2002 Project Control Guidelines

Version 1.0
June 1 2002
Status: Report submitted for the Council Meeting of 7 June 2002

Who will use these guidelines and how?

These project control guidelines have been prepared to help the owners and managers of projects undertaken by InternetNZ.

They cover the key tasks that we need to undertake to ensure that our projects are

• undertaken efficiently, and

• comply with accepted "good practice" for audit, control and communication.

The guidelines also cover the format and content of some key project documents.

We expect all Project Owners and Managers to adopt, and comply with these guidelines.

We also expect contractors working on projects for InternetNZ to comply.

Our projects range in scale, complexity and risk profile. We've tried to align these guidelines with projects that would fall in the mid-range.

Project Owners and managers need to use common sense and professional judgement in selecting an approach that best suits their project.

For simple, straightforward low-risk projects some tasks may be simplified or omitted. In contrast, projects with a complex technical, legal or business risk profile may require extra controls and checks.

Introduction

Every year InternetNZ undertakes a number of projects. These projects are resourced and managed by permanent InternetNZ staff, Council or Committee members, by third parties or a combination of these options.

InternetNZ needs to use its permanent, contracted and voluntary resources efficiently and effectively.

We need to ensure that the projects' outcomes are consistent with our aims and objectives, that projects have been prioritised objectively, and the way in which we undertake them fits with our organisational capabilities.

Further, we need to demonstrate to our members and stakeholders that we are meeting our responsibility to monitor project expenditure.

These guidelines provide a simple, efficient and effective control and communication framework covering the full lifecycle of projects. In plain terms they cover:

What we communicate about our projects, how and to whom

What checks we need to make, who makes these checks, when and how

The guidelines will be used for all projects identified in our business planning processes. This will promote -

• The efficient use of the time of Council and committees
• Good decision making
• The prompt commencement of project activity
• Efficient communication with Project Managers
• Timely and effective project monitoring
• Sound management of project risk
• A good return on the Society's funds which we have invested in projects
• Member and stakeholder confidence
• Our reputation - both nationally and internationally

Sue Leader
Executive Director
June 1 2002

Project control policy

Our project control policy is based on the following guiding principles -

1. Clear Ownership Every project has a designated Project Owner. The owner may be a collective body i.e. Council or a Committee, or a member of the Society's management team. Our approach recognises that ownership may change during the lifecycle of a project. The Executive Director and/or a designated projects co-ordinator may act as a de facto Project Owner in the pre-approval stage of a project. The Project Owner is responsible for selecting a Project Manager and managing his/her performance.

2. Clear Responsibility for Planning and Doing Every project has a Project Manager, who is responsible for developing and maintaining a comprehensive project plan, and ensuring that all tasks are carried out in compliance with the plan.

3. Compliance Checking We have adopted these guidelines as standard practice for InternetNZ. To meet our governance obligations we check that Project Managers and Project Owners are complying with these guidelines, and prepare a Compliance Report to Council on a quarterly basis. The Executive Director is responsible for compliance checking. Where there is a potential conflict of interest, this responsibility may be delegated to a third party.

4. Proper Support Projects will receive routine administrative support coordinated by the Administration Manager. If a project requires substantial administrative support this must be built into the project's plan and budget.

5. Systematic Project Documentation Management and Archiving Project documents will be systematically filed, using an approach that will be documented and approved in the project plan, in compliance with the Society's Documents Policy 1/2/2. Upon project completion Project Managers are responsible for handing over project files to the Administration Manager.

6. Separation of Pre-Approval Expenditure The funding of pre-approval activities will come from a designated fund. Estimates for pre-approval activity will be prepared by the Executive Director in the Society's annual budget planning.

7. Close Monitoring of Project Expenditure Project expenditure will be systematically recorded and reported on a monthly basis to the Project Owner by the Project Manager.

8. Clear Obligations for Contractors and Consultants Contractors and consultants engaged for project-related activities will be required to comply with these policy guidelines as part of the terms of their contract.

Controls Road Map

The following Road Map covers the controls needed for six stages of a project's lifecycle:

1. Pre-Approval
2. Approval
3. Planning and Set Up
4. Execution
5. Completion
6. Post-Completion Review

Note that the sequence presents the control and communication tasks not the project's full sequence of tasks.

At each stage the map depicts the key control and communication tasks, which have been presented in four areas:

1. Project
2. Governance
3. Financial
4. Stakeholder

View Pre Approval Project Tasks flow chart image

View Approval Project Tasks flow chart image

View Planning and Set Up Projects Tasks flow chart image

View Executive Project Tasks flow chart image

View Completion Project Tasks flow chart image

View Post Completion Project Tasks flow chart image

Pre-Approval

Approval

Planning and Set-Up

Execution

Completion

Post completion review

For larger projects

Standard documentation templates

• Template 1 Feasibility Study
• Template 2 Project Owners Brief
• Template 3 Project Business Case
• Template 4 Project Plan
• Template 5 Project Documentation Management
• Template 6 Monthly Report on Project Progress

Template 1 Feasibility Study

Executive Summary

Recommendations

Introduction

• What are our goals? What outcomes do we want to achieve? What problems do we want to solve? What capabilities do we want to develop?

Economic Feasibility

• What is the likely expenditure? What income do we gain? What benefits do we or members gain?

• Do we have the people resources to undertake this project? What work won't they be doing if they undertake this project? What external resource do we require?

Technical Feasibility

• What are the technical enablers or constraints? What "proof of concept" is available?

Legal Feasibility

• What infringements, violations or liability could arise from this proposal?

• What alternatives could be used to deliver the required goals?

• What criteria should we consider when evaluating alternatives? What is the result of applying these criteria?

Recommendations

• What are the study's recommendations? What are the assumptions/provisos associated with these recommendations?

Template 2 Project Owners Brief

The Project Owner's Brief is a self-contained narrative report focusing on the strategic and tactical approach to undertaking the project.

Project scope, goals and objectives

• What are we doing, why, what are our success criteria?

Key Tasks

• What are the key tasks/activities? What are the key dependencies?

Summary of Timeline

• When do the key tasks start and end?

Key Milestones

• When are key go/no go decisions made? What are the points at which something of value is delivered? What are the significant stakeholder events?

Key Resources and Project Resource Acquisition

• What equipment, people, finance do we need? When? How will we secure these resources?

Risk Management Strategy

• What are the key risks, and what is our approach to dealing with them (e.g. risk avoidance, mitigation, transfer, acceptance)

Stakeholder Management Strategy

• Who are our stakeholders? What is their current and desired position? How will we proactively manage stakeholder expectation and perception?

Quality Assurance Strategy

• How will we ensure that the project sticks to its scope, that its deliverables meet the original goals? How do we manage legitimate variations?

Project Reporting

• How will progress be reported?

Escalation Procedures

• How will we recognise and manage events that necessitate a re-think of the scope, timing, funding, deliverables and tactical approach to the project?

Project Budget

• What is the indicative budget? What are the key expenditure categories? When does the expenditure fall?

Template 3 Project Business Case

Items in italic are suggestions - use as appropriate

Executive Summary

Proposal

• Purpose

Background

• Description of Initiative

• Origin

Summary of Approval Requests

• Deliverables

• Key Benefits

• Budget Provisions

Strategic Issues

Describe the big picture

• Fit with the Society's Aims and Objectives

• Contribution to Brand Development and Protection

• Fit with .nz Management Responsibilities

• Contribution to Stakeholder Relationship Management

• Contribution to Operational Capability Improvements

Benefits

Typical benefits include:

• Revenue Generation

• Revenue Protection

• Cost Reduction

• Cost Avoidance

• Improving Membership Services

• Brand Strengthening and Reputation

• Enabling of Future Strategies

Stakeholder Impact

How are stakeholders affected ? how does it change our relationship with them?

• Stakeholder Benefits

• Effect on Membership Fees (Will fees go up?)

Alternatives

• Do nothing/Abandon this opportunity

• Status Quo

• Alternative Options 1......n

Implementation and Resourcing Plans

How are we going to do this? Who? When?

• Project Scoping

• Resourcing

• Key Dates

Risk Management

Describe the nature of any threat, its potential impact, and what we can do to control and minimise risk

• Member Impact Risk

• Financial Risk

• Technology Risk

• Legal Risk

• Operational Risks

• Commercial and Supplier Risk. E.g. contract and contractor management

• Project planning and management Risk

Post Implementation Review Plans

• Project Completion Review

• Benefit Realisation Review

Financial Summary

• Direct Revenue Gain

• Indirect Revenue Gain

• Expenditure

• Timing of Expenditure

• Value of any assets created

• Return On Investment

Recommendation

Template 4 Project Plan

The Project Plan comprises project-related information systematically developed and maintained. It takes the information presented in the Project Owner's brief - where we described the overall approach - down a level of detail. We're now describing how we're going to achieve the required outcomes - the detail of tasks, timing, resources, risk. It's a living document which needs to be regularly reviewed and maintained.

Project scope, goals and objectives

• The scope of the project, its outcomes - preferably in a measurable form, and its outputs/deliverables

Detailed Breakdown of Tasks

Task Dependencies

Detailed Timeline

Milestones

• When are key go/no go decisions made? What are the points at which something of value is delivered? What are the significant stakeholder events?

Resources Plan

Project Resource Acquisition

• Where are we getting our resources from? How ? on what terms? When?

Risk Management

Stakeholder Management

• Who are our stakeholders? What is their current and desired position? How will we proactively manage stakeholder expectation and perception

Quality Assuranc

Project Reporting

• As per Template 6

Issues Register

• How will we record and report events that necessitate a re-think of the scope, timing, funding, deliverables and tactical approach to the project? How will we determine when issues are "open" and "closed"?

Business Case

• As per Template 3

Project Budget

• A comprehensive record of all anticipated and actual project expenditure

Template 5 Project Documentation Management

Suggested framework

Project Terms Of Reference

• Baseline

• Variations

Communications

• Correspondence

• Newsletters

• Presentations

• Stakeholder Communications

Progress Reports

Project Administration

• Contracts with third parties

• Contact details

Project Budget

Project Deliverables

• Charts, diagrams

• Designs

• Reports

• Spreadsheets, tables

• Software

• Other intellectual property

Project Organisation

Project Plans

Template 6 Monthly Report on Project Progress

Suggested basic report to cover -

Progress Report

• Progress against plan

• Milestones achieved

Financials

• Actual expenditure c/w estimates

• Interpretation

Red Flags/New Issues

Progress with items on Issues Register

© 2002 The Internet Society of New Zealand
Last updated 30 May 2002