The Northampton Employability Award Workshop 4 1

The Northampton
Employability Award
Workshop 4
1
Aim of Session
• An introduction to Project Management
tools/techniques
• Find out about the Resources Capability Model
• Understand what customer and business
awareness is and how to make sure you have it
2
Project Management
Comments?
3
Project Planning Activity:
- Solution
4
What is a Project?
• A project is a one-off, non-repeated activity or set of tasks,
which achieves clearly stated objectives within a time limit.
• All projects are different HOWEVER all projects have a
customer(s) and/or sponsor(s) who expects the outcome of
the project to be delivered at a particular time.
• Most projects have other characteristics in common:
– They are goal-orientated; the whole activity is directed
at achieving the defined output or outcome;
– They have clear beginnings and ends;
– They have a set of constraints that limit and define the
process;
– Their output can be measured in terms of performance
against agreed indicators. (Maylor, H (1996) “Project Management”, Pitman Publishing)
5
What Do you Think?
Which of the following activities would you consider to be
projects? (ie one-off, non-repeated activity or set of tasks)
• Developing a new, documented administrative
procedure
• Establishing a jointly agree protocol to review the quality
of a service provided by a new supplier
• Maintaining client records for a home cleaning service
• Managing staff provision in an information centre
• Transferring tasks from main outmoded computer
installation to a new system
• Setting up a quality assurance system.
6
What can go wrong if projects are not
planned properly?
Suggestions?
Think about any assignments/presentations that you have
been involved in.
Could have answered:
• Missed deadlines/not keeping to schedule or not having a
schedule
• Project fails or project delivers but not in line with original
brief
• Project team unhappy/stressed
• Team roles not specified or delegated clearly contributing
to conflict within the team
• Outcome no longer required as environmental changes
• Team unsure of project objectives and/or deliverables
7
Life Cycle of a Project
Phase 1 – project definition – is completed by the
production of the agreed project brief.
Phase 2 – planning – is completed as a project plan,
although this remains flexible in many ways and is
revised during the progress of the project.
Phase 3 – implementation – leads to an achievement of
the project outcomes and to …
Phase 4 – closure – and …
Phase 5 – final evaluation (although evaluations should
be done at each phase).
NB The Classic Six-Stage Project Management Model is on NILE.
8
The Classic Six-Stage Project Management Model
The Project Definition
• All project management methodologies emphasise the
importance of the successful initiation of a project through
the use of a Project Definition which specifies:
– the overall purpose of the project and its key objectives
– the key deliverables of the project
– the things it will produce, and will
– timetable the work of the project broken down into a
series of tasks.
• The Project Definition thus provides a clear
statement of what the project entails and can be
used to make sure that everyone understands what it
will do.
10
Planning the Project
“Planning is an unnatural process; it is
much more fun to do something.
And the nicest thing about not planning
is that failure is a complete surprise
rather than being preceded by a period
of worry and depression.”
John Harvey-Jones
11
Stages of Planning for Projects
1. The activities that must be done
2. The order in which the activities must be done
3. The timing of each activity
4. The resources needed for each activity.
Need to start with a detailed list of all activities that must
take place in order for the objective to be achieved and
then sub-divide the major project deliverables into smaller,
more manageable components until what needs to be done
is defined in sufficient working detail.
12
Some Project Management Techniques
• Task (or Work) Breakdown Charts
• GANTT charts
• Logic Diagrams / Critical Path Analysis
• Use of mind maps – preferred in the main by
people who are visual learners rather than those
who tend to like to work with lists (Source: Buzan, T. (1982) Use
Your Head, London, Ariel Books )
• PRINCE2 methodology
• Microsoft Project
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Task (or Work) Breakdown Charts
• This technique is a very logical approach to identifying the
tasks involved in a project. Some people may find it suits
them better than using mind maps; other people may find
the techniques complement each other.
The Project
Element A
Element B
Element C
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An Example – Planning the Careers Fair
Careers Fair
Agree on date
with venue/team
marketing
exhibitors
Book venue
Agree & produce
marketing
materials
Compile database
Agree catering
& other
arrangements
Promote event to
students and
academics
Produce Fair
Guide
Email exhibitors
Process
exhibitors
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GANTT Chart
• named after its inventor, Henry Gantt.
• useful tool for planning and scheduling projects as sets out
what activities should be taking place and when.
• allows for the assessment of duration of a project,
resources needed and lays out the order in which tasks
need to be carried out.
• once project under way, useful for monitoring its progress
as can immediately see what should have been achieved at
any particular point in time and remedial action can then be
taken to bring the project back on course.
• Microsoft Project often used to produce GANTT Charts as
allows for “what if” scenarios to test a variety of situations.
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Exercise – the production of a directory
Key stage
Estimated time
in weeks
Dependency
A Secure funds
0
B Negotiate with other agencies
4
A
C Form advisory group
4
B
D Establish data collection plan
6
C
E Collect data
4
D
F Write directory text
4
E
G Identify printer
2
C
H Agree print contract
2
G
I Print directory
4
F
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C
K Organise distribution
4
J
L Distribute directory
2
H, I ,K
J Agree distribution plan
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A
B
C
D
E
F
G
H
I
J
K
L
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
To start you off…Gantt Chart
Secure funds
Negotiate with other agencies
Form advisory group
Establish data collection plan
Collect data
Write directory text
Identify printer
Agree print contract
Print directory
Agree distribution plan
Organise distribution
Distribute directory
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A
B
C
D
E
F
G
H
I
J
K
L
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Gantt Chart
Secure funds
Negotiate with other agencies
Form advisory group
Establish data collection plan
Collect data
Write directory text
Identify printer
Agree print contract
Print directory
Agree distribution plan
Organise distribution
Distribute directory
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Logic Diagram / Critical Path Analysis
• Helps to decide the order in which to do elements
of the project.
• Additionally, if the time that each activity takes is
known as are the activities that need to have
been completed before this activity can take
place, the shortest time in which a project can be
completed – the Critical Path – can be
determined. Any activities that are not on the
critical path are known to have some slack –
they can start and finish later than planned and
the project can still be finished on time.
20
To start you off…Logic Diagram
A
Secure funds
0
B
Negotiate with
other agencies
4
L
Distribute
Directory
2
21
Logic Diagram/CPA Solution
J
Agree distribution
plan
12
A
Secure
funds
0
B
Negotiate
with other
agencies
4
C
Form
advisory
group
4
D
Establish
data
collection
plan 6
K
Organise
distribution
4
E
Collect data
4
G
Identify printer
2
•
F
Write
directory
text 4
I
Print
directory
4
L
Distribute
directory
2
H
Agree print
contract
2
the critical path is A–B–C–D–E–F–I–L, and the earliest completion date for the
project is the sum of the estimated times for all the stages on the critical path –
28 weeks – from the point of securing the funding. All the key stages on the
critical path must be completed on time if the project is to be finished on
schedule.
22
An example of a mind map (similar to fishbone diagram)
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Microsoft Project
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PRINCE2 - PRojects IN Controlled Environments
• a process-based method for effective project management.
• is a de facto standard used extensively by the UK Government and is widely
recognised and used in the private sector, both in the UK and
internationally.
•
The key features of PRINCE2 are:
- Its focus on business justification
- A defined organisation structure for the project management team
- Its product-based planning approach
- Its emphasis on dividing the project into manageable and controllable
stages
- Its flexibility to be applied at a level appropriate to the project.
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Summarising: The 10 Rules All Project
Managers Should Follow (1)
1. Set a clear project goal
2. Define accurate quality specifications
3. Break the project into sub-goals
4. Designate a lead-person for each sub-goal
5. Prepare Logic Diagrams, GANTT charts or similar
6. Research and identify possible risks and their impact and
prepare contingency
7. Identify everyone you need to communicate with and keep
everyone connected with the project appropriately
informed (do not just rely on meetings)
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The 10 Rules All Project Managers Should
Follow (2)
8. Monitor closely the progress of the project (do not just rely on
meetings)
9. Hold formal project meetings (do not just rely on corridor chats)
10.Motivate, recognise and reward throughout – be a good Project
Manager
NB Important to understand the people you are working with
when working on a project. Some people concentrate on
the detail and some concentrate on the bigger picture – all
valuable attributes. Need to play to strengths.
Belbin, Honey & Mumford, VAK, Myers-Briggs, etc are all useful
tools
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Short Break
Organisational Boundaries
Near environment
(influence)
Your
organisation
Internal
environment
(control)
Far environment
(respond)
External
environment
In more detail...
• The internal environment comprises the staff,
resources and facilities within the organisation and is
the environment that managers can control the
most.
• The external environment can be broken down into
the near environment (customers, clients,
contractors, suppliers and competitors) over which
there is some influence and the far environment
which refers to factors that can neither be controlled
or influenced by an organisation and which can only
be responded to.
Examples of methods used to
analyse a sector
•
SWOT analysis - measures a business unit, a
proposition or idea
• PEST (extended to PESTLE) analysis - most
commonly measures a market
• Porter’s five forces analysis
SWOT analysis
• a simple but widely used tool that helps in understanding the
strengths, weaknesses, opportunities and threats involved in
a project or business activity.
• It starts by defining the objective of the project or business
activity and identifies the internal and external factors that
are important to achieving that objective: strengths and
weaknesses are usually internal to the organisation, while
opportunities and threats are usually external.
SWOT Analysis – some prompts
Strengths
• What does your organisation do better than
others?
• What are your unique selling points?
• What do you competitors and customers in
your market perceive as your strengths?
• What is your organisations competitive edge?
Opportunities
• What political, economic, social-cultural, or
technology (PEST) changes are taking place
that could be favourable to you?
• Where are there currently gaps in the market
or unfulfilled demand?
• What new innovation could your organisation
bring to the market?
Weakness
• What do other organisations do better than
you?
• What elements of your business add little or
no value?
• What do competitors and customers in your
market perceive as your weakness?
Threats
• What political, economic, social-cultural, or
technology (PEST) changes are taking place that
could be unfavourable to you?
• What restraints to you face?
• What is your competition doing that could
negatively impact you?
Complete a SWOT analysis for an
organisation you know ...
PESTEL Analysis
• P=political
• E= economic
• S=sociological
• T=technological
• E=environmental
• L=legal
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PESTEL Advantages...include
• it is a simple framework
• it facilitates an understanding of the wider business
environment
• it encourages the development of external and strategic
thinking
• it can enable an organisation to anticipate future business
threats and take action to avoid or minimise their impact
• it can enable an organisation to spot business opportunities
and exploit them fully.
PESTEL Disadvantages...include
• some users over simplify the amount of data used for decisions – it is easy to use
scant data
• to be effective this process needs to be undertaken on a regular basis
• the best reviews require different people being involved, each having a different
perspective.
• access to quality, external data sources can be time consuming and costly
• the pace of change makes it increasingly difficult to anticipate developments that
may affect an organisation in the future
• the risk of capturing too much data is that it may make it difficult to see the wood
for the trees and lead to ‘paralysis by analysis’
• the data used in the analysis may be based on assumptions that subsequently
prove to be unfounded (good and bad).
Complete a PESTEL analysis for an
organisation you know ...
Looking at the Near Environment ...
Consists of:
• The task environment – consists of the major
participants in the performance of the organisation's
task, such as suppliers, distributors and final buyers.
• The competitive environment – consists of
organisations which compete with the organisation
for customers and scarce resources of all types.
Source: Kotler, P (1980) Marketing Management: analysis planning and control, Englewood Cliffs, NJ, Prentice-Hall
What constitutes a near environment?
• Organisations can be thought of sharing a a near or microenvironment if they interact frequently , with which they
frequently interact. These organisations will include
customers, suppliers and competitors. Examples of the impact
of the near environment on an organisation include:
– competition for customers
– competition for (or collaboration with) suppliers
– competition for resources
– competition (or collaboration) to influence external
factors.
Influences on the near environment
Resource rivals
• internal
• political
• financial
Customer rivals
• specialist
• generalist
• alternative
Supplier rivals
• in same industry
• in other industries
Porter's ‘five forces of competition’
• Much strategy is concerned with establishing and maintaining
competitive advantage.
• Porter's ‘five forces of competition’ helps with the analysis of the near
environment.
• This model is widely used as a means of understanding the structure of an
industry or sector, and as a framework within which to identify possible
structural changes.
Source: Porter, M. E. (1980) Competitive Strategy: Techniques for Analysing Industries and Competitors, New York, Free Press
Porter’s Five Forces- an overview
New Entrants
Threat of
entrants
Suppliers
Bargaining power
COMPETITIVE
RIVALRY
Threat of
substitutes
Substitutes
Bargaining power
Buyers
The five forces are:
1. Supplier power. An assessment of how easy it is for suppliers to drive up prices. This
is driven by:
– the number of suppliers of each essential input
– the uniqueness of their product or service
– the relative size and strength of the supplier
– the cost of switching from one supplier to another.
2. Buyer power. An assessment of how easy it is for buyers to drive prices down. This is
driven by:
– the number of buyers in the market
– the importance of each individual buyer to the organisation
– the cost to the buyer of switching from one supplier to another.
– If a business has just a few powerful buyers, they are often able to dictate terms.
The five forces are (contd):
3. Competitive rivalry. The key driver is the number and capability of competitors
in the market. Many competitors, offering undifferentiated products and
services, will reduce market attractiveness.
4. Threat of substitution. Where close substitute products exist in a market, it
increases the likelihood of customers switching to alternatives in response to
price increases. This reduces both the power of suppliers and the
attractiveness of the market.
5. Threat of new entry. Profitable markets attract new entrants, which erodes
profitability. Unless incumbents have strong and durable barriers to entry, for
example, patents, economies of scale, capital requirements or government
policies, then profitability will decline to a competitive rate.
Porter's five forces diagram
Threats of substitution
e.g.
• Buyer switching cost
• Buyer propensity to
substitute
• Product differentiation
Buyer power e.g.
• Buyer information
• Buyer volume
• Buyer price sensitivity
• Buyer switching costs
• Bargaining leverage
Rivalry e.g.
• Number of competitors
• Size of competitors
• Industry growth rate
• Differentiation
• Exit barriers
Threat of new entry e.g.
• Switching costs
• Economies of scale
• Learning curve
• Capital requirements
• Patents
Supplier power e.g.
• Supplier concentration
• Importance of volume
to supplier
• Cost relative to selling
price
Activity
• Nando’s is in the process of considering
making a bid to open an franchise at The
University of Northampton.
• In a group, complete Porter’s Five Forces
and SWOT for Nando’s to help them
decide whether the option is feasible.
Rationale for the Resource-based
Approach to Strategy
• When the external environment is subject to rapid change,
internal resources and capabilities offer a more secure basis
for strategy than market focus
• Resources and capabilities are the primary source of
profitability.
Key Elements of Business Strategies
• Understanding Resources, Capabilities, and Competencies is
the key:
 Selecting a business strategy that exploits valuable
resources and distinctive competencies (ie. competitive
advantages)
 Ensuring that all resources and capabilities are fully
employed and exploited
 Building and regenerating valuable resources and
distinctive competencies - competitive advantages
Robert Grant:
Resources-Capabilities Model
Competitive
Advantage
Strategy
Key Success
Factors
Organisational
Capabilities
Resources
Tangible (physical, financial)
Intangible (technology, reputation, culture)
Human (skills & knowledge, communication & interaction, motivation)
Applied to self:
shortlisted
SUCCESS!
Competitive
Advantage
source, types of
employer & roles,
research, etc
Strategy
interview
CV body – quals,
work history, interests etc
restrictions
IT skills,
references,
family
background
location,
progression, what,
rewards, sector
Key Success
Factors
Letter of application
Organisational
Capabilities
CV profile
achievements
Resources
liquidity
Tangible (physical, financial)
Intangible (technology, reputation, culture)
Human (skills & knowledge, communication &
interaction, motivation)
qualifications, volunteering, work experience
interpersonal skills, perseverance, tenacity
Resource
Tangible Resources
Intangible
Resources
Human Resources
Characteristic
Indicator
Financial
Borrowing capacity
Internal funds generation
Debt/Equity ratio
Credit rating
Net cash flow
Physical
Plant and equipment:
Size, location, technology
flexibility.
Land and buildings
Raw materials
Market value of fixed
assets.
Scale of plants
Alternative uses for fixed
assets
Technology
Patent, copyrights, know
how,
R&D facilities
Technical and scientific
employees
No. of patents owned
Royalty income
R&D expenditure
R&D staff
Reputation
Brands. Customer loyalty,
company reputation
(with
suppliers, customers,
government)
Brand equity
Customer retention
Supplier loyalty
Training, experience,
adaptability,
commitment and loyalty
of employees
Employee qualifications,
Pay rates, turnover
Prerequisites for
success
What do
customers want?
How does the
organisation survive
competition?
Analysis of demand
• Who are our customers?
•What do they want?
Analysis of competition
• What drives competition?
• What are the main dimensions of
competition?
•How intense is the competition?
•How can we obtain a superior
competitive position?
KEY SUCCESS FACTORS
A Framework for Analysing Resources and Capabilities
4. Develop strategy implications:
(a) In relation to strengths-How can these be
exploited more effectively and fully?
(b) In relation to weaknesses
-Identify opportunities to outsourcing activities
that can be better performed by other
organizations.
-How can weaknesses be corrected through
acquiring and developing resources and
capabilities?
3. Appraise the firm’s resources and capabilities in
terms of:
(a) strategic importance
(b) relative strength
STRATEGY
POTENTIAL FOR
SUSTAINABLE
COMPETITIVE
ADVANTAGE
2.Explore the linkages between resources and
capabilities
CAPABILITIES
1. Identify the firm’s resources and capabilities
RESOURCES
Activity
• In a group, consider the various elements
that make up the Resources-Capabilities
model and apply it to Nando’s.
Defining Organisational Capabilities
Organisational Capabilities = firm’s capacity for undertaking a
particular activity. (Grant)
Distinctive Competence = things that an organization does
particularly well relative to competitors. (Selznick)
Core Competence = capabilities that are fundamental to a firm’s
strategy and performance. (Hamel and Prahalad)
Assignment 4 – Project Management &
Company Research
1. Complete the Project Management Homework
Activity
2. Complete the Company Research brief
This assignment must be emailed to
[email protected] by 19th March 2014
THIS ASSIGNMENT IS ASSESSED
Decide which careers workshop you
want to attend…
Workshop 5 – Final workshop of the
programme
• 5A - CVs and Cover Letters – Weds 12th March –
Park campus
OR
• 5B - Interviews and Assessment Centres – Weds
19th March – Avenue campus
Please sign up now
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Final Assignments
Need assistance?
Final Assignments –
• CV & covering letter/book a mock interview (after workshop
5B)
• Complete your ‘Meet the Real Me’ CV
• Complete your BCU skills audit
These assignments must be emailed to
[email protected] by Friday 28th March 2014
Email: [email protected]
Phone: 01604 893241
Blog: http://mypad.northampton.ac.uk/employabilityaward/