Page 144 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Unit 8: Monitoring and Controlling

are in place. An IBC 2000 Project Control Best Practice Study carried out by IPA identified that Notes
good Project Control practices reduce execution schedule slip by 15%. Project Controls cost
range from 0.5% to 3% of total project, (including cost accounting), therefore, to break even,
Project Control needs to improve cost effectiveness by around 2%. A sample study carried out
by the IBC Cost Engineering Committee (CEC) in 1999, showed cost improvements for the
projects in the study, was more than 10%. It is noted also that NPV (Net Project Value) also
benefits from schedule improvements. Success factors are based on good Project Control practices,
which result in good cost and schedule outcomes.
Another useful section of Gary Heerkens’ brief case book “Project Management” covers Project
Control and what it really means to the project manager. The discussion centers around the
objectives of project control and what it is that the project manager is actually trying to control. I’m
not wholeheartedly endorsing this information – I never am when I provide a magazine or
book excerpt. However, I do find it interesting and worth further review and discussion.

8.8.2 What Project Control Really means?

The term control has several meanings. Those new to project management are initially dismayed
by the use of the term “control,” because they mistakenly equate it with the concept of authority.
In the world of project management, control has very little to do with telling people what to do,
dictating their actions or thoughts, or trying to force them to behave in a certain way— all of
which are common interpretations of control. In project management, the term “control” is
much more analogous to steering a ship. It’s about continually making course adjustments with
one main objective in mind—bringing the ship into safe harbor, as promised at the start of the
voyage. And the successful project voyage includes identifying a specific destination, carefully
charting a course to get there, evaluating your location throughout the voyage, and keeping a
watchful eye on what lies ahead.

8.8.3 Objective of Project Control

Fledgling project managers (and some experienced ones!) often make the same mistake when
trying to keep control of their projects. They get wrapped up in the here and now—the
measurement and evaluation of their immediate situation—to the exclusion of everything else.
They calculate their current position and how far off course they are. That’s what they report to
management and promise to fix. Their entire focus consists of staying on the line they’ve drawn
from the beginning to end of the project. Unfortunately, controlling the destiny of your project
is not that simple.
As we’ll see, evaluating where you are in terms of where you’re supposed to be is certainly part
of the overall control and “getting back on track” is almost always a sound strategy. But your
primary mission is to deliver what you’ve promised, so you should think of “maintaining
control” in terms of minimizing the distance between where you end up and where you said
you’d end up.

This means that overall project control requires an eye on the future, as this formula shows:
Calculated Present Variance + Estimated Future Variance = Final Project Variance
Maintaining proper control really requires that you consider three parameters: (a) where you
are, compared with where you’re supposed to be; (b) what lies ahead that can affect you; and
(c) where you’re going to end up, compared with where you said you would end up. Bear in
mind that (a) and (b) are used primarily as internal control functions (although you may choose
to report them outside the team). They’re used for evaluating (c). At the risk of being repetitive,
your primary focus should always be on evaluating where you think you’re going to end up.

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