Category: Project management

A poor quality project management plan is one of the main reasons for project failure.

Often it means that the project scope was not fully grasped and, as a result, the program and budget were unrealistic.

It is widely proven that planning is a critical success factor in project management.

So, in this article, we will take a look at how to make a project management plan.

Creating a project management plan in 9 steps

A project management plan is a document that outlines the process to be followed to achieve project goals.

A project plan aims to outline which steps and resources are needed to complete a project within schedule and budget.

Here are the 9 steps for developing a project plan that yields quality results:

Project management plan: Gather requirements from key stakeholders

Having created a project map and established key project stakeholders, it is now necessary to collect requirements.

To generate outputs, you need inputs.

After obtaining this information, you can define your project’s scope and determine exactly what results your stakeholders expect.

Strong communication skills are crucial at this stage of the planning process.

Without effective communication, you may miss important details that could be detrimental to the overall success of your project.

Project management plan: Define your project scope

The key questions to ask are “what does the project team have to produce or deliver?” and “what problems are the stakeholders trying to solve?”

Then provide a comprehensive description of your project and the final product results through a project scope statement.”

Project management plan: Create a work breakdown structure

In this step, the project scope is split into smaller, more manageable deliverables and clusters of related activities, also known as ‘work packages’.

Here the question “what activities need to be carried out to create project deliverables?” can help split work.

This will help allocate the right resources to the project’s different parts according to the skills needed.

The work breakdown structure supports planning and coordination, two critical aspects of project management.

Project management plan: Project activity sequence

Almost everything happens sequentially, but the key is to do as many things as possible simultaneously, provided you have the resources to do so.

Particularly in the most dynamic and hyper-competitive industries, the capability to reduce cycle times is a competitive advantage.

Project management plan: Estimate activity duration, costs, and resources

Cost, duration, and resources required to complete the project activities depend on your project scope.

Getting a correct estimate is essential, as it helps determine whether the plan is feasible, set expectations, and keep costs under control.

Project management plan: Allocate resources to work packages and activities according to skills and interests

Resources include labor, materials, equipment, space, and technology.

After defining the resources needed, it is crucial to determine the skill level required for each activity.

The scope and complexity level of the activities will help determine in which areas high, medium, or low-level skills are required.

Project management plan: Create contingencies

Projects rarely work as planned, so it is important to prepare backup plans.

Contingencies can be determined by analyzing historical data to identify risks that have occurred on similar projects in the past.

For example, if a vendor who provides a key project component experienced performance issues in the past, this could affect your planning.

In that case, the contingency plan could include alternative supplier selection, and cost estimation should this risk occur.

The key here is to consider internal and external factors that may impact project objectives.

Many factors beyond the organization could add risk to the project, including the consumer price index, the economy, government issues, and the actions of competitors.

Project management plan: Creating a baseline for performance metrics

Develop an integrated scope-program-cost baseline for project work, which will serve as a control tool.

You can measure and manage performance by comparing project execution with the baseline.

Performance should be measured during the entire project life cycle; this way, problems can be spotted in time and corrective action taken before it is too late.

Project management plan: Document everything and build a knowledge base

This can be a great way to learn from others’ mistakes and successes.

In organizations where this historical knowledge is not documented, it may be more challenging to organize work for future projects because there are no best practices.

It becomes clear that creating a project management plan is essential not only for the success of a project but also for ensuring that similar projects are well planned in the future.

Project management software such as TWproject facilitates creating your project plan to produce a high-quality project management plan.

This project management tool is flexible and offers a variety of tools to meet different needs.

Moreover, not only does it help in creating a project management plan, but with its user-friendly and easy-to-use interface, it allows you to monitor the progress of several projects at the same time.

Among the professionals working in the public procurement field, a particular role is covered by project management for the Head Project Manager (RUP – Responsabile Unico del Procedimento, in Italian).

But what is it all about? What are the specific tasks of this position? Let’s discuss it in this article.

Who is the Head Project Manager?

The Head Project Manager is the professional who, according to cf. Art. 31, co. 3, Legislative Decree 50/2016, is responsible for performing all tasks concerning the planning, design, assignment, and execution of contracts not assigned to other bodies or individuals.

Over the years, the legislation has conferred increasingly clear and defined tasks and responsibilities to this role:

• The European Commission directive (EU 24/2014) on public procurement recommends the presence of a project manager;
• In Italy, the new Public Procurement Code (Legislative Decree, No. 50 of 18/4/2016) has been published;
• Also, in 2015, ANAC – the Autorità Nazionale Anticorruzione (National Authority for Anti-Corruption) – published the first document with guidelines regarding the role of the HPD;
• In 2017, a new version of the Procurement Code was published;
• Also, in 2017, ANAC issued an updated version of the Guidelines.

From this moment, the HPD becomes equivalent to a project manager in the public procurement sector.

This professional figure is extremely important for public administration operations, as it improves the management of public contracts and significant works.

Public procurement is a hot subject, where discussions and debates often arise about major works that, although considered necessary, are dropped.

All of this is due to incorrect evaluation of time and cost estimates.

This is why the Head Project Manager becomes essential to coordinate and verify successful work.

How is the Head Project Manager chosen?

Any contract confirmation is accompanied by the appointment of an HPD through a formal act of the manager.

The HPD is elected from among employees who hold a managerial position or from employees with the professional skills relevant to the assignment.

The ANAC guidelines outline different levels of the HPD and mention all the requirements, including training, qualifications, and professional experience, for each of them.

Should no person in the workforce meets these requirements, the HPD, which, as mentioned, is a mandatory figure, will be sought and selected in external individuals.

The appointment of HPD is mandatory and cannot be declined.

Head Project Manager’s duties

As previously mentioned, the Head Project Manager is a project manager in public procurement and execution of major works.

Their primary duties and areas of expertise are listed in the Procurement Code.

These include different tasks, including:

• Formulate proposals or provide information at the planning stage of public contracts;
• Coordinate activities to evaluate technical and economic feasibility;
• Verification results validation;
• Selection of award procedure, award criteria, type of contract;
• Supervision of the fair conduct of the selection;
• Review of administrative documents submitted in the tender;
• Review of anomalous bids;
• Appointment of the tender committee and, if no conflict is present, participation as chairman in said tender committee;
• Supervision of project implementation activities, including workplace safety, schedule compliance, cost, and quality.

How to become an Head Project Manager

Thanks to specific knowledge, skill, and expertise requirements defined by the ANAC Guidelines, it is possible to ascertain what skills and knowledge Head Project Manager must possess.

In this respect, different training courses have appeared that help professionals specialize and fulfill the role of Head Project Manager.

These training courses share many similarities with those related to project management, which is not surprising given that the figure of the HPD is that of a project manager with expertise in public procurement.

Project management provides the fundamental knowledge to manage and supervise projects.

Courses, more specifically, focus on jurisprudence, technological insights, management techniques and the analysis of real industry cases.

The training courses to become an Head Project Manager comply with Standard UNI 11648:2016 (Requirements for the Knowledge, Skills and Expertise of the Project Manager).

The teaching method is often a mix of one-on-one lectures, group or individual laboratory sessions, and the analysis of case studies and real-world examples.

On a final note, the Head Project Manager must be specifically trained and have a proven track record in activities similar to the procurement nature.

Besides being appealing because of the field’s uniqueness, this role can also be particularly interesting from an economic point of view.

The actual earnings depend on the type of contract, but the amount of money allocated to the HPD is not to be underestimated.

That of the Head Project Manager is a special and unique project management role that combines the skills of a traditional project coordinator with the great responsibility of managing large works.

Measuring project performance is an expectation that any business effort comes with.

Only in this way can it be determined whether goals have been achieved.

This article will examine why measuring project performance is important and how to do it.

Why is it important to measure project performance?

Different reasons show the importance of measuring project performance. Here are some of them:

Celebrate successes

Meeting goals allows for rewarding project team members committed to their work.

By measuring the level of success achieved, you can gauge the project’s contribution to the organization.

By having objective numbers, employees will be able to understand the impact they have had and thus feel more confident in their skills.

Find areas where improvement can be made

Measuring performance in project management can help build a more strategic approach to projects.

Measurement may reveal deviations from expected results, which allows you to find areas where improvement can be achieved before the next assignment.

Measuring project performance is therefore critical for business growth.

Make organizational decisions

Management may rely on project performance to determine other business decisions.

This performance can, for example, impact recruitment and hiring decisions, funding, and current employee planning.

Metrics for measuring project performance

Every business or project requires performance metrics that match its purpose or goal.

To choose the right metrics, these three steps should be followed as early as during the planning phase of a project:

1. Understanding the goal and scope of the project;
2. Determining what crucial success factors must be met to succeed and achieve the goal;
3. Take every key success factor and determine how it will be measured.

Here are some KPI indicators that are often used:

Cost calculation

Cost measures the performance of a project from a financial standpoint.

In this case, you compare the original budget created before beginning work with the funds expended during project execution.

If these figures are similar, you can assume that you accurately estimated the required monetary resources.

If the actual expenditure is within your budget, the project is a true success. If, on the other hand, your costs were higher than expected, you need to learn the reasons why.

This evaluation type does not occur only at the end of a project but must be regularly implemented throughout its lifecycle.

This way, strategies can be implemented to reduce potential overspending before escalating.

Meeting deadlines

If a project’s deadlines have been met, project managers and project teams have worked fruitfully.

Delivering a quality project timely is a mark of success.

Establishing milestones before work begins makes it possible to get a clear deadline schedule.

This will make it easy to determine whether or not deadlines have been met.

Return on investment

Return on investment, aka ROI, tells the company’s ability to achieve financial profit from the project.

If results are profitable, then the company will earn more.

It can be beneficial to calculate the ROI of the performance of multiple projects to determine which strategy was the most profitable investment decision for the company.

To use this metric, you should assign a monetary amount to each data unit to determine the net benefits.

These benefits can include a contribution to profit, cost savings, increased production, etc.

Costs can include resources, labor, training, and general expenses.

This is the formula:

ROI = (benefits/net costs) x 100

Earned Value

Earned Value provides strategic direction by showing how much value the company has gained from what it has spent up to a given point in time on a project.

This metric compares the value of work completed within a particular date to the approved budget for the project.

Earned Value is also called Budgeted Cost of Work Performed (BCWP).

This is the formula:

Earned Value (EV) = % of work completed / budget upon completion

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

This metric is pretty straightforward: the higher the margin, the better the business performance.

Any project completed should contribute to the financial profit of a business.

In this case, the margin is the percentage of each euro earned after costs have been deducted.

The formula is as follows:

EBITDA = (total profit – total costs) / 100

Customer satisfaction

In some kinds of projects, the customer satisfaction level determines whether or not the work was successful.

Higher customer satisfaction is often a sign that their needs have been met effectively and that the product delivered is of quality.

Some strategies that are often used to measure this type of performance are, for example, monitoring social media interactions or administering surveys asking questions about product usefulness and brand awareness.

The Customer Satisfaction Index (CSI) is the most popular system to gauge customer satisfaction, followed by the Net Promoter Score (NPS).

All in all, the best way to measure project performance is to set goals beforehand, establish measurements based on expected results, and track performance regularly so that you will have enough time to take action on project progress if necessary.

When a goal is not met, adjustments need to be made.

When a goal is passed, processes can be repeated in the future.

It is almost redundant to mention how a Project Management Software like Twproject can make it very easy to measure each performance.

In project management, we constantly ask what allows us to create value for stakeholders, which involves considering tangible benefits.

Not all financial benefits are the same, so it is crucial to know how many and what all expected benefits are.

In this article we will explain what tangible benefits are, what benefits they bring to a project, and how to measure them.

What are tangible benefits?

Tangible benefits are all those benefits that are quantifiable and measurable.

Simply put, they are project benefits that can be assigned a monetary value, the number of labor hours, or other specific metrics.

Therefore, the defining factor is whether a benefit includes measurable objective evidence.

These are different from intangible benefits, or intangible benefits, which cannot be quantified financially.

Here are some practical examples of tangible benefits of a project:

• Increased turnover;
• Savings in resource costs;
• Savings in hardware costs;
• Increased productivity;
• Improved quality,
• Reduced production costs,
• Reduced error rate,
• An improved customer service,
• Increased customer retention rate.

Tangible benefits management process

The project benefits management process consists of four different parts. Here are what they are:

Tangible benefits definition

The project must identify clearly what tangible benefits will be delivered and how they will be quantified.

It is important to remember that most of the time, these benefits will only become evident once the output has been delivered.

Benefit organization

When it comes to benefits, it is crucial to identify the following elements:

• What to measure,
• What to expect,
• When and how benefits will be evaluated,
• What is the minimum threshold for declaring success,
• What will be the impact on the project if the measured benefits do not match the expected benefits.

Tangible benefits implementation and monitoring

Once the project begins, it is important to measure, record, and report what the actual results are compared to the expected results.

This should be done throughout the entire project lifecycle and not just at the end of the work.

Regular reporting will give a clear indication of whether a project is still on track or not.

Benefit evaluation

Monitoring benefit metrics and comparing them to expected benefits will indicate a project’s performance.

Having actual data and comparing it to a predetermined threshold will help the organization maximize a project’s potential.

How to evaluate tangible benefits

Tangible benefits evaluation aims to establish whether an organization is achieving its declared goals.

This perspective focuses on calculations that seek to take subjectivity out of the results.

The information obtained from this evaluation is crucial in helping to achieve long-term goals.

Here is how three types of assessment are performed:

1. Performance indicators

Tangible benefit evaluations use key performance indicators (KPIs) and benchmarks to make objective measurements.

The KPIs chosen to evaluate a tangible benefit are related directly to a specific benchmark measurement.

For example, employee productivity and customer satisfaction may be tangible benefits in a retail business.

KPIs related to employee productivity might include the average time to complete a task and the number of times the checkout process falls within a set interval.

Customer satisfaction KPIs might include the number of customer complaints in a particular period and customer service ratings.

2. Cost-benefit analysis

A cost-benefit analysis is most useful when evaluating a tangible cost-benefit.

An example would be to determine whether an estimated increase in revenue from a suggested program is greater than the program’s cost.

An evaluation begins by identifying existing or potential tangible benefits and calculating or estimating the financial cost of achieving these benefits.

Each benefit is then measured relative to a benchmark.

Generally, the cost of achieving a tangible benefit should be less than 50 percent of its actual or estimated financial benefits, and the amortization period should not exceed 12 months.

3. Opportunity cost analysis

An opportunity cost analysis broadens the concept of benefit-cost analysis to include a diverse range of options.

For example, creating a company website can increase customer satisfaction and boost sales revenues.

Yet, several other options are available to achieve these same goals, each of which comes at different costs.

Although building a website in-house, rather than outsourcing the project, can reduce initial costs, it can jeopardize customer satisfaction and revenue if the company does not have sufficient skills to build a fully functioning site right away.

In this case, whichever option improves tangible benefits is often preferred.

The bottom line is that tangible benefits are a key element in a project.

Without palpable benefits, it is improbable that stakeholders will agree to start work.

Therefore, it is essential to know how to distinguish all the tangible benefits a project can bring to an organization and how to measure them objectively.

When we refer to intangible benefits, it does not mean that these are not real.

The peculiarity is that, unlike the tangible benefits of a project that are easily measurable, intangible benefits are not.

Since an intangible benefit is somewhat subjective, the range and scope will vary from one organization and individual to another.

Therefore, in this article, we will look at the intangible benefits of a project.

What is an intangible benefit?

An intangible or immaterial benefit is a subjective type of benefit that cannot be touched effectively and is challenging to quantify in monetary terms.

Intangible assets are important to consider because they constitute a significant part of a company’s value.

According to economists, more than 25 percent of a company’s value is now based on intangible assets, such as brand image and market share.

Unfortunately, some vital business projects often go unfunded because intangible benefits are not considered.

These misguided investments can be detrimental to critical strategic goals, such as improving market share and enhancing competitive advantage.

What are the intangible benefits?

As previously mentioned, intangible benefits can vary depending on the company and the project.

Virtually, anyone can benefit from one or more intangible benefits.

The most challenging thing, however, is understanding what intangible assets a company might already offer.

More specifically, intangible benefits are those assets whose foundation is built on knowledge and information.

These can be classified into four macro-groups:

1. Human Resources – company employees’ knowledge, skills, and experience. This refers not only to operational aspects but also to relationships, contacts, and individual qualities;
2. Organizational resources – the set of activities and assets that serve to achieve goals. Examples include corporate culture with its norms and processes, information and communication systems, patents or copyrights;
3. Relational resources – processes and information that connect to the market and allow a company to execute its work in its industry effectively. More specifically, partnerships, collaborations, alliances, and relationships with investors or lending institutions are partnerships. Brand and corporate reputation belong to this same group;
4. Specific technological skills – which are defined as those skills that relate to the use of technology, innovation, and research and development of new solutions.

Why is it important to consider intangible benefits in a project?

The answer to this question is quite simple: businesses that include intangible benefits in their projects will be able to generate a decisive competitive advantage.

Therefore, their margin will be higher compared to their competitors.

As a matter of fact, in today’s dynamic market, the process of imitation between products and companies is one of the most common risk factors.

Businesses’ investments often focus on processes and tools intended to improve performance in performing similar activities to those competitors perform.

As they do so, they forget to focus on their strategic positioning, brand, and individuality.

Never lose sight of the intangible benefits

A business can make unique decisions and take more individual actions by considering intangible benefits.

Indeed, what makes a product or service valuable is not based so much on its physical components, but the expressible intellectual content makes the difference.

Yet because of their intangible nature, intangible benefits can be overlooked or undervalued.

When a company prefers a short-term view with quick results, intangible resources inevitably slip into oblivion.

These require a medium-term period to yield their value.

Measuring intangible assets is a complex and still relatively unexplored subject.

Within corporate financial statements or management reports, we rarely find specifications on, for example, supplier relationship quality or employee learning curve.

We live, however, in an era in which it has become paramount to consider these kinds of intangible benefits as well.

These are resources that ultimately create value, thus enabling tangible benefits to be generated.

How do intangible benefits are measured?

By this point in the article, it should be evident that measuring intangible benefits is not easy work.

Before outlining some techniques that are used, it is important to stress that for estimating individual intangibles, it would be necessary to isolate flows from them by eliminating those potentially related to other activities.

Here are three possible strategies for estimating intangible benefits:

• Cost criteria: this method considers two criteria – historical and production cost. The former is the price paid by the company to develop the individual resource, while the latter estimates the cost of reproducing the intangible resource being evaluated.
• Comparable transaction method: Is based on acknowledging to the intangible value corresponding to the price applied to a similar asset in transactions.
• Profit method: this refers to the actualization of cash flows that are related to the intangible asset. It is, however, an ineffective technique in most cases.

On a final note, it is clear that intangible benefits play a key role in businesses.

In today’s dynamic and volatile market, investment analyses based solely on tangibles are no longer sufficient.

It is becoming increasingly clear how intangible assets are major drivers of product and service value and a source of competitive advantage.

Evaluating intangibles is, therefore, a widely debated issue and will continue to be so.

A quality project management app makes planning, executing, and monitoring project progress a piece of cake.

By using the right software, you can create a transparent record so that everyone knows who is doing what and when and at what point in the project you are.

Let’s take a look at what a project management app is and how to choose the right one in this article.

What is a project management app?

A project management tool is software that helps teams to plan, manage and optimize resources throughout the organization.

These tools differ in features, although most have a few things in common, including:

• Activity tracking and assignment: most, if not all, project management tools feature the option to assign and track tasks throughout their lifecycle.
• Collaboration: all project management tools include collaboration features, such as chats and comments.
• Document sharing: to successfully complete projects and activities, you need to be able to share and work together on materials and resources.

How to choose a project management app

With so many tools on the market, finding the best project management tool can be challenging.

More often than not, team leaders purchase project management software only to find out after a few months that they have made the wrong choice.

It is important to remember when comparing tools that a tool efficace should meet two main requirements.

First, it should come with all the functionality a project manager needs; second, it should be something the entire team is willing to use.

Meeting both of these requirements is easier said than done, so here are 9 key steps to choosing the right project management app.

How to choose your project management app

1. Determine your needs

The first step for finding a project management app is to determine your current issues in the way your team works.

It is critical to note these weaknesses in a list that you can refer to later. Potential problems include:

• Lack of communication between departments
• Unorganized projects and missed deadlines
• Inability to understand customer feedback
• Inconsistent load and workflow among team members
• Too many time-wasting meetings

This list should be used as a starting point for defining what functionality you would like in a project management tool.

If a tool does not provide a solution to these problems or only partially solves them, you should move on to a different option.

2. Find the best project management tools

After establishing your needs, it is time to see what options are available.

Here are some ways to get started:

• Ask your colleagues what they liked to use in the past
• Talk to other project managers in your industry
• Take a look at the recommendations from industry websites
• Check software reviews

3. Test your project management tool

After having found your tool, it’s time to give it a go.

Most project management software comes with a free trial, and even if they don’t, many companies will gladly offer one if requested.

In this case, it is a good idea to assemble a small group to test the app, making sure to choose people with different duties and work styles, as differing opinions are key to preventing future problems.

4. Getting feedback from your team

After completing the trial, it’s time to gather feedback by contacting everyone who took part in the test project and asking:

• Does the software solve the problems originally determined?
• Would the project management tool make their workflow more efficient?
• What did they like most/least about the instrument?
• How likely would they be to recommend this tool?
• How long would it take to roll it out across the company?

5. Evaluate the cost of the project management tool

In the cost, you should not only consider the subscription to the app, but also the time it takes to roll out the tool in your company.

If the result is long-term savings, this is definitely a good solution.

6. Implement the project management tool

Having found and purchased the right project management software, you need to devise a plan for implementing the tool throughout your company.

Most people are resilient to change, so you need a program that will make implementation as smooth as possible.

Key elements to consider are:

• Timeline: Set the time limit in which you want to implement the tool in your company.
• Training: What training do the different people need? Who will provide it? How will it be provided?
• Integration: Who will take care of their creation?

7. Completing a retrospective

Once the tool has been rolled out, it is worth taking a look at the process.

Were there areas where it would have been better to do things differently? What went wrong in the implementation process?

These questions will help in making future implementation plans smoother and less troublesome.

It is also vital to regularly check in with the project team to find out how they are using the project management app, where changes can be made, and how to implement it more successfully in the long run.

All in all, engaging and convincing a work team to use a new project management app can be challenging, yet once it is implemented and in use, it will make everyone’s lives much easier.

Featuring a range of features including flexible project views as well as analytics, project tracking and resources, TWproject is a great project management software that will assist companies from different industries in la managing projects.

Risk analysis in project management becomes a very important aspect in the success of a project.

Projects capitalize on resources and opportunities, and from these stem uncertainty, challenges, and risks; in fact, the thing that a project manager wants to deal with last is risk.

Let’s define what risk analysis is in project management, why it is important, and how to execute it in this article.

What is risk analysis in project management

Risk analysis in project management is the structured monitoring of problems that can impact schedules and quality of an ongoing project.

Through risk management, you can clearly pinpoint and define risks, their chances of happening, how to deal with them if they occur, and the steps to take to prevent them.

The success of a project often depends on the quality of the risk analysis since an unexpected event could have consequences, even major ones, in different parts of the work.

While there are two types of analysis – quantitative and qualitative – using one or the other may depend on the needs of your particular project.

Quantitative risk analysis: what it is and how to do it

Quantitative risk analysis is a statistical and numerically calculated examination of the impact of a risk on the overall project.

By quantitatively measuring risks, it helps reduce uncertainty about the success of a project by promoting the development of a risk management plan.

This analysis method may require specific tools, but it is generally objective and accurate.

Here is how it is performed:

• Interview relevant parties to collect information and shape scenarios.
• Sensitivity analysis: assists in identifying risks and defining which may occur most and the effects on the project.
• Expected monetary value analysis: a statistical method that measures the average outcome of probable scenarios by including the cost and gain of each path.
• Modeling and simulation: is a tool that makes use of a model that converts uncertainties into their potential impact on project objectives.
• Plan risk analysis: in this case, the precedence diagram method can be used to see whether the project objective will be completed within a specific date and within cost estimate.
• Expert opinion: Getting expert advice for identifying potential costs and effects on planning, assessing possibilities, interpreting data, and identifying weaknesses and strengths can be invaluable.

Qualitative risk analysis: what it is and how to do it

Qualitative risk analysis calculates the likelihood of a risk to occur.

This helps in determining which risks to focus on based on both the chance of occurrence and the magnitude of their impact on the project.

Qualitative risk analysis typically implies organizing and categorizing risks into a matrix that illustrates the probability, outcome, and impact of each risk on the overall success of the project.

This method is faster than quantitative risk analysis, although it is more subjective.

Here is how it is accomplished:

• Risk probability and impact evaluation: During this stage, each risk that might occur is studied and analyzed relative to its likely effects on the project objectives. Then, each risk is classified according to different levels.
• Impact risk assessment matrix: documented results of risk probability can be described in qualitative terms, such as very high, high, neutral, low, and very low.
• Risk rating is developed using a matrix that represents the risk scales for each risk. The matrix documents the risk likelihood scale between zero chance (rate 0.0) and certainty (rate 1.0), as well as the risk impact scale, which reflects the severity of its influence on the project objective. This matrix helps in improving data quality and makes the management process easier to replicate during the project.
• Risk classification: in this stage, risks are grouped by common causes to determine the most vulnerable areas of the project and to help develop an effective risk response plan.
• Risk urgency evaluation: in some cases, urgency can be combined with risk rating. This is a method used to gauge the extent to which data are useful for risk management, thus generating a final rating
• Expert opinion: it may be helpful to seek the advice of experts, such as people who have recent experience on similar project cases, through interviews or special workshops.

Why is risk analysis in project management important?

• Promotes progress: the project can progress by limiting the number of deviations and setbacks that occur during its life cycle.
• Communicates problems: knowing potential project risks helps the project manager communicate problems to stakeholders.
• Makes risks manageable: risk analysis builds opportunities to prepare for problem management by reducing the negative impact on the project.

Bottom line, risks are a common concern for all projects.

One of the major challenges a project manager faces is not to be overwhelmed by the number or magnitude of possible risks that have been identified.

On the contrary, a good project manager should be skilled enough to focus on the important elements that could threaten the smooth operation of the project and then develop a risk management and response plan.

The risk management process in project management is one of the most important practices in project management and is aimed at ensuring its path towards successful completion.

Through proper project risk management, which also includes using  good project management software, a company can ensure successful project completion and also minimize the negative impact of any risks through timely actions.

Lean accounting has grown in popularity in the first decade of the 21st century as an increasing number of companies have embraced lean production and lean processes.

In a nutshell, lean accounting offers a way to gauge the success of the implementation of lean thinking.

As business leaders can see how lean management affects operations, this form of accounting assigns a number to this change.

Let’s take a closer look in this article at what lean accounting is and how to implement it for a successful management analysis and performance measurement.

What is lean accounting?

Lean accounting aims to streamline accounting processes across a business to maximize productivity, service, quality and profit.

Lean accounting comprises a number of “lean practices” and administrative processes that are put to use to reduce waste of time and resources.

These practices do not relate to reporting requirements, tax regulations and compliance, instead they concern internal processes that aim to improve the overall accounting department.

Lean accounting differs significantly from traditional accounting, and because of this, it is a somewhat controversial topic in the world of finance.

Generally speaking, lean accounting does not replace generally established accounting practices, thus, ideally, it should be used alongside traditional reporting methods.

How does lean accounting work?

The purpose of adopting lean principles for accounting is to make financial information easier to understand and more relevant.

To close the existing gap between the accounting domain and other business activities, lean accounting can be adopted via the following steps:

1. Simplifying financial reporting

To deliver value and optimize work processes, you need a shift to a new way of thinking, lean thinking.

At its core lies respect for people, one of the two cornerstones of lean philosophy.

In accounting, respect for people is about preparing and delivering financial information in a way that those who do not deal with finances on a daily basis can digest it more easily.

By doing so, all departments can understand what the numbers are about and can feel more involved.

2. Tracking financial data that matters and removing waste

Lean production seeks to improve business by regularly and continually getting rid of anything that does not bring value to the end product and to the customer.

By applying this approach to the accounting field, it involves removing all redundant and unnecessary information and simplifying data to present meaningful insights allowing for better decision making.

3. Understanding what creates the most value for customers and making constant improvements

What sets lean methodology apart is how value flows within a business, the so-called “value stream.”

This involves pinpointing what brings real value to the customer, mapping the workflow around value generation and establishing a pull system in which only the required work is carried out.

This process can be applied to any business operation, including the financial domain.

The only condition is that this lean transformation is not a stand-alone, static event, but must be viewed as an ongoing effort and a ultimate drive for improvement.

4. The decision-making process, the “box score” and the value stream

A popular tool used in lean accounting is the so-called “box score,” a term borrowed from baseball.

Here the overview of both the performance indicators and the operational and financial performance of the value stream is reported.

The box score is very powerful because it allows informed decisions to be made based on value stream.

Why use lean accounting?

The application of lean philosophy principles to an organization’s accounting and financial operations aims to bring profits and revenues in line with actual value streams and strategic business goals.

The purpose of lean accounting is to generate value by minimizing waste, redundant and unnecessary work. Consequently, inducing true organizational agility.

The concept of lean accounting requires reliable and simple financial reporting.

There are a number of benefits to applying lean accounting across organizations; here are some of them:

• Accounting that everyone can understand and use right away.
• Accounting that supports and drives lean progress.
• Effective operational and financial checks.
• Reports and information that empower people for continuous improvement.
• Eliminating a great part of waste in accounting systems.
• Successfully calculating the financial impact of implementing lean management.
• Better decisions that lead to better deals, which lead to better profits.

To recapitulate, the general purpose of lean accounting is to gather, analyze, and report the performance and cash reserves of a company; information that is used to take informed management decisions.

Instead of completely removing standard reporting overnight, the accounting department can phase in the lean processes of lean accounting.

Accountants generally need to be open to new processes and change their perspective to embrace lean accounting.

Lean accounting is a journey packed with continuous improvements that strives for the perfection of the entire organization.

Lean methodology applied to accounting also means that waste in financial processes must be removed, such as shortening the forecasting and budgeting cycle, closing the books faster, etc.

Sudden changes are hard to embrace, yet slowly shifting to the approach will encourage accounting staff to gradually acquire new habits that are necessary for success.

In all this, having good project management software can help manage change and implement lean accounting processes in a quicker and easier way.

Project management for the construction industry is arguably one of the most intricate segments of project management ever.

Whether you’re building a shopping mall or a residential building, there are countless elements and people in a construction project that must be accurately coordinated.

Each one of these phases is already intricate enough on its own, yet in combination with the whole project, they become exponentially more complex.

In this article, we’ll cover what construction project management is and how it works in detail.

What is project management for the construction industry?

In a nutshell, project management for the construction industry is the construction project management process.

It is a multifaceted subject that involves addressing many important matters, including cost control, la programmazione, l’approvvigionamento e la valutazione del rischio.

Project managers interact and closely liaise with all team members involved, from architects to owners, to contractors.

There are many different types of construction projects, and each one comes with different challenges.

However, all of them need a project owner, a construction project manager, and a general contractor.

What are the 5 stages of construction projects?

Understanding the five main phases of construction project management is a must for managing projects successfully.

Here are the 5 stages:

Construction project stages: Planning and development

Ascertaining whether to pursue a project is the first and most important part of the construction process.

Halting projects after they have been started is costly and the further they progress, the greater the potential losses.

Feasibility studies, capital budgeting, pro-con lists and comprehensive stakeholder input are keys to this phase.

Construction project stages: Planning

After a project’s kick-off is approved because it is considered sustainable and productive, it is time to begin the planning stage.

This stage covers the development of all things, from the basic concept to the final design – details included.

Once the project is finalized and approved, it is time for the next stage.

Construction project stages: Pre-construction

Pre-construction is about defining a roadmap that will lead through the construction process.

It involves creating a plan for the project that shows everyone what they need to do, when they need to do it, how they should deliver it, and how much each task should cost.

If all parties follow this plan and fulfill their roles perfectly, they will deliver the project on time, up to standard and on budget.

Pre-construction typically involves a wide range of critical tasks. Here are some of the most important ones:

• Determining and allocating resources,
• Establishing mini-budgets,
• Creating timelines and deadlines,
• Distributing tasks.

Risk assessment and contingency plan also play an important part in this stage.

More often than not, things rarely go as planned, especially while working on something as complex as a construction project; therefore, project managers and stakeholders must be prepared to implement changes.

The more proactive you are, the less time, money, and resources will be lost looking for a solution when hiccups happen.

Construction project stages: Sourcing

This describes the sourcing and transportation of materials and services required to complete a construction project.

Sourcing can come from local, regional or global markets. Each comes with its own pros and cons.

Local sourcing, in fact, may be less time consuming, but may cost more.

On the other hand, less expensive materials shipped over long distances are potentially more subject to delays and disruptions.

It is best to thoroughly research your options so that you can make the best choice to meet your budget requirements and stay on schedule.

Also, choosing when to conduct sourcing is also an important decision that, again, comes with pros and cons depending on what you choose.

Instead of completing procurement before the construction project begins, you can get the resources you need as the project progresses to meet evolving requirements.

Although this strategy provides additional flexibility, reduces holding costs and conserves cash, it can risk delaying shipments or any momentary shortages could slow the entire project.

Construction project stages: Construction

After the previous stages have been completed, the construction stage can begin.

All of the preparation and planning done previously will pay off at this stage, ultimately making the construction process go smoothly and finish successfully.

Even the most painstaking plans can’t foresee any unexpected events along the way, so monitoring and evaluating progress regularly is critical to staying on track.

Particularly in construction project management, it’s important to stay flexible enough to manage changes and minimize the impact on the project.

When managing construction projects, it is especially difficult to keep control of all the variables in a project.

Project managers in the construction industry definitely need the right software to successfully manage projects.

A good project management software helps you monitor progress, improve forecasting, centralize information, increase efficiency and keep costs in check.

With Twproject you can control every step of the work, reduce risks, eliminate errors, and streamline communication.

A construction project management tool also keeps stakeholders updated by sharing extensive data reports.

Ultimately, a project management software simplifies your overall process and improves productivity, all whilst ensuring you stay on schedule and within agreed budgets.

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A customizable project management software makes project planning, execution and progress tracking a piece of cake.

If you can implement a variety of features. For example, you can create a transparent record so that everyone knows how things are.

However, this is just one option. The benefits can be manifold.

Needless to say, when you need to work on a project, it is paramount to consider choosing the best customizable project management software.

We will explain why in this article.

What is a project management software?

Fundamentally, a project management tool is software that helps teams to plan, manage and optimize resources in an organization.

This sort of tool is fundamental to businesses for a variety of reasons, some of which are essential:

• First and foremost, it helps keep the team organized and ensures that processes are followed;
• Secondly, it provides a clear picture of all the activities occurring regarding a project or activity at any given time.

Project management tools also provide teams with a way to communicate clearly and quickly through dedicated features.

Here are the reasons why a customizable project management software is valuable for businesses of all sizes:

1. Collaboration

When managing a large project, each team member is assigned one single task.

To make sure everyone is on the same page, a project management system streamlines collaboration across the team.

Should an employee have questions or concerns, they can immediately get the right answer by communicating internally with the team, without searching for other sources and thus saving time.

Moreover, such a tool streamlines document sharing, deadlines and status updates by sending notifications.

Among the various features that might be of interest are:

• File sharing: this allows you to quickly share files, calendars and contact lists wherever you are.
• Communication: some project management tools come with a built-in messaging app so employees can communicate seamlessly with each other.
• Sharing client data: having client profiles is critical in a project management tool. This provides an easy way to categorize them, to swiftly add their contact information, and to link invoices and projects.
• Team dashboard: dashboards provide an overview of team activities and project progress. Here, based on functionality, you can add visual charts and metrics to get a more transparent recap.

2. Programming and planning

Without a proper system set up and with a lack of guidelines, it can be tough to meet deadlines.

Time is wasted when employees work without knowing exactly what tasks they should be carrying out.

Using project management software allows you to outline tasks and make them visible.

Establishing deadlines and priorities, along with planning, prevents misunderstandings and overlapping tasks and schedules.

Some of the features that might be worth mentioning include:

• Prioritize activities: this makes rescheduling using priorities easier.
• Shared team calendar: calendar synchronization is key to notifying all team members of assigned tasks, deadlines and meetings. It also provides an overview of milestones by forwarding due dates.
• Time slot: an overview of the tasks and schedules reserved by each employee. This helps to accelerate and improve the task assignment process.

3. Resource management

Resource management is yet another good reason why custom project management software is valuable.

Good resource management is important to ensure that processes run smoothly.

Moreover, this capability helps you prevent resource shortages and overutilization that leads to unnecessary cost increases.

4. Budget management

Every project has a budget, which is included in a budget, along with quotas and profit.

The project manager’s ultimate goal is to keep the actual cost below, or at least within, the estimated cost to maximize the profit earned from the project.

To manage expenses efficiently, in most cases, creating a simple Excel spreadsheet will not work.

Among the various features that you may find interesting are:

• Time tracking: this automates the billing process.
• Budget report: provides monthly and weekly reports about expenses and totals so you can monitor budget performance and see at first glance if you are overspending.
• Budget dashboard: usually consisting of KPIs and graphs to show the project’s progress.

5. Documentation

As stated earlier, an Excel spreadsheet is not enough for most cases and more complex projects.

Therefore, the solution is to pick a customizable project management software to ensure accurate data-driven documentation.

Among the many features that you might find interesting are:

• Central data storage: everything in one place for convenient recovery and access.
• Quick access: this avoids having to switch between spreadsheets and allows sharing in just a few clicks.

Managing projects, due to its nature, is not an easy task.

Since there are many parts involved, this work can easily become messy and disconnected.

That’s why customizable project management software becomes very important.

However, when there are so many tools available on the market, it can be daunting to find the best project management tool.

When comparing tools, it’s wise to bear in mind that a sound project management software should meet one basic requirement: it should be customizable and come with all the features a project manager needs.