organisational design and project risk
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Organisational Design and Project RiskTRANSCRIPT
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Program : MBA
Semester : IV
Subject Code : PM0016
Subject Name : Project Risk Management
Unit number : 10
Unit Title : Organisational Design and Project Risk
Lecture Number : 10
Lecture Title : Organisational Design and Project Risk
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Objectives :
The objectives of this lecture are to:
• Explain organisation design and its need.
• Identify and manage the needs and requirements of an organisation.
• Assess all shortcomings in a project and plans.
• Estimate the errors in the project and initiate rectification measures.
• Appreciate the importance and need for documentation.
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Unit-10 Organisational Design and Project Risk
Project Risk Audit
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Lecture Outline
• Introduction
• Organisational Design and Purpose
• Organisational Design Services
• Management of Needs and Requirements
• Requirements Management Model
• General Types of Requirements
• Planning Shortcomings
• Estimation Errors
• Measures to Reduce Estimation Errors
• Need for Documentation
• Summary
• Check Your Learning
• Activity
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Unit-10 Organisational Design and Project Risk
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Introduction
• Organisational design is a formal guideline of development that brings
together- people, information, and technology of an organisation.
• Organisational development matches the organisation structure as
closely as possible to the organisation goal.
• With the help of design process, organisations aim to ensure that the
collective efforts of the members lead to better handling of risks.
• Organisations adopt design process as an internal change under the
guidance of an external channel.
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Unit-10 Organisational Design and Project Risk
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• Organisational design helps an organisation to enhance its processes and
achieve the main goals successfully.
• Organisational design is implemented with the creation of a strategy.
• Organisational design strategy combines the objectives of the
organisation and motivates members to achieve desired outcomes.
• The purpose of an organisation’s existence is the foundation for every act
of its members.
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Unit-10 Organisational Design and Project Risk
Organisational Design and Purpose
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The organisational design services include:
• Understanding objectives of change and the environment in which it
exists.
• Understanding business activities of the organisation.
• Suggesting new developmental models for processes and interfaces and
utilising them for defining new structures, roles and relationships for
offshore processes.
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Unit-10 Organisational Design and Project Risk
Organisational Design Services
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• Requirement can be defined as a demand expressed and accepted by
stakeholders of a project regarding the behaviour of the project.
• Requirements management is a process similar to risk management
process.
The benefits of using methods to manage requirements are as follows:
• Effectiveness and efficiency of the process increases.
• The ability to establish right goals for project organisation is
established.
• The impact of changes required during the work is reduced.
• The consequences that these changes might have on the general
design can be understood easily.
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Unit-10 Organisational Design and Project Risk
Management of Needs and Requirements
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Unit-10 Organisational Design and Project Risk
Requirements Management Model
Checkingrequirements
Negotiating the requirements
Accepting the requirements
Preparing and documenting requirements
Gathering problems and needs
Identifying stakeholders
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The types of requirements that an organisation or a project could
have are:
• Business requirements.
• Business user requirements.
• Functional requirements.
• System (Non-Functional) requirements.
• Software requirements.
The characteristics of the requirements that are defined for the
project or the organisation are:
• Unambiguous.
• Specific.
• Testable.
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Unit-10 Organisational Design and Project Risk
General Types of Requirements
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• It is important to plan in advance for the shortcomings in a project.
• This reduces the project overheads.
The shortcomings that may occur in a project are:
• Change in project scope.
• Change in planning.
• Project visibility.
• Work environment.
• User involvement and management tools.
• Insufficient details on project strategy, project definition, value
management, technology management.
• Linkage with programs and portfolios.
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Unit-10 Organisational Design and Project Risk
Planning Shortcomings
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• Estimation error is the error caused by observing a sample instead of the
whole project.
• Estimation is an important activity for projects.
• The process of budgeting and planning is based on estimates.
• To reduce the risks arising from estimation errors, it is necessary to
improve the systems and capacities of both project management and
quantitative estimation.
• Project estimation can be carried out by either of the two estimations:
• Bottom-up estimation
• Top-down estimation
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Unit-10 Organisational Design and Project Risk
Estimation Errors
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The following are the measures to reduce estimation errors:
• Keeping track of project uncertainty and risks.
• Investing more in detailed planning.
• Selecting estimators based on the number of projects that can
be managed rather than on cumulative project management
experience.
Tips to overcome the project estimation errors are:
• Confirm all assumptions.
• Do not expect trouble-free projects.
• Specify exactly what estimates include.
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Unit-10 Organisational Design and Project Risk
Measures to Reduce Estimation Errors
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• Documentation helps to maintain the historic details of the project.
• Documentation helps to store the details of the methodologies followed in
a project, which can be used as a learning base for future projects.
In general, the following details of a project should be documented:
• Basic usage of the project.
• Listing all the techniques used in the project helps to achieve advance
techniques.
• User interface.
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Unit-10 Organisational Design and Project Risk
Need for Documentation
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Project documentation guides the project team and readers to:
• Define the aim and background of the project.
• Identify key deliverables and note milestone dates.
• Assess quality, scope, resources, risk, training, and cost.
• Document the technical parameters and technologies to be used.
• Address the manner in which items are to be built or deployed.
• Document any back-out or contingencies that could occur.
• Communicate progress and update stakeholders.
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Unit-10 Organisational Design and Project Risk
Need for Documentation contd…
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Summary
• Organisational design provides guidelines to bring people,
information and technology under a common base that is
achieving a goal.
• The requirements of a project are business requirements,
business user requirements, functional requirements,
system requirements and software requirements.
• Documentation serves as a source of knowledge for future projects.
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Unit-10 Organisational Design and Project Risk
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Check Your Learning
1. What are the tips to overcome the project estimation errors?
Ans: The tips to overcome the project estimation errors are:
• Confirm all assumptions.
• Do not expect trouble-free projects.
• Specify exactly what estimates include.
2. Mention any of the three shortcomings that may occur in a project.
Ans: The shortcomings that may occur in a project are:
• Project visibility.
• Work environment.
• User involvement and management tools.
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Unit-10 Organisational Design and Project Risk
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Activity
Assume that you are working for a Machine tools industry.
Your industry has been offered a new project. You are appointed as
the project manager for this project. It is your responsibility
to prepare a project plan. What are the initial steps you would
take to plan the project and what are the measures you would
adopt to plan for possible risks?
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Unit-10 Organisational Design and Project Risk