A project is an enterprise aimed at creating a certain product. Everyone is limited in time and resources, which must be used with maximum efficiency. Project planning solves this problem. This is the initial stage of any undertaking, at which the manager defines common goals, forms a team, distributes tasks, solves issues with the involvement of resources, thinks through and evaluates possible risks.
What is a project plan?
A project plan is a step–by-step description of its implementation. It includes a designation of the goal, a list of tasks that need to be solved to achieve it, as well as a description of organizational aspects.:
- work schedule with deadlines and intermediate control points;
- budget;
- the need for financial resources, for example, labor, technical, raw materials;
- methods for achieving intermediate tasks;
- the format of attracting contractors, if necessary;
- responsible persons;
- ways of communication.
The plan is not a final document, and corrective actions may be required at any stage of implementation. However, the more detailed the plan is, the fewer unforeseen issues will arise during its implementation. This means that the chances of successful timely implementation will be high.
To minimize risks, managers develop a multi-scenario plan, i.e. They describe several scenarios for the development of a project under different circumstances.
There is a distinction between strategic and operational planning. Strategic planning is carried out at the company’s management level, when the general directions of the company’s development, its business goals, missions, priorities, concepts, and values are determined.
Operational planning shows how a company will achieve its strategic objectives month after month. The operational plan covers a short period of time, for example, one month, when it is determined:
- What benchmarks should be achieved;
- what methods to apply;
- what are the criteria for success;
- What dangers can you face;
- by what indicators can we assess that everything is developing according to plan.
It is recommended to discuss the operational plan with the team, other stakeholders, and listen to the opinions of colleagues. Taking into account the comments, as well as the opinions of the parties, is one of the effective methods of reducing the risk of risks.
Project planning stages
Preparation
Any project begins with preparatory activities, during which sketches are made, noting the main points:
- they formulate common goals and objectives;
- outline the expected results;
- determine the circle of stakeholders;
- They are calculating the budget;
- determine what resources will be needed (raw materials, labor);
- They set a deadline;
- establish criteria by which it will be possible to understand that the project is completed;
- establish forms of communication.
It is good if at this stage it is possible to identify potential dangers and think over alternative scenarios. This will help to minimize the occurrence of unforeseen circumstances, prevent some of the dangers or reduce their negative consequences.
At the preparatory stage, it is recommended to discuss each provision with all interested parties – investors, customers, managers, and team members. This method is used to identify concerns, additional tasks (for example, the need to retrain staff), and listen to suggestions. The more issues are resolved during the preparation, the faster and easier the implementation phase will be.
Making a plan
First, you need to make a sketch in which:
- specify the overall goal and schedule the tasks;
- make a schedule of work with the exact dates;
- list the necessary resources;
- note the related tasks that will have to be solved;
- identify and record any assumptions, for example, how long it is possible to extend a particular stage, where to get additional funding, if necessary;
- create a budget.
When the draft is ready, it is necessary to assemble a team and discuss each item. The opinion of experts is important because everyone, working on their site, knows it better than others and can make important suggestions. In addition, an open discussion creates an atmosphere of trust, which increases the motivation of each participant.
When all the opinions have been worked out, you can start honing the outline and drawing up the basic plan. It should be as detailed as possible and include even those little things that seem unimportant:
- all general information related to the project, including the name, customer names, start and end dates, and version number;
- detailed description of each stage with indication of tasks, deadlines, responsible persons, expected result;
- detailed description of each task with additions and clarifications;
- description of risks and scenarios for responding to them;
- detailed schedule of events;
- adjusted budget.
The finished plan is once again proposed for discussion by the working group, and also submitted for approval to investors, customers, and company executives for final approval.
Implementation and adjustment
A project plan is a document that can and should be adjusted at all stages of implementation. Any changes in internal or external factors require additions, clarifications, and changes. For example, equipment may break down, technical staff may go on sick leave or quit, partner companies may go bankrupt. These circumstances may violate the interim deadlines. Therefore, at each stage, managers are required to monitor the situation and make operational decisions.
Effective planning methods
Project Management Body of Knowledge (PMBoK)
This is a project management knowledge system developed by the PMI profile Institute. The basic idea is that planning is an ongoing process. Therefore, the manager must continuously manage:
- The content. At this stage, the overall goal is determined. The details are discussed with customers and stakeholders, and managers compile a list of small intermediate tasks.
- Deadlines. Here it is necessary:
- determine the sequence and duration of operations;
- calculate the time for each;
- think about how to organize the relationship between tasks.
- The cost, i.e. the assessment of all necessary resources.
- Quality. It is checked against scheduled checkpoints, each of which must be checked.
- Resources (human and machine). The manager must form a team and assign roles. If the company is reorganizing, then this item becomes one of the most important.
- Communications. Managing this task involves defining communication channels, i.e. how often will the meetings be held, in what format.
- Risks. At this stage, it is necessary to collect information about potential hazards, as well as develop action scenarios.
- Integration. This is the final stage, where all the individual elements should be combined into a single picture, coordinated with the team and stakeholders.
Agile
This is a flexible management technique. The team working on it does not have an end goal, it works in short cycles. The manager’s task is to plan this cycle.:
- create a list of tasks;
- calculate resources;
- plan the duration of each cycle;
- cost of work;
- priorities.
When working using the Agile method, it is impossible to make a classic plan at the initial stage. Planning takes place in parallel with the executive part. And in order to monitor the interim results, frequent meetings with clients and the team are planned, during which additions are made. This approach is called product increment planning (PI).
Risk planning
Risk identification is the identification of potential hazards and their analysis in order to make an assumption about how much they can affect the business. Identification of risks helps to get an idea of the factors that can provoke them, as well as to identify ways out of crises.
Identification of potential hazards should be carried out at all stages of the project development, since the situation does not remain unchanged, certain circumstances constantly arise that have to be overcome. It is necessary to identify the risks in order to:
- timely response to emerging industry issues;
- do not go beyond the legal norms (legislation often changes, some laws are amended, others are excluded);
- remain attractive to investors who are always looking for projects with low risks and high returns.;
- improve production efficiency and labor productivity.
Ways to identify risks
Brainstorming
This is an effective technique when the whole team gathers and exchanges opinions, concerns, and information from the field. In the course of an open conversation, a common opinion is always developed, which is supported by the majority, based on various facts. For example, management sees the situation as a whole, but people who work on the process, in direct contact with customers and suppliers, see the situation from a different angle, and may notice dangers that are not visible from above. The essence of the method is to exchange such information and find a single solution.
Conversation with stakeholders
This complex term refers to people who are interested in the implementation of the project. Most often, these are large investors. An interview with them allows you to find out what, in their opinion, could threaten the successful implementation of a common cause.
The nominal group method
This is a kind of brainstorming session organized according to a different scheme. Team members get together and write down their concerns on paper without discussing them with colleagues. Then everyone expresses their thoughts aloud, and the supervisor writes them down on the blackboard, connecting the repeated ideas with lines. When everyone has spoken out, a prioritization is carried out: the concerns that have gained the most votes are identified, then a list is compiled.
Affinity Diagram
It resembles the method of nominal groups. Participants are asked to write down the most realistic hazards in their opinion by category, for example, financial, industry, general economic, and security risks. After analyzing the opinions of the participants in the discussion, we can identify the potential dangers that most concern the team by categorizing them.
Root cause analysis
This is a research methodology for previous projects that may be related to the implementation of the current project. Outdated equipment, low-quality raw materials, and delivery delays can be discussed here. Identifying these problems helps to take measures to prevent them.
SWOT analysis
This is a method that allows the team to better understand the goals and objectives of the project, and for investors to understand why it is worth investing in it. The SWOT method is based on the analysis of 4 components:
- strengths of the company, i.e. what the team succeeds in;
- weaknesses where you can improve your work efficiency;
- opportunities – areas in which you can expand your business;
- threats that may arise, but which can be prevented or their negative impact minimized.
Conclusion
Project planning is a dynamic process. It should not end at the planning stage, but should continue until the completion of the enterprise. This is the only way to implement your plans on time and with the desired result. Changing external and internal factors require an immediate response in order not to disrupt the planned interim plans, this is the task of managers. And constant communication between customers, investors and the work team will allow us to timely notice non-obvious impending dangers and apply a backup scenario.
