2hrs. 27min.
A3.KCI-3. Determining the approach to the phasing
The most important reason for implementing phases in a project has to do with uncertainty. The further you have to estimate ahead, the more uncertain the accuracy of these estimates. Higher uncertainties may lead to shorter phases. Therefore, it is necessary to build in a number of decision points, at which time sufficient information is available to re-assess the project again.
There are various phasing models in existence, which are strongly associated with the type of work and the associated uncertainty. For an important part, the phasing approach also determines the way in which the management controls the project. The following phases are the bare minimum:
Initiating phase.
Planning phase.
Execution phase.
You can argue whether the first one is a real phase, as we are talking about the period directly prior to the actual commencement of the project. During the initiation phase, a global business case and schedule is produced, based on which the management of the organization makes a decision as to whether further investigation is justifiable. If this decision is positive, the project manager can start the planning process. Once this has been completed, and based on the documents he then delivers, a decision is made as to whether the project is worth the investment.
Creating phases contains a number of concepts, and the diagram shows the relationship between these concepts.
Comment: the PRINCE2 method calls what “initiating” is in Figure A4.1 “starting” and calls “planning “, “initiation”. This is slightly confusing, and therefore we keep to the ISO 21500 terminology.
A project is a set of connected activities, which as a minimum, ultimately delivers the end product. Depending on the agreements made, an extra activity that makes the end product operational may be included in the project. Sometimes this activity referred to as commissioning.
A phase is a part of the project with a clear decision point that is marked by making a choice whether or not to continue. Sometimes it is a choice of how to carry on, and it is essential that a decision at a higher level is made. The splitting into phases is intended to limit the risk of a project. Creating phases with clear points where management makes a decision, is a tool for being able to take necessary actions when required. Because of this, senior management is enabled to keep a certain level of control.
A milestone is an important observable event during a project and usually this is marked by the delivery of an important product. Often, the milestone is the point at which a proportion of the contract price is paid. The milestone plays an important part in establishing a positive image of the project for the team and the stakeholders, and as such it also has a psychological value.
In general, a critical decision point falls together with end of a phase. Only in the event of significantly sized amendments, will you get an ad-hoc decision point. It can also be necessary to assess the project again in the interim, to establish whether or not the investment is still worthwhile. This is then based on the current, updated business case, the updated project plan (past and future) and a summary of all risks.
Creating phases has not only advantages, but also disadvantages, and when choosing the phases, this should be taken account of.
Advantages:
Well organized chunks.
Schedule only what can reasonably be monitored.
Clear decision points.
Disadvantages:
Loss of the total picture.
Estimates of the later phases are not accurate.
Later decision points can be seen as “fakes”, as due to the high investment already made, you cannot really stop and go back anymore.
Application
You can convert the above into actions on the project/programme/portfolio for which you are currently responsible, by carrying out the following steps:
Study the relevant phasing models.
Choose the appropriate scheduling technique.
Determine the appropriate phasing.
Estimate the effects of uncertainty.
