Certainly, predictive analysis is not an easy thing to perform.

However, making the right predictions about project schedules and costs will save the organization money and offer greater results.

However, how is it possible to make an accurate and realistic predictive analysis of project schedules and costs?

The answer is quite straightforward: get the right data!

With the right data, you can predict future business results more accurately.

However, successfully implementing predictive analysis remains a big challenge, especially for small businesses with limited data management resources.

Collecting, organizing, and archiving the correct data are key prerequisites for the adoption of predictive analysis. Otherwise, wrong business decisions will almost certainly be taken.

What is a predictive analysis?

The predictive analysis is defined as a form of advanced analysis that examines data or content to answer questions such as “What’s likely to happen?”.

Predictive analysis uses historical data, artificial intelligence and automated learning to predict future outcomes.

There are solutions that employ statistical tools such as regression analysis, data modelling, forecasting and statistics to answer questions about what is likely to happen in the future.

What is important is that predictive analysis can help you find solutions to different business challenges and help you achieve your business goals.

5 steps to begin a predictive analysis of project schedules and costs

To make sure you are generating the kind of data you need to get the right predictive analysis, you need to create a data-based knowledge within your organization.

Here, therefore, are the 5 steps that will guide the project manager in the preparation of a predictive analysis of project schedules and costs:

1. Define the business result you want to achieve

Predictive analysis, as we have said, allows you to visualize future results. Clearly defined objectives help to customize the solutions to be implemented to achieve better results.

However, there is the possibility of realising that the existing data is not sufficient to answer the questions that concern us. In these cases, you will have to work to collect relevant data for a given period of time or edit the questions to address the same issue from a different perspective.

2. Collect relevant data from all available sources

By now, you know it well, the models of predictive analysis are data-driven.

It is important, therefore, to also identify the sources through which to find the right data to answer the questions that relate to the business challenge.

Storing the data in a spreadsheet and then inserting it into predictive models, for example, can be a tedious, risky and in many cases impossible process. Instead, using special applications, sometimes also included in project management software (link to the Homepage), can be the ideal solution for archiving and processing relevant data.

These tools also provide the ability to store large amounts of data – often in cloud, helping to save IT infrastructure costs – in an orderly manner. This means one can use data mining tools to get relevant data from multiple sources.

3. Improve data quality by using data cleaning techniques

“Garbage in, garbage out” is a terminology of the industry that refers to the fact that low quality inputs in turn generate poor output values.

Predictive analysis will be inaccurate if input data is bad. It is therefore necessary to ensure that team members, stakeholders, or whoever is responsible for data entry, log the correct data values in the specified and agreed format. This will help to reduce the time needed to clean and format the data.

Duplicate records should also be prevented and corrected, and data normalised to ensure consistency in the records.

Most project management software solutions offer data cleaning capabilities such as: data deletion, data standardization, data harmonization and data profiling.

4. Create predictive analysis templates to test data or choose one correctly

Building one’s own predictive analysis model requires experience in the field of project management and in science and data management.

A project manager will probably need the help of a data scientist or someone who possesses advanced analytical skills to create predictive models from scratch.

One way, if one does not possess adequate internal resources, is to outsource this work to a consulting firm that provides analysis services. However, if cost problems prevent a small business from employing experts, there are many software tools available with integrated features of predictive modeling tools.

Although these tools may not offer the advanced knowledge that an expert data scientist can provide, they still deliver integrated predictive models, are easy to use and certainly come at a lower cost.

Software with predictive analysis of project schedules and costs can be a good starting point for small businesses looking to make predictions. You can try TwProject for free for 15 days and if you don’t know how to use it, receive help from our support team.

5. Evaluate and validate the predictive model to ensure soundness

To verify the chosen model, the evaluation and validation of the predictive model with alternative datasets allows the identification of weak points in the model, as well as ensuring that the model works well in different scenarios.

But this is not the only technique available. There are several techniques for validating predictive models, such as cross-validation, regression validation and many more.

Even if you are unfamiliar with these techniques, nowadays most predictive analysis tools offer model validation capabilities within the software.

Incorporating predictive models into business processes and using the results, will be helpful and to make better business decisions.

Predictive Analysis: Conclusions

The implementation of predictive modeling tools is not free of obstacles. Here are some of the challenges that a project manager may face:

Although you may want the data to help you make certain and accurate predictions, what you can actually predict is the probability of an event. All predictions, including those based on the correct and relevant data, always leave some room for error or uncertainty.

Therefore, the final call to any business decision should be based on a set of elements and should not be limited to one aspect.

Predictive analysis cannot be implemented overnight. Building and implementing sound and effective predictive models can take months, depending on the level of expertise and knowledge of the individuals involved.

What’s important to note is that robust and reusable predictive models provide long-term gains and cost savings.

In addition to the cost of any project management software that includes a predictive analysis tool, the cost of training team members who will have a direct role in performing predictive analysis should be taken into account.

It is possible to begin by identifying business cases where predictive analysis has already been successfully used and adapting it to new situations.

The tip we can suggest especially to non-experienced project managers is to start experimenting with predictive analysis on a small scale and expand further as experience is gained and favourable results are achieved.

 

The roadmap of a product is actually more than an unimportant detail to which you do not pay much attention. A few simple reflections are enough to change your mind quickly.

It is well known that rapidly evolving technology requires companies to innovate more rapidly and to introduce new products to the market even faster.

But good ideas do not always guarantee good products and development teams are often hindered by delayed decisions.

A product roadmap can therefore help you avoid these problems and create a market plan oriented to the future.

What is a product roadmap?

A product roadmap offers a broad overview of all aspects of a product: goals, timeline, features, resources, etc.

The roadmap indicates, in essence, what a development team is building, the problem that technology or software will solve and the business goals that the new product will reach.

But an effective roadmap will also act as a project management tool in two main ways:

• is a strategic tool thanks to which it is possible to achieve long-term goals and approximate times for the product,
• can improve communication by providing a place where more interested parties can evaluate the product’s objectives and the progress achieved.

Product roadmaps provide internal teams and other stakeholders,  information on the current status of a product.

Moreover, the roadmap should also establish clear expectations about how the product will develop in the following months.

The person responsible for creating the product roadmap should take into consideration existing technological trends, market conditions, engineering constraints, and the organization’s value proposition.

How to create a product roadmap in 5 steps

Now let’s look at the 5 key steps to create a product roadmap.

1. Define the product strategy

A product strategy creates the general framework in which the creation of the product will move.

For example, in order to enable the organization to invest in product development, stakeholders expect answers to questions like:

• Which customers will use the product?
• What problems will it solve?
• What business goals will be pursued?

We also recommend that you include the main differences that distinguish this from other similar products already present on the market.

2. Collect the requirements

There are three main groups from which information can be gathered to define the requirements:

• Speak directly with the sales and customer support team. These departments know first-hand what the needs of the outside world are and probably have customer feedbacks that can help to prioritize new features. Moreover, their intuition can provide ideas on what to consider for future product versions.
• Interact directly with the product user community, so valuable information can be obtained from enthusiasts and experts who already spend much time using the product.
• Finally, there is direct knowledge of the product. Undoubtedly, the project manager has a deep knowledge of the functionality of the product, its characteristics, and its limits. The project manager can therefore think which components are most vital to customers. Once identified, he can concentrate on solutions to improve any weaknesses.

3. Allocate a large amount of time to the initiatives

The level of detail of the roadmap must leave room for innovation and agile responsiveness.

Setting strict deadlines could lead to promising a result that it is impossible to maintain.

Therefore, instead of indicating specific dates, many product managers choose to track initiatives on a monthly or quarterly basis. Alternatively, you can choose to completely omit the dates.

4. Customize the roadmap for interested parties

The success of a product depends on the participation of other internal teams and stakeholders as well.

To have more chances to persuade the interested parties, a solution is the personalization of the roadmap, therefore presenting details for every particular interest.

Here are some common internal stakeholders and the information they generally want in a product roadmap:

• Company executives: all the elements outlined in the product strategy, as well as all the data relating to the size of the market.
• Marketing Department: product features, comparison between the product and similar products on the market, and product potential to generate sales.
• Sales Department: release dates and specifications on the benefits that the product offers to customers.

5. Share the product roadmap

Sharing the roadmap has several advantages. In addition to encouraging the involvement of the team and obtaining the support of the top management, the roadmap communicates all the progress that has been made and sets the expectations for the subsequent phases.

Ultimately, the product roadmap will help developers create the best possible product.

To manage and share a product roadmap, there are several project management softwares that allow you to do it. TWproject is one of them and you can try it for free by clicking here.

You will realize how simple it is to manage everything from a single platform. From adding data to managing deadlines, from changing an activity to sharing it with all stakeholders.

Is the project you are realizing profitable or not? How is it possible to measure the profitability of a project? Every organization should estimate whether its project is profitable or not. However, determining profit is not an easy task.

Many project managers can be surprised to discover that all their hard work is leading to unprofitable projects.

Let’s see then what are the elements to consider in order to understand if a project can be profitable or not and, then, how to concretely calculate the profitability of a project.

7 key points for the profitability of a project

To assess whether a project is affordable (profitable) or not, we can start from 7 key points.

Each of these points is essential and a good PM should always keep them in mind.

Hidden business management

Staying competitive is clearly a key element that will affect the organization’s activity.

The key performance indicators of the organization in general are important to understand in order to increase the profitability of the company and to understand the role of the specific project based on the key company goals.

Structured installation

Each project should be set up in such a way as to allow efficient management from the beginning and throughout its life cycle.

This means defining a set of goals for each project and reflecting this in a basic project budget.

This will be the control point for all project costs.

Cost control

It will be possible to keep track of the costs – and therefore the profitability – of the project only if a basic budget has been defined.

In all projects, the priority should be to control the actual costs and balance them with the estimated costs in the budget.

Always keep track of the scope of the project

You can easily lose track of the project’s scope, due to new customer needs and changes.

If the project has a fixed price, any activity that is not part of the original scope will involve additional efforts and costs, for which the team will not be paid.

And this will instantly affect the general profitability of the project.

Increase transparency and communication

As we have discussed in several previous articles, we know that communication and transparency are the basis of a successful and, therefore, profitable project.

This can be a problem in the case of organizations that still rely on manual or dated methods to organize their data.

Moreover, project performance is difficult to predict when there is no clarity between departments and teams.

Evaluate regularly

It is necessary to evaluate each project in relation to the basic budget, this will allow to avoid and foresee delays and risks.

It is very important to manage upcoming costs and add costs as they occur, as this will provide a clear idea of the total costs to completion.

Use project management tools

Many project management tools are very effective. If you have never used one before, we recommend trying TWproject for free.

This type of technology will make it possible to have a single point from which control all the costs of the project.

Moreover, thanks to these tools it will be possible to obtain faster and more precise project reports.

How to measure the profitability of a project

To concretely measure the profitability of a project, there are several methods that can be taken into consideration. Let’s see which they are.

Present value of future cash flows

A determining factor in calculating the profitability index is the present value of future cash flows that the investment, and therefore the project, should return.

The current value formula measures the current value of a future amount that has to received, given a specific period of time and interest rate.

The current value can be calculated with the formula: Vp = Vf / (1 + r) n

where

Vp = Present value

Vf = Future value

r = Interest rate

n = Number of years

For example, if an investment is expected to return 100,000 euros in 3 years with an interest rate of 3.5%, the calculation of the present value will be similar to this:

Vp = 100.000 / (1 + 0,035) 3 = 100.000 / 1,109 = 90.194,27 euro

The calculation shows that € 90,194.27 invested today at an annual interest rate of 3.5% will be worth € 100,000 in three years.

Net present value

The net present value, or NPV, is the present value of future cash flows deriving from the investment, less the amount invested.

This number shows the difference between what the company has to spend to get the desired return and what it is actually going to spend.

The NPV uses the time value of money to determine whether the amount spent today to provide a future return will result in a profit or not.

For example: If the actual amount invested is 85,000 euros and the present value of future cash flows is 90,194.27 euros, the NPV corresponds to 90,194.27-85,000, or 5,194.27 euros.

The positive NPV therefore shows that the investment will produce a profit. If the NPV turns out to be negative, it means that the project is not profitable.

Profitability index

Investments with high profitability indexes can help an organization to get the maximum profit with a minimum investment.

While the NPV shows whether the investment will produce a profit (positive NPV) or a loss (negative NPV), the profitability index shows the degree of profit or loss.

Project managers can use the current value of future cash flows (PV) or net present value (NPV) to calculate the profitability index.

Profitability index = (PV / invested amount) = 1 + (NPV / invested amount)

Using the previous example: An organization plans to receive 100,000 euros in three years on an investment of 85,000 euros.

The interest rate should remain at 3.5 percent for those three years.

Profitability index (PV) = (90.194,27 / 85.000) = 1.061

Profitability index (VAN) = 1 + (5.194,27 / 85.000) = 1.061

 

A profitability index of 1.061 would probably be considered a marginal investment.

If the time interval was extended from three to five years, the calculation would be:

Vp = 100,000 / (1 + 0,035) 5 = 100,000 / 1,188 = 84,197.32 euros

and the calculation of the profitability index would therefore be:

Profitability index (PV) = (84.197,32 / 85,000) = 0.991

making it a slightly losing investment.

As a general rule: If the result is greater than 1, the project will generate value and the organization should proceed with the project. If the result is less than 1, the project destroys value and the organization should not proceed with the project. If instead the result obtained is equal to 1, the project can be interrupted since it brings neither a gain nor a loss and the organization is totally indifferent.

Clearly, the higher the profitability index, the more attractive the investment.

Before proceeding with a project, whatever it is, it is important that the project manager has carried out at least one of these analyses.

Without a proper profitability calculation of the project, it will be like stepping into a forest in total darkness without knowing where the path will lead.

Negotiation skills for a project manager are absolutely essential and refining them will make it possible to lay the foundations for a successful project.

The Project Managers must, in fact, hold different roles simultaneously: They are leaders, mediators, delegators, and even negotiators.

So let’s see in this article why negotiation skills are important for project managers and how they can be developed and improved.

Why negotiation is important for project managers

In reality, every day we use our negotiation skills, not only at work but also in everyday life.

From reasoning with a 5-year-old child about what he can eat for breakfast to home budget discussions with the partner. We negotiate in life as well as in project management.

Here are some situations in which the ability to negotiate has a fundamental role for the success of a project; the Project Manager:

• is involved in strategic negotiations with the suppliers of goods and tools necessary for the execution of the project.
• is involved in the negotiation with a possible investor in a new project.
• is involved in negotiations with stakeholders regarding support for a major change in the project. It will be necessary here to explain the reasons for the change in the right way in order to get the consent of the interested parties.

In conclusion, negotiation skills allow project managers to have more solid relationships with stakeholders, have better relationships with customers, and guarantee a more positive work environment.

How a project manager can improve his negotiation skills

As already mentioned, negotiation skills are fundamental for a project manager and to ensure the success of the project in general.

Here are 5 tips in order to improve and develop these skills:

5 tips to improve and develop negotiation skills: Practice

The first step is – as with everything – to do a lot of practice.

Probably, the project manager will find himself negotiating more often than he thinks.

It is important that in these situations, the PM analyses how he feels when he approaches a negotiation situation, how he feels during the negotiation itself, and that he makes an objective post-negotiation analysis.

The analysis will be important because only by analysing his feelings, the project manager will be able to draw the necessary experiences to improve himself in the future.

5 tips to improve and develop negotiation skills: Preparation

It can often happen that a project manager find himself negotiating when he least expects it; but when he knows he is going to negotiate, it is important to devote a little effort to its preparation.

If the project manager knows he is meeting a supplier, for example, he can think in advance about what he wants to get from the agreement.

Moreover, it is also important to consider alternatives, if the first solution is not feasible or is not accepted by the other party.

It is important to have clear in mind what results are optimal, which are acceptable and those that absolutely cannot be accepted.

Here is an example of how this plan can be represented:

• Better alternative to a negotiated agreement
• Worst alternative to a negotiated agreement
• Zone of possible agreement
• Price or removal point, i.e. the unacceptable solution

In this way, it will be possible to start the negotiation process with more confidence and knowing in concrete terms what result you want to achieve.

However, it is important to remember to remain open also to different points of view. Sometimes, in fact, there may be unknown elements that lead to a change in expectations and desired results.

5 tips to improve and develop negotiation skills: Managing emotions

Conflict situations and negotiations often highlight or make the worst out of people.

It is therefore important for a project manager to prepare and learn how to manage his reactions in a conversation that may be difficult and complicated.

5 tips to improve and develop negotiation skills: Allow yourself enough time

It is important to remember that negotiations are often a “work in progress”. It is unlikely that a single meeting will be enough to resolve everything, especially in the case of the most complicated and important negotiations.

And even when the agreement is concluded, we can find ourselves negotiating more precise details or new terms to maintain the project in the right way.

It is therefore important not to hurry and take the necessary time.

5 tips to improve and develop negotiation skills: Listen actively

When preparing for a negotiation, a great effort is made to think about what you are going to say, how to say it, how to respond to what you think the other person will say, etc.

But we often forget that we must also listen actively. Active listening will help identify weaknesses in the other party and help you really understand what the other person wants.

When you listen actively, you are more likely to be able to formulate an answer that the other person considers acceptable.

And that’s what we want.

Negotiation skills for a project manager: Conclusions

Finally, regardless of whether a project manager is involved in formal negotiations or not, it will be easier to carry out the most diverse activities when he has confidence in his negotiation skills.

An aid in this sense can be, for example, a training course based on negotiation skills.

Negotiation is an excellent project management tool and is essential for getting the best for any project.

Negotiation goes beyond the reduction or increase in the price of an offer and is a necessary tool in the daily activities of the project manager.

Like all soft skills, knowing how to have stimulating conversations that result in good results for both parties is something that can always be improved with the time.

With the right knowledge, the structures, the techniques, and some practice, any project manager will be able to face negotiations knowing how to aim at the best for the project and for the organization in general.

In the Scrum world, it is rare that complete and detailed descriptions of how each individual activity should be carried out in a project are provided. Much of this is left in the hands of the project team.

This is because the team will know better how to solve the problems that arise, since it works on the project every single day.

This is why in the Scrum method, for example, a planning meeting exposes the desired results, instead of defining in detail the activities as it would be the case in most other project management methods.

Scrum relies on a self-organized and cross-functional team.

The Scrum team organizes itself as there is no general team leader who decides which person will do which task or how a problem will be solved. These are all issues that are decided by the team as a whole.

Inter-departmental teams mean that all members are needed to carry out the implementation of ideas and activities.

What does the Scrum methodology provide?

Scrum methodology requires that projects proceed through a series of sprints.

In line with an agile methodology, sprints are scheduled monthly or, even more commonly, every two weeks.

A sprint begins with a planning meeting, where team members receive a list of activities to be performed during the sprint. Later, these activities are organized – by the team – and performed during the sprint.

At the end of a sprint, the team reviews the work done and analyses any factors that could influence the next sprint, as well as reflecting on the sprint that has just ended, and identifying any opportunities to improve.

It is a fact that, in any project, it is possible to accomplish more by working in teams rather than individually.

In a study conducted by Salesforce on workplace challenges, 86% of project managers agreed that failing to work together as a team was the main cause of project failure.

Teamwork is therefore an essential element for a successful organization.

The Scrum methodology can be defined as a team-based approach to delivering business value.

This method therefore promotes effective collaboration between team members so that they are able to tackle projects of any size and implement them together.

5 ways to improve teamwork with the Scrum method

Below, we will list 5 ways to improve teamwork thanks to the Scrum method. Having seen just how important the team’s collaboration can be, we invite you to pay close attention to the following.

1. Teach the principles of self-management

Scrum teams are designed to manage themselves, which means that they are able to perform activities during a sprint, without constant supervision or direction from a project manager.

This level of self-sufficiency varies based on the team’s familiarity with the Scrum principles and the complexity of the project.

Leadership and management are certainly necessary to initially establish the indications and objectives within the team structure and towards the project.

For Scrum teams, the project manager is simply responsible for the initial stages of a sprint, identifying the best team structure and helping to improve its development capacity.

Then it is up to the team members to make sure everyone is on track and take action if some members slow down or stay behind.

It is therefore important, in the Scrum methodology, that the project manager encourages the team to take responsibility and manage challenges in groups, rather than bringing their problems directly to a supervisor.

This will not only save the project manager time, but will also encourage employees to develop problem-solving skills and teamwork skills.

2. Work on internal communication skills

A Scrum team cannot function without communication. This is in fact an essential element for the trust and collaboration of the team.

Team members must be able to openly share victories, losses, and any internal problems that could prevent the team from finishing an activity during a sprint.

This kind of transparency requires that all members are able to communicate their ideas and concerns clearly in an appropriate manner.

In order to keep everyone informed, many Scrum teams use project management softwares to stay in constant contact with others.

3. Dedicate yourself to retrospective

With retrospective we mean the time when team members meet after each sprint to talk about everything that happened during that specific period of time.

Members can raise any challenges encountered that have hindered their progress or can suggest ideas to make things more fluid and easy during the next session.

With retrospective is not meant a moment of complaint or where to list excuses for poor performance, instead it is a brainstorming session, where everyone should offer ideas for positive actions that could improve future results.

A project manager should inspire this moment within the organization by holding meetings where everyone can share ideas and different points of view.

This practice will significantly help teams find solutions to their problems.

4. Focus on individuality

This advice seems to go against the concept of teamwork, however, individuality plays an important role in the success of a Scrum team.

One of the main values in the Scrum methodology is that this says that each member is important as an individual and, if a person is in difficulty, this will affect the entire project and organization.

While sprinting is definitely an overall team effort, many single tasks are assigned to individuals.

Teams and project managers must remember that each person operates differently: Some are more independent, while others want more interaction with their leaders and collaborators.

With an emphasis on the individual, Scrum teams can operate more effectively by finding systems that work for everyone.

5. Focus on collaborative decision-making

Scrum teams are responsible for determining the workload during a sprint and assigning tasks within the group.

In addition, they must also decide collaboratively how to handle internal problems that may arise.

Of course, Scrum teams will not agree on everything, so they must also be willing to negotiate and compromise for the overall good of the team.

This type of collaborative decision making is very useful for both Scrum and other organizations.

Studies have shown that when companies involve employees in decision-making processes, the results are better.

By involving all team members in the decision-making process, employees feel more powerful and important, which in turn increases their productivity and morale levels.

It is difficult for workers to stick to a strategy that they have not planned – at least in part – especially if they do not agree with practices or find them inefficient.

It is therefore necessary to find ways to include everyone in the planning process and encourage teams to find a solution that works for everyone.

 

Encouraging a culture of teamwork within the organization that follows the Scrum methodology could be the key to long-term success, but it is not an easy task.

Organizations are made up of people from different backgrounds and cultures and personalities may not always fit well in a group context.

Therefore, it is up to project managers to set an example of how teams should operate by implementing practices that encourage collaboration.

The rolling wave technique is a method that allows the project manager to plan a project while it is taking place.

In short, this technique requires iterative planning.

This type of planning is very similar to that used in Scrum or in other Agile methodologies.

In essence, the rolling wave method allows you to plan until you have visibility to implement the plan, while the next steps are planned while working directly to the previous phases.

An example of rolling wave

A simple example of rolling wave is one where you expect to complete a project in eight months, but you only have clarity for the first three months. In this case, the first three months are planned.

As the project progresses and greater clarity is achieved, the following months can be planned.

The rolling wave technique uses progressive processing, which means processing work packages in more detail as the project unfolds.

But be careful that it does not mean that this planning method does not exempt the project manager from creating a list of milestones and assumptions for the project.

It is necessary to provide milestones and the key hypotheses as they will help stakeholders to understand why they are using the rolling wave method and what to expect while the project progresses.

 When to apply the rolling wave method

This method can be applied when:

• It is not possible to define a detailed project plan shortly.
• It is not clear which deliverables should be produced.
• It is not possible to organize the different phases of the project.

The rolling wave method is particularly useful in projects with high uncertainty. Therefore, it is necessary to use the best risk management practices.

The rolling wave planning, therefore, is the process of breaking down the work breakown structure into time intervals.

At the end of each phase, the project manager will study the structure of the WBS and will expand it to include more details.

It is particularly suitable for projects where the work involved in a phase is highly variable and depends on the result of the previous phase, such as projects that require prototypes and, in general, in the engineering sector.

The advantages of the rolling wave method

This type of approach to project management is particularly useful when the availability of the information needed to plan future work packages in detail is based on the successful completion of the previous phases of the project.

This technique can also help reduce turnaround time in two ways:

• By allowing the start of productive activities without waiting for every detail of the work to be determined in advance.
• By eliminating downtime for additional planning in the middle of a project, since planning is performed continuously.

This type of planning also has the following advantages:

• Encourages adaptability
• Encourages planning
• It is excellent for research and development projects, high technology and inventions
• It is excellent for projects with variable capacity

The rolling wave planning is done in 4 simple steps:

• Create the WBS.
• Divide the project into phases.
• Provide a realistic level of detail for each phase.
• Once the considered phase is completed, return to step 1 to manage the next phase.

The steps of the rolling wave planning

Now let’s look at these steps in detail.

Create the WBS

The work breakdown structure is the nucleus around which all the other project management planning processes take place.

This involves splitting each project into single work items.

Each work item requires an identification number, a description, and a member of the team responsible for that particular activity, and sometimes it has additional elements such as budget, expiration date, and dependencies with other tasks.

Throughout the project life cycle, these work items are monitored and progress is recorded and reported.

Divide the project into phases

The phases are more simply the points in which an important moment for the project in general takes place.

For example, if we consider the creation of a prototype, a phase could be concluded with the presentation of a first prototype model.

From this stage others may follow, depending on the result – which is still uncertain. For example, the prototype could be accepted, thus starting the large-scale production phase, or it could be declared unsuitable, thus starting the re-elaboration phase.

Provide a realistic level of detail for each phase

Clearly, as you continue planning on the timeline, the phases will have less and less detail.

This is a clear concept in the rolling wave methodology, given that information on future steps is few or there are no information at all.

The work breakdown structure will therefore contain less details regarding the successive phases, but these will be reviewed and completed when the phases begin to be near in time.

Once the considered phase is completed, return to step 1 to manage the next phase

There is not much to say at this point. As explained above, as the project continues in its cycle, it will be possible to determine and manage the phases that come near in the future.

In general, it is always important, before starting with the execution of a project, to have a plan at the beginning of any project.

If the project will be known in detail immediately, it will be possible to continue with traditional planning, otherwise the rollign wave method can be used.

Choosing the wrong planning methodology can lead to loss of control over the project.

To ensure the success of a project, it is necessary that the project Manager knows how to break down the project and, consequently, structure a WBS.

WBS is the abbreviation of Work Breakdown Structure, which, in other words, means a division of the labor required to complete a project.

The WBS is widely used by professional project managers to represent the scope of the project and the results in a hierarchical manner.

Generally, creating a work breakdown structure is one of the first steps in project planning.

For project managers at the beginning of their careers, sometimes the WBS can be confusing and difficult to manage, but it is good that they quickly become familiar with it, because it is the key to success, especially in the case of complex projects.

The Work Breakdown Structure, in fact, is used to make complex projects more manageable. In essence, the WBS is designed to help divide a project into manageable blocks that can be effectively assessed and controlled.

How to break down a project: why do you use a WBS?

Obviously, a simple list of the activities and the people who will follow the project is not enough to clearly divide the project into smaller pieces.

Therefore, the use of a work breakdown structure provides a clear view of the project’s scope of work.

In a work program, the activities are grouped under certain levels of decomposition.

For example, in a construction project program, the electrical wiring activities are grouped in the level dedicated to the electrical system, while the piping activities are grouped in the level dedicated to mechanical works.

Therefore, the WBS allows to improve the quality of planning, traceability, and reporting and this is why it is used.

It should be kept in mind though, that the WBS describes the final results and the activity groups, not the activities in detail.

In short, some widely used reasons for creating a WBS include:

• Help with an accurate project organization
• Help to assign responsibilities
• Show project control points and milestones
• Allow a more accurate estimate of costs, risks, and time
• Help explain the scope of the project to stakeholders

How to break down a project correctly

To start, the project manager and the experts determine the main final results for the project.

Once determined, it is possible to begin to break down these results into smaller and smaller work blocks.

But how small? This depends on the type of project and the management style, but some sort of rule should be established in order to determine the size and scope of the smallest work blocks.

For example, the two-week rule could be chosen, in which no piece / activity is smaller than two weeks of work required for completion.

Or, another method is the 8/80 rule, where no block should take less than 8 hours or more than 80 hours to complete.

Determining these rules for block sizes can take some practice, but these make WBS definitely easier to use and structure.

Regarding the format chosen for the WBS design, some project managers prefer to create tables or lists, but most use graphics to visualize the components of the project, such as a hierarchical tree structure or a diagram.

How to simplify a project: some examples

The WBS diagram starts with a single box or another graphic element, usually positioned at the top, which represents the entire project.

The project is then divided into main components with related activities or items listed below them.

In general, the superior components are the final results, while the lower level elements are the activities that lead to creating the final results.

Here are some simple examples of WBS:

Developing a computer:

Suppose your organization intends to start developing a computer.

To speed up the work, you can assign specific teams to different aspects of computer construction, as shown in the diagram below.

In this way, a team could work on the configuration of the frame, while another team will be dedicated to protecting the components.

Developing a computer game:

Let us now think, for example, that your organization wants to manage a project dedicated to a software, specifically the creation of a computer game.

To be the first to launch the game in the market, it is necessary to assign specific aspects of the game to different teams, as shown in the diagram below.

Construction project:

The convenient format of a Work Breakdown Structure allows you to use it for any type of project and, therefore, it is also useful in the case of a construction project.

This example of a work breakdown structure shows that all the elements are listed in the various levels of the WBS.

The lower levels of the structure show the results of the project. Tasks and activities will be grouped under these lower levels.

Level 1 is the overall project. Level 2 represents the main phases of the project. Level 3 shows the main final results, while level 4 represents the minor results.

The construction of an effective project work sharing structure can, in the long term, determine the success of the project.

The WBS provides the basis for project planning, cost estimation, resource planning and allocation, not to mention risk management.

The WBS simply provides a visual presentation by graphically organizing the project results. This structure shows everything that is needed in order to complete the project on a single graph.

In the ideal case, the high-level final results included in the WBS should correspond, word by word, to the goals and results written in the scope description of the project.

As a result, the WBS is one of the first documents created in the project management life cycle. This will be created even before creating the project plan.

This means that the WBS is often the first product in a project and defines the hierarchy of final results.

The Scope Statement is a document that is extremely important for the success of a project. The project manager will develop the scope statement by processing the project start-up document (or project charter) produced by the project sponsor.

The project manager will be responsible for defining the scope of the project in this document, providing measurable goals.

Saving a project with the scope statement

It can also happen to be part of a project that, for different reasons, is delayed or out of budget. In these cases, the scope statement becomes vital. The project manager will ask the project team to explain the reasons why the project is not respecting the schedule.

Once the appropriate information has been taken, it is obvious that the PM will have to make decisions. Often, a real change of program will be indispensable together with the approval of a possible new budget in order, in the best case, to get everything back on track.

These situations can occur especially when the scope of the project has not been effectively defined. In these cases, if the Scope Statement is not implemented or not properly managed, the project will seriously run the risk of going astray with respect to the initial planning.

What is it and why the scope statement is important

Since a project is defined as a temporary effort that creates a product, a service or a result, the scope of the project is fundamental. The scope of a project, in fact, defines which activities are part of the project and which are not, what the project will carry out and what will not.

In short: The scope statement defines the project. The creation of a detailed scope statement will therefore help the project manager to bring the project to success.

In particular, the scope statement is fundamental for these three situations:

• Define the boundaries of the project. The scope statement guarantees a common and clear understanding of the project between the interested parties and helps to manage the so-called scope creep. In other words, it describes what is included in the project and what is excluded and, therefore, forms the basis for the project plan.
• Ensure a common understanding of the project among stakeholders. In addition to being the foundation of the project plan, the scope statement will also help ensure that all interested parties are on the same page. By setting the right expectations with stakeholders, the PM can reduce the chances of misunderstandings that could arise later and that could derail the project.
• Help manage change requests. Another way in which the description of the scope can help the project manager to manage the project effectively, is to use it as a guide to evaluate all the modification requests that are made. If the change request does not fall within the limits defined in the project, this must necessarily be rejected.

According to the Project Management Institute changes in scope – due to little clarity at the initial stage – are the main cause of the failure of a project.

This is quite common in almost all sectors, and for this reason project managers must learn to define, communicate and control the scope of the project.

To avoid the unpleasant possibilities that derive from a poorly defined project scope, project managers must write a good scope statement.

This will facilitate the acceptance of the scope of the project by the stakeholders , will put on the same page the project team and will prevent the start of unauthorized activities.

A scope statement is a useful tool for outlining project results and identifying the constraints, assumptions, and key factors for success.

The affirmation of the well-written area clearly defines the boundaries of a project.

The scope of a project has a direct impact on the other two elements of the triple project constraint, ie time and resources.

Moreover, the project manager can consider the scope statement a formal documentation of the project scope.

How to write a scope statement

The instructions in the scope statement must contain as many details as possible, but only up to a certain point and without exaggeration.

The minimum length of a scope statement is that which describes the primary risks of the project.

For example, stating that the project is to “build a fence” will communicate basic information, but these are certainly not enough. Everyone knows this already and there is no added value. It would therefore be preferable, in this specific example, to define the start and end points of the project, the height of the fence, the type of fence, the meteorological hypotheses, etc.

There is no default or maximum length for a scope statement, but this needs to be specific and to report the primary risks.

A good scope statement includes the following elements:

• General description of the work. Returning to the previous example, here is where it is stated that the project is “building a fence”.
• Final results. What will be produced by the project and what are its main features? Which customer must be satisfied by the output of the project?
• Justification for the project. In order to provide a complete understanding of the purpose, sometimes it is necessary to deepen the justification of why the project was started in the first place.
• If the project faces certain physical, legislative boundaries, etc. these can be a source of risk and therefore should be defined.
• Hypothesis. All projects have taken certain conditions as part of their existence. For example, the fence construction project has assumed good weather conditions, availability of tools, etc. What are these hypotheses and what is the impact in the case of an inaccuracy of these hypotheses on the project?

A suggestion is to write a scope statement following the so-called SMART goals.

Of course, predicting the future is impossible. However, the Scope Statement represents a commitment to the project based on what is known “today” and what is realistically expected to happen in the future.

If and when situations change, it is necessary to evaluate the effect of the changes on all aspects of the project and propose the necessary changes in line with the Scope Statement in order to ensure the success of the project.

All this, however, only if the scope statement has been optimally implemented.

What is a project management plan? You probably already know it, but if this is not the case, or if you still have doubts, read this article and we will try to explain it.

Contracts have been signed, handshakes have taken place and a new project is officially on its way.

But when it comes to planning a new project, a project manager might not know exactly where to start. This is where the project management plan comes into play.

But what is a project management plan? How do you accurately predict the duration of activities? How are the expectations of stakeholders translated into concrete outputs? What happens if something goes wrong?

The project management plan is the answer to these questions and the key to a successful project.

What is a project management plan?

The project manager creates the project management plan based on the input of the project team and the main stakeholders.

A project management plan is an approved formal document that defines how the project will be executed, monitored, and controlled.

It can be a summary or a detailed document and can include baselines and other planning documents.

As work progresses, project performance is measured and compared to the base included in the project management plan.

If, while the work progresses, a deviation from the baseline occurs, the project manager will take care of it by making the necessary corrections.

If these corrections fail to correct deviations, formal modification requests to the baselines become necessary.

What are the components of a project management plan?

A project plan is composed of three basic elements:

• Activity: status of the activity, priority, time, allocation of human and financial resources, notifications, etc.
• Tasks: the smallest jobs that make up the largest project.
• Resources: what you need – people, equipment, site, etc. – to complete the tasks of the project.

Obviously, these are the indispensable macro elements that have to be taken into account, but starting to go into detail we can see how the plan must consider other countless aspects.

The details of a Project Management Plan

This is why a project management plan is further divided into many parts, each of which will be elaborated in detail and will be decisive for the success of the project. Let’s see what:

• Determine the scope of the project: establish the limits of the project and the responsibilities of each team member. This is established by determining and documenting specific project goals, results, characteristics, functions, tasks, deadlines and costs.
• Project phases: this is the life cycle, from initiation, planning and execution, to monitoring, control and, finally, project closure. So, here you are breaking a project’s schedule into smaller, more manageable parts. It is possible to think of these as mini-projects that can be marked by milestones.
• Activity planning: this is basically a list of things to do to complete the project. It is here that all that concerns the flow of the project is collected from the beginning to the end.
• Identify the key points of the activities: those activities that signal the end of a phase of the project are called milestones. These milestones are generally indicated in the plan with diamond-shaped icons and help to break down the project into smaller, more manageable pieces.
• Tasks: these jobs should be small incremental steps towards the final output. They can be extracted directly from the program of activities that was created in the previous step.
• Duration: here the project manager calculates how much time he thinks that each activity and project phase will require. These are estimates, but are based on the general deadline of the project and the project manager must still be realistic about them.
• Dependencies: here we talk about the activities that depend on the completion of other activities; before the previous ones are not completed, the next cannot begin. It is possible to link these dependencies and set notifications so that the team knows when they are complete, so as not to block the work and make the process more fluid.
• Resources: they are what is needed to carry out the project. These can be anything, from the people in the project team to the material management software they will need to complete their tasks, from the workplace to external suppliers and contractors, etc.
• Timeline: it is the determination of how much time is available for each phase of the project. A timeline provides a view of the schedule and activities that lets the project manager know how to distribute the workload.
• Budget: here the costs involved in assigning all the resources needed are determined. This number will generally have to be approved by the directors of the organization and / or by the project sponsor and normally lies within a number range; it is therefore necessary to be realistic when making estimates.
• Monitor progress: clearly during the project, the project manager will have to keep track of the progress of the project plan. The actual progress compared to the planned one must be monitored, if possible, in real time, which allows changes to be made in the event of problems before they become unmanageable.

Clearly, at the end of a project, it is important to analyze the entire progress of the project from beginning to end, especially in the case of problems encountered during the life cycle (link to https://twproject.com/it/blog/ciclo- the-life-of-a-project-phase-and-features /).

It will also be necessary to compare the results obtained with the forecast results included in the project management plan. You will have to reflect on any mistakes you have made, to ensure that the next similar project does not fall into the same mistakes.

Creation of the project plan and support tools

As we could see a project plan includes many elements that have to be considered. This is why project management tools can make the creation of the project plan and its management much simpler and more efficient.

The market offers several project management tools, each with its own features and its own unique graphics.

A Project Management software such as Twproject, for example, also allows the sharing of the project management plan among all users.

Team members can use this tool to update their activities, which means getting real-time data on the project that will allow the project manager to manage it more productively.

The project management plan is practically a process of organizing the various small pieces in order to achieve the final goal outlined in the project.

You can have a good plan, but a project manager also needs the right tools to implement it correctly, especially in the case of more complex projects.

Even more so in the case of changes to the project management plan, PM tools can be particularly useful.

If you have never used TWproject you can try it for free by clicking here in order to evaluate all its features.

Conclusions

Although the project management plan is developed as part of the project, it should be a living document that evolves as the project progresses and is updated with the most recent relevant information.

This project management plan should be available to all project members, as it can provide essential information about the project itself. We are indeed talking about the main communication document for the project.

Creating a complete and strategically valid project management plan is essential to ensure the success of a project. Our guidelines can help you a lot in the making and creating it and this might not be as difficult as you think.

With a well-designed project management plan, the project manager will have a high probability of keeping the project on track and of fulfilling the promises initially made to the different stakeholders.

Probably, you have already heard about residual and secondary risks in a project without having a clear idea of what it is. In this article, we will try to explain the differences between.

We all face risks on a daily basis and, consequently, risks exist even in project management.

There are those who panic, those who try not to take obvious risks, and those who try absolutely to avoid them, but in the end the risks are inevitable. There is no way to prevent risks from entering our lives. The same is true in the case of project management.

Definition of risk

The PMBOK Guide  defines a risk as “An uncertain event or situation that, if it occurs, has a positive or negative effect on one or more objectives of the project. ”

A risk, therefore, does not necessarily always damage the project. A project can also get a positive result from a risk.

The PMBOK Guide also states that Risk Management is one of the areas of knowledge that a project manager should know.

The Project Managers must, in fact, be trained in risk management in order to ensure that the obstacles faced during a project are minimized.

This means that project managers must be able to think outside the box and not always take the same road, even if in the past it has been an optimal choice. For instance, the situation could have changed.

Which types of risks exist?

In addition to the main risk inherent in any project, positive or negative, individual activities may involve secondary and residual risks.

Let’s take a look at secondary and residual risks and their definitions.

Secondary risks

The PMBOK Guide defines secondary risks as “those risks that arise as a direct result of implementing a risk response to a specific risk”.

In other words, when you identify a risk, you have a response plan that can deal with that risk.

Once this plan is implemented, the new risk that could arise from the implementation represents a secondary risk.

For example, the project manager for a construction project might know, from past experiences, that one of the main risks is that the sand supplier will not be able to deliver the goods in time. In the risk management plan created, the project manager will therefore already have taken this risk into account. The action he takes if this happens could be to get the sand from a different supplier. However, a potential risk that the project manager may encounter in this case, is that there may be differences in the sand provided by the former compared to that provided by the second supplier, which would be a secondary risk.

Residual risks

Residual risks are the remaining risks, ie the minor risks that remain.

The PMBOK Guide defines residual risks as “those risks that are expected to remain after implementing the planned risk response, as well as those that are deliberately accepted”.

Residual risks are acceptable for the organization’s level of risk tolerance or, in some cases, a residual risk does not have a reasonable response.

Project managers therefore simply accept them as they are. If they must occur, they will occur, and there is not much they can do about it.

These risks are identified during the planning process and an emergency reserve is set up in order to manage risks like these.

Although residual risks are not particularly worrying, organizations cannot completely ignore them and should address them through:

• Identification of relevant governance, risk, and compliance requirements.
• Recognition of existing risks.
• Determination of the strengths and weaknesses of the organization’s control framework.
• Planning for appropriate contingencies.

For example, you could identify a risk in the possible rainy weather forecasted during an event lasting an hour or two, where this weather condition could interrupt some of the scheduled meetings. To manage this risk, the other meetings will be scheduled with a buffer of a couple of hours. In this way, even if it rains for two hours, the other plans will not be interrupted or postponed.

This, however, does not eliminate the risk that the program needs changes. Simply reduces it.

What is the difference between secondary and residual risks?

• Secondary risks are those that occur as a direct result of implementing a risk response. On the other hand, it is expected that the residual risks will remain after the expected risk response.
• The emergency plan is used to manage primary or secondary risks. The backup plan is used to manage residual risks. Note that if an identified risk occurs, the emergency plan is implemented and, if it becomes ineffective, the reserve plan is implemented.
• If residual risks and secondary risks do not require a response plan, they will be monitored as they occur.

Example of a situation that contains both risks

Take for example a future project manager who is studying for one of the exams to obtain the official PM certification.

When the future PM plans the study program for the exam, the main risks that can affect it are:

• suddenly he will commit himself full time to a new project that will not leave enough time to study
• He will get sick during the exam preparation

An activity to respond to the first risk – not find enough time for the study due to the professional commitment – would be to start the preparation for the exam in a low working season, taking into consideration the work model of previous years.

The residual risk for this risk response would be that an unexpected large-scale project would present itself during the preparation for the exam. In that case, it may be necessary to postpone the exam, so as to find enough time to study in the future. This could be connected with an extra cost that can be covered thanks to the contingency reserve.

In the second case, the risk response activity to avoid getting sick during the exam preparation, would consist in doing the vaccination for five of the most common contagious diseases at the time of the preparation for the exam.

The secondary risk of this risk response would be that the vaccines themselves can cause side effects or even cause infections.

 

To conclude, risk management is an integral part of project management. It includes the identification, analysis, and monitoring of all these types of risks.

Understanding how to identify and manage risks is part of everyone’s life, even in the life of a project manager.

It is important that all types of risks are identified, analyzed, monitored, and cared for during the entire project.

For a project manager, learning to distinguish and plan for different types of risks will be a valuable aid to manage resources, time, and guide the project to success more efficiently.