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Performance
Chapter 11
 Technical problems
 Technical difficulties
 Quality problems
 Client wants changes
 Inter-functional complications
Project Control  Technological breakthroughs
 Intra-team conflict
 Market changes

Copyright 2009 John Wiley & Sons, Inc.

Cost Time

 Difficulties may need more resources  Difficulties took long to solve

 Scope may increase  Initial estimates were optimistic
 Bid was be too low  Sequencing was incorrect
 Reporting was poor  Resources unavailable
 Budget was inadequate  Preceding tasks were incomplete
 Correction not in time  Change orders
 Input price changed  Governmental regulations were altered

Project Control The Fundamental Purposes of Control

 The process of keeping the project on target 1. The regulation of results

and as close to plan as feasibly possible.
 Of course, this means you must first have a
2. The stewardship of organizational
plan
assets
 It also means you must have a way of
detecting when a project is off the target

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Physical Asset Control Human Resource Control

 Control over the use of physical assets  Want to make sure people are used
 Includes preventive and corrective wisely
maintenance  Employees need to be motivated to
 Must also control inventory perform at their best
 Project manager may have to write
performance appraisals

Financial Resource Control Three Types of Control Processes

 Financial resource control is tied in with the 1. Cybernetic control

other types of control
 Project financial controls are very similar to 2. Go/no-go control
general financial control
3. Post control
 The project may be answerable to another
firm or division
 It is important the project manager manage
financial assets properly
 This is known as due diligence

Cybernetic Control Go/No-go Controls

 A system is constantly monitored  Testing to see if some preset condition has

been met
 When a deviation is spotted, corrective  Most of project management is go/no-go
action is taken controls
 Cybernetic controls are not common in  Use cannot be based on the calendar
projects – Some will take place at milestones
– Other will take place when work packages are
 Negative feedback loop completed
– Still other will be on-going

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Go/No-go Controls Continued Phase-Gated Processes

 Data to be collected will match the  Controls the project at various points
critical elements of the project plan throughout its life cycle
 Actual is compared to what was  Most commonly used for new
expected in the plan product/service development projects
 Regular reports are given to the project  Project must pass gate to continue
manager and senior management funding

Post Control Post Control Report Sections

 These are controls that are applied 1. The project objectives

after-the-fact 2. Milestones, checkpoints, and budgets
 Their purpose is mainly for improving
performance on future projects 3. The final report on project results
 Often times, a final report is prepared 4. Recommendations for performance
comparing the plan with reality and process improvement
 Sometimes called “lessons learned”

Characteristics of a Good Control

The Design of Control Systems System

 Who sets the standards?  Flexible  Accurate

 Are the standards realistic?  Cost effective  Simple
 Are the standards clear?  Useful  Easy to maintain
 Will they achieve the project goals?  Ethical  Can be changed
 What should be monitored?  Timely  Fully documented
 How should they be monitored?
 Many more…

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Critical Ratio Control Charts Benchmarking

1. Promoting the benefits of project

management
2. Personnel
3. Methodology
4. Results of project management

Table 11-1

Control as a Function of Management Human Response to Controls

 Control is usually exercised through people  Cybernetic controls

 Control is exercised when monitoring flags a  Go/no-go controls
problem
 Post controls
 The control may come from any level of
management
 The goal of the control is to get the project
back on track

Common Control System

Balance in a Control System Problems

 Investment in control is subject to 1. Placing too much weight on easy-to-

diminishing returns measure factors
 Too much control dampens innovation
2. Emphasizing the short-run at the expense
of the long-run
 A control system should correct errors 3. Ignoring changes to the environment or
 Corrections should be the smallest goals
needed 4. Over-control by top management
 It should minimize its impact on people 5. “If it is not measured, it is not important”

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Control of Creative Activities Control of Change and Scope Creep

 Creativity is hard to control  Controlling scope creep is the biggest

 Too much control will stifle creativity problem that many project managers
 Three general approaches face
1. Progress Review  Scope creep is not always bad

2. Personnel Reassignment  However, if they are not managed, they

3. Control of Input Resources cause havoc with project schedules
and budgets

Formal Change Control System Change Guidelines

 Review requests for changes 1. All contracts specify how change will
 Identify impacts
 Translate impacts to plan
be handled
 Evaluate cost and benefits 2. Any change requires a change order
 Identify alternative changes
3. Project manager must be consulted
 Accept or reject
 Communicate 4. Must be approved in writing
 Ensure implementation 5. Master plan should reflect changes
 Report