Project Management by Results / by Objectives
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The document outlines a performance management framework focused on project management by objectives, highlighting key concepts such as governance dimensions, project performance elements, risk assessment, and measurement strategies. It presents various aspects of project management, including planning, performance evaluation, and the importance of auditing and reporting in achieving project goals. The author, Errol Goetsch, draws on extensive experience and case studies to emphasize the need for effective management practices to ensure successful project outcomes.
Project Management by Results / by Objectives
- 1. Performance Management: Project Management by Objectives 14th September2011 Ibadan, Nigeria Errol Goetsch +27 78 573 5046 errol@xe4.org www.xmentors.us 1
- 2. Key Learning Points 1 A of Projects 2 Q's of Objectives 3 Dimensions of Governance 4 Elements of Excellence 7 Steps in Development 10 Physical Results 1 The Actual 7 The Community = 100 % Aim Target Context Benefits Projects Agencies Pay off Q 2 The Proof Programmes Axes 4 The Progress Project Intermediaries Donors Products Q E Premises D Power 10 The E E People Results X= D Payments Payers D E Policies 3 The Organisation 2
- 3. Errol Goetsch errol@xe4.org Family Founded 2 sons Adam (11) and Ethan (9) Live: Johannesburg Born: Windhoek PPASA Centre of Excellence The XE4 Foundation for Excellence Studied The Centre for Social Impact BA Honours LLB MBA now PhD Lecturer Projects Economics / Strategy / Project Management Zambia Commodity Exchange Managerial Finance / Marketing Swaziland Textile Industry revival Organisational Behaviour / Politics LoveLife HIV/Aids Durban Waterfront Past Employ Cato Manor Land Scheme Merchant Investors Group (London) Ndwedwe Electrification Programme Inkatha Institute Water 2000 Boland / Absa Group / Nedcor Banks National Housing Conference IQ Group KwaZulu Local Economic Development Various Consultancies Durban Ordnances Rewrite KwaZulu Finance Corporation collateralisation Audited East London Municipality HIV/Aids impact 100’s of projects Sedibeng District Municipality Service Level Protest Prediction and Management Developed Banking mergers Software for auditing / managing Corporate Governance M&E Reports / Sustainability / Impact Electronic banking systems Capacity / Balanced Scorecards / KAP Information system rollout tools / HIV Aids Impact 3
- 4. Key Lessons The planning for projects is the same 1 - Aim of Project Management Answer: Current Score 2 - Q’s of Project Measurement Answer: Quantity and Quality 3 - Dimensions of Governance Answer: Assessment 4 - Elements of Project Performance Answer: Excellence 5 - Results of Projects Answer: Strategic & Operational Results 7 - Steps in Risk Profiling Answer: Steps 10 - Physical Assets of Projects Answer: Capacity 4
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- 6. PROJECT PERFORMANCE Project results are the aim of Management by Objectives Project Term-limited (defined end-date) Special purpose (unique outcome) Objectives (set targets) for cost, period, product and outcome Results scores against targets Risk The COST of getting the project back on track - in money – vs budget over-run - in time – vs project plan delay - in product – vs delivery shortfall - in outcome – vs needs unmet Quality The VALUE of being on track - in money – vs budget - Economy - in time – vs project plan - Efficiency - in productivity – vs delivery - Effectiveness - in impact – vs cost benefit ratio - Equity 6
- 7. PROJECT PERFORMANCE Project results are the aim of Management by Objectives Project Term-limited (defined end-date) % Special purpose (unique outcome) Actual = Objectives (set targets) for cost, period, product and outcomeTarget Results scores against targets Date Risk The COST of getting the project back on track - in money – vs budget over-run - in time – vs project plan delay - in product – vs delivery shortfall - in outcome – vs needs unmet Quality The VALUE of being on track - in money – vs budget - Economy - in time – vs project plan - Efficiency - in productivity – vs delivery - Effectiveness - in impact – vs cost benefit ratio - Equity 7
- 8. Risks: The Asset Register The set of 10 Physical Results and their sources Function Activity: Workplan / Budget Quality 1 R&D Why: Designing solutions to problems Policy 2 Marketing What for: Attracting people who care Payers 3 Finance What with: Budgets to match income to expenses Payment 4 HR Who with: Hiring people who work People 5 Facilities Where: Getting places to work Premises 6 Procurement How: Getting inputs that work Power 7 Project When: Getting outputs on time Products 8 Quality What if: Solving risks Progress 9 Information What: Producing evidence Proof 10 Strategy Who for: Satisfying stakeholders Payoff 8
- 9. RISK CONTEXT: Cash Flow The 7 Steps in roles, tasks, and reports See SOLUTION Impact Results Community change Actual direct + indirect beneficiaries Assessment Benefits End-Term Benefits deliver Set of products and services delivered reports = Mid-Term Projects design Delivery mechanism reports Progress Work Agencies decide Designer and Implementer of Solution reports Time Programmes choose Development priority Work Plans x Intermediaries collect Government / Donor Agency / Bank Budgets Money Donors care Taxpayer / Shareholder / Benefactor Receipts Costs See PROBLEM Baseline 9
- 10. CONSEQUENCE: Measuring Risk When managers are missing or messing The least cost for a The least time for The most delivery The most impact given level of output a given level of for a given cost / for a given cost / / Target output / Target Target Target Procurement Human Resources Project Strategy COSTS Time BENEFITS Try reduce Work Try increase Organisations $ Performance # Inputs Efficiency Outputs Factor Market Goods Market % Capacity Benefits Outcomes Economy Effectiveness Households Impact C/B Equity 10
- 11. Costing Risk: Project Performance The effect of risk on the project Economy Efficiency Effectiveness Cost/Benefit Equity X = E X C E L L E N C E X = % % % % Work 50% Inputs Outputs 50% 50% Outcomes 50% 11
- 12. CONSEQUENCES: Results Audit Missing or Messing Managers don’t give questions or get answers 100% Perfect – Level - can carry load Policy Payers Payments People Places Power Products Progress Proof Pay off R&D Marketing Finance HR Facilities Procur Project Risk M&E Strategy ement Why What What Who Where How When What What Who for with with If For 12
- 13. MEASUREMENT: Results The 2 Q’s of Results Pass rate XTarget = 100% 100% 40 x 80 = 3200 20 x 40 = 800 Quantity Actual = 25% Graduates 25% 50% X How much Success Failure Target = 40 Actual = 20 Benefit: How well School Quality 50% Target = 80% Actual = 40% 100% Graduates Marks 13
- 14. MEASUREMENT: R&D R&D produces Policies Policies XTarget = 100% 100% 10 x 30 Quantity Problems 25% 50% X How much Success Failure Target = 10 Actual = 5 R&D How well Quality 50% Target = 30 Actual = 15 100% Solutions 14
- 15. MEASUREMENT: Marketing Marketing produces Payers Payers XTarget = 100% 100% 2 x 1000 000 Quantity Donors 25% 50% X How much Success Failure Target = 2 Actual = 1 Marketing How well Quality 50% Target = 1000 000 Actual = 500 000 100% Donations 15
- 16. MEASUREMENT: Finance Finance produces Payments Payments XTarget = 100% 100% 100% x 100% Quantity Income (payment in) 25% 50% X How much Success Failure Target = 2000 000 Actual = 500 000 Finance How well Quality 50% Target = 500 000 Actual = 250 000 100% Expenses (payment out) 16
- 17. MEASUREMENT: HR HR produces People People XTarget = 100% 100% 10 000 Quantity Staff 25% 50% X How much Success Failure Target = 20 Actual = 10 Human How well Results Quality 50% Target = 10 Actual = 5 100% Skills 17
- 18. MEASUREMENT: Facilities Facilities produces Premises Premises XTarget = 100% 100% 1 000 x 10 Quantity Locations 25% 50% X How much Success Failure Target = 1000m2 Actual = 500m2 Facilities How well Quality 50% Target = 10 Actual = 5 100% Features 18
- 19. MEASUREMENT: Procurement Procurement produces Power Power XTarget = 100% 100% 1 000 Quantity Inputs 25% 50% X How much Success Failure Target = 100 Actual = 50 Procurement How well Quality 50% Target = 10 Actual = 5 100% Features 19
- 20. MEASUREMENT: Project Project produces Products Products XTarget = 100% 100% 2 000 Quantity Outputs 25% 50% X How much Success Failure Target = 1000 Actual = 500 Project How well Production Quality 50% Target = 2 Actual = 1 100% Functionality 20
- 21. MEASUREMENT: Quality Quality produces Progress Progress XTarget = 100% 100% 10 000 Quantity Benefits 25% 50% X How much Success Failure Target = 10 Actual = 5 Risk How well Quality Quality 50% Target = 1 000 Actual = 500 100% Beneficiaries 21
- 22. MEASUREMENT: Audit / Info / M&E M&E produces Proof Proof XTarget = 100% 100% 200 Quantity Reports 25% 50% X How much Success Failure Target = 20 Actual = 10 Information How well Audit / M&E Quality 50% Target = 10 Actual = 5 100% Coverage 22
- 23. MEASUREMENT: Strategy Strategy produces Payoffs Payoff X 100% Target = 100% 10 000 Quantity Stakeholders 25% 50% X How much Success Failure Target = 1500 Actual = 750 Strategy How well Quality 50% Target = 5 Actual = 2.5 100% Satisfaction 23
- 24. CURES: Corporate Governance The 3 Dimensions of Results - in the organisation Who / Where Do / Need What Result Directors Decide Strategy TARGETS Board Room balance / authority questions Actuals Managers Design System SCORE = Score % Head Office Organisation / skill Targets Staff Deliver Operations ACTUALS Field Office work / effort answers Corporate Governance = ability to get good Decisions, Designs and Delivery 24