, but not critical • Re-program or defer content if needed
- 44. 2013 RI CONVENTION Addressing Risks Once Identified & Analyzed • Avoidance – Can we do something less risky? • Mitigation – Can we reduce the likelihood of the risk? – Can we reduce the impact from the risk? • Deflection – Can we insure against the risk impact? • Includes warranties on material and performance
- 45. 2013 RI CONVENTION Risk Example • RI Grant for Maji Mazuri included – Two Phases of Solar Hot Water Heating • #1 - Dish and Hand Washing Demands (essential) • #2 – Hot water for showers (very desirable) • Encountered Electrical Issues – $$ needed (negative impact) • Greenhouses were phenomenal success (opportunity) – Desirable opportunity to increase from 4 to 8 bays • Reprogrammed funds from solar hot water phase 2 • Key – New demands were already in the project plan simplifying tradeoff reprogramming. • Overall Budget – no change
- 46. 2013 RI CONVENTION Dedicating The Greenhouses • July 2012 – President Tanaka’s FIRST overseas project visit
- 48. 2013 RI CONVENTION Risk Example • RI Grant Included Fixing road to site to assure all- weather access. Critical Need. • Grant Budget assumed worst case changes for each road segment and use of single contract to a road contractor. • Strategy: Included road work into clinic and school construction contract – segregated line items. • Reality: – Budget: Ksh 937, 500 (US$ 11,000) – Actual: Ksh 440,000 (US$ 5,200) • Surplus held in reserve through next rainy season to confirm adequate fix and then reprogrammed – Had to add Fluoride Filtration to borehole water after Rotarian Article in March 2012 led us to test water for fluoride.
- 49. 2013 RI CONVENTION Road Today Rock Backfill Culverts Drainage Ditches
- 50. 2013 RI CONVENTION Risks Harder To Predict • Political Turbulence – Delays in dealing with government – Unrest impacting security • New and urgent requirements – Scope changes needed. • Delivery Schedule Promises not kept • Weather and its impacts – Drought versus rain impact to roads • Plan not followed – Critical activity omitted • Fundraising Risk – ability to raise money needed – Especially for non RI Grant Construction aspects
- 51. 2013 RI CONVENTION Implementing Bio-Gas Risks • Design Assumptions on manure – Quantity and Quality • Qualifications of vendor – Double check by outside experts
- 52. 2013 RI CONVENTION Rotary Built A Bio-Gas Plant
- 53. 2013 RI CONVENTION Meeting Fundraising Risk • Funds Needed for DDF and RI Match – Implemented an adoption program • Funds Needed for construction – Obtained large challenge grants – Involved non-Rotary organizations (churches) – Adoption program for buildings & classrooms Element Cost RI Money Donation Source Construct Clinic $38,500 $0 $38,500 Cincinnati Rotary School Computer Room $11,000 $0 $11,000 Tipp City Rotary Element Cost RI Money Donation Source School Rainwater $750 $350 $400 Middletown Rotary Bio-Gas Stoves $600 $200 $400 Batavia Rotary
- 58. 2013 RI CONVENTION Funding Maji Mazuri Project: $368,217 Dayton Rotary and Rotarians 38% 6670 DDF 15% RI - TRF 13% Rotary Clubs - other than Dayton 20% Churches 3% Non-Rotarians 10% Rotarians - Direct 1% $145, 294 $78,000$60,000 $50,000 (Non-6670) 21 of 50 Clubs In District 6670
- 60. 2013 RI CONVENTION Meeting The Sustainability Challenge • Economic (Self-Sufficient Operations) – Cost Reductions and Revenue Generation • Environmental (Local resources/Low Pollution) – Used locally manufactured products, Green Energy Sources • Cultural (Include local leaders and diverse cultures) – Coordination with surrounding Masai population – advantages – Mixing of ethnicities (tribal backgrounds) in school – Hosting inter-tribal cooperation workshops at site • Social (Training to prepare workers, men and women) – Vocational focus included in newly built and equipped school – School population ended up well over 50% girls
- 61. 2013 RI CONVENTION Partner Roles • Dayton Rotary (same PM for entire project) – Overall Grant and Project Management – Fundraising for matches and construction • Muthaiga Rotary (3 different PMs in 5 years) – Funds Management – Facility Specifications for contracts – Contract Management / Quality Assurance
- 62. 2013 RI CONVENTION Surprises and Lessons Learned • Impact of violence after 1997 elections – Expansion of scope to include IDP camp girls • Planned 50/50 boys-girls was unrealistic – And should have been obvious to us • Warranties on technical aspects critical • You can’t force your beneficiary organization to follow all your plans for them • Following project management standards makes a big difference
- 63. 2013 RI CONVENTION Bottom Lines • Applied Rigorous Project Management – Cost and Schedule Controlled – Tradeoffs and Reprogramming accomplished • Self-Sufficient Sanctuary Established – Energy, Water, Food – Green Goals Implemented • Children safe, receiving health care and education • Addressed all goals for RI Grants and Reach-Out to Africa (ROTA) • Superb support and participation by RI Districts 6670 (Ohio) and 9200 (East Africa)
- 67. 2013 RI CONVENTION Thank You – Rotarians !
- 68. 2013 RI CONVENTION Thank You – Rotarians !