Stakeholder Analysis And Project Management For PAYE

The Computerization of PAYE

Discuss about the Stakeholder Analysis and Project Management for PAYE.

The responsibility of the project manager is to ensure that the resources, as well as the budgetary allocation, are managed in an efficient manner (Westland, 2017). He/she is supposed to ensure the timely completion of the project as well as ensure that the budget costs are well managed and kept to a minimal. Proper project management focuses on the usage of the proper and structured methodologies as well as the usage of the proper project management tools for the allotment of workers as well as the resources (Turner, 2008). There are numerous tools that may be used for project management and these provide a structured approach that is used for the successful completion of projects.

In realizing the goals of the project, it is important to observe the deliverables, risk levels and the milestones throughout the project life (Burgan & Burgan, 2012). These two mark the rate at which the project progresses and more to this, determine the rate of resource usage as well as the timeline factor. Different organizations and different projects have different objectives as well as deliverables that mark the rate of success of the project. However, the scope of the project refers to the work that is supposed to be done and this serves as a roadmap through which the project is tracked and monitored.

In our case study, the main focus is on the government project that called for the upgrade of the tax management system from the manual clerical system to the computerized one. An upgrade of the manual system may be justified by the efficiency that the computers would bring as well as a reduction in the cost. However, there are numerous risks associated with such a project. These risks determine the level of management as well as the extent of investment, as described by various project management models.

The following essay provides a clear and detailed analysis of the application of the diamond model on the computerization of PAYE. Some of the important aspects that faced the project will be looked at in detail providing a clear description of how the management can ensure that there is an effective methodology the that can be used in the delivery of project objectives and deliverables. Moreover, the stakeholder analysis, as well as the project management methodologies that were used in achieving the project goals as well as the deliverables, will be looked at in detail.

Methodology Application in the PAYE system

It is the role of the project manager to work with the project stakeholders to ensure that all the project requirements, needs, and allotments are properly attained (Rehacek, 2017). There are different strategies that are used in project stakeholder analysis. However, most of these methods focus on the power as well as the influence that a particular stakeholder has on the overall direction and progress of the project. Some of the most common methods include power versus influence grid, the need versus power grid among others (Hamid, 2012). They provide a blueprint for the project manager to analyze the stakeholders and as such, determine the best communication channels and the frequency of communication (Eskerod & Jepsen, 2013). One of the major stakeholders in the computerization of the PAYE system is the government. Governments determine the type of systems to be used as well as the specifications of equipment to be used. Furthermore, it is the responsibility of the government to ensure that there is effective management of the taxes and that the system employed has very little chance of providing erroneous results.

The second group of stakeholders is the taxpayer. System upgrade was focused on increasing the efficiency of the system. As such, this was directly linked to the taxpayers whereby the benefits of a computerized system will be highly felt. On the other hand, disadvantages of the system will be highly felt by the same. This means that the taxpayers have a big portion of the decision making aspects that regard the technicality of the system. System management will have to be conducted on a pre-determined basis as per the taxpayer’s complaints and requirements.

The manual workers and clerks form the other batch of stakeholders. An upgrade of the system will mean that some of the clerks will have to be laid off while the remaining clerks will have to be provided with the necessary knowledge of a computerized system. Therefore, the clerks will be involved in the decision-making process. Furthermore, it is the responsibility of the clerk to ensure that the system is up to date and has all the necessary specifications to meet the needs of the nation. Some of the decisions that are to be made by the clerks regard the type of management to be employed after the system is in operation, the amount of data that needs to be addressed by the system among others. According to the project management institute, a group like this has an influence on the direction of the project but the powers are very limited (Project management Institute, 2013). The project manager will, therefore, need to consult this group but not on a regular basis. Furthermore, he/she may need to observe the varied opinions presented by this group since they may influence the other stakeholders in the direction of the project (Aaltonen, 2011).

It is one of the models that is used to ensure that the project deliverables are achieved within the desired budget and timeline. Moreover, the model is very simple and can be easily applied to the management of projects such as the upgrade of the PAYE system. According to some authors, the model is a representation of a more detailed approach that takes the project manager beyond the normal risks associated with projects (Aaron & Vir, 2005).

Therefore, the model presents a more detailed platform from where the project manager can manage all the risks likely to affect the project and more to this, visualize the benefits (Spundak, 2014). Unlike the other constraints model that consider the cost, time and scope, the model focuses on four project dimensions. The four dimensions considered in the diamond model are novelty, complexity, technology, and pace (Dvir & Shenhar, 2007).

To begin with, novelty represents a platform from which the risks associated with the project goals as well as the market are viewed. Therefore, the model ensures that the project manager has a clear knowledge of the ability of the market to embrace the new product as well as identify the requirements that will influence more sales (Anderson & Svejvig, 2015). There are three platforms that are used under novelty to identify the product requirements as well as freeze the product availability. The three approaches are derivative, platform and breakthrough. All these describe the extent to which the product can be viewed as new to the market.

The derivative approach tries to identify the revisions made to the original product and some of these revisions are color, size, descriptions etc. However, it is a low-risk approach because the products pose few concerns to the market available. The main purpose of this approach is to ensure that there is continuous cash inflow as well as an extension of the life of the product (Nicholas, 2017).

Secondly, the platform approach is based on market analysis and approach in order to upgrade the existing products. It is therefore based on continuous research as well as the customer satisfaction levels (Ponnappa, 2014). As such, the new product has to meet the current demand as well as gain a competitive advantage in the market.

Finally, the breakthrough approach depends on trial and error in marketing the product. It is more challenging than the aforementioned since the product is new to the market. Research and market analysis do not suffice the knowledge required to develop the different prototypes and this is a challenge to the project manager.

The second method is the technology. It is used to identify the uncertainty that comes with the implementation of the technology in the market (Lenfle & Loch, 2010). As such, it describes the newness of the technology to the market. The product has different levels of newness both to the market and to the organization and this determines the levels of implementation (Freeman, 2010).

The levels of technology determine the risks, delays and the project uncertainties. There are four levels of technology that are viewed from this perspective; low tech, medium tech, high tech and super high tech (Ingason & Jonasson, 2009). The four different levels require different investments, have different risks and the gains are different.

Low tech technology has a lower risk level but the efficiency has to be maintained at an optimum to ensure that there are proper returns. It is the lowest technological level but an increase in the complexity increase the risk level as well as efficiency failure (Joslin & Muller, 2015). Super high tech technologies are more likely to be affected by delays, cost overruns as well as product failure. Therefore, the level of technology determines the extent to which the product should be frozen prior to market release. 

Represents the third method in the diamond model and assesses the complexity levels in an organization and how they are managed. In its simplest form, it measures the complexity that is associated with the organization, the products, and the tasks. The approach is used to identify the structure that should be employed in managing the organization as well as a best management approach to be employed. The three strategies used in complexity are Assembly, system, and array (Dvir & Shenhar, 2007).

Assembly is the lowest level and is associated with the product basics. This complexity level is concerned with the product materials, the different parts, and the assembly into the complete product (Jin & Moon, 2006). Therefore, the main aim is to build a straightforward product.

Secondly, there is the system complexity. It is a medium to high-risk approach that is focused on complicated processes of manufacturing. The organization may develop a platform of mutual understanding with the external organizations in the development of such products.

Finally, there is array which represents the highest level of complexity. In this, the project requires coordination between various organizations in the development of a product. The baseline for this platform is legal contracts as well as proper project management channels.

It is the platform that describes the urgency of the product. It is the urgency that dictates the level of product success as well as the strategies that are put in place. Regardless, the project manager has to determine the level of urgency prior to implementing a proper project plan considering that some projects may be more time-sensitive than others (Anderson & Svejvig, 2015). Determining the project pace helps the project manager to determine various aspects such as planning methodology, the review strategy as well as the management aspects. There are four levels of pace: regular, fast, time critical and blitz (Ingason & Jonasson, 2009).

Normal projects do not have tight schedules and this is more of a luxury (Saucer, et al., 2009). However, late delivery is likely to be associated with the loss of customers. On the other end, blitz projects are those with the highest levels of urgency. Therefore, the project manager will have to ensure that there is a measure to reduce the likelihood of failure.

Project managers need to have a clear understanding of the diamond model when introducing or upgrading a new product. The innovation levels that are applied determine the shape of the diamond which determines the level of product success. Furthermore, the model enables the project manager to approve and implement projects with low risk but with high opportunity levels (Saucer, et al., 2009).

Computerization of the PAYE system is a new technology that is likely to have high risks. Therefore, considering the technological perspective of the diamond model, the technology may be regarded as a super high tech. These technologies are affected by delays, cost overruns as well as the budget. As stated in the report, this upgrade was visualized as very high risk considering the difficulties that were associated with the computerization of other sectors such as driving licenses. Furthermore, there were fears that the staff was not well equipped and in a good position to work from a decentralized system. It is this orientation that determined the technical requirements of the project manager as well as the time required to freeze the design prior to implementation (Anderson & Svejvig, 2015).

Secondly, the complexity level of the project was on the array level. As described, this level requires coordination between various organizations and there are numerous tasks that should be managed. It is a high-risk venture that requires the coordination of various stakeholders. The project was initiated by the Department of Inland Revenue but there were a number of stakeholders that had an influence on the project progress. The government was the main stakeholder but there was coordination with other external organizations. The technical aspects of the technology were implemented by CSC staff, PACTEL was responsible for the planning and control aspects, ICL was responsible for the supply of VDUs and the mainframe, British Telekom was mandated with the provision of transmission line while the property and service agency responsible for building refurbishment. Coordination of these various project components poses a high level of risk and this was fundamental in developing the project structure as well as organizational management

Considering the novelty, the product is a breakthrough. Breakthrough products are yet to be tested in the market and therefore pose a significant challenge to the management. Computerisation of the PAYE system was a new invention that was yet to be tested. It was more focused on trial and error and therefore was a very risky venture. Furthermore, the implementation of such a product is slow because there is the introduction of new concepts to the customers. As a matter of fact, the PAYE system was to be designed and introduced to the market on a trial platform. Therefore, it provided a window which determined the time required to freeze the product before release.

Conclusion

The upgrade of the PAYE management system is a classic example of the use of the diamond model for the successful completion of a project. However, all this boils down to the project manager and the project stakeholders. The project manager and the project stakeholders work on a consultative platform to ensure that the project deliverables and milestones are achieved within the desired time as well as within the required budget.

However, the diamond model focuses on the project risks as well as the deliverables. In this, the main focus is on the project risks as well as the uncertainties that the new project holds. These components form the basis of the project and by breaking the various components and working from a risk mitigation strategy, the project deliverables can be easily achieved. The uncertainties that surrounded computerization of PAYE were centered on the level of newness to the market as well as the levels that the taxpayers will embrace the new system. Understanding these ensured that there was a proper framework for the project delivery.

References

Aaltonen, k., 2011. Project stakeholder analysis as an environmental interpretation process. International journal of project management.

Aaron, S. & Vir, D., 2005. reinventing Project Management –The Diamond Approach to Successful Growth and Innovation,. s.l.:s.n.

Anderson, P. & Svejvig, P., 2015. Rethinking project management: A structured literature review with a critical look at the brave new world. International Journal of Project Managemen.

Burgan, S. C. & Burgan, D. S., 2012. A case study on the adoption of project management in an organization. s.l., s.n.

Dvir, D. & Shenhar, A. J., 2007. Reinventing project management: the diamond approach to successful growth and innovation. s.l.:s.n.

Eskerod, P. & Jepsen, A. L., 2013. project stakeholder management. s.l.:s.n.

Freeman, R. E., 2010. Strategic management: A stakeholder approach. s.l.:s.n.

Hamid, A., 2012. Critical features of project stakeholder management: a systematic literature review. international journal of applied systematic studies.

Ingason, H. T. & Jonasson, H. I., 2009. Contemporary knowledge and skill requirements in project management. Project Management Journal.

Jin, B. & Moon, H. C., 2006. The diamond approach to the competitiveness of Korea’s apparel industry: Michael Porter and beyond. journal of-of Fashion Marketing and Management.

Joslin, R. & Muller, R., 2015. Relationships between a project management methodology and project success in different project governance contexts. International Journal of Project Management.

Lenfle, S. & Loch, C., 2010. Lost roots: how project management came to emphasize control over flexibility and novelty. California Management Review.

Nicholas, J. M., 2017. Project management for engineering, business, and technology. s.l.:s.n.

Ponnappa, G., 2014. Project stakeholder management. s.l.:s.n.

Project management Institute, 2013. A guide to the project management body of knowledge(PMBOK guide). s.l.:s.n.

Rehacek, P., 2017. application and usage of the standards for project management and their comparison. Journal of engineering and applied sciences, 12(4), pp. 994-1002.

Saucer, B. J., Reilly, R. R. & Shenhar, A. J., 2009. Why projects fail? How contingency theory can provide new insights–A comparative analysis of NASA’s Mars Climate Orbiter loss. journal of project management.

Spundak, M., 2014. Mixed agile/traditional project management methodology–reality or illusion?. Procedia-Social and Behavioral Sciences.

Turner, J. R., 2008. handbook of project-based management.

Westland, j., 2017. Project Management Methodology – An Overview. [Online] Available at: https://www.projectmanager.com/blog/project-management-methodology