Q.1 As a project manager in banking sector, what will be your role in project development as well as management?

( 10)

Description

The role of the Project Manager is to plan, execute, and finalize projects according to strict deadlines and within budget. This includes acquiring resources and coordinating the efforts of team members and third-party contractors or consultants in order to deliver projects according to plan. The Project Manager will also define the projects objectives and oversee quality control throughout its life cycle.

Responsibilities as a Project Development and Management Direct and manage project development from beginning to end. Define project scope, goals and deliverables that support business goals in collaboration with senior management and stakeholders. Develop full-scale project plans and associated communications documents. Effectively communicate project expectations to team members and stakeholders in a timely and clear fashion. Liaise with project stakeholders on an ongoing basis. Estimate the resources and participants needed to achieve project goals. Draft and submit budget proposals, and recommend subsequent budget changes where necessary. Where required, negotiate with other department managers for the acquisition of required personnel from within the company.

 Determine and assess need for additional staff and/or consultants and make the appropriate recruitments if necessary during project cycle. Set and continually manage project expectations with team members and other stakeholders. Delegate tasks and responsibilities to appropriate personnel. Identify and resolve issues and conflicts within the project team. Identify and manage project dependencies and critical path. Plan and schedule project timelines and milestones using appropriate tools. Track project milestones and deliverables. Develop and deliver progress reports, proposals, requirements documentation, and presentations. Determine the frequency and content of status reports from the project team, analyze results, and troubleshoot problem areas. Proactively manage changes in project scope, identify potential crises, and devise contingency plans. Define project success criteria and disseminate them to involved parties throughout project life cycle. Coach, mentor, motivate and supervise project team members and contractors, and influence them to take positive action and accountability for their assigned work. Build, develop, and grow any business relationships vital to the success of the project. PROJECT MANAGER AS A WHOLE Project Managers are individuals responsible for planning, monitoring and controlling all aspects of a project. They must motivate and synchronize the assigned resources to achieve the goals of the project, while coping with the constraints of time, cost and consistent quality.

Project Managers manage projects from start to finish.

PROJECT MANAGER ROLES FOR CREDIT CARD PRODUCT

For example: a banks offering of a new credit card. The credit card is the product. However, in order to get into the credit card business, several projects have to be undertaken. Shown below (within each of the functional areas) are some or these project types. Marketing projects

Conducting a market research project to determine the market segments to pursue Design the credit card a design team is assembled to hire a design company and oversee the creation of the physical card and some of the advertising themes IT and systems projects

Order taking systems Transaction processing projects Complaint handling and management Product launch projects

Creating and managing advertising and public relations programs for print media and television Writing and designing inserts for direct mail campaigns

(b) Explain the criteria for the selection of project manager, with examples. (10)

Project Manager selection criteria cannot be associated with other simple job descriptions, as the subject post must possess some special skills in order to lead the team and project. Following criteria and requirements must be fulfilled in order to be selected as a Project Manager for any organization.

Personal Skills Project Managers must be able to motivate and sustain people. Project team members will look to the project manager to solve problems and help with removing obstacles. Project managers must be able to address and solve problems within the team, as well as those that occur outside the team. There are numerous ways, both subtle and direct, in which project managers can help team members. Some examples include the following: Manage by example (MBE). Team members will be closely watching all actions of the project manager. Therefore, project managers must be honest, direct, straightforward, and knowledgeable in all dealings with people and with the project. A good manager knows how to work hard and have fun, and this approach becomes contagious. A positive attitude. Project managers must always have a positive attitude, even when there are substantial difficulties, problems, or project obstacles. Negative attitudes erode confidence, and a downward spiral will follow. Define expectations. Managers who manage must clearly define what is expected of team members. It is important to do this in writingget agreement from the individual team members. This leaves no room for problems later, when someone states Its not my job. Performance expectations must be defined at the start of the project. Be considerate. Project management is a demanding job with a need for multiple skills at many levels. Above all, be considerate and respectful, and give people and team members the time and consideration they deserve. Make people aware that their efforts

are appreciated and the work that they do is important, because it is. A letter, personal word, or e-mail of appreciation goes a long way.

Technical Skills There is no hard and fast rule. It really depends on the type and size of projects, their structure, resources available, and the project environment. Questions that project managers should ask include the following: 1. What types of technical problems require management? 2. Who will solve them? 3. Is it done with quality and satisfaction? 4. Who can I rely on in my project team? 5. What outside resources, if any, can I draw on for assistance? As with all employees, project managers should have the technical knowledge and skills needed to do their jobs. If managers lack these skills, training is one option; being mentored or coached by a more experienced individual is another. Senior management should ask the question, Do your project managers need more technical skills than they already possess?

On larger complex projects, such as systems integration projects or multiple-year projects, there are frequently too many complex technologies for the project manager to master. Technical training that provides breadth may be useful. On smaller projects, the project manager may also be a key technical contributor. In this case, technical training may enhance the abilities of project managers to contribute technically,

but it is unlikely to improve their management skills. One thing is abundantly clearthe project manager is ultimately responsible for the entire management of the project, technical or otherwise, and will require solutions to the technical issues that will occur.

Management Skills Project managers need other key skills besides those that are purely technical to lead and deliver on their projects successfully. A good project manager needs to understand many facets of the business aspect of running a project, so critical skills touch on expertise in the areas of organization, communication, finance, and human resources. The following are examples of the management topics used in training effective project managers: Project planning, initiation, and organization Recruiting people and keeping them Effective project negotiation Software tools for project management Accurate estimating and cost control Project execution and control Developing powerful project presentations and reports Personal and project leadership Managing risk and making decisions Effective problem management Performance management

Managing the projects within the organization Project management professional (PMP) exam review Growing and sustaining a high-performance team Managing change within an organization

QUESTION 2

Conflict Resolution in Project Management

Amy Ohlendorf Information Systems Analysis MSIS 488, Fall 2001

Introduction | Project Management Overview | Understanding Conflict | Approaches to Conflict Resolution | Conclusion | References Introduction Conflict in project management is inevitable. The potential for conflict in information systems development projects is usually high because it involves individuals from different backgrounds and orientations working together to complete a complex task. The cause of conflict in team projects can be related to differences in values, attitudes, needs, expectations, perceptions, resources, and personalities. Proper skills in dealing with conflict can assist project managers and other organization members to handle and effectively resolve conflicts which can lead to a more productive organization as a whole. Project Management Overview Project management is a methodological approach to achieving agreed upon results within a specified time frame with defined resources. (1) It involves applying knowledge, skills, tools, and techniques to a wide range of activities in order to meet the requirements of a project. The major objectives of project management include performance, cost, and time goals. (2) The focus is to meet customer expectations, deliver projects within budget, and complete projects on time. Project management is helpful in achieving these objectives by organizing, planning, monitoring, controlling, and correcting the project activities. These activities consist of creating a workable project environment, keeping the work environment healthy, planning the essential activities to build the information system or product, and controlling execution of the plan. (3)

Using project management principles brings value to an organization. Applying these principles give managers the ability to establish success measures, quantify value proportionate with cost, use optimal organizational resources, allow customer focus and alignment, incorporate quality principles, implement the practice of strategic plans, resolve problems more quickly, work within the scope of the project, address future risk before becoming a problem, and create a higher quality product the first time. The time and resources put into project management will make up for the cost over the life of the project. (4, 5) Project management relies on proven and repeatable processes and techniques. These processes and techniques are utilized to coordinate resources to accomplish predictable results. (5) Although success is never guaranteed, a project is more likely to be successful when conventional project management processes are practiced. The four phases of the project management process are explained below. (6) 1. Project Initiation The first phase of the process involves performing activities to evaluate the project size, scope, and degree of difficulty and to establish procedures for supporting later project activities. Examples of activities at this phase are forming a project initiation team, building the customer relationship, developing effective management procedures, and constructing a project workbook. 2. Project Planning The second phase of the process involves defining clear, distinct activities and work required to complete the activities for each individual project. Examples of activities at this phase are defining the project scope, defining the work breakdown structure, estimating resource requirements, outlining communication procedures among managers, team members, and the customer, identifying and evaluating risk, and developing a Baseline Project Plan. 3. Project Execution The third phase of the process involves implementing the plans created in the earlier phases, Project Initiation and Project Planning. Examples of activities at this phase are executing the baseline plan, managing changes to the baseline plan, monitoring project progress, and communicating project status to managers, team members, and the customer. 4. Project Closedown The final phase of the process involves bringing the project to an end. Examples of activities at this phase are evaluating team members, conducting final project reviews, and closing the customer contract. The project manager is responsible for carrying out the initiation, planning, execution, and closedown phases of a project. The success of a project relies strongly on the

project manager. The role of this person is to evaluate project feasibility and to create the plan of activities required to meet the objectives. This individual must be able to build an environment in which the project can be executed while protecting the environment from factors that could impede progress, planning the work that has to be completed to reach the goal, and keeping the course of the project in control. (7) It is important for a project manager to possess a diverse set of skills - management, leadership, technical, customer relationship, and conflict management.(6) Managers spend 42% of their time on reaching agreement with others when conflict occurs. (8) Conflict management within a team environment requires the ability to solve problems, set goals, compromise, settle personality differences, and resolve conflicts. Training for project managers in this area is necessary for their success, as they are typically responsible for handling conflict during a project. (9) The remainder of this paper will address conflict and its resolution in project management. Understanding Conflict Conflict is "a situation of competition in which the parties are aware of the incompatibility of potential future positions and in which each party wishes to occupy a position which is incompatible with the wishes of the other."(10) Conflict is viewed as a cycle: "As with any social process, there are causes; also, there is a core process, which has results or effects. These effects feed back to effect the causes." (11) To understand conflict further, the situation must include elements of interdependence, emotions, perceptions, and behaviors. (12) For example, conflict occurs between parties whose tasks are interdependent, who are angry with each other, who perceive the other party as being at fault, and whose actions cause a business problem. Conflict can be constructive and healthy for an organization. It can aid in developing individuals and improving the organization by building on the individual assets of its members. (13) Conflict can bring about underlying issues. It can force people to confront possible defects in a solution and choose a better one. (14) The understanding of real interests, goals and needs is enhanced and ongoing communication around those issues is induced. In addition, it can prevent premature and inappropriate resolution of conflict. (15) Constructive conflict occurs when people change and grow personally from the conflict, involvement of the individuals affected by the conflict is increased, cohesiveness is formed among team members, and a solution to the problem is found. (10) However, if conflict is not managed properly, it can be detrimental to an organization by threatening organizational unity, business partnerships, team relationships, and interpersonal connections. (16) Deconstructive conflict occurs when a decision has not been found and the problem remains, energy is taken away from more important activities or

issues, morale of teams or individuals is destroyed, and groups of people or teams are polarized. (10) Destructive conflict has a predictable pattern known as the Drama Triangle. (17) By learning how to identify these unproductive roles and how to effectively handle each role player, managers can prevent some conflicts from occurring and resolve those that do. Most individuals know how to assume the following three roles: 1. Persecutor refers to a person who uses aggressive behavior against another person, attacking the intended victim. An attack can be direct or indirect and be physical, verbal, or both. The persecutor's actions deliver a message that "you are not okay" while making the persecutor feel righteous and superior. 2. Victim refers to a person who uses nonassertive behavior so others view them as "I'm not okay." This behavior encourages others to either rescue or persecute the victim. Victims will feel helpless, inadequate, sad, scared, or guilty. The victim role is often used because the individual is feeling stressed, has low selfesteem, or is being persecuted by another. 3. Rescuer refers to a person who uses either nonassertive or agressive behavior. Individuals become rescuers because they will not say "no" and unwillingly assume the responsibility of solving the victim's problem. In contrast, others will assume the rescuer role to demonstrate superiority over the victim. These roles are learned in early childhood and are used throughout adulthood. They involve the perception of oneself or someone else as inadequate or not acceptable. The aggressive and nonassertive behaviors that are present in these roles lead to win-lose outcomes and do not provide an opportunity for a win-win resolution. It is important for a project manager to understand the dynamics of conflict before being able to resolve it. The internal characteristics of conflict include perception of the goal, perception of the other, view of the other's actions, definition of problem, communication, and internal group dynamics. (18)

Perception of the goal becomes a problem when success becomes competitive or "doing better than the other guy." The focus is placed on the solution rather than attaining the goal. Perception of the other can create conflict when the attitude becomes "us versus them." Similarities and differences are emphasized causing division within a group. View of other's actions can be a problem when the situation is competitive instead of cooperative. Behavior can be suspicious in a competitive environment.

Definition of problem can result in conflict when the size of the problem is escalated, issues are misconstrued, and original issues are lost. Communication in a competitive environment can cause mistrust and information may be withheld or may be lacking. Communication is not open and honest. Internal group dynamics can be negative when the group structure is centralized and rigid rather then safe and open. Conformity is emphasized and tasks dominate over the needs of the team members.

These characteristics can strongly influence the behavior style of group members and affect the potential outcome of the conflict. In some instances, the project manager's lack of skills to effectively manage and resolve conflict can be the problem. Approaches to Conflict Resolution In Project Management: A Systems Approach to Planning, Scheduling, and Controlling, five modes for conflict resolution are explained and the situations when they are best utilized are identified. (19) These modes are Confronting, Compromising, Smoothing, Forcing, and Avoiding. Confronting is also described as problem solving, integrating, collaborating or winwin style. It involves the conflicting parties meeting face-to-face and collaborating to reach an agreement that satifies the concerns of both parties. This style involves open and direct communication which should lead the way to solving the problem. Confronting should be used when:

Both parties need to win. You want to decrease cost. You want create a common power base. Skills are complementary. Time is sufficent. Trust is present. Learning is the ultimate goal.

Compromising is also described as a "give and take" style. Conflicting parties bargain to reach a mutually acceptable solution. Both parties give up something in order to reach a decision and leave with some degree of satisfaction. Compromising should be used when:

Both parties need to win. You are in a deadlock. Time is not sufficient.

You want to maintain the relationship among the involved parties. You will get nothing if you do not compromise. Stakes are moderate.

Smoothing is also referred to as accommodating or obliging style. In this approach, the areas of agreement are emphasized and the areas of disagreement are downplayed. Conflicts are not always resolved in the smoothing mode. A party may sacrifice it's own concerns or goals in order to satisfy the concerns or goals of the other party. Smoothing should be used when:

Goal to be reached is overarching. You want to create obligation for a trade-off at a later time. Stakes are low. Liability is limited. Any solution is adequate. You want to be harmonious and create good will. You would lose anyway. You want to gain time.

Forcing is also known as competing, controlling, or dominating style. Forcing occurs when one party goes all out to win it's position while ignoring the needs and concerns of the other party. As the intesity of a conflict increases, the tendency for a forced conflict is more likely. This results in a win-lose situation where one party wins at the expense of the other party. Forcing should be used when:

A "do or die" situation is present. Stakes are high. Important principles are at stake. Relationship among parties is not important. A quick decision must be made.

Avoiding is also described as withdrawal style. This approach is viewed as postponing an issue for later or withdrawing from the situation altogether. It is regarded as a temporary solution because the problem and conflict continue to reoccur over and over again. Avoiding should be used when:

You can not win. Stakes are low. Stakes are high, but you are not prepared. You want to gain time. You want to maintain neutrality or reputation. You think problem will go away.

You win by delaying.

Researchers examined the impact of the conflict resolution styles used by individuals in shaping their work environment and affecting the level of ongoing conflict and stress. (20) Results of the study showed that individuals who use a certain style to conflicts can create environments with varied degrees of conflicts. Individuals who use more of a confronting style create an environment with lower levels of task conflict, which reduces relationship conflict and stress. Whereas, individuals who use more of the forcing or avoiding styles tend to create an environment with more task conflict, which increases relationship conflict and stress. The study suggests conflict develops not only in environmental circumstances but in the styles used by individuals when confronted with a conflict. The manner in which a person responds to organizational dissension and uncertainty will influence the responses of others and the individual's work experience. Another study went a step further and examined the relationship between the three forms of organizational justice (procedural, distributive, and interactional) and the conflict resolution styles. (21) The researchers concluded that higher interactional justice was related to greater use of the confronting style when distributive justice was low and procedural justice was high. Use of the avoiding style was positively related to distributive justice. This study suggests when employees perceive organizational justice, they are likely to use more cooperative modes, such as confronting, smoothing, and compromising, in dealing with conflict. Results from this study have implications for organizations. Managers at all levels of an organization should be attentive to enhancing employee perceptions of organzational justice in order to encourage the use of more cooperative styles for organizational conflict management. Barki and Hartwick tested a model of how members of information systems development (ISD) projects perceive interpersonal conflict and examined the relationships between interpersonal conflict, conflict management styles, and ISD outcomes. (22) In the study, interpersonal conflict was defined as "a phenomenom that occurs between interdependent parties as they experience negative emotional reactions to perceived disagreements and interference with the attainment of their goals." The results suggest that individuals' assessments of interpersonal conflict were formed based on disagreement, interference, and negative emotion. Interdependence was not a factor in their assessment. Negative emotion was found to be a significant part of an individuals' perception of interpersonal conflict. Although conflict management styles were shown to have positive effects on ISD outcomes, the negative effects of interpersonal conflict on the outcomes were not alleviated. Regardless of how the conflict was managed or resolved, the study demonstrated that the impact of interpersonal conflict was perceived to be negative. The researchers

concluded that management and satisfactory resolution of interpersonal conflict are important. However, prevention of interpersonal conflict should be the greater focus. Al-Tabtabai and colleagues undermine the modes of conflict resolution and propose a conflict resolution technique using a cognitive analysis approach. (23) This approach identifies a main source of conflict as the cognitive differences between parties. Feedback is presented that gives analysis of each individual's judgement and comparisons with the counterpart's judgement. This cognitive feedback provides insight to conflicting parties and gives them an opportunity to reach an acceptable resolution to the conflict. The proposed systematic methodology to conflict resolution identifies and measures the cues, distal variable, and judgements and determines the relationships between these variables. The six steps of this methodology are listed below. 1. 2. 3. 4. 5. 6. Indentification of the Conflict Domain Generation of Conflict Cases Exercise of Judgement Analysis of the Results Communication of the Judgement Differences (Cognitive Feedback) Negotiation Among Conflicting Parties

The use of the cognitive analysis approach resulted in more agreement among the parties in conflict. Cognitive feedback provided information on reasons why the disagreement occurred among the parties and on areas that needed to be addressed to reach an agreement. This approach allowed the project members involved in the conflict to concentrate on the real differences that provoked the disagreement rather than only discussing the effects of the conflicting situation. The findings from this study suggest the use of cognitive feedback can be effectively applied to conflict resolution. Active listening is a proven technique managers can use to help resolve conflict. (17) Developing this skill takes practice, but it can be extremely effective when mastered. Listening allows the conflict to take its natural course by giving individuals the opportunity to disagree, express strong opinions, and show passion for ideas. A respect for individual differences is demonstrated and an environment of understanding is fostered. Listening is helpful in achieving a winning resolution by enabling an employee to identify the criteria that is considered an acceptable outcome. When a manager is able to understand the needs and interests of individuals, the chances of satisfactorily resolving the conflict for both parties are increased. As a result of this process, trust and a relationship bond will form preparing individuals to listen also to the needs of the manager. (15)

An awareness of the potential approaches to conflict resolution and the understanding of their consequences can provide project managers with a invaluable set of tools to create an optimal work environment.

Common Causes of Project Failure OGC Best Practice This document is primarily aimed at those managing or otherwise involved in the delivery of projects across Government. OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:12 p1. Lack of clear links between the project and the organisation's key strategic priorities, including agreed measures of success. 2. Lack of clear senior management and Ministerial ownership and leadership. 3. Lack of effective engagement with stakeholders. 4. Lack of skills and proven approach to project management and risk management. 5. Too little attention to breaking development and implementation into manageable steps.

6. Evaluation of proposals driven by initial price rather than long-term value for money (especially securing delivery of business benefits). 7. Lack of understanding of, and contact with the supply industry at senior levels in the organisation. 8. Lack of effective project team integration between clients, the supplier team and the supply chain. Common Causes of Project Failure OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 p1. Lack of clear links between the project and the organisation's key strategic priorities, including agreed measures of success. Do we know how the priority of this project compares and aligns with our other delivery and operational activities? Have we defined the critical success factors (CSFs) for the project?

Have the CSFs been agreed with suppliers and key stakeholders? Do we have a clear project plan that covers the full period of the planned delivery and all business change required, and indicates the means of benefits realisation? Is the project founded upon realistic timescales, taking account of statutory lead times, and showing critical dependencies such that any delays can be handled? Are the lessons learnt from relevant projects being applied? Has an analysis been undertaken of the effects of any slippage in time, cost, scope or quality? In the event of a problem/conflict at least one must be sacrificed. 2. Lack of clear senior management and Ministerial ownership and leadership. Does the project management team have a clear view of the interdependencies between projects, the benefits, and the criteria against

which success will be judged? If the project traverses organisational boundaries, are there clear governance arrangements to ensure sustainable Key questions to address OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 palignment with the business objectives of all organisations involved? Are all proposed commitments and announcements first checked for delivery implications? Are decisions taken early, decisively, and adhered to, in order to facilitate successful delivery? Does the project have the necessary approval to proceed from its nominated Minister either directly or through delegated authority to a designated Senior Responsible Owner (SRO)? Does the SRO have the ability, responsibility and authority to ensure that the business change and business benefits are delivered? Does the SRO have a suitable track record

of delivery? Where necessary, is this being optimised through training? 3. Lack of effective engagement with stakeholders. Have we identified the right stakeholders? Have we as intelligent customers, identified the rationale for doing so (e.g. the why, the what, the who, the where, the when and the how)? Have we secured a common understanding and agreement of stakeholder requirements? Does the business case take account of the views of all stakeholders including users? Do we understand how we will manage stakeholders (e.g. ensure buy-in, overcome resistance to change, allocate risk to the party best able to manage it)? Has sufficient account been taken of the subsisting organisational culture? Whilst ensuring that there is clear accountability, how can we resolve any conflicting priorities? OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 p4. Lack of skills and proven approach to project management

and risk management. Is there a skilled and experienced project team with clearly defined roles and responsibilities? If not, is there access to expertise, which can benefit those fulfilling the requisite roles? Are the major risks identified, weighted and treated by the SRO, the Director, and Project Manager and/or project team? Has sufficient resourcing, financial and otherwise, been allocated to the project, including an allowance for risk? Do we have adequate approaches for estimating, monitoring and controlling the total expenditure on projects? Do we have effective systems for measuring and tracking the realisation of benefits in the business case? Are the governance arrangements robust enough to ensure that "bad news" is not filtered out of progress reports to senior managers?

If external consultants are used, are they accountable and committed to help ensure successful and timely delivery? 5. Too little attention to breaking development and implementation into manageable steps. Has the approach been tested to ensure it is not 'big-bang' (e.g. in IT-enabled projects)? Has sufficient time been built-in to allow for planning applications in Property & Construction projects for example? OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pHave we done our best to keep delivery timescales short so that change during development is avoided? Have enough review points been built-in so that the project can be stopped, if changing circumstances mean that the business benefits are no longer achievable or no longer represent value for money? Is there a business continuity plan in the

event of the project delivering late or failing to deliver at all? 6. Evaluation of proposals driven by initial price rather than long-term value for money (especially securing delivery of business benefits). Is the evaluation based on whole-life value for money, taking account of capital, maintenance and service costs? Do we have a proposed evaluation approach that allows us to balance financial factors against quality and security of delivery? Does the evaluation approach take account of business criticality and affordability? Is the evaluation approach business driven? 7. Lack of understanding of, and contact with the supply industry at senior levels in the organisation. Have we tested that the supply industry understands our approach and agrees that it is achievable? Have we asked suppliers to state any

assumptions they are making against their proposals? Have we checked that the project will attract sufficient competitive interest? OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pAre senior management sufficiently engaged with the industry to be able to assess supply-side risks? Do we have a clear strategy for engaging with the industry or are we making sourcing decisions on a piecemeal basis? Are the processes in place to ensure that all parties have a clear understanding of their roles and responsibilities, and a shared understanding of desired outcomes, key terms and deadlines? Do we understand the dynamics of industry to determine whether our acquisition requirements can be met, given potentially competing pressures in other sectors of the economy? 8. Lack of effective project team

integration between clients, the supplier team and the supply chain. Has a market evaluation been undertaken to test market responsiveness to the requirements being sought? Are the procurement routes that allow integration of the project team being used? Is there early supplier involvement to help determine and validate what outputs and outcomes are sought for the project? Has a shared risk register been established? Have arrangements for sharing efficiency gains throughout the supply team been established? If the answers to the above questions are unsatisfactory, projects should not be allowed to proceed until the appropriate assurances are obtained. OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:11 pExplanatory notes Office of Government Commerce, Trevelyan House, 26 - 30 Great Peter Street, London SW1P 2BY Service Desk: 0845 000 4999 E: ServiceDesk@ogc.gsi.gov.uk

W: www.ogc.gov.uk About OGC OGC - the UK Office of Government Commerce is an Office of HM Treasury. The OGC logo is a registered trademark of the Office of Government Commerce. OGC Service Desk OGCcustomers can contact the central OGCService Desk about all aspects of OGCbusiness. The Service Desk will also channel queries to the appropriate second-line support. We look forward to hearing from you. You can contact the Service Desk 8am - 6pm Monday to Friday T: 0845 000 4999 E: ServiceDesk@ogc.gsi.gov.uk W: www.ogc.gov.uk This document is printed on material comprising

75 per cent post consumer waste and 25 per cent ECF pulp. Crown Copyright 2005. CP0015/01/05 1. An acquisition-based project is one which has a significant element dependent on the supply of goods and/or services by a third party supplier or suppliers. Whilst it is not essential for the goods or services to be provided by a single supplier, the contribution of the third party supplier or suppliers should be considered significant, if a failure to deliver on their part attracts public criticism. 2. An IT-enabled project is any business change activity, including programmes and projects, where the use of IT is critical to its success. 3. A project is defined as a unique set of co-ordinated activities with a finite duration, defined cost and performance parameters and clear outputs to support specific business objectives. 4. By value for money is meant "the optimum

combination of whole-life cost and quality, fitness for purpose to meet user requirements". Government Accounting. 5. The list of Common Causes of Project Failure has been agreed by the NAO and OGC. OGC_8pp_CommonCauses_02.qxd 18/1/2005 6:12 p