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Effective Management of Non-profit Projects. Tomasz Bilicki. Sources:. PMBook Guide Third Edition ( A Guide to the Project Management Body of Knowledge),

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sources
Sources:
  • PMBook Guide Third Edition (A Guide to the Project Management Body of Knowledge),
  • International Project Management Association (Polish Guideliness for Competence IPMA Version 1.2 based on IPMA Competence Baseline version 2.0b)
  • Management of the Project Lifecycle (Cooperation Bureau EUROPAID of the European Commision Manual)
framework part 1
Framework part 1
  • Projects and project management. Characteristics of projects non-profit
  • Management through projects and project integration
  • Cycle and phases of the project. Planning
  • Structure of jobs assignement and processes..Initiating and closing the project
  • Project objectives and strategies. Standardisation
  • Project costs and finanses. Providers and contracts
framework part 2
Framework ,part 2
  • Risk, conflict and crisis management
  • Achievements measurement
  • Leadership and team work. Information Technologies in projects
  • Marketing and public relations in projects
  • Filing and reporting. Communication
  • Quality management in projects. Learning organisation
  • What is this training NOT going to be about?
slide5
Project is a time-limitted activity started in order to create a unique product, service or result. Project is a construct of coordinated actions undertaken for a specific purpose, with a defined beginning, end, plan and budget.
  • Groups of projects connected together within the same organisation are called project wallet / basket
  • Groups of projects managed in a coordinated way in order to achieve specific results are called Programs (often they are co-managed by steering groups
  • To make the implementation easier, projects are often divided into smaller parts called sub-projects, that can be managed just like projects
project attributes
Project attributes
  • Time limitation, each project has a defined beginning and ending, however the project’s life doesn’t have to be limited to a short period (some projects last several years)
  • Uniqueness and originality of the product, service or result, that is measurable whether the objectives have been achieved
  • Gradual perfecting, which means stages delivery (step by step), as well as more detailed and precise activities as the project team understands better the objectives
  • Complexity, interdisciplinary, apportionment, legal conditions
slide7
Project is always implemented in the project context, that is the project environment whose scope and span is much grater that the project itself
  • Project context embraces internal as well as external imfluance. Project environment mostly means the cultural and social isues, international and political environment as well as phisical environment
  • Project context is closely connected to the idea of stakeholders. These are people or institutions under the project’s influance. Each team must be aware of who the stakeholders are, but also what is their role and meaning for the project.
slide8
Management of non-profit projects follows similar rules like management of commercial projects. However there are some aspects which differenciate these two types of projects
    • Lack of profit
    • Beneficiary for society objective and scope of activity, connected with the individual character of each institution, popularisation of the idea of help
    • Providing service and products which are not as a standard offered by the state or delivering them more effectively and profitably
    • Innovations, creativity and flexibility (concerns mostly te non-governmental institutions), that are the result of a certain independence from the state, freedom of action and individual commitment of the workers and volunteers
    • Transparency and partnership, not very common in business projects, which means revealing most of information to the stakeholders
slide9
project control brings together the stage of planning, decision making and monitoring( control)
  • Such connection guarantees effective objectives achievement and provides different tasks, such as: making report system, delivery control within the time limit, risk and change analysis, forecasting trends, planning alternative versions, preparing and introducing correction changes, control over the project scope
  • Because the project is implemented within a permanent organisation, the project manager is obliged to know the structure, procedures and methods of decision making in this institution. This is necessary for the project being constantly dependent of the organisation
slide10
management by projects is today an elementary form of activity for many institutions (many projects are being initiated, processed and closed simultaneously)
  • This situation has its weak points (lack of stability, high requirements for the project managers, connected with the fear of losing control), but it also poses a lot of advantages (flexibility, dynamics, opportunity for the institution to lear)
  • Each organisation and project determines the possibility to use the resources necessary for the project. By the resources we mean: the finances, assets (immovables and infrastructure), data base (quantity data, rules and regulations, technologies), sometimes also natural resources (recycled and natural) and most important of all HR - human resources
  • Know-how is a significant piece an institution resources, very useful for realisation of the projects
slide11
A very important feature of a well- composed project is its integrity. It ensures us that the separate parts of the project create a complete and integrated concept.
  • Unfortunately, lack if integrity (e.g. between the schedule, cost analisys and apportionement) often appears with the non-profit projects
  • The aim of the effective project management must also be to achieve this integrity, that is a coordinated connection of various activities, interests, results for successful outcime.
  • The whole set of instruments, techniques, methods, resources and procedures is called project management system, and the description of its functioning is called project management plan
slide12
Project life cycle defines subsequent stages which join the initiation and closing of the project and it is a series of phases
  • Project phase is a defined period of project life, seperated from the other periods of time. Each phase may consist of several or more stages during which definite activities are being performed.
  • Control phase of project delivery
  • Project start and initiation phase
  • Project development phase
  • Results phase
  • Project closing phase
slide13
In the non-profit projects it is also recommended to apply the phases model from the idea of PCM - project cycle management. This is not only instruction of project management but also a method of creating projects adapted for effective management
slide14
For each project the requirements are defined by the five basic parameters: scope, quality, cost, timeframe and resources and these elements remain in mutual dependance. Projects are never static, but they behave like dynamic systems which nee to be balanced.
slide15
The concepts of project phases and lifecycle are often connected with the project schedule, that is often built on certain control points, called the milestones
  • The milestones are significant events in the project which when achieved, allow to pass on to the next project stage or phase. On the basis of the dates planned as milestones, we create the project schedule
  • The schedule schould include a defined date of project initiation, and an estimated closing date for each activity. The schedule is a tool necessary for each activity. It is also useful instrument for the project time management and its aim is to close the project on time.
slide16
information-gathering techniques:
  • Using the similarity to other actions
  • Historical data analysis on the basis of documentation and analysis
  • Advice of external experts which are often used in the case of lask of experience or data
  • Brainstorming is about free and open presentation of your ideas by and to each member of the meeting
  • Three points method is an instrument which makes calculating easier, you have to determine three options: optimistic, pesymistic and most probable
  • delphi techniques
slide17
Work breakdown is breaking the project into seperate jobs, which results in creating the WBS – work breakdown structure
  • It often happens that specific jobs are attached to specific aims, estimated results, resources, dates and plans, which together consitutes SOW – statement of work
  • WBS orders and defines the scope of the project and alongside defining, veryfying and controlling of the project it is the most important element of the project scope management
  • The result of WBS is most often the actual breakdown of the project into sub-projects, systems of actions – groups of actions – assignments
slide18
project close out, which may last a while, embraces three basic sub-processes:
  • Bringing project deliverables, their approval by the sponsor
  • contract closure procedure
  • project documentation and filing of all knowledge and experience
slide19
The basic instrument for planning of non-profit projects is the attitude based on the logigal matrix called LFA – Logical Framework Approach which allows to define and identify problems, aims and actions
  • Providing the key data for the constructing the project, the LFA helps prepare very concrete actions and determines the baseline for monitoring and evaluation
  • The first stage of creating the LFA is determination of needs for the projects by using the method „problems tree – objectives tree”. In this method you first define the initial problem and look for its reasons (moving downwards), next you transform the problems into objectives
slide22
Project objectives are measurable criteria of the project success Thus they have to act like objectively verifiable indexes, that is include the information about quantity, quality and time (QQT concept)or be relevant to the rule of S.M.A.R.T.:
    • specyfic, that is concrete, univocal
    • measurable, so as to measure their results
    • Assignable, by the management and the team
    • realistic, that is possible and probable to achieve
    • time-related, that is time-defined, time limitted
  • One should differenciate the project objectives which concern constant profits delivered to the target group, from the general objective celu ogólnego which, when we take a non-profit project, should apply to the program (that the project improves)
slide23
Projects must always be complacent to the vision and mission of the institution, and with its goals and competences
slide24
The key element of the project is cost planning and financial montage, that means collecting funds for the project
  • Project costs management is a duty of all projest managers. They cannot give up this responsibility (even for the finance department), the manager must have good knowledge of financial matters
  • With long-term projects (lasting several years), it is easy to make a mistake and fall under an illusion, for example connected with the difference between nominal and real value of the money (beeing the effect of inflation or price changes in time)
  • The basic requirement here is the ability to calculate the accumulated inflation, and on its basis introducing corrections in the cost plan, the best time before submitting the application form for funding the project by a public sponsor
slide25
Projects, most often, cannot be implemented without using external organisations. When projects are sponsored by public sector, this institution determines if we need to apply the regulation referring to public ordering.Even if we are exempted from the regulation, the organisation which benefits from the public sector is always obliged to follow the rules of good management of oublic funds
  • With external services for projects, we often use the subcontractors who implement a certain part of the project, service providers who provide service for the project, as well as the suppliers who supply materials, energy, an so on.
  • With non-profit projects we often have partners who cooperate with the project makers on financial or non-financial basis (they are not sub-conttractors)
slide26
Risk is a case or situation which threatens the project, its implementation within the planned scope, quality or resources.Risk most often comes from uncertainty, which happens in all types of activities. Risk is inevitable and it appears in every project and in all its stages.
  • risk management in the project involves: risk management planning, risk identyfication, risk analysis, risk response planning as well as risk monitoring and control
  • Risk, conflict and crisis management are the main responsibilities of the project manager. When managing larger projects it is recommended to apply a formal not an intuitive attitude, which requires proper documentation of risk identification
slide27
risk response measures:
  • Avoid - you need to change the managing plan in order to eliminate the threat.
  • Transfer – it is delegating responsibilities to a different party, for example by insurance or taking subcontractors
  • Mitigate – this means to lessen the probability or effects of unwanted event
  • Acceptance - that it lask of changes in project management, it can be passive (no actions taken) or active (e.g. creating a financial reserve for the unexpected circumstances or events which cannot be prevented otherwise)
slide28
Realistic evaluation of the project is important most in its initial stages. This enables to evaluate its delivery and durability. Durability of the non-profit project is a key requirement of success and it is an ability to bring benefits after the public sponsor stops providing financial support. While the project is still in action, you have to make sure to introduse:
  • monitoring – systematic activity on all levels of management, evaluating the project progress and its results
  • audit – internal or external evaluation (with consultancy)
  • evaluation – measuring the project in order to aquire information about its effeciveness, results, impact, durability and relativity of actions performed.
  • validation – verification of the correct functioning of the processes or products (e.g. checking if the application questions are formed properly, if the evaluation sheet is objective)
slide29
Planning the monitoring system you should avoid too many indexes or too much choice of indexes, their measuring is very complicated
  • The monitoring system should include: project objectives analysis, implementation procedures, indexes, report format and implementation plan.
  • One of the methods of project monitoring, within the context of implementation of strategic objectives and indexes, can be strategic so called BSC – Balanced Scorecard
slide30
The final assessment of the project involves control of objectives achievement and its statements and control of the documentation. The project scope, its schedule even or cost plan may change and specify with time (sometimes the sponsor’s approval is needed).
  • Criteria of success or failure of the project should be defined and presented to the team at the beginning of the project.
  • Most of the time, as project success criteria we take the achievement of its objectives, accordingly to the planned quality, time and costs.
  • The basic indexes which evaluate the chievement of objectives are indexes of: product, result and impact.
  • Non-profit projects should also bring some value added, that is growth of certain resources during the project realisation. The value added is not only achieving additional results, but olaso growth of the project’s resources without covering costs anticipated in the budget.
slide31
project team is a group of people working joinly for the implementation fo the project. In some organisations the members of the team work on many projects and belong to different organisation structures
  • The key issue concerning the project team work is project team building
  • The team work creates social structures – members of the teams play different roles for the projects, and have different obligations. The ability to effectively functioning of the project team is based on certain rules and also leadership which is the main task of the project manager.
  • In order to lead the team effectively you need the skills of effective communication, influencing the organisation, motivation, negotiation and conflict management as well as problem solving
slide32
The project team consists mostly of three components: project manager, basic team, workers on contracts
  • A good team starts its job by appointing the manager who as a central person of the project, has to meet several requirements, such as: specialised knowledge of the subject, knowledge of the organisation and project management, skills and ability to assign jobs and lead the team, organisationals skills, communicational skills, ability to settle the priorities and general look.
  • The project manager should also be responsible in ethical and moral way – institutions and societies connected with project managment have their own ethic codes that bind their members to present a certain moral spine.
slide33
Roles in the team:
  • Ambitious chief – needs outstanding achievements, forces everyone to intense activity, breaks the boundaries, sometimes critisises and is very decided
  • Coordinating leader – has the ability to manage human resources, can improve the effectiveness of the team by good work coordination of all members, good listener, motivator, solves conflicts
  • Creative , inspiring – very creative, with great imagination with unique attitude to problems, searching for innovative solutions but also not very realistic in terms of his ideas.
  • Nosy connector – has numerous contacts and a large groups of friends. Interpersonally talented, enthusiastic and friendly.
  • Racional analyst – characterised by good insight, very intelligent, practical and methodical when it comes to analysing
  • Spirit of the team – warm, easy making contacts with people, sensitive emotional, pay a lot of attention to good atmosphere in the team
  • Finnishing perfectionist – disciplined, concentrated on the quality and planned actions, feels responsible for achieving success
  • Practical realiser – competent, efficient, ready for concrete actions
slide35
The result of each project are unique products or service targetted to a specific group. In non-profit projects, such clients are called beneficiaries or final beneficiaries
  • Marketing teaches us how to recognise the needs of the beneficiaries and how to react to them
  • Many people treat marketing as selling techniques, not connecting it to non-profit projects. This is wrong, selling is concentrated on the needs of the seller, while marketing concerns the needs of the client or beneficiary; selling is dominated by the need to exchange a product for money, while marketing is based on the idea of meeting the client’s needs
  • These needs must be the axis of the project which turnes around it and is prepared and implemented for it. A project which doesn’t meet the beneficiaries’ needs is ineffective from the start. Thus the great role of marketing in project management.
slide36
In PR, most important is not what we say about ourselves, but what the people say about us. Introduction of new products or services offered within the frames of the project, without public relations is very difficylt or even impossible.
  • Non-profit projects must be implemented through the dialogue with the society and they should serve the society and playing an open dialogue policy, such as informing about finanial sources of the project, is a responsibility of the project maker.
slide37

Łódź, 1st July 2008, 09.15To: MediaFrom: Adam Kowalski, the Spokesperson of Organisation, Tel.:0800-800-800Subject: David Biedkam and „One, Two, Three” in Łódź130 poorest families will meet at the feast „Family has fun”, during which there will be grilling, line sliding, stick walking and a concert of the band „1,2,3”.The special guest of the festival will be a footballer David Biedkam, who will play football with children.The festival will be held in the gardens of the Organisation (Łódź, Sienkiewicza St) on 4th July. The organisers, the band and David Biedkam will be meeting the press during the festival.Information for the press is available from Adam Kowalski, the Spokesperson of the Orgasnisation, tel. ,email.Publicity materials, leaflets, TV spots are available on the website

slide38
Collecting, exchanging and storing information about projects has a fundamental meaning for the project organisation, as well as the project team and project sponsor. Information systems and documentation should effectively collect, store, exchange or search for information essential for the project.
  • Very important element of filing is safety policy and in conclusion protection of personal data as well as other confidential data.
  • In non-profit projects, it is good to distinguish project documentation from the rest of the organisation archives and to mark or label it accordingly
  • Project monitoring documentation should also be updated, with the audit trace on documents.
slide39
Depending on the type of project, its quality may be understood as the level in which the service fulfills the future needs of beneficiaries or as estimated, complacent with the characteristics, level of homogeneity and reliability of the product
  • The concept of quality is much broader than the concept of a norm (e.g. ISO) and it applies to such management functions as: planning, organising, leadership, controlling and training.
  • Quality management also involves the question of approval of the project effect by the sponsor, which should be reflected in the project scope declaration
  • Quality management creates a realation to the beneficiaries, as well as other cooperatives of the project (employees, suppliers, partners, society, envirinment). In project management it is also essential to prevent the failures, instead of inspection and defect repair. It is good to notice the fact that the quality management shouldn’t be limitted only to perfecting the very stages but should also involve continuous quality management
slide40
The basic condition is to understand the quality policy settled on the basis of TQM philosophy, by the whole personnel and to introduce the PDCA cycle: 1. Plan your actions. 2. Do the planned actions 3.Check, if the actions are effective. 4. Act to improve the project.
  • The most important TQM rules:
  • customer focus orientation, in which the beneficiary, his current and future needs are met, or even fulfilled in advance (improved, potantial product)
  • leadership
  • inovolvement of people
  • process approach
  • continual improvement
  • factual approach to decision making
  • mutually beneficial supplier relationship
  • system approach of management, this means integration of the planned quality objectives as well as all the above rules for the whole organisation or the project team.
slide41
The most popular form of evaluation is beneficiary satisfation survey in the form of a questionaire
  • It is a good methods with just two reservations: 1. it’s worth to make the evaluation not only at the end of the period of service (e.g. at the end of the training), but also during the course of action, (after each day of training, after each trainer). This helps to undertake certain corrective actions. 2. The method doesn’t apply in case of service which bring stress and frustration to the beneficiaries.
  • Alongside the satisfaction survey, it is good to measure complacency of the service with the documentation (e.g. training according to the schedule); inspection or evaluation of the trainer, benchmarking (i.e. comparison of your own product with these offered by similar organisations, with the analysis of methods to equal or advance the leaders’ quality) evaluation of the value added
thank you for your attention
Thank you for your attention

Tomasz Bilicki

bilicki@csr.org.pl