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Student Workbook

BSBPMG522 Undertake project work

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1st Edition 2015

Part of a suite of support materials for the

BSB Business Services Training Package

Copyright and Trade Mark Statement


2015 Innovation and Business Industry Skills Council Ltd
All rights reserved. Apart from any use permitted under the Copyright Act 1968, no part of this publication may be
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Innovation and Business Skills Australia, IBSA and the IBSA logo are trade marks of IBSA.

Disclaimer

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Care has been taken in the preparation of the material in this document, but, to the extent permitted by law, IBSA and
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(b)

if the breach relates to services: (i) re-supplying; or (ii) paying the cost of re-supplying, the services.

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(a)

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Published by: Innovation and Business Industry 1st edition published: April 2015
Skills Council Ltd
1st edition version: 1
Level 11
Release date: April 2015
176 Wellington Pde
East Melbourne, VIC 3002
Phone: +61 3 9815 7000
Fax: +61 3 9815 7001
Email: reception@ibsa.org.au

www.ibsa.org.au

ISBN: 978-1-925123-74-6
Stock code: BSBPMG5221W

Table of Contents
Getting Started ....................................................................................................................1
Features of the training program .................................................................................1
Structure of the training program ................................................................................1
Recommended reading ................................................................................................2
Section 1 Introduction to Project Management
1.1 About Project Management ......................................................................................7
About projects ...............................................................................................................7

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History of project management ................................................................................ 10


Section summary ....................................................................................................... 13
Further reading .......................................................................................................... 13
1.2 Elements of Project Management......................................................................... 14
What skills will you need? ......................................................................................... 14
Increased use of project management tools ........................................................... 15
Key terms and definitions ......................................................................................... 16
Project management principles ................................................................................ 17
Project management structures ............................................................................... 19

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Project management systems .................................................................................. 21


Legislative and regulatory requirements .................................................................. 24
Project roles ............................................................................................................... 29

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Project management descriptions and methodologies........................................... 30

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Developing your skills ................................................................................................ 34


Common project problems ........................................................................................ 36

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Section summary ....................................................................................................... 37


Further reading .......................................................................................................... 37

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Section checklist ........................................................................................................ 38

Section 2 Undertaking a Project


2.1 Project Management Cycle .................................................................................... 41
What skills will you need? ......................................................................................... 41
The project management life cycle ........................................................................... 42
Software and support ................................................................................................ 44
Section summary ....................................................................................................... 47
Further reading .......................................................................................................... 47
Section checklist ........................................................................................................ 47

2.2 Initiating a Project .................................................................................................. 48


What skills will you need? ......................................................................................... 49
Purpose and aims ...................................................................................................... 49
Project deliverables ................................................................................................... 50
Goals and objectives ................................................................................................. 51
Project parameters .................................................................................................... 53
Selecting the team ..................................................................................................... 55
Identifying the stakeholders...................................................................................... 56
Key documents and tools .......................................................................................... 58
Section summary ....................................................................................................... 59

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Further reading .......................................................................................................... 59


Section checklist ........................................................................................................ 59

2.3 Planning a Project .................................................................................................. 60


What skills will you need? ......................................................................................... 61
Planning the project................................................................................................... 61
Identify the tasks with a work breakdown structure................................................ 68
Building the team....................................................................................................... 70
Assigning tasks .......................................................................................................... 71
Scheduling the work .................................................................................................. 72

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Develop a budget ....................................................................................................... 76


Managing risk............................................................................................................. 77
Develop a communication plan ................................................................................ 80

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Consult with team members ..................................................................................... 82


Get training................................................................................................................. 83

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Obtain approval for project plan ............................................................................... 83

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Section summary ....................................................................................................... 84


Further reading .......................................................................................................... 84

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Section checklist ........................................................................................................ 84


2.4 Implementing a Project Plan ................................................................................. 85
What skills will you need? ......................................................................................... 86
Managing the project team ....................................................................................... 87
Stick to your plans ..................................................................................................... 88
Solving problems ....................................................................................................... 89
Monitoring team performance: Coach your team .................................................... 98
Section summary ..................................................................................................... 104
Further reading ........................................................................................................ 104
Section checklist ...................................................................................................... 104
2.5 Monitoring a Project ............................................................................................. 105

What skills will you need? ....................................................................................... 105


Monitor plans and strategies .................................................................................. 106
General characteristics of KPIs............................................................................... 108
Report on progress .................................................................................................. 111
Section summary ..................................................................................................... 112
Further reading ........................................................................................................ 112
Section checklist ...................................................................................................... 112
2.6 Closing a Project ................................................................................................... 113
What skills will you need? ....................................................................................... 114
Finalising a project planning in advance ............................................................ 114

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Finalise the project general overview.................................................................. 115


Review with the client/sponsor............................................................................... 117
Section summary ..................................................................................................... 119
Further reading ........................................................................................................ 120
Section checklist ...................................................................................................... 120

Glossary .......................................................................................................................... 121

Appendices ..................................................................................................................... 123


Appendix 1 Max Lionel Realty simulated business ............................................ 123
Appendix 2 Forms and templates ....................................................................... 126

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Appendix 3 Max Lionel Realty Privacy Policy ...................................................... 151


Appendix 4 Project initiation document .............................................................. 154

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Appendix 5 Communications management plan ............................................... 168

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Student Workbook

Getting Started

Getting Started
Features of the training program
The key features of this program are:
Student Workbook self-paced learning activities to help you develop an

understanding of key concepts and terms. The Student Workbook is broken down
into several sections.
Facilitator-led sessions challenging and interesting learning activities that can be

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completed in the classroom or by distance learning that will help you to consolidate
and apply what you have learned in the Student Workbook.
Assessment Tasks summative assessments where you can apply your new skills

and knowledge to solve authentic workplace tasks and problems.

Structure of the training program

This training program introduces you to international marketing. Specifically, you will
develop the skills and knowledge in the following topic areas:
Section 1 Introduction to project management:

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1.1 About project management

1.2 Elements of project management


Section 2 Undertaking a project:

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2.1 Project management cycle

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2.2 Initiating a project

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2.3 Planning a project

2.4 Implementing a project plan

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2.5 Monitoring a project


2.6 Closing a project.

Your facilitator may choose to combine or split sessions. For example, in some cases, this
training program may be delivered in two or three sessions, or in others, as many as
eight sessions.

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Getting Started

Student Workbook

Recommended reading
Some recommended reading for this unit includes:

Print
Great Britain Office of Government Commerce, 2009, Managing Successful

Projects with PRINCE2, Stationery Office Books, London.


Project Management Institute, 2013, A Guide to the Project Management Body of

Knowledge (PMBOK Guide), 5th edn, Project Management Institute, Newtown


Square, Pennsylvania.
Standards Australia, 2002, AS 4915-2002 Project management General

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conditions, SAI Global.


Standards Australia, 2003, AS ISO 10006-2003 Quality management systems

Guidelines for quality management in projects, SAI Global.

Standards Australia, 2009, AS/NZS ISO 31000:2009 Risk management

Principles and guidelines, SAI Global.

Online

Accounting Tools, 2014, Functional organizational structure, Accounting Tools,

viewed August 2014, <http://www.accountingtools.com/functional-org-structure>.


Bond, C., 2009, Realising project benefits: the Tasmanian Government approach,

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Tasmanian Government, viewed August 2014,


<http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0005/78314/
Realising_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>.
BusinessMate, 2010, What is a functional organizational structure?,

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BusinessMate.org, viewed August 2014,


<http://www.businessmate.org/Article.php?ArtikelId=184>.

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Egeland, B., 2009, Five key steps to closing down the project, Project

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management tips, viewed August 2014, <http://pmtips.net/key-steps-closingproject/>.


Haughey, D., 2010, Avoid failed projects, Project smart, viewed August 2014,

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<http://www.projectsmart.co.uk/avoid-failed-projects.php>.

Haughey, D., 2010, The project management body of knowledge (PMBOK), Project

smart, viewed August 2014, <http://www.projectsmart.co.uk/pmbok.php>.

Hutchings, R., 2014, RegPM (Registered Project Manager) Project Manager level

certification, Project Management, viewed August 2014,


<http://www.projectmanagement.net.au/index.php?id=7>.
Inter Agency Policy and Projects Unit, 2008, Project management fact sheet: why

project management?, Tasmanian Government, viewed August 2014,


<http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0004/78187/Why_
Project_Management_Fact_Sheet.pdf>.

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Student Workbook

Getting Started

Jordan, A., 2012, Your projects approved ... now what?, ProjectManagement.com,

viewed August 2014, <http://www.projectmanagement.com/articles/275421/


Your-Projects-Approved---Now-What->.
Microsoft, 2014, Project, Office, viewed August 2014,

<http://office.microsoft.com/en-au/project/>.
Office of Government Commerce, United Kingdom, 2011, PRINCE2 methodology,

PRINCE2.com, viewed August 2014, <http://www.prince2.com/prince2methodology>.


Project Management Institute, viewed August 2014, <http://www.pmi.org>.
Project Management Office, 2007, Project management templates and FNL

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examples, National Cancer Institute Frederick: Project management resources,


viewed August 2014, <http://ncifrederick.cancer.gov/Staff/ProjectManagement/
Templates.aspx>.

Shrewsbury, L., 2011, What is an agile project?, Project manager.com.au, viewed

August 2014, <http://projectmanager.com.au/agile-project/>.

Stanleigh, M., 2010, Combining the ISO 10006 and PMBOK to ensure successful

projects, Business Improvement Architects, viewed August 2014,


<http://www.bia.ca/articles/pj-combining-iso-10006-pmbok-to-ensure-successfulprojects.htm>.
Tasmanian Government, 2013, Risk management, Tasmanian Government,

viewed August 2014, <http://www.egovernment.tas.gov.au/assets_for_review/


supporting_resources/toolkit/risk_management>.

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TechMediaNetwork, 2014, Mac Project Management Software Review,

TopTenReviews, viewed August 2014, <http://mac-project-management-softwarereview.toptenreviews.com/>.

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Wallace, S., 2007, Project structure and organisation, The ePMbook, viewed

August 2014, <http://www.epmbook.com/structure.htm>.

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Walsh, A., 2011, 5 Whys, Chart it now, viewed August 2014,

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<http://www.chartitnow.com/5_Whys.html>.
Wideman, M., 2002, Wideman comparative glossary of project management terms

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v3.1, Maxs project management wisdom, viewed August 2014,


<http://www.maxwideman.com/pmglossary>.

Please note that any URLs contained in the recommended reading, learning content and
learning activities of this publication were checked for currency during the production
process. Note, however, IBSA cannot vouch for the ongoing currency of URLs.
Every endeavour has been made to provide a full reference for all web links. Where URLs
are not current we recommend using the reference information provided to search for the
source in your chosen search engine.

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Section 1 Introduction to Project


Management

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Student Workbook

1.1 About Project Management

1.1 About Project Management


About projects
What is a project?
A project is usually defined as a set of distinct processes and tasks and runs for a set
period of time, and delivers academic, business or technical objectives. According to the
Project Management Institute, a project is a temporary endeavour undertaken to create a
unique product, service, or result. 1 Therefore, a key feature of projects, as opposed to
operations, is that they have distinct beginnings and ends.

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Case study: Max Lionel Realty

Max Lionel Realty was founded in 2008 by property developer Max Lionel. Through its
client agents, the organisation manages property sales and rentals (both residential
and commercial) on behalf of a range of clients. The organisation also separately
engages in investment activities, such as property and land development. Max Lionel
Realty has been a member of the Real Estate Institute of Victoria (REIV) since 2008
and proudly follows the REIV Code of Conduct.
Max Lionel conducts day-to-day operations to achieve company strategic objectives.
These strategic objectives include:

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engaging with customers and clients

building goodwill and reputation for integrity

supporting innovative thinking, management and leadership skills

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creating a high-performing, highly profitable organisation.

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On occasion, Max Lionel will sponsor projects to further the strategic objectives listed
above. Successful past projects at Max Lionel include:

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rollout of new computers and outsourced IT services to all agents

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agent induction program design and pilot rollout


implementation of new accounting system, including training of relevant

employees.

1 Project Management Institute, 2013, A Guide to the Project Management Body of Knowledge (PMBOK
Guide), 5th edn, Project Management Institute, Newtown Square, Pennsylvania, p. 3.

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1.1 About Project Management

Student Workbook

Why do businesses run projects?


Some of the reasons a business might initiate a project include:
market demand for a quality product or service
technological advances
solving a business need
request from a customer
ensure new laws and regulations can be complied with
response to competition.

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Planning and keeping track of all the elements of a project has become a management
skill in its own right, with a defined set of parameters.

What is project management?

There are numerous definitions of project management. Definitions may differ depending
on whether the focus is on organisational change management as such or on the delivery
of products goals or outcomes. According to the Tasmanian State Government, project
management is a formalised and structured method of managing change in a rigorous
manner to meet these outcomes. 2 According to the Project management institute, project
management is the application of knowledge, skills, tools, and techniques to project
activities to meet the project requirements. 3

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Project management concentrates on using knowledge and skills to achieve specific


outcomes to be accomplished by a certain time, to a clear quality standard and within a
given level of resources or budget.

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Wherever you work, the chances are that you will need to understand the language and
concepts of project management and to apply the skills you will learn in this course of
study.

Customer expectations

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You might think that project management is only required to get a specified outcome, but
its more than that. Its about getting an outcome that meets the requirements of the
customer, whether that customer is internal or external, a client or senior management.

Scope, cost and time: The triple constraint of project management


Many workplaces, whether business, academic or manufacturing, use project
management as a way of getting set tasks completed on time, within budget and to an
agreed specification.

2 C. Bond, 2009, Realising project benefits: the Tasmanian Government approach, Tasmanian Government,
viewed August 2014, <http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0005/78314/
Realising_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>.
3 Project Management Institute, 2013, A Guide to the Project Management Body of Knowledge (PMBOK
Guide), 5th edn, Project Management Institute, Newtown Square, Pennsylvania, p. 3.

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1.1 About Project Management

Ensuring that quality, cost and time requirements are met is critical to project
management and critical to business.
Project management methodology provides the structure
to manage business needs and customer expectations
with regard to:
scope/quality/performance, for example, what is

done, delivered and to what specification


cost, for example, human or physical resources
time, the duration of the project.

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These three components of project management are


often referred to as the triple constraint of
project management. Changing one constraint setting necessarily affects one or two other
constraints. For example, increasing the amount or quality of deliverables will increase
cost, time or both.

Reasons for project failure

While using project management methodology greatly increases the chances of the
project succeeding, some projects do fail. Some of the reasons for project failure include:
changing scope (that is, whats in/whats not keeps changing as the project

evolves)
insufficient planning

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risks are not managed

poor communication

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issues are not managed

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lack of commitment and responsibility by stakeholders.

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By keeping an eye on the reasons for failure, we can reduce the likelihood of project
failure.

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Learning activity: Quality, time, cost


The three components of project management are:
scope/quality

cost

time.

Changing one component affects the other two.


Discuss how/why.

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1.1 About Project Management

Student Workbook

Research 3 constraints of project management on the internet.


What models exist?
Why, in some models is quality or performance considered separately to scope?

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Consider an example of a work project you were involved in or are aware of in which
one, two or all three constraints were altered during the course of the project. For
example, contractors took too long to finish a project-related task and both cost and
time increased.

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Discuss how changes in one constraint affected the other constraints.

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History of project management

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Although it is claimed that modern project management has only existed since the 1950s,
students of history might find this hard to believe. In the past, how did people:

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build the pyramids of Egypt?


build Chartres Cathedral?
undertake the campaigns of the Crusades?
build the Great Wall of China?
build the Suez Canal?
build transcontinental railroads?

They did it by following project management principles. As these examples show, the
basic principles of project management are easy to understand and have been around for
a long time.

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1.1 About Project Management

Fast forward to the modern era


At the beginning of the last century, project management took on a more scientific
approach. Modern project management principles are what they are today because of
this movement.
Project management has evolved from various industry fields, such as construction,
engineering and defence. Initially, the most notable contributors to project management
were Henry Gantt and Henri Fayol. They used planning and control techniques and are
famously known for the development and use of the Gantt chart as a project
management tool, as well as the five management functions (which currently forms the
basis for the body of knowledge associated with project and program management
today).

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Prior to the 1950s, projects were managed using mostly Gantt charts and various other
informal methods. During the First and Second World Wars, project management was
used for managing resources and undertaking campaigns.
Learning activity: History of project management
Do an internet search for the following terms:
history of project management
project management timeline.

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Visit and read through this site, which provides an interesting insight into the history of
project management:

Lessons from history, The history of project management, viewed August 2014,

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<http://www.lessons-from-history.com/history-project-management/historyproject-management-page>.

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In what way were the major projects built in ancient times similar to projects
undertaken today?

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1.1 About Project Management

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More recent times


Current project management methods have been used only as recent as the 1960s.
Project management is now extensively adopted by most organisations as it is a work
structure that provides effective use of time and resources, quality control and cost
management. Effective project management is vital for the successful undertaking of a
project. A successful project means that the specified results are delivered on time and
within budget.
Tip: Project skills are increasingly in demand

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Business projects can be quite diverse, for example, the development of a new product
or service; the establishment of a new production line in a manufacturing organisation,
a public relations campaign, or a major building (or re-building) program.
While the 1980s were about quality and the 1990s all about globalisation, the 2000s
are about velocity (including speed to market, rapid response to customer needs, etc.).

Learning activity: Project attitudes

Why is it important to manage the activities involved in achieving a specific outcome?


Complete the questionnaire below.
What are your current attitudes towards project management?

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Using the scale shown below, evaluate the following statements before proceeding any
further with this unit. On a scale of zero to five, zero stands for strongly disagree and
five stands for strongly agree.
1

Disagree

Somewhat
disagree

Somewhat
agree

Agree

Strongly
agree

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Strongly
disagree

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1. I can trust that other people will do their job without me following them up.
2. Projects always run late. Theres nothing you can do about it.

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3. The holiday/house/event wont cost any more than the amount Ive been
quoted.
4. Im only going on a holiday, nothing can possibly go wrong.
5. I believe the old Aussie saying, shell be right mate.
Total Score:
The range of scores achieved in the questionnaire can range from 0 to 25. If you are:
closer to 25 You may be too optimistic. You might need to change your attitude

in order to do well in this program


closer to 0 you are a natural project manager, you just need to do the course to

get the technical skills.

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1.1 About Project Management

Project managers have to be able to lead and motivate, but they also have to be able to
step away and analyse and plan for what can go wrong.
What you can you learn and put into practice about project management will not only
improve your score, but also how you can improve the likelihood of achieving your goals
on time and on budget, by following a project management methodology.

Section summary

Further reading

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You should know understand what project management entails, and have a background
on how it has been applied historically and in more recent times.

Bond, C., 2009, Realising project benefits: the Tasmanian Government approach,

Tasmanian Government, viewed August 2014,


<http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0005/78314/Reali
sing_Project_Benefits_Tasmanian_Government_Approach_Presentation.pdf>.
Project Management Institute, viewed August 2014, <http://www.pmi.org>.

Wideman, M., 2002, Wideman comparative glossary of project management terms

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v3.1, Maxs project management wisdom, viewed August 2014,


<http://www.maxwideman.com/pmglossary>.

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1.2 Elements of Project Management

Student Workbook

1.2 Elements of Project Management


Many organisations use a project management methodology to achieve their
organisational or corporate goals and objectives as well as for process improvement
initiatives.
This section will discuss project management methodologies, where they are used and
why they are used.
Case study: CRM system implementation at Max Lionel Realty

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To build client relationships and improve client service, Max Lionel Realty intends to
source and implement a new customer relationship management (CRM) system. The
purchase and initial rollout of the system, including relevant training will constitute a
project sponsored by Operations General Manager, Kim Sweeney. The project has a
fixed, six-month timeframe for completion.

Kim Sweeney, your manager, has asked you to project manage this important
implementation. You are excited about running this project but, focusing on your role as
an estate agent, you have not worked as a project manager for some years. You will
need to re-acquaint yourself with important methods and terms.

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The budget for the implementation will be in the range of $50,000, a significant capital
expense for Max Lionel Realty. But, according to cost-benefit analysis already
undertaken the project will deliver a sizable return on investment over the next three
years. For these reasons, the project must succeed (by meeting all stakeholder
expectations regarding scope, quality, cost and time) and has been given the highest
priority.

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What skills will you need?

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In order to effectively prepare for projects as a project manager, you must be able to:

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identify basic project management principles and methodologies


have an understanding of project management systems and structures
outline legislative and regulatory requirements.

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