Methods for Charting Project Relationships

An organization chart shows you, in an instant, all the relationships within a company. It allows you to clearly see the layout of people and departments for an entire organization.

An organization chart is any graphic manifestation of project reporting relationships. It gives you the big picture of how your project fits into the overall activity of the organization. It shows the relationships:

• between resources of the project management system
• of formal authority between groups and individuals.

Organization charts can be formal or informal, highly detailed or broadly framed. The place of individuals within boxes on the organization chart shows broad working relationships. The connecting lines between boxes indicate formal chains of command and lines of communication between individuals.

Organization charts vary dramatically from one organization to another. They do, however, have some basic elements in common. For example:

• All members of the project are identified, including stakeholders.
• Data can be formal, informal, detailed, or general.
• Direct relationships between people are shown with a solid line.
• A dotted line indicates an indirect relationship, or a relationship that has not been clearly defined.

Organization charts offer project managers several important benefits. For starters, they show you the overall framework of the organization and indicate where project members fit into the organization. They also reveal the basic relationships between project team members, and they explain formal lines of authority (reporting relationships).

There are also drawbacks to using a traditional organization chart. For example, a traditional organization chart:

• doesn't show the nature and limits of the activities required to attain project objectives
• doesn't show the reciprocal relationships between people, which often occur within a project
• may not accurately reflect the structure throughout the project because it is often out of date very quickly
• may confuse people, as the pyramidal structure may portray a false sense of status and prestige.

Charts vary because organizations and projects vary. There are specific organization charts that give you added information. These charts help you as you plan. One such plan is an Organizational Breakdown Structure Chart (OBS)

An OBS identifies the roles and responsibilities of the individual as well as those of the collective project unit. And OBS is a concise description of the organizational interfaces. It illustrates:

• who the project participants are, the extent of their involvement, and their authority
• when decisions should be made or activities performed
• who has authority when team members share common work
• work packages or tasks necessary for project success.

And OBS is time consuming to prepare, but gives you more valuable information than a standard organizational chart.

A standard organization chart or Organizational Breakdown Structure Chart provides you with concise information concerning responsibility relationships within an organization. Both types of charts provide a useful tool of reference for everyone involved in the project.

Maintaining Documents and Records

Every key step or change in the project or quality control change needs to be documented so that the reason for any changes can be traced at a future date. The documentation serves as authorization for action and evidence that the change did occur.

Project or process documentation begins with the original concept plan. It then evolves into activity-based documentation in which there are a variety of possible documentation types.

• Checklists - can be developed to ensure that documentation flows properly and that certain documents are retained for archival purposes. There should be a checklist for every major activity that needs to be completed before another can begin.
• Control sheets - record the flow of key documentation and changes. Data on decisions, changes, and who made them, are recorded.
• Sign-off sheets - are documents which verify that a particular stage to a project has been completed to the quality goals. Sign-off sheets record specific information about which activity has met the standard and when.
• Approval forms - verify that permission was given to advance to the next stage in a tightly controlled project. They are somewhat similar to sign-off sheets.
• Reviews - examine a process or stage of a project to ensure it has met the particular goals set out in the original plan or to other quality standards. Most reviews recommend changes of some sort.
• Testing reports - are carried out by specialists such as laboratory technicians, programmers, and quality testers. Their language is quite technical, however the use of non-statistical and statistical techniques can aid understanding. Test reports can express if a change, or no change, is required.
• Logbooks - record the movement of documentation and when certain activities occur. This ensures an orderly flow and if a problem arises, it can be examined to see when and even what was responsible. Logbooks in manufacturing often contain the data required for analysis.
• Acceptance reports - indicate whether a project or product was done satisfactorily. If not acceptable, suggestions can be offered. It is similar to a sign off sheet, but with more detail.

In addition to these activity-based documents, various standards organizations may require you to maintain records verifying conformance to industry standards. These records may be in the form of:

• inspection reports
• test data
• qualification reports
• validation reports
• survey and audit reports
• material review reports
• calibration data
• quality-related cost reports.

Depending on the project, you may also need to save instructive documents such as:

• drawings
• specifications
• inspection procedures
• test routines
• work instructions
• control sheets
• the quality manual
• operational procedures/checklists
• quality system procedures.

All records and documentation need to be clear, legible, dated (including revisions), identified, accessible, and stored to prevent deterioration or loss. These can be in the form of images, hard copy, CD-ROM, and electronic files. The quality management plan for the project or company should specify how long documents need to be kept and how they should be disposed of once out-dated.

The control of documentation depends on the process or project undertaken. Long duration projects may require documents and records to be archived at set intervals. Short duration projects may allow subordinates to retain documents until the end of the project and then they are stored. For most projects there should be some sort of post project review. The idea is that the record keeping can provide specific information to see if the various procedures work well. This is a function of quality assurance.

Documentation is often relegated to minor status in a project. Many people think once the key work is done, that there will be time later to catch up on the paperwork. However, in a proper project, documentation is designed into the process to ensure an orderly flow, without unnecessary paperwork. The preservation of data, decisions made, and the general plan and outline of the project are key to ensuring quality.

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.

The Sources and Uses of Project Historical Data

There is an old adage that history repeats itself. The negative connotation to this is that humans tend to make the same mistakes over and over again. Despite this tendency, people can learn from studying history.

Like world history, historical information from past projects provides you with the opportunity to benefit from past successes while avoiding past failures.

Past projects provide you with inputs for your current project, telling you what people, equipment, and materials were needed for which tasks. Project historical data also tells you which practices and procedures were effective and which were not.

Analyzing project historical data is made easier when you keep a project notebook. A project notebook holds data records in the form of various reports. These reports include:

• project plans
• status reports
• budget reports
• resource and supplier QA and performance reports
• project logs (issues and problems).

Previous project plans can give you ideas for how you can approach your project. You can see how tasks were accomplished, what methods were deployed, and what type of resources were used.
Status reports indicate how well the resources that were used functioned while budget reports provide information about the cost of potential suppliers and contractors, which can help you estimate the cost of future projects.

Quality assurance reports give information on the quality level of the resources used on a project. The same type of information regarding suppliers is found in supplier performance reports.

Project logs reveal past issues and problems. You can apply these "lessons learned" to your current project.

Consider the example of an international telecommunications project. A similar project estimated the timelines for various stages of a project in its project plans. The actual timelines were recorded in the status reports. Reasons for the discrepancy between the two were recorded in the project logs. The budget report stated the costs, and an analysis of the project flow was included in the resource and supplier performance reports.

The paper trail left from previous projects helps you estimate costs, choose suppliers, estimate timelines, and see different approaches to a project. As such, it is your guidepost to the success of your current 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.

Historical Information and Project Activities

Historical information is an invaluable input to project activity duration estimating. As a project manager, you can use historical information, in the form of past project data, to make estimates on current similar projects.

For example, on a past project, John's company, Quick-as-a-Wink Computer Consultants, took five days to complete the audio for a two-hour software project. Based on this previous experience, John estimates it will also take five days for audio on the current two-hour software project.

There are many sources of historical information available to a project manager. You can start by checking the following three sources.

1. Project files
Past project files provide a fountain of information for project managers. A company may maintain records of previous project results that are detailed enough to aid in developing future duration estimates.

For example, John needs to know how long it will take to install a hub for a computer network system. John remembers installing a similar hub on a previous project. By retrieving the previous project files, John is able to find the information he needs. Since the first hub took 11 days to install, John will plan for 11 days on the current hub installation project.

2. Commercial duration estimating databases
Historical information is also available commercially through databases. These databases tend to be extremely useful when the activity duration is not driven by the actual work content.

For example, John needs to determine how long it takes a government agency to respond to a request for a license. John can contact a commercial duration estimating database company, which keeps information of this type on file. For a fee, the company will sell the information to John.

3. Project team knowledge
Another source for historical information is individual project team members who have worked on a similar project in the past. They can sometimes provide estimates of how long it took to complete the previous activity.

Remember, historical information can be a powerful tool for project managers. Don't be condemned to repeat the past. Instead, learn from it by using historical information.

Incorporating IT Project Deliverables

Your promise to complete a project by a particular date has fallen through. As you think back, you realize that you had no way of knowing whether or not things were progressing smoothly.
How can you ensure that you have a check process in place for your next IT project? One suggestion is to incorporate project deliverables.

Project deliverables are the final product or result of a particular phase of a project. Deliverables are ultimately passed on to another party, either professionals who will use the deliverable to begin the next phase of the project, or the customer if it is part of the final product.

When planning a project, IT professionals establish specific types of project deliverables to help determine when a stage in the process is complete. These deliverables also can help you identify whether a problem exists early in the process.

There is no limit to the number of deliverables you can incorporate into each phase of your project. The following are a few examples of the most common deliverables.
1. Organization charts. Organization charts show the breakdown of the responsibilities or duties of the individuals in each unit. These charts can include information about the sponsoring company, the customer's company if external, and the authority, responsibilities, and communication breakdown for a project.
An example of an organization chart is the organizational breakdown structure. Your company's OBS chart may include the name of the employee performing each of the roles identified on the chart.
2. Work packages. Work packages are comprised of a number of precise working documents that provide details on specific business tasks of the project. An example of this deliverable is the Statement of Work (SOW).
3. Planning documents. Planning documents are used to develop and maintain a feasible method for addressing the business needs of the project. The amount and detail of the information contained in these documents depend on the size of the project.
Work schedules and cost estimates are examples of this deliverable. Work schedules can help you determine the staff numbers and skill sets needed for the project. Cost estimates give you an approximation of the total project cost.
Remember, by incorporating deliverables into the project phases, you and you team can more effectively plan and manage your next IT project.

Three IT Project Management Tools

Every trade has its tools. As an IT project manager, what do you consider to be your "tools of the trade?"

There are three tools used by IT project managers and team members that are key to the administration of a project. These three tools are project planning software, project estimating software, and presentation tools.

1. Project planning software
Project planning software helps your team define and manage the scope of the project. Many versions of planning software are presently available for project management. You should shop around to determine the best product for the various projects your company undertakes.

Planning software is a valuable tool for creating and managing schedules like Gantt or Pert-type charts and for facilitating communication between all parties involved in the project.

2. Project estimating software
Project estimating software is useful for compiling data, producing charts, managing resources and costs, and performing analyses. Spreadsheets are a common example of estimating software.

3. Presentation tools
Presentation tools help you visually deliver progress reports, produce user manuals, and prepare final reports. The specific needs of your project will help you determine the estimating software and presentation tool you will need.

By determining your project needs ahead of time, you will be able to identify key IT project management tools that will help you and your team effectively complete your next project.