Discuss About The Project Risk Management Model Based PRINCE2.
The organization B that is given as a case study is with a construction company. The construction company works with the European Government infrastructure projects. This construction business is a small sized company consisting about 300 members working with the project. The company is situated on the Paris. The main aim of this company is increasing the number of objects that are undertaken by the company in Europe (Pamfilie, Petcu and Draghici 2012). The director of the company is concerned with the fact that increasing the number of project may lead the company to face financial risks that is associated with the company. The financial risk of the company may increase due to increasing the number of project in the company. So, to avoid such riss, a appropriate project management methodology is to be chosen that addresses all the risks in a project, specifically the financial risks as well as completing the project successfully.
The reducing of financial risks is an activity of management level because the manager of the organization wants suggestion about which project management methodology is appropriate for the organization (Akpolat 2017). The project manager will also be involved in this decision of implementing a methodology of project management. The organization needs a project management methodology that addresses all the financial risks associated with the organization for completing the projects.
The methodology that is suggested for the construction company is the PRINCE 2 methodology of project management. The methodology of PRINCE 2 is considered to be one of the most comprehensive methodology of all the methodologies that are available for managing the risks. In PRINCE 2 Methodology, the project is mainly implemented in controlled way so that the risks are monitored (Saad et al. 2013). The PRINCE 2 methodology helps to mitigate the risks that are associated with the project of construction. A proper governing body is to be implemented for governing the financial risks that are associated with the company. to mitigate the financial risks in the construction company given, PRINCE 2 is the only methodology appropriate for this. The entire project is to be followed according to the rules of PRINCE 2 methodology as this is only one methodology that helps to mitigate the financial risks related to the company. The risks can be addressed with this PRINCE 2 methodology of project management for accessing the financial risks and the impact that PRINCE 2 methodology addresses in project management. The PRINCE 2 methodology is based on an approach of project management helps to tailor the implementation of the project (Snyder and Dionisio 2017). The method of PRINCE 2 is basically developed by government officials in U.K. and this project management methodology is used extensively all over the world along with U.K. This methodology holds an implementation plan that is to be addressed while dealing with this project management methodology. The implementation plan is states below:
The PRINCE 2 methodology consists of seven processes that are divided equally over the life cycle of the project (Parker et al. 2013). The seven processes that are involved with this project helps to monitor the project easily with mitigating the risks that are involved in this project.
The controlling phase of the project establishes proper project governance so that the risks in the project can be properly mitigated (Rose 2013). The PRINCE 2 methodology helps to mitigate the financial risks as well in the controlling phase of the project. The PRINCE 2 methodology also includes regular meetings that helps to discuss about the problems associated with the construction process involved with the organization.
There are some basic assumptions that are to be made while suggesting the PRINCE 2 methodology for the construction organization B. The employees have to know about the methodology well and there should be proper training given to the employees about the methodology (Remington and Pollack 2016). If the employees involved in the construction process have proper knowledge about the PRINCE 2 methodology, it is good for the construction company to proceed with the methodology in the organization. But without proper training, it is not suggested to use the PRINCE 2 methodology.
The infrastructure that the organization of the construction process addresses, PRINCE 2 methodology is the most appropriate project methodology that can be undertaken. The viability of each process is checked before moving on to the next process in a PRINCE 2 methodology. This helps to identify as well as mitigate the risks associated with a particular project.
But this project management methodology involves certain issues with the implementation of PRINCE 2 method in the company (Pyzdek and Keller 2015). The problems arise when the project phase is lengthy. With the PRINCE 2 methodology, the change management within the organization is difficult after starting the project. This PRINCE 2 methodology involves extra documentation, which is a time consuming process while dealing with a construction process.
For this construction company, the PRINCE 2 methodology is implemented as it has many advantages for risk management. PRINCE 2 is basically a plan oriented as well as a process based approach that helps in proper governance in a project. This methodology helps to develop a proper product, so this methodology is appropriate for using in this organization for completing the construction process successfully. The main motive of the organization is to address the financial risks associated with the company, PRINCE 2 is an appropriate method that can mitigate all such risks for completing the project successfully.
The organization C that is given as a case study is an industry of financial services. The Financial services of the company deals with finances if different companies. This organization is a well established company that was established 11 years ago. The business model of this organization is very much successful and is capable of handling all projects smoothly. The only concern of this financial industry is to improve all the processes that are involved in the company. The company wants to increase its delivering capabilities (Obrutsky 2015). This financial company provides service and advices in taxation, fund management, retirement planning and planning for the companies. The management of the organization always wants a team that is more energized, as well as have high motivation. The financial organization assumes that the business process of the company will have good results. The organization wants to implement a project management methodology that will help the company to improve their performance related to the financial service.
It is the decision of the management level of the company to improvise its financial services by implementing a project management methodology within the company. The main motive of this organization is to improve the services that is provided by them. This financial company is already a well-established company (Tomanek and Juricek 2015). Only the performance of the project is to be improved with this project. All departments that are involved with the organization who looks after different kinds of projects involved with the company are to be involved while deciding which project management methodology is appropriate for the company. As the company deals with different kinds of projects, all the areas of projects are to be taken into account while deciding the methodology of project management.
The main goals of this financial organization is only to improve the processes that are involved in the financial organization (Manville et al. 2012). To improvise the processes of the organization, the project management methodology that can be used in this organization is the Organizational Project Management methodology. The Organizational Project Management methodology is mainly a strategy of execution framework used for utilizing the project, portfolio management, program and the organizational practices that are involved in the organization to deliver the strategies of the organization in an improved way (Lianying, Jing and Xinxing 2012). This improvisation is done in consistent as well as predictable way, so that the organization give better performance with best results, as well as sustain in the competitive market. As the financial industry needs to improve only its processes, Organizational Project Management methodology helps to increase the knowledge related to the financial sector, improve the processes, tools as well as techniques of the project for creating a platform where the organization can fit itself in a flexible way to a unique circumstance and need. The management of the industry wants to improve the business process, and by involving all the members of the company, the OPM methodology is chosen as a best methodology of project management that helps to improve the working of the organization.
The implementation of the Organizational Project Management methodology includes three resources by which the financial organization will be able to improve its processes and services. The three resources that OPM integrates includes talent, process, as well as knowledge all over the organization for ensuring that all the functions as well as the stakeholders of the company are engaged in implementing the strategy of organization. Irrespective of the market discipline, all organization delivers its project by strategies, which represents the changes that were to be taken before in delivering the product or the service to their clients (Kerzner and Kerzner 2017). So, by implementing the project management methodology, the company needs to implement Organizational Project Management in the company for improving its services as well as products. Only change can increase the achievement of the organization and helps in growing the organization. The change management is only possible with implementing OPM methodology in the organization. Changes are delivered by projects. By integrating all the three resources in the organization, the stakeholders ensures that the OPM is implementing the right combination of functions in the right projects. Organizational Project management does not replaces the organization management system. It only improves them.
The Organizational Project Management methodology also involves some issues that can be considered as drawback of this methodology (Harrison and Lock 2017). As the managers of the organization wants to implement a methodology of project management, OPM is an appropriate method. But this methodology can be used in tactical projects only and in projects that includes organizational PMBOK in its project. Without organizational level, this methodology is not fruitful to be used.
The project management methodology of OPM involves many advantages for which it can be considered as the best practice for implementing it in the financial industry. This methodology helps to drive the business to improve its maturity including the projects, portfolios, as well as programs. This methodology also improves the market share of the company with improved flowing of cash. This methodology helps to improve the customer satisfaction and improve the market execution as well.
References
Akpolat, H., 2017. Six sigma in transactional and service environments. Routledge.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Lianying, Z., Jing, H. and Xinxing, Z., 2012. The project management maturity model and application based on PRINCE2. Procedia Engineering, 29, pp.3691-3697.
Manville, G., Greatbanks, R., Krishnasamy, R. and Parker, D.W., 2012. Critical success factors for Lean Six Sigma programmes: a view from middle management. International Journal of Quality & Reliability Management, 29(1), pp.7-20.
Obrutsky, S., 2015. Comparison and contrast of project management methodologies PMBOK and SCRUM.
Pamfilie, R., Petcu, A.J. and Draghici, M., 2012. The importance of leadership in driving a strategic Lean Six Sigma management. Procedia-Social and Behavioral Sciences, 58, pp.187-196.
Parker, D., Charlton, J., Ribeiro, A. and D. Pathak, R., 2013. Integration of project-based management and change management: Intervention methodology. International Journal of Productivity and Performance Management, 62(5), pp.534-544.
Pyzdek, T. and Keller, P.A., 2014. The six sigma handbook(Vol. 4). New York: McGraw-Hill Education.
Remington, K. and Pollack, J., 2016. Tools for complex projects. Routledge.
Rose, K.H., 2013. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition. Project management journal, 44(3).
Saad, S., Ibrahim, A., Asma, O., Khan, M.S. and Abdul, A., 2013. PRINCE2 Methodology: An Innovative Technique of Project Management growing progressively across the globe. URL: https://cgr. umt. edu. pk/icobm2013/papers/Papers/IC3-Jan-2013-049. pdf (18.09. 2015).
Snyder, C. and Dionisio, C.S., 2017. A project manager’s book of forms: A companion to the PMBOK guide. John Wiley & Sons.
Tomanek, M. and Juricek, J., 2015. Project risk management model based on PRINCE2 and SCRUM frameworks. arXiv preprint arXiv:1502.03595.
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