PROJECT MANAGEMENT The five phases provide structure from concept,

through execution, to delivery and closure. By following

Project management involves the processes of defining, these phases, PMs and other stakeholders can improve
executing, and overseeing specific tasks within a set the odds of bringing projects to their successful
timeframe, scope, and objectives. It typically involves a conclusion
team and a designated budget. Organizations undertake
projects as part of their strategic plans, aiming to 1. INITIATION
achieve various outcomes such as launching new
products, implementing systems, or constructing This is the first stage of the project. One of the key tasks
infrastructure. Projects carry financial risks due to the performed during this phase is defining the overall
investment involved, as well as potential opportunity project goal. Defining the goals(s) may seem simple and
costs if they fail to deliver expected results. Internal obvious, but it is not as easy as it sounds
auditors play a crucial role in ensuring effective project
planning, execution, and monitoring by establishing Leader
necessary documentation standards and providing
oversight. The PM should motivate, establish the direction
for the team, show initiative, and produce change. This
The PMI defines a project as a temporary endeavor individual must also be innovative, serve as a role
undertaken to create a unique product, service, or model for everyone, and influence others through
result. The two characteristics that define a project are words, actions, and directives while inspiring everyone
that they are unique and temporary, to put in their best performance.

UNIQUE Initiator

Projects are unique because they yield distinct The PM should realize that their role goes far
outcomes such as infrastructure, technology systems, beyond administrative duties, and relies heavily on the
or new products. While common activities like application of effective management and human
foundation preparation or system development phases resource skills. This indi- vidual must be a self-starter
exist, each project differs in stakeholders, resources, that turns ideas and plans into action.
deadlines, and constraints. Thus, despite similarities,
every project is distinct in its objectives and execution. Role model

TEMPORARY The PM must walk the talk. Not only that, but
also act appropriately even beyond the words spoken.
Project management is heavily influenced by the life With expressions such as “actions speak louder than
cycle of projects, which have a distinct start and end words” and “what you do speaks so loudly that I cannot
date for delivering agreed-upon outcomes. Unlike on- hear what you say,” it is evident that PMs set the tone
going business operations, projects are temporary and among team members.
require different skills and management practices. Each
project may have unique constraints, particularly Negotiator
related to time, with significant repercussions for
missed deadlines. Effective PMs must be able to navigate the
diverse agendas of the stakeholders and find agreement
PROJECT PHASES among them. This requires patience, effective
communication skills, but also the ability to discern
Project life cycles are generally described as following their needs, wants, and motivations
these five phases: initiation, planning, executing, and
closing. The fifth phase, monitoring and controlling, I Listener
prefer not to list as part of a sequence because it could
be misunderstood as implying that it only occurs at a Too many leaders believe that “might is right”
certain point during the progression. Monitoring and and that the effective leader is the one that can force
controlling applies to all phases. others to do as told. Being decisive and assertive are
important, but effective leaders understand others and
whenever possible get input from others before, during, needs and related costs, and the amount of time
and after mak- ing decisions. Before to determine the required to perform the necessary work.
best course of action.
The Critical Path Method and the Program
Coach Evaluation and Review Technique (PERT)

The administrative responsibilities of the PM While planning projects, the manager must
are many. From managing the budget, to authorizing identify the activities necessary to achieve the project
and managing the staff’s time off, meeting deadlines, goals, and the sequence of these activities as well
managing the scope, and similar matters, some because there are often dependencies between them,
managers have no time left for coaching others. so some activities cannot be performed unless
preceding ones have been completed.
Employer
 An optimistic estimate. Assuming that
Since this team will be tasked with turning the everything works according to the plan
project concept into reality, the composition is essential and gets completed without
for success since their skill, experience, and motivation unexpected circumstances.
will drive the work that needs to be performed.  A pessimistic estimate. This is based on
Sometimes team composition changes as the project the assumption that things go wrong
progresses due to employee rotations, business, and and the activity takes a long time to be
personal needs, so business requirements and the work completed.
done to date must be documented clearly for all to  A most likely scenario. Based on a
understand and use reasonable assumption that the activity
is performed according to normal
Working member circumstances and the completion time
lies between the optimistic and the
There is often enough work to go around when pessimistic estimates.
a project is underway, and it is important for the PM to
get involved and help out. By being part of the group 3. EXECUTING
and working alongside the staff, the PM will
demonstrate the concept of camaraderie and team This phase is when the actual doing takes place. The
spirit, but also that the success and failure of the major objective is to keep the project on track after it
endeavor depends on the results of the work done has been launched and do what the plan calls for.
collectively. Leaders work with the project team and need to make
sure they are meeting the quality requirements and
Facilitator deadlines within the timeline agreed upon, while
judiciously using the resources allocated to the project.
PMs are often required to speak publicly and
make presentations to various stake- holders. Whether The concept and plan are acted on and some of the
it is to communicate the project’s goals, describe the most important activities during this phase include
product features, or give others status updates, the PM
should be an effective communicator in the presence of Leading and managing the team Meeting with the team
small and larger groups. members. Communicating with stakeholders

2. PLANNING 4. CLOSING

The second phase of project management involves the It is common for a final report to be prepared that
actions necessary to think and organize the activities summarizes the project’s accomplishment, future
necessary to achieve the goals of the project. During actions required, if any, and on-going maintenance
this phase, a plan is created that defines more clearly arrangements. Accounting adjustments may be made
the precise tasks required to produce the project’s and unnecessary assets may need to be disposed of as
products and services, establishes estimates of resource well.
 5. MONITORING AND CONTROLLING Project Selection

Team leaders, and especially the PM, need to control Project selection in project management refers to the
what is being done, how it is done, and by whom. The process of an organization choosing one out of many
pace of project work, its costs, performance quality, and projects so that the project can reap the most benefits.
meeting the expectations of relevant stakeholders are Projects should be able to align with an organization's
also key concerns and key areas for project goals and ensure that the resources are not misused.
management oversight during the execution of the
project. Here are the steps in project selection:

So, internal auditors should try to get a seat at the table  Identify Potential Projects
earlier in the cycle, get information, and provide advice  Evaluate Projects
to management during the initiation and planning  Project Prioritization
phases when internal and external negotiations are  Choose Projects
taking place to make sure that, among other things:  Create a Business Case
 Obtain Approval
A project management methodology is in place
Feasibility studies are competent and comprehensive Importance of Project Selection
The right stakeholders are summoned to provide input
into the process The right stakeholders are approving 1. Higher success rate
decisions Projects are aligned with strategic and other 2. Better return on investment
priorities and there is a sound business case on file 3. Smoother and more efficient execution
Business requirements are identified and agreed upon A 4. Alignment with the company's goals
risk assessment is performed A comprehensive contract
or similar binding agreement is in place Project Metrics

Key to Success and Reason It Projects Fail Project metrics are data pulled from the performance of
the project. They are data sets, formulas and
A successful project management refers to the effective calculations that provide measurements to chart
and efficient handling of the project cycle, from its progress, success and much more. Project managers
initiation to completion, ensuring that the project use project metrics to compare their actual effort
achieves its goals within the constraints of time, budget, against their plan so they know if they’re on schedule
and resources. and keeping to their budget.

What makes a successful project? Project metrics are important for project management.
Without them, you’re driving blind, with no way to
 Delivers on time accurately measure if you’re keeping to your schedule
 Stays within budget and budget.
 Achieves its objectives
 Gets positive feedback 10 project management metrics. If you’re just beginning
to measure performance, get started with these 10
A project becomes a failure when it does not deliver project management metrics to help drive success:
what was required within the agreed-upon budget and
time. However, in most cases, the stakeholders decide if 1. Productivity = Units of Input/Units of
the project was a success or a failure based on their Output
judgment and satisfaction with the outcome. 2. Gross Profit Margin = (Total Profit-Total
Costs)/100
1. Lack of resource planning 3. Return on Investment = ROI = (Net
2. Unclear Goals and Objectives Benefits/Costs) x 100
3. Lack of project visibility 4. Earned Value = % of Completed Work /
4. Communication gaps Budget at Completion (BAC)
5. Scope creep 5. Customer Satisfaction = (Total Survey Point
6. Unrealistic expectations Score / Total Questions) x 100
 6. Employee Satisfaction Score = (Total Survey
Point Score / Total Questions) x 100
7. Actual Cost = Total Costs per Time Period x
Time Period
8. Cost Variance = Budgeted Cost of Work –
Actual Cost of Work
9. Schedule Variance (SV) = Budgeted Cost of
Work Performed – Budgeted Cost of Work
Scheduled
10. Cost Performance (CPI) = Earned Value /
Actual Costs

Project Software

Project management software is used to plan, organize,

and allocate resources for managing projects. It helps
teams collaborate and keep track of the project’s
progress while clearly defining tasks and
responsibilities. It lets project managers control costs
and time and allows smooth collaboration between
stakeholders. To deliver projects on time, teams must
keep everything organized particularly when there are
multiple ongoing projects.

Benefits of Using Project Management Software:

1. Improved planning and scheduling

2. Better collaboration
3. Remote working
4. Effective task delegation
5. Easier file access and sharing
6. Easier integration of new members
7. Effective risk mitigation
8. Budget management
9. Enhanced Productivity