Project management is complex and multifaceted. Key project phases are initiating, planning, executing, controlling and closing. Project managers (PMs) are responsible for the success of each aspect of the project and not necessarily the physical completion of the work. On large projects, budget is often included for PMs, coordinators, controllers, schedulers, etc., all with focused responsibilities throughout these phases. Unfortunately, on small and midsized projects, many client organizations expect a single project manager to handle all aspects of the project. A few dollars over budget or a few extra days on schedule represents a higher project percentage and can be more glaring on smaller projects. It's logical the same processes used on larger projects apply, just scaled down to the project need.
When client organizations aren't an obstacle, establishing project controls involvement can face internal resistance. A misperception is that project controls add to costs. Project controls, if done correctly, don't add costs to a job but reallocate how project management dollars are spent. Many PMs resist project controls because they view it as giving up control. In reality, project controls is a supportive role that frees PMs from reporting budget and schedule details so they can manage project work scope, client expectations and risks for multiple projects instead of just one. Project controls subject matter experts (SMEs) have training and in-depth knowledge of tools that many PMs just don't have.
The pitfall
While a one-person PM show might seem appealing on smaller projects, it has downsides like increasing overall risks by eliminating checks and balances. It also encourages skewed progress tracking that can result in cost and schedule overruns. For example, when many PMs realize a project is going off the rails, they are convinced they can shuffle things around and get the project back on track. As a result, they often fail to accurately track or report the issues. In other cases, a PM is pulled in so many directions that he/she never recognizes the project is in peril.
Common issues with PMs creating project schedules are a lack of logic ties, missing critical path activities and milestones, incorrect work calendar and out-of-sequence activities. All of these contribute to the inability to accurately monitor the progress of the project and detect issues early.
Similarly, we often see cost issues occur during project execution. For example, PMs report progress as the budget spent rather than physical progress. Due to this progressing method, cost forecasts change regularly, thus providing little confidence in the final outcome. Many times, change orders are not requested until the project is already in financial trouble and PMs are trying to recoup losses.
The solution
When project controls SMEs develop schedules, they clearly define tasks that are logic-driven and include proper task interdependencies, helping to identify critical paths. When SMEs provide ongoing schedule updates and progress tracking, the result is early detection of issues like out-ofsequence activities, critical path changes and off-plan progress. This also gives the PM a second set of eyes to review the execution plan and identify potential issues early thus allowing time to recover.
Project controls SMEs with formal training in earned value analysis, trend analysis and cost progress tracking help improve overall project financial performance and provide accurate forecasting based upon physical progress. Through analysis and interviews, project controls can often find possible areas in which change orders need to be developed. Involving project controls in cost management results in more realistic forecasts and cash flows, allowing management to make well-informed decisions.
Regardless of project size, establishing a strong project controls group with defined project responsibilities can benefit clients and PMs alike. The project controls group doesn't mean adding substantial cost but instead shifting PM budget and associated responsibilities to SMEs who can use their expertise to enhance project execution and free up PM time for higher priorities.
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