Project Management

Constant change is all around us and seems to be increasing. Change should be delivered by somebody who is in charge of the process, and this is effectively what project management (PM) is all about. Any project must be capable of analysis and costing, and the business case is essentially a balancing of benefits against costs.

Modern PM started in civil engineering; proper management was essential because the costs of its absence were too high. At first, other industries did not recognise the relevance of civil engineering PM. So there were a number of vastly expensive disasters because:

• people did not know what they were trying to achieve
• business benefits from the change were not understood
• customers kept changing their minds
• change was not adequately controlled
• late technological changes were incorporated into the project at disproportionate cost.

Recent problems have included the Scottish Parliament (estimate £40 million; cost £195 million) and the Jubilee Line (estimate £4.8 billion; cost £10 billion). Wembley Stadium (estimate £240 million; current cost £750 million and at least 18 months behind schedule) underlines the message that huge undertakings like the London Olympics need very tight control by managers if there is not to be massive deficit in budgets when they are complete.

The project manager is the person on the ground delivering the customer’s wishes and dealing with suppliers, although the contractual relationship is usually between customer and supplier. Top management must understand the implications of the project for the way business is conducted.

The result of the project process is measured before it starts, and encompasses the precise amount of change that was envisaged. There are three factors in every project: time, cost and performance. These are interdependent, so any changes to one will impact on one or both of the others.

The significance of Projects in Controlled Environments (PRINCE), now in version 2, lies in the phrase ‘Controlled Environments’, which means:

• tight, agreed specifications
• quality control of the product and the process
• reliability
• full participation of the customer throughout
• involvement of suppliers so requirements understood
• no surprises on delivery.

Project management in the Services

The basic set of skills required to manage a project are:

• recognising what it is that needs to be delivered
• planning how to deliver it
• using the resources available
• organising the project from start to finish.

Most Service people will have delivered projects of varying complexity, whatever their rank and whatever their specialism.

The Services also formally appoint people as project managers. Obvious examples include the refit of a warship or the design of a cockpit, but a unit move to a new base or running an NCOs’ course could also be included.

PM knowledge and experience are critical skills in many civilian jobs. People intending to leave the Forces in the near future should consider enhancing their project-related skills, particularly leadership, team building and risk management. For people still building a career, PM is an increasingly useful discipline of the new century and good project managers are in high demand, both within the Services and outside. It is also an industry that is expanding into new areas every year, with control of the three factors increasingly being seen as both relevant and important.

Qualifications and training

PM is a field in which there are specific qualifications and also general ones that include an element of PM within them. Many degrees, for example, have modules on PM and even more test students by requiring them to carry out a project as part of the qualification.

There are several methodologies used for projects, and two important ones (for software projects) are Traditional Life Cycle (or Waterfall) and Dynamic Systems Development Method. The most common generic method is PRINCE2 (pass rate at Foundation level around 99 per cent and, at Practitioner level, around 75 per cent) since its introduction in 1996. It is not cheap and people should expect to have to meet some of the costs themselves. It is now the ‘driving licence’ of the PM industry and the Practitioner certificate is mandatory for civilian project managers employed in the MoD.

It is a processed-based approach, with each element defined with its key inputs and outputs together with the specific objectives to be achieved and the activities to be carried out. The project is split into manageable stages enabling efficient control of resources and regular monitoring of progress. The process is product-based; plans focus on delivering results and are not simply a set of timelines by which various actions must have occurred.

The project is driven by the business case, describing the organisation’s justification, commitment and rationale for the deliverable (or outcome). This case is regularly reviewed to ensure that business objectives (which may change) are being met. PRINCE2 enables projects to have an organised and controlled start, middle and end, with a series of processes that cover all necessary activities. The project manager organises and controls the project team, which actually does the work. The customer (or executive) pays for the project, the user will use its outcome while suppliers (or specialists) have the expertise to carry it out. All will be represented on the project board to ensure that the right outcome is delivered within budget, on time and to the appropriate quality. Project assurance provides an independent view of how the project is progressing.

There are two exams: foundation and practitioner. The foundation exam (one-hour, multiple-choice 75 closed-book questions with 50 per cent pass mark) must be taken before the practitioner paper (three-hour, three case scenario-based questions with 50 per cent pass mark). Foundation is enough knowledge for people who wish to work on projects using technical skills – it indicates familiarity with the concepts and language. Practitioner is appropriate for people who want to manage projects. The APM Group administers the exams and also accredits training providers to teach PRINCE2 and conduct the exams. (Other programmes offered by the APM Group are Managing Successful Programmes, Management of Risk and a Competent Project Manager Qualification.)

PRINCE2 Registered Practitioners must take a re-registration examination every three to five years to maintain their certification. This is a similar exam to the original practitioner paper, except it is only one hour with one scenario-based question.

Another source of advice is the Association for Project Management (APM). It publishes a Body of Knowledge that provides baseline information on the competencies required by a project manager. There are also training courses and education programmes for those who want to advance their knowledge in this field. It has recently aligned its qualifications with the standards set by the International Project Management Association (IPMA):

• Introductory Certificate – for anyone looking to understand the principles of PM
• APMP (IPMA Level D) – for people with up to two years’ project management experience
• Practitioner Qualification (IPMA Level C) – for anyone with more than three years’ project management experience
• Certificated Project Manager – for project managers with extensive experience in managing complex, multi-disciplinary projects
• APM Project Risk Management Certificates – APM offers Levels 1 and 2 certificates for project and programme managers involved in project risk assessment in any way.

Short courses in PM run regularly throughout the UK, and the APM can provide a list of approved training providers. Many British universities and institutes offer a range of PM courses and programmes. Some are specialist while others are aimed at the general project manager. The Best Practice User Group supports the Office of Government Commerce’s best practice products, including PM qualifications.

Employment in PM

An obvious area of work is the defence industrial sector, with many projects to choose from. There are the benefits of immediate skills transferability, possibly working on familiar equipment but from a different perspective. Looking beyond the defence sector, project management skills are of great value and in high demand in every conceivable occupation. Continuing Professional Development is required to keep abreast of changes in the PM world.

The more junior ranks will tend to be employed on the basis of their technical skills and expertise while Service managers will be attractive to employers if they have management, and specifically PM, skills. Some people will wish to find an employer, in which case the job-finding process will be much the same as for other forms of employment; for people who want to work freelance, there are agencies, magazines and other intermediaries that can help.

Salaries

In-house PM salaries range from specialist project engineer at around £30,000 per annum, through project manager at £30,000 to £40,000 per annum plus benefits, to programme managers earning over £40,000 a year plus benefits. Freelance rates vary from £250 a day for the comparative newcomer to £550 a day for very experienced people, with an average of about £400.

Contact details

Association for Project Management, 150 West Wycombe Road, High Wycombe, Buckinghamshire HP12 3AE Tel: 0845 458 1944 Website: www.apm.org.uk

APM Group Ltd, Sword House, Totteridge Road, High Wycombe, Buckinghamshire HP13 6DG Tel: 01494 452450 Website: www.apmgroup.co.uk

Best Practice User Group Ltd, 15 Nursery Close, Atworth, Melksham SN12 8HX Tel: 0845 0548 038 Website: www.usergroup.org.uk

Been there done that…

Alan Ferguson

When Squadron Leader and aerosystems specialist Alan Ferguson retired from the RAF in 1991 after 19 years, he ‘could hardly have envisaged’ the lifestyle that he now enjoys. He was a chartered engineer and member of both the Royal Aeronautical Society and the then British Institute of Management, with a BSc in Aeronautics and Astronautics, as well as leadership experience and knowledge of programme and project change.

His resettlement included career briefings, a business management appreciation course, and training in project organisation planning and control, and structured systems analysis. Initially joining Norwich Union as a project manager, Ferguson started his own programme project and risk management training and consultancy business ten years ago. He now employs a ten-person administration team with a ‘loose network of 20 consultants and a turnover approaching seven figures’.

His company writes best practice methods, produces training products, and delivers consultancy and training around the world. His role is to develop the company as he thinks best, manage client relationships and maintain his consultants’ standards. Based at a ‘superb’ home office, he travels extensively in his own aircraft, enjoying a significant increase on his RAF salary. He uses his Service skills and has to avoid working too hard. However, the freedom to develop new business lines and stability in running his own business are positive outcomes of his decision to retire.