BSB 51415 Diploma of Project Management BSBPMG 521

BSB 51415 Diploma of Project Management BSBPMG 521 Manage Project Integration Part 1 BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Learning Elements Element 1: Establish Project Element 2: Undertake Project Planning & Design Element. Processes 3: Execute Project in Work Environment Element 4: Manage Project Control Element 5: Manage Project Finalisation Delivery Alignment Element 1: BSB 51415 Diploma of Project Management Element 2: Project Management Institute, 2013, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5 th Edn, Newtown, USA. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Performance Criteria Element 1 1. 1 Identify, clarify and prepare project initiation documentation 1. 2 Identify relationship between the project and broader organisational strategies and goals 1. 3 Negotiate and document project objectives, outcomes and benefits 1. 4 Negotiate project governance structure with relevant authorities and stakeholders 1. 5 Prepare and submit project charter for approval by relevant authorities BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Performance Criteria Element 2 2. 1 Establish and implement a methodology to disaggregate project objectives into achievable project deliverables 2. 2 Identify project stages and key requirements for stage completion against client requirements and project objectives 2. 3 Analyse project management functions to identify interdependencies and impacts of constraints 2. 4 Develop a project management plan that integrates all project -management functions with associated plans and baselines 2. 5 Establish designated mechanisms to monitor and control planned activity 2. 6 Negotiate approval of project plan with relevant stakeholders and project authority BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Performance Criteria Element 3 3. 1 Manage the project in an established internal work environment to ensure work is conducted effectively throughout the project 3. 2 Maintain established links to align project objectives with organisational objectives throughout the project 3. 3 Within authority levels, resolve conflicts negatively affecting attainment of project objectives BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Performance Criteria Element 4 4. 1 Ensure project records are updated against project deliverables and plans at required intervals 4. 2 Analyse and submit status reports on project progress and identified issues with stakeholders and relevant authorities 4. 3 Analyse and submit impact analysis of change requests for approval, where required 4. 4 Maintain relevant project logs and registers accurately and regularly to assist with project audit 4. 5 Ensure associated plans are updated to reflect project progress against baselines and approved changes BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Performance Criteria Element 5 5. 1 Identify and allocate project finalisation activities 5. 2 Ensure project products and associated documentation are prepared for handover to client in a timely manner 5. 3 Finalise financial, legal and contractual obligations 5. 4 Undertake project review assessments as input to future projects BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Knowledge Criteria To complete the unit requirements safely and effectively, you must be able to: • summarise project governance models • describe range of methodologies to break project objectives into achievable project deliverables • outline role of project life cycle stages, phases and structures relevant to industry and project context • identify and describe appropriate organisational documentation for recording strategies and goals for integration processes. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Unit Assessment • Task 1: Formative Assessment – 6 Activities of 5 short answer questions • Task 2: Summative Assessment – 12 Long Answer Questions • Task 3: Summative Assessment – 3 Part Practical Project BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

What is Project Management? Project Management is the application of knowledge, skills, tools and techniques to meet project requirements. Project management is accomplished through the application and integration of the project management processes: Initiating Planning Executing Monitoring & Controlling BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Closing

Project Integration Management includes the processes and activities to: • • • Identify, Define, Combine, Unify, and Coordinate the various processes and project management activities; with the Project Management Process Groups BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Constrain Time, ts: Cost , Quality, Technical, Other Performance Parameters, Legal Environments Input s: Business Need and Requirement Project Management Output Project Deliverables, s: Products and/or Services Mechanism s: Techniques and People, Tools, Equipment, organisation BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Scope Management Processes Project Scope Management Initiating Plan Scope Management Planning • • • Execution Collect Validate Requireme Scope nts Define Scope Create WBS Monitorin g & Control Scope BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

Project Time Management Processes Project Time Management Initiating Planning • • • Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule Execution Monitoring & Control • Control Schedule BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

Project Cost Management Processes Project Cost Management Initiating Planning • • • Plan Cost Management Estimate Cost Determine Budget Execution Monitoring & Control • Control Costs BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

Project Quality Management Processes Project Quality Management Initiating • Planning Execution Plan Quality Management • Monitoring & Control Perform • Quality Assurance Control Quality BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

Project Human Resource Management Processes Project Human Resource Management Initiating • Planning Execution Plan Human Resource Management • • Acquire Project Team Develop Project Team Monitoring & Control Manage Project Team BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

Project Communications Management Processes Project Communicati ons Management Initiating Planning Execution Monitoring & Control • Plan Communicatio ns Management • Manage Communicati ons • Control Communicati ons BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

Project Risk Management Processes Project Risk Management Initiating Planning • Plan Risk Management • Identify Risks • Perform Qualitative Risk Analysis • Perform Quantitative Risk Analysis • Plan Risk Responses Execution Monitoring & Control • Control Risks BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

Project Procurement Management Processes Project Procurement Management Initiating Planning • Plan Procurement Management Execution • Conduct Procuremen ts Monitoring & Control • Control Procurement s Close • BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close Procureme nts

Project Stakeholder Management Processes Project Stakeholder Management Initiating • Identify Stakeholder s Planning • Plan Stakeholder Management Execution • Manage Stakeholde r Engagement Monitoring & Control • Control Stakeholder Engagement BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Close

BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Application Areas, Knowledge, Standards & Regulations Application Areas are usually defined by: • Functional Department or Supporting Disciplines • Technical Elements • Management Specialisations • Industry Specialisations Each Application Area generally conforms to accepted standards an practices, in some cases require adherence to regulation. International Organisational for Standardisation (ISO) has a standard for Project Management which is identified as ISO 21500. Industry Practitioners will generally specialise in to a methodology ie. Prince 2 or PMBo. K. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

The Project Manager role generally encompasses: • planning, • organising staff • executing and controlling the day to day activities of a Project. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

The Project Manager will often engage with a variety of • disciplines including: Finance & Accounting • Logistics & Supply • Purchasing & Procurement • Contracts & Legal • Strategic, Tactical & Planning • Operational Organisational Behaviour • Manufacturing & Distribution • Personnel Administration • Health & Safety • Information Technology BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

The Project Manager Personal skills required of the include: Project Manager Effective Communication – ability to exchange information Influencing the Organisation – ability to get things done in both structured environments Leadership & – unstructured ability to develop a vision and strategy and motivate people to achieve the vision and strategy Motivation – energising people to achieve high performance and overcome obstacles for change Negotiation & Conflict Management – ability to interact with others to reach a consensus of agreement Problem Solving – ability to use problem definition, alternatives identification analysis and decision makingbuild, nurture and develop Team Building &with Coaching – ability to assemble, teams Political & Cultural Awareness – ability to exercise business acumen, tact, and empathy TRUST ETHICS Develop and exercise exceptional Professional BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Programs & Program Management A Program is a group of related project managed in a coordinated way to obtain benefits and control not available from managing them individually. Program Management used a centralised, coordinated approach for the management of a group of projects to achieve the Program’s Strategic Objectives and Benefits. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Programs & Program Management Portfolios & Portfolio Management A Portfolio projects or together in the work to is a collection of sub-portfolios, programs and other programs grouped order to achieve effective management of meet strategic business objectives. Portfolios Management aligns with organisational strategies by selecting the right programs or projects, prioritising the work and providing needed resources. Projects or Programs managed within a portfolio are not necessarily interdependent or related. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Relationship of Portfolio, Program & Project Management Portfolio Management Project, Operations, and Program Investments Program Management Managing Related Projects Project Management Temporary Endeavours BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Management Office (PMO) A Project Management office (PMO) is an organisational unit to centralise and coordinate the management of projects it domain. A Programunder Management Office (PMO) oversees the management of projects, programs or a combination of both. The Program Management Office (PMO) primary purpose is to support the project manager and focuses on the coordinated planning, prioritisation and execution of projects and sub-projects that are related to the overall A Program Management Office (PMO) can be delegated business objectives. to act as a stakeholder and key decision maker, even have authority to terminate projects that no longer align with business objectives. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Manager -v- Project Management Office (PMO) Project Manager Project Management an organisational structure with Office (PMO) • is responsible for delivering specific project objectives within the constraints of the project • is specific mandates that can include organisation-wide • an manages major programfocus scope changes • focuses on the specified project objectives • controls the assigned project resources to best meet project • objectives is responsible for delivering and can view them as potential opportunities to be achieve business • objectives optimises the use of organisational resources all projects specific project objectives within constraints of the project • the Manages scope, schedule, cost and quality of the products of the work • packages Reports on project progress and project specific information • is an organisational structure with specific mandates that can include organisation-wide • an Manages overall risk, focus overall opportunity and the amount projects • interdependencies Provides consolidated reporting and an organisational view of project within its view. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Governance & Internal Controls The operation of any business will be subject and exposed to risk. Responsible Management will ensure the risk and exposure is minimised through the implementation of governance and internal controls. Project Governance structure may include: • Boards, committees, working groups, reference groups advisory groups, sponsors, project managers, project team members and • stakeholders Identified authority levels assigned to groups and • individuals Issue-escalation procedures • Project organisation chart • Statements of roles for project management bodies and participants BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Governance & Internal Controls The operation of any business will be subject and exposed to risk. Responsible Management will ensure the risk and exposure is minimised through the implementation of governance and internal controls. Internal Control activities may include: • Implementation of policies and procedures to ensure management directives are undertaken with minimum variation • Activities undertaken at all level include segregation of duties, approvals for contracts, authorisation for purchase, reconciliations, review of operating performance and security of assets. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Governance & Internal Controls The operation of any business will be subject and exposed to risk. Responsible Management will ensure the risk and exposure is minimised through the implementation of governance and internal controls. Internal Control involve two elements: • A policy establishing what should undertaken. A policy statement of intend that clearly outlines the principles and ofprovides the organisation. • direction A procedure a clear step-by-step method of implementing a company policy. The procedure usually describes a logical sequence of activities to complete a task in a uniform consistent manner BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation Projects and Project Management are often undertaken in an environment broader than the project. Included in this broader environment are the topics of: • The Project Life Cycle. • Project Stakeholders • Organsational Influences BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation • • The Project Life Cycle is a series of phases that a project passes through from Initiation to Closure. Phases are generally sequential and named or numbered to meet the management needs of the organisation. PLC is often segmented by functional or partial objectives, intermediate result or deliverable, specific milestones financial availability Phases are generallyor time bound with start and end or control point. Provides the basic framework for managing the project. • PLC can range from a predictive or plan-driven approach at one end to an adaptive or change drive approach to the other end. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation Monitoring & Controlling Processes Initiating Processes Planning Processes BSBPMG 511 Manage Project Integration Scope BSBPMG 521 Executing Processes PMBo. K Project Life Cycle th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Closing Processes

Project Life Cycle & Organisation BSBPMG 511 Manage Project Integration Scope BSBPMG 521 PMBo. K Project Life Cycle – Process Activity th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation Sequential Relationship being where one phase can only commence on the completion of the previous phase BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation Overlapping Relationship being where a future phase can commence prior to the completion of the previous phase BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation Iterative-phased Approach being where next phase is planned by the current phase during delivery. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Interacti ons between PMBo. K Process Groups BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation Phase Gates are often referred to as phase exits, decision gates or points. Typically a project needs to seek approval to proceed Monitoring & Controlling through a gate. Processes Initiatin g Processes Planning Processes Executing Processes BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Closing Processes

Project Life Cycle & Organisation Project Stakeholders are individuals or organisations that are actively involved or whose interest may be affected by the outcome of the project Project Stakeholders exert influence over the projects objectives and outcomes The Project Team must identify Project Stakeholders early and determine their requirements, expectation, and manage their influence in relation to the requirement of the project. Project Stakeholders have varying levels of responsibility and authority when participating on a project and this change during the project life cycle BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Project Life Cycle & Organisation Stakeholder Role Project Manager The person responsible for managing the project Customer / User The person or organisation that will use the project’s product Performing Organisation The organisation which is performing the project work Project Team Members Persons performing work on the project Project Management Team Members of the Project Team who are directly involved in the project management activities Sponsor Person or Group that provide financial resources in cash or kind for the project Influencers People or group that are not directly relate to the acquisition or project’s product Project Management Office (PMO) The PMO can have direct or indirect responsibility for the outcome of the project BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Strategic Management Process Strategic Management is the process of assessing: • What we are; then deciding • What we intend to be • How we will get there and implementing Strategic Management process generally follows a typical sequence ofreview activities: 1. Define and the organisation’s mission, vision and values 2. Set the organisation’s strategic objective 3. Analyse the strategic objectives and identify the ‘ideal’ mixstrategies through the delivery of portfolios, 4. investment Implement the programs and projects BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Strategic Management Process 1. Define and review the organisation’s mission, vision and values 2. Set the organisation’s strategic objective 3. Analyse the strategic objectives and identify the ‘ideal’ investment 4. Implement the mix strategies through the delivery of portfolios, programs and projects BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Strategic Management Process 1. Define and review the organisation’s mission, and values • vision Mission identifies what the organisation wants to become • • • Mission Statement identify the scope of the organisation in terms of its product service Vision Statement setsor the long term vision of the organisation and the organisation will be see within that industry Values are traits or beliefs the organisation wishes to see in its employees Formulating Strategy only identifies what the organisation wants to be notof how to achieve Analysis internal and it External Environments using analysis like SWOT (Strengths, Weaknesses, Opportunities, & Threats) to create a ‘competitive edge’ BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Strategic Management Process • 2. Set the organisation’s strategic Strategic Objectivesobjectives translate the organisations mission and vision into specific, concreate, measurable terms • Apply SMARTA technique when defining objectives S Specific Be specific in targeting an objective. Do not concatenate M Measurable Establish a measurable indicator of progress A Assignable Make objective assignable for completion R Realistic Be Realistic with completion with available resources Review Strategies using the reflection – Does the Strategy: T Time- often State requiredquestion durationlike or completion • take advantage core competencies? Relatedof ourdate • exploit our competitive advantage? A Agreed Be Agreed upon by those that are • maximise meeting customer’s needs? accountable • fit within our acceptable risk range? BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Strategic Management Process 3. Analyse the strategic objectives and identify the ‘ideal’ investment mix • • Strategic Alignment Criteria, detailing exactly what strategic objectives the investment aligns to and, when delivered, how much it will Definition ofcontribute the Business Problem being solved and identification of constraints and assumptions • • Benefits Identification and Analysis, with inclusion of Benefit Cost Ration (BCR) including calculation Options Analysis, do-nothing, deferred option, an • • normally three other options Business Risk Analysis, examining how the investment stacks up against organisation riskthe source of funds as well Net Funding the Summary, identifying • Present Value (NPV) and/or Internal Rate of Return (IRR) Milestone Summary, identifying the source of funds as well Net Present Value (NPV) and/or Internal Rate of Return (IRR) BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Strategic Management Process 4. Implement the strategies through the delivery of portfolios, programs and projects • Implementation should addresses how strategies will be provided resources and equipment so they can be realised. • Implementation is achieved through: 1. Resources to support the completion allocated tasks 2. Organisational Structure that supports Strategy and Projects 3. Planning and Control System to support Strategy Implementation 4. Project Prioritisation BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Organisational Influences Most Organisations have developed culture that is unique which can be documented An Organisation Culture will reflect: • • Shared values, Norms, Beliefs, Expectations, Policies & procedures View of authority Work Ethic Work hours Organisational Cultures will directly influence and impact projects BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Organisational Influences Organisational Structure concepts can be applied to any business or institution including: • • • Sub units Divisions Departments Projects Teams Goals, and type of work undertaken by the Organisation will dictate the type of structure There is no hard & fast rule it is what works best and is appropriate BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Organisational Influences Example Organisational Structure that supports a Functional Organisation BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Organisational Influences Example Organisational Structure that support a dedicated project Team BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Organisational Influences Example Projectised Organisational Structure BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Organisational Influences Example Matrix Organisational Structure BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Organisational Influences Organisational Structure related projectrelated characteristics Organisation Type Project Management Functiona l Matrix Organisations Projectised Weak Balanced Strong Project Manager’s Little or Authority none Limited Low to Moderate to High to Almost Total Resource Little or Availability None Limited Low to Moderate to High to Almost Total Who Controls the Functional Project Budget Manager Functional Manager Mixed Project Managers Part-Time Role Part-Time Full-Time Project Part-Time Full-Time Management Administrative BSBPMG 511 Manage Project Integration Scope BSBPMG 521 Project th Edn, Project 2013, (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown, Staff Full-Time

Project Selection Methods Project Selection methods are used to determine which project an organisation should proceed with: Project Selection Methods include: 1. Benefit Measurement Method 2. Internal Rate of Return Common Benefit Measurement Methods 1. Murder Board 2. Scoring Models 3. Benefit/Cost Ratios 4. Payback Period include: BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Benefit Measurement Methods Murder Board is a committee that seek to expose a project’s Strengths and Weaknesses through negative questioning. Scoring Models also known as weighting models use a common set of values or indexes for all projects. Projects are measured against pre-defined values Benefit / Cost Ratios examine the project’s cost-tobenefit. A typical measurement is cost-to-complete plus cost-of-operations compared to benefits of the project. Pay Back Period examines how long it takes to recoup expenses. While the simplest Benefit Measure method it is also the weakest as it fails cash inflows are not discounted against the recovery time. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Example Scoring Model BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Calculating Future Value of Money: calculated using the formula: FV = PV (1 + i)n where: FV FV = Future Value PV $100, 000 PV = Present Value i 6% per annum i = Interest Rate period n 5 months) years n = Number of Period (years, quarters, Calculation using the formula: Therefore: $100, 000 today at 6% p. a. FV = PV (1 + i)n FV = 100000(1 +0. 06)5 Would be worth FV = BSBPMG 511 Manage Project Integration Scope BSBPMG 521 Project (PMBOK® Guide) 55 th. Edn, $133, 822. 60 in 5 Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Guide), Edn, Newtown, 100000(1. 338226) th

Calculating Present Value of Money: calculated using the formula: PV = FV / (1 + i)n where: FV FV = Future Value PV = Present Value PV i = Interest Rate period i n = Number of Period (years, quarters, n Calculation using the formula: PV = FV / (1 + i)n PV = 160000 / (1 +0. 06)5 PV = 160000 / BSBPMG 511 Manage Project Integration Scope (1. 338336) BSBPMG 521 $160, 000 6% per annum months) 5 years Therefore: $160, 000 5 years from today at 6% p. a. Would be worth th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Calculating Pay Back Model measures the time it will take to recover the project investment BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Calculating Pay Back using Excel BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Calculating Pay Back Net Present Value (NPV) model uses desired rate-of-return to compute the Present Value of Net Cash Inflows. If the result is negative the project is rejected; the higher the positive the more desirable the NPV where: I 0 = Initial Investment (shown as negative because it is an outflow) Ft = Net Cash In-Flow period t k = Required Rate of Return BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,

Calculating NPV using Excel where: I 0 = Initial Investment (shown as negative because it is an outflow) Ft = Net Cash In-Flow BSBPMG 511 Manage Project Integration Scope BSBPMG 521 Project (PMBOK®period Guide) 55 th. Edn, Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Guide), Edn, t Newtown, th

Calculating Benefit Cost Ratio measures the Benefits to be delivery against the cost to deliver those Benefits. A positive value is a healthy return whereas a negative is poor. BSBPMG 511 Manage Project Integration Scope BSBPMG 521 th Edn, Project (PMBOK® Guide), Guide) 55 th Project Management Institute; Institute, 2013, AA Guide to to the Project Management Body of of Knowledge: Knowledge (PMBOK® Edn, Newtown,