Project Characteristics

1. Temporary

Temporary means that every project has a definite beginning and a definite end. The end is reached when the project's objectives have been achieved, or it becomes clear that the project objectives will not or cannot be met, or the need for the project no longer exists and the project is terminated. Temporary does not necessarily mean short in duration; many projects last for several years. In every case, however, the duration of a project is finite. Projects are not ongoing efforts.

In addition, temporary does not generally apply to the product, service or result created by the project. Most projects are undertaken to create a lasting outcome. For example, a project to erect a national monument will create a result expected to last centuries. Projects also may often have intended and unintended social, economic and environmental impacts that far outlast the projects themselves.

The temporary nature of projects may apply to other aspects of the endeavor as well:

• The opportunity or market window is usually temporary some projects have a limited time frame in which to produce their product or service.
• The project team, as a working unit, seldom m created for the sole purpose of performing the project will perform that project, and then the team is disbanded and the team members reassigned when the project ends.

2. Unique Products, Services, or Results

A project creates unique deliverables, which are products, services, or results. Projects can create:

• A product or artifact that is produced, is quantifiable, and can be either an end item in itself or a component item
• A capability to perform a service, such as business functions supporting production or distribution
• A result, such as outcomes or documents. For example, a research project develops knowledge that can be used to determine whether or not a trend is present or a new process will benefit society.

Uniqueness is an important characteristic of project deliverables. For example, many thousands of office buildings have been developed, but each individual facility different owner, different design, different location, different contractors, and so on. The presence of repetitive elements does not change the fundamental uniqueness of the project work.

3. Progressive Elaboration

Progressive elaboration is a characteristic of projects that accompanies the concepts of temporary and unique. Progressive elaboration means developing in steps, and continuing by increments 1 . For example, the project scope will be broadly described early in the project and made more explicit and detailed as the project team develops a better and more complete understanding of the objectives and deliverables. Progressive elaboration should not be confused with scope creep (Section 5.5).

Progressive elaboration of a project's specifications needs to be carefully coordinated with proper project scope definition, particularly if the project is performed under contract. When properly defined, the scope of the proj the work to be d ld be controlled as the project and product specifications are progressively elaborated.

The following examples illustrate progressive elaboration in two different application areas:

• Development of a chemical processing plant begins with process engineering to define the characteristics of the process. These characteristics are used to design the major processing units. This information becomes the basis for engineering design, which defines both the detailed plant layout and the mechanical characteristics of the process units and ancillary facilities. All of this results in design drawings that are elaborated to produce fabrication and construction drawings. During construction, interpretations and adaptations are made as needed and are subject to proper approval. This further elaboration of the deliverables is captured in as-built drawings, and final operating adjustments are made during testing and turnover.
• The product of an economic development project may initially be defined as: Improve the quality of life of the lowest income residents of community As the project proceeds, the products may be described more specifically as, for exam and water to 500 low-income residents in community xt round of progressive elaboration might focus exclusively on increasing agriculture production and marketing, with provision of water deemed to be a secondary priority to be initiated once the agricultural component is well under way.

Performance Reports and Project Costs

Have you ever had that nagging feeling that something's not quite right with a project? Accurate and timely performance reports can help you control project costs, so you can calm that uneasiness.

The time you spend reviewing performance reports and analyzing the data they contain is never wasted. Written performance reports, which are inputs to project cost control, can actually save you the time it would otherwise take to meet face-to-face with team members and other stakeholders. Performance reports are an important input for cost control because they:

• provide a summary of how a project is progressing
• compare actual versus planned results
• provide feedback to management, planners, and team members
• contain the early warning signs of future problems.

You can use performance reports to analyze variances from the cost baseline, plot the trends that will help you to forecast your total costs, and watch for events that could increase expenses in later stages of the project.

Good project managers take corrective action early on to ensure their project costs hit the mark. However, you need sufficient and accurate information in order to forecast costs properly. There are four main types of charts that summarize and report project information.

• Histograms. A histogram is a simple graph that quickly shows the over- or underrun of project costs. It indicates both the budgeted and actual cost of performing each project task.
• Tables. Tables can display data clearly and concisely. Tables can also be used to show costs, activities, project milestones, actual versus planned results, and any other information about project status. Tables can provide summaries or they can contain specific details about a project.
• Gantt charts. A Gantt chart is the combination of a table and a bar chart. Gantts summarize cost- and schedule-related information. More elaborate charts can include the duration of each activity in hours or days, the estimated start and finish dates of each activity, critical time frames, and milestones.
• Cumulative cost curves. A cumulative cost curve is a commonly used report that shows project costs plotted against time. The line usually takes the form of an S-curve, since costs are typically low early in the project, increase during the peak production period, and then trail off in the closing phases. You can use a graph to plot the cost baseline and the actual cumulative costs together for comparison. The difference between the two curves represents a cost variance.

The performance reports discussed above are just a sample of those available to project management teams. There is not a set list of performance reports because no two projects have the same reporting requirements. Choose the performance reports that work best for you, and use them to better control costs for your project.

Reporting Project Progress and Performance

Project stakeholders often require information about how resources are being used to achieve project objectives. This information is provided through performance reports.

Performance reports summarize project activity progression by comparing your project's performance to its schedule baseline.

Performance reports come in many shapes and sizes. From a time management perspective, the obvious reporting format to use is a graphical representation of project performance. The four most frequently used graphical performance reporting formats are the: Gantt chart, S-curve, histogram, and table.

• Gantt chart - A Gantt chart displays schedule-related data. The dates are shown across the top of the chart to illustrate the time line.
• S-curve - An S-curve displays cumulative costs, labor hours, or other quantities plotted against time.
• Histogram - A histogram is a bar graph of a frequency distribution. The bar width represents the division of each variable into task duration. The height is relative to the number of resources required.
• Table - A table displays semi-processed numerical data for a minimum of two variables. Data is relevant to an individual project's needs.

Each company should determine which format works best for projects, in terms of time and information required. Therefore, the format one company uses may not be an appropriate format for another company.
A reliable reporting system helps to ensure that projects progress according to plan. It can help determine when corrective action is necessary. The reporting system provides:

• regular, accurate status updates
• concise, easily understandable information
• potential problem forecasts.

Performance reports can be presented in various ways, depending on the intended purpose, the content to be included, and the frequency required. Four types of reports that vary in detail and timelines are: current, cumulative, exception, and green-yellow-red reports.

Current reports
Current reports document progress solely on those activities scheduled for work during the reporting period. Reports show activity highlights and any variances from a project's plan. Follow-up on current reports should provide project details, including reasons for variances and a recommended corrective action plan.

Cumulative reports
Cumulative reports examine the project's history—from start-up to the end of the current reporting period. Cumulative reports display trends in project activities that, over several periods may exhibit improvements or chronic problems.

Exception reports
Exception reports are high-level summary reports submitted to senior management. Sometimes these reports are followed by an additional report if more detail is required.

Green-yellow-red reports
Green, yellow, and red reports are very simplified versions of performance reports. These reports get the intended point across with a minimum amount of reading required.

• Green reports - Say that everything is going according to project's plan.
• Yellow reports - reveal a schedule slippage with a corrective action plan.
• Red reports - indicate a project is out of control with no action plan in place.

AC Technology is a computer company that has just reached the half-way point in its newest project. It is designing an operating system that includes its own anti-virus component. Using a cumulative reporting system allows the team to look back and see that the first quarter showed a slight schedule slippage. A corrective action plan was set up to try to offset this problem. Now, the project has reached the end of the second quarter and the reports are showing that this trend has continued. AC Technology must look very seriously at its current corrective action plan and make adjustments to bring this project back on track.
Comparing project performance to the schedule baseline will be easier once your company selects the most appropriate performance reporting format and method of presentation to meet its needs.

Dealing with Performance Problems

Leaders can help their employees improve their performance by using a progressive discipline system.

To help an employee with a performance problem, you should:

• get to the heart of the problem
• respond to the problem by preparing an action plan
• use discipline to deal with the problem.

Get to the heart of the problem
When there is a problem with an employee's performance, you should get to the heart of the problem before you attempt to correct it. This is important because the cause of a performance problem is not always apparent.

To correct the problem, you need to address the cause. To determine what is causing a performance problem, you should ask the following questions:

• Does the employee understand the goals and standards of the job?
• Does the employee get timely feedback on his or her performance?
• Did the employee get adequate training for the job?
• Does the employee demonstrate competency in other tasks?
• Is the employee capable of doing the work?
• Does the employee have the resources to do a good job?

Respond to the problem by preparing an action plan
Once you have determined the cause of a performance problem, you should meet with the employee involved to discuss possible solutions.

When you do this, don't get personally involved in the problem or apologize for having to deal with it. You want to help the employee succeed. Find out what the employee would like to see as an outcome. Then set up a plan of action.

Begin with the assumption that any corrective action you take should first and foremost help improve an employee's performance.

The following gives more about preparing an action plan:

• Make sure that employees with performance problems have a clear understanding of their jobs.
• Present clear information about how the job should be done, clarify each step, and emphasize the major responsibilities.
• Provide training if necessary.
• Make your employees responsible for the outcome of this process. Ask them to check back with you frequently.
• Encourage your employees.

Use discipline to deal with the problem
When it becomes necessary to take disciplinary measures, you should use a four-step procedure. Because these steps sometimes lead to termination, you should ensure that you have all of the facts and use the same procedure for all employees.

It's also important that you do not allow your judgment to be clouded by prior, unrelated problems. There is more information on the steps below:

1. In step one, verbally remind the employee about the problem, and state that the problem is now in the formal disciplinary stage.
2. Go to step two if the problem continues. Give the employee formal written notification of the continuing problem.
3. If these steps fail, move to step three, in which the employee is given one day of paid leave to decide whether to stay and improve or leave. This demonstrates the organization's desire to give the employee control over whether to stay or leave.
4. Step four is termination. Having documented all the previous steps in the employee's file, set a specific time for an interview. Inform the employee of your decision. Keep the meeting simple and short. The employee had every opportunity to improve. There is no need for further discussion.

By following well-thought-out steps in correcting performance problems, a leader can keep employees motivated and effective. Do you have procedures in place that make discipline a progressive measure?