Integration of the PRINCE2 Model for Vikaflek Paper Company - Example

Name: University: Course: Tutor: Date: Project Management Introduction Project management all over the world is a critical requirement skill which every organization is requisite to posses. This usually is outlaid on organization which mainly deals with projects delivery. The main generators of this ideology are the project managers whom are trained and have expertise on delivering the taskforce with technical aspects toward the organizations objectives. This is achieved through arrays of process which includes; objectives setting, critical path analysis, duties breakdown structures, revenue allocation and management of risk. However, rather than technical issues which are also constraint in this move the important factors are understanding the taskforce and management issues as exemplified by Chapman and Ward (2003). This assignment is going to evaluate and discuss how as the project manager I will write a short report based on the constraint that have clouded the accomplishing of projects for Vikaflek Paper Company (VPC). Background of the Problem Vikaflek Paper Company (VPC) is a corporation which usually deals with various paper products, these include specialty papers and photography and printing coated papers for print out industries. Despite this corporation being medium size it is highly ranked in the industry for quality production of paper products. However, this organization has been hit with delays on completion of commercial projects. These have been due to lack of detailed management processes and also the selection of the project method is faulty. There has also been recorded a down turn on revenue though the economic condition has not been hit much by this factor. The environment has also become very volatile with new entrant in the market from India and china coming with new interventions. Some time back this organization embarked on edification programs to all managers, however, this drive was thwarted due to lack of time for the managers to attend classes. Outsourcing was sought after but later discouraged through fiscal accumulation analysis which revealed that budgets were overrun and project are over budgeted thus the organization is making very little profit to sustain outsourcing compensation. Development of also major projects has been also recorded to be of a poor rating. There also have been delays in delivering project on time and the performance rating has been inconsistence. This has resulted to many of the projects yielding good returns while others resulting to loss of resources for the organization this has been mostly the case where budgets are overrun (Ansoff, 1995). The projects managers are aware of the project management inconsistencies and also that the method applied to execute processes are of low standards. This clash of the management process which oversees the project wellbeing is the cause which has been associated with the delays and low performance in the context of the manager’s views. The way many projects are saddled in the company portfolio is also another worrying factor which the managers grieve about. This was centralized on the fact that the mechanism which is followed through when selecting new project adheres to discounted cash flow models like Net Present Value. This is when a project has or promises high return the top management approves it; this is done without proper consultation with the project management as noted by Byrne and Davis (2003). Roots of VPC Problems One major cause of the problem which has been affecting VPC is mostly based on two factor wrong model of processing projects and lack of teamwork within the ranks of executive. Further a comprehensive evaluation would reveal that the majority of the constraints that this organization is going thru are inadequate management processes and the faulty selection of the method to spear head projects. Lack of communication is also a major crux in the debate of how the organization functions. This is experienced in the fact that the top management approves projects which they assume have high profitability without confirmation with the relevant official. This later resolve to be one of the loss generating projects because their calculation failed to account for the time and the resources which are to be consumed during the completion of the tenure. The management here does not evaluate risk management on projects nor risk communication. They however regardless of the consequences approve projects which they view as being profitable and in the end become disastrous (Gilbert & Larsen, 1990). Solutions and Recommendation As the new graduate employee at VPC I would therefore first impact changing the Net Present Value method and induce PRINCE2. The reason for this change is that VPC top management before only centralized on how much profit the projects generates. However, in the course of executing the projects the unaccounted expenditure overrun the budget allocation which was set aside for the project. PRINCE2 method which is described as a process based approach for successful project management. This approach offers the pursuant a management method which facilitate a project with refined framework to it completion. This approach encompasses people coordination and project activities, supervision of the design of the project (communication management), also offers remedy to any malfunction which may arise within creation processes (risk management) (OGC, 2005). Because through each stage the development stages are registered and specified with key component input and outputs featuring specific objectives and implements to be executed and also offers remedy if the plan attempt to go haywire. Through this initiation the process approach is divided into manageable stages, and through this intervention resources re easily controlled. This allows space for close monitoring of the whole process in an organized and controlled manner (Bass (1990). Am going to detail the procedure which makes this approach unique through it’s follow up mechanism. Project Commencing Here am going to appoint the project team and brief them of the objective of the whole process and the justification and outline of the whole detail concerning the project. This will include activities like appointing the project manager, designing and sourcing for the best project management taskforce, project brief preparation and project approach definition. Project Initiation This will be the start up process where all taskforce are requisite to air out their augment for the formulation of a business case. Usually this is where communication management falls where all the entire taskforce are in accord and the objective are directed on one direction. The projects controls are now in accord with the process goals. This will also facilitate the creation of project files. Among other key components which I will include in his stage are quality planning, project planning, business case refining and risk management, project control setup, and project file setup and project initiation documentation as echoed by Ansoff (1995). Project Direction In this stage the project board will also be integrated to dictate the control of the overall project. Here also communication management of risk is a key component as this is where troubles for this organization have been arising from. Here both the threats and opportunities will e detailed to ascertain the smooth sailing of the project. The purpose for this adoption is basically to assess the limiting factors that may halt the whole process, nowadays even the opportunity side is assessed so that one can incorporate the opportunity into the process for more result in the future. After applying risk management into the project then I would try to identify the threat in the early part of the project. The focus here is mainly to deal with any forthcoming threats that may occur in the future; this usually is acquired through keeping keen interest on the subject. The two main source of risk identifiers are people and paper as the charge that can root out risk. For the project to fully materialize every member in the project has different capability and expertise while combating threats and conducting the project. From these aspects all threats must be neutralized before the authorization of the project, ad-hoc direction and project closure confirmation (Coutler, 2001). Controlling Stage This would be achieved through breaking down of stages to be able to root out any threat or risk that may arise in each process. These stages will enable me to follow through the whole process. The stage allows proper and easy documentation of the entire progress to the project board. Key activities involved in this stage include; assessing progress, work package authorization, risk management analysis, highlights reports and recipient of inclusive work package as noted by OGC (2005). Stage Boundary Management This will involve measures which should be enacted toward the end of every stage, and planning of the next stage and analysis of the risk to be met. This stage will include activities such as; stage planning, project plan update, business case updating and exception plan production and product delivery management. Product Delivery Management In this stage I have the mandate of controlling the link between the project manager and the team manager through outlaying requirements on executing, accepting and delivering the project work. According to OGC (2005) this also fosters in the highest order good communication from the entire taskforce. Other derivatives in this stage includes work package acceptance, work package execution and work package delivery. Project Closure In this stage all the process that should be covered at the end of the project are outlined. All the resource should be decommissioned, identification of the follow on action pinpointed and finally the formal evaluation on the project review. Alternative Action plan for the next 12 Month After strict adherence of the entire PRINCE2 model of implementing all projects in VPC, then I will strategically implement action plan which would facilitate future smooth running of this organizations. One of the major alternatives which should be evaluated in this organization seriously is risk communication management. This is because earlier the fallout in major projects delays and losses were derived from this angle (OGC, 2005). This we find was done by top management approving projects which seemed favorable to achieve high returns but in the real sense only brought loss. Risk communication: This I countered is because of lack of proper risk communication management and lack of communication in the whole process. Thus it is better to realize that risk communication usually minimizes this if the project manager practices it well. Risk communication is usually the most important keys aspects while carrying out the project and is considered the best approach of carrying out this task. Project risk should be the first priority in any team conference, this has proved to be very essential than addressing this as the last agenda. The project managers are allowed to give their team ample time for discussion and focus on new threats which should be aligned with the best approach as echoed by Melián and Pérez, 2002). Aligned Planning: from realization in business all work been done at any company should be profit making, hence to start with, it’s very mandatory that any kind of plan made will bring beneficial transformation to the company (Burke, 2008). Working smarter like on the subsidiary business development can make great things happen just while seated on your seat. Proper and strategic management of the company’s portfolio should also be given priority. This will facilitate inclusion of all the key players when the company portfolio is being generated and when approving projects. Strategic Sourcing this will be featured as VPC designs and manufactures a wide range of paper products. It’s upon the relevant departments to ensure the new products developed reach the right customers, the raw materials required to produce the product are easily accessible and strategic marketing is carried out for the company’s benefit this is mostly in the sense of countering the stiff competition from the new market entrant from China and India (DuBrin, 2009). Research: Constant stability in an organization is caused by constant management and sales. To ensure increased sales in a company marketing research should be carried out quite often so as to know the current customer needs, as their previous needs might have changed or they might require a more advanced product than what you had provided earlier as depicted by Tushman and O’Reilly (2002). Thus I would encourage that there be extensive market research to facilitate new demand and needs of the customers. Strategic Goal Setting: This will start from the top managerial executives as they are the drivers of the company would urge the executive and the entire taskforce to form a workable design and environment that will produce satisfying results especially when approving projects. The goals set should be achievable on time to ensure no workloads pile up as noted byGriffin and Moorhead (2009). This will have to be asymmetric with the organization goals and objectives and motivating the taskforce to work toward developing quality products and delivering them on time. Strategic Knowledge Management; this should be the foremost priority which I would instill on this organization to ensure that the edification programs for the project management managers are followed through. Regular programs would be advocated to ensure that the organization achieve high standard management (Day, 1990). Therefore this organization will have to utilize its resources on acquiring any kind of new technology through learning, and also ensure proper interactive measures with all the stakeholders in the industry to better its status. New ideas shall be immediately being absorbed and implemented appropriately. Importance of people management and team work There is greatness in teamwork which is fished in a pond which never lacks. When an organization structure features good teamwork the objectives and goals are easily achieved, the atmosphere is vibrant. The current atmosphere in VPC has division in ranks although in social corporate responsibility is essential for discipline purposes, however, when initiating a project all stakeholders are supposed to be included this usually facilitate mitigating any risk that may arise during the project. Teamwork usually opens room for communication and pinpointing all the threats and when this are adhered to gravitate the organization toward achieving their target goals and objectives (DuBrin, 2009). Chapman and Ward (2003) note that principle managers that are in the high seat have to form a very critical form of information communication while they are executing the project with the team players. The skills which are enforced by communication usually are centralized on the threats which have been discovered this is to not later come as a shock to the customer or the executives. Also allowed is the fact that the sponsor should always be the one that makes top risk decision, this is usually because some of the matters may be out of the jurisdiction of the project managers. However, majority of the project teams usually have hard time in completing the task, this usually do occur because of staff being overloaded with work that is urgent and having very little time. This usually creates a project dynamic that only centralizes on the negative risk matters only and the positive one is left out. One of the major teamwork joint enforcement which would also work for VCP so that they complete their project in time, I would advocate for outsourcing or a proper job design. This will help the task team to have flexible working hours and the working atmosphere encourage team work. This also helps the workload to be commensurate and equated to the permanent employee to reduce the fatigue and also to assist in diverse task and influence development of skills. Through designing of job the taskforce are motivated and the work load is simplified, thus the employees are able to concentrate on the essential priorities which constitute action oriented skills. Focusing on these actions helps the employees to minimize the workload and thus the great return from the workload objective is achieved and is regulated as exemplified by Gilbert and Larsen (1990). Goal setting are the best way for employees to meet their teamwork targets and the objectives of the organizations. Through these facets the task teams are able to negotiate their skills in the taskforce and recognize the job description and key objectives which are mandatory requirement of the organization. Here the team is able to evaluate the skills they posses and if possible additional training is thrown in to compliment the efficiency of the taskforce. Communication with the management is essential to know the future of the organization to be alert and know which direction to set the goals; this will ensure that all the employees have the basic requirement which constitute good performance even outside the occupational zone (Bass, 1990). These also create time for other personal activities and thus reduce the intense stress that is generated without having setting of goals. Sharing of job due to teamwork allows the taskforce to commensurate the responsibilities equally. According to Cowie (2003) notes further more organization outsourcing will also help ease the work load off the employees and help them to concentrate on responsibilities that will help generate more revenues to the organization and those that are urgently required. Usually the management can direct a creative and innovative schedule which will also supplement job sharing and this should be a regular duty as this is essential for changes in the working environment. Financial Accounting and Control Importance to Project Management Profitability Through this intervention I would ensure that like the PRINCE2 model so authorizes that I have to document and account for project financial proceeding in every stage of production process and distribution process. Through this I would instill internal accounting for daily planning, monitoring and control in the project progress. I would also advocate for internal managerial reporting through aiding of strategic planning as echoed by Byrne and Davis (2003). External reporting and accounting of all the transaction which are carried in any fiscal commerce concerning this organization, this includes factor like overall project cost. Through recording of all transaction in a general ledger book would provide referential record for future business case analysis. The financial account of the entire organization would also be documented and documented in easily accessible files for future clarification and audit. Transparency in this process would also be encouraged to minimize corruption or fiscal fleecing. Thorough this intervention the organization would be able to account and report fro future evaluation all fiscal transaction conducted (Ansoff, 1995). Conclusion Through integration of the PRINCE2 model as the new method which the project planning at VCP would be taking; this organization would be set to minimizing the threat of loss of revenues and revenues. This intervention when well implemented would facilitate best opportunity for the team work to work closely with each other through communication management instilled to facilitate major objective of the organization. This will gravitate toward betterment of the working sphere and References Ansoff, H. (1995). Corporate Strategy: an Analytic Approach to Business Policy for Growth and Expansion. New York: McGraw-Hill Bass, M., (1990). Handbook of leadership: Theory, research, and managerial applications. New York: Free Press. Burke, W. (2008). Organization change: Theory and Practice. Newbury Park: Sage Publications, Inc. Burnes, B. (1996). Managing Change: A Strategic Approach to Organizational Dynamics. London: Pitman Publishing Byrne, J. and Davis, E. (2003), Financial Structure. Cambridge: Cambridge University Press Chapman, C and Ward, S. (2003). Project Risk Management: Processes, Techniques and Insights. New York: Wiley & Sons, 2003. Coutler, R. (2001). Management: Motivating Employees. New York, Prentice Hall. Cowie, G. (2003). The importance of people skills for project managers. Industrial and Commercial Training. 35, 6. 256 – 258. Day, G. (1990). Market Driven Strategy, Processes for Creating Value. New York: The Free Press. DuBrin, A. (2009). Leadership Research Findings, Practices and Skills. New York, MIT Press. Gilbert, A., and Larsen, P. (1990). Crisis Management: An Assessment and Critique. The journal of conflict resolution. 12. 13-26. Griffin, R. and Moorhead, G. (2009). Organizational Behavior: Managing People and Organizations. Michigan, Cencage Press. Melián, L and Pérez, M. (2002). Risk Analysis: Foundations, Models and Methods. Boston: Kluwer Academic Publishers OGC (Office of Government Commerce). (2005). Managing Successful Projects with PRINCE2. TSO: The Stationery Office Journals. 45. 342-354. Tushman, M. and O’Reilly, C. (2002). Winning through Innovation: A Practical Guide to Leading Organizational Change and Renewal. Oxford: Harvard Business Press Read More