TABLE OF CONTENT ON PRINCIPLES OF PROJECT MANAGEMENT

(Course code: AMS 104)

Course Lecturer: Francis Sylvanus UDOH, Ph.D.

Content 1: Concept of Project

i) Common project Terms
ii) Meaning of Project Management
iii) Purpose of Project Management
iv) Types of Project
v) Project Objectives

Content 2: Project Management

i) Key components of project management
ii) Advantages of Project Management
iii) Disadvantages of Project Management

Content 3: Team-Based Structures

i) Pure Project Teams
ii) Task Force Teams
iii) Group Dynamics and Team Building
iv) Group Cohesiveness and Support
v) Communication within Project Team
vi) Building Good Interpersonal Relations within the Team

Content 4: Planning for Sustainable Business Success

i) Planning in Occupation
ii)
Unit 1
Definition of Project
Project has been defined in various ways. Some authorities see projects as mere activities
while others see them as programmes of action. A project is an activity that is temporary;
having a start and end date; is unique and brings about change which has unknown elements
and therefore creates risks. Generally, projects are formed to solve a problem or take
advantage of an opportunity. However, business activities are often mistaken for projects but
the fact remains that it is the uniqueness of activities that is the deciding factor – do we do

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this every year? If so, then it is not truly a project – although you can use project methods to
get it done. For instance, while building a house is a project, mowing the lawn is not.
Project Management Institute (PMI) defines a project as ―a temporary endeavor undertaken
to produce a unique product, service, or result‖ (PMBOK® Guide, Project Management
Institute, 2008, p. 5). This means that a project is done only one time. If it is repetitive, it‘s
not a project. A project should have definite starting and ending points (time), a budget (cost),
a clearly defined scope—or magnitude— of work to be done, and specific performance
requirements that must be met. The word ―should is important because seldom does a
project conform to the desired definition.
Juran (2006) defines a project as a problem scheduled for solution. This definition is
premised on the fact that every project is conducted to solve some kind of problem for a
company, the individual or society. However, it must be cautioned that the word ―problem‖
typically has a negative meaning, and projects deal with both positive and negative kinds of
problems. For example, developing a new product is a problem, but a positive one, while an
environmental clean-up project deals with a negative kind of problem. From this simple
definition and/or expression, we can see that a project, apart from being important, should be
carefully planned so as to produce something unique and valuable.
Some of the things that a project seeks to produce may be tangible or intangible. A
motorcycle is a tangible product but conducting a census is not a tangible product.
The following are examples of projects:
a. construction of a 300-bed hospital at Ikeja by the Lagos State government.
b. dualization of the Enugu - Port Harcourt highway by the Federal Ministry of Works.
c. electrification of Ogoja communities by the local government council.
From whatever angle we see these projects, some of their features are that they will require
the commitment and deployment of scarce resources; are not often done. Also, the products
will not manage themselves. They will be managed.

Common Project Terms

a. Deliverables: Tangible things ‘that the project produces
b. Milestones: Dates by which major activities are performed.
c. Tasks: Also called Actions. Activities undertaken during the project
d. Risks: Potential problems that may arise
e. Issues: Risks that have happened

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f. Gantt Chart: A specific type of chart showing time and tasks. Usually created by a Project
Management program like MS Project.
g. Stakeholder: Any person or group of people who may be affected by your project
Meaning of Project Management
Project management is application of knowledge, skills, tools, and techniques to project
activities to achieve project requirements. Project management is accomplished through the
application and integration of the project management processes of initiating, planning,
executing, monitoring and controlling, and closing.
The first rule of project management is that the people who must do the work should help
plan it. The role of the project manager is that of an enabler. His/Her job is to help the team
get the work completed, to ―run interference‖ for the team, to get scarce resources that team
members need, and to buffer them from outside forces that would disrupt the work. She is not
a project czar. She should be—above everything—a leader, in the true sense of the word.
Project management from the foregoing, therefore, has two major aspects:
i. the art—leading the people on the project
ii. the science—defining and coordinating the work to be done
The art of project management relates to the fact that projects are really about people getting
things done. Project management requires a keen knowledge of human behavior and the
ability to skillfully apply appropriate interpersonal skills.
The science involves the knowledge, understanding, and skillful application of a prescribed
project management process. This process is intended to guide project managers and project
teams in effectively performing key process steps, such as identifying the true need, defining
the project objective, creating an execution schedule, and maintaining control throughout the
entire project. The basic premise of the process is the development of a set of graphic tools,
documents, and techniques, all aimed at facilitating project success. Among the graphic tools
and documents are the Requirements Document, the Work Breakdown Structure, and the
Network Diagram whereas the many techniques cover calculating Net Present Value,
preparing a comprehensive proposal, and conducting a Make vs. Buy Analysis.
Purpose of Project Management
From the onset, it will be necessary to stress that many projects are very complex in nature.
The complexities may be introduced by the nature of technology required to execute the
project. For example, a census project is one of the most difficult and complex projects that
public sector managers may face. Also, managing the 2015 general elections in Nigeria was
another complex project.

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Most projects such as we have mentioned may require elements of critical risks and
uncertainty. For example, how do we predict what will happen next year? Even if we could
predict the political future with a measure of certainty, predicting the movement of prices and
costs of materials in Nigeria involves a lot of risks and uncertainty.
In all cases therefore, we would say that the purpose of project management is to foresee the
future and associated problems and therefore, plan, organise and control key activities so that
projects are completed successfully and on time too. If we see project management from that
perspective, it follows logically that project management starts even before financial
resources are committed and lasts until the completion of the project.
Types of Projects
Some of the types include:
Tangible Projects
Tangible projects are those projects whose output, we can see, feel, touch and so on. They
may include the following:
• a civil engineering project
a hospital building project
• a water borehole project
• an aircraft manufacturing plant
• a milk manufacturing plant
• an urban playground.
Intangible Projects
Intangible projects are those that require commitment of resources but whose output cannot
be seen with the naked eye. In most cases, they are social projects and, in some cases, they
may be political projects. Examples of intangible projects in Nigeria include the elections and
the national census.
Projects Objectives
Projects must have objectives. It is one of the important tasks of project managers to see that
the projects they manage meet their objectives. Let us now discuss the objectives of projects.
Completion Time
Most projects, when formulated, have completion times. A normal football match lasts for
about 90 minutes. It is the duty of the referee to ensure that the football match is completed
within the set time. Most public sector projects even at the time they are awarded or initiated
always have a time frame attached to them. For example, the rehabilitation of the Lagos-
Benin expressway may be projected to be completed in 24 months. That is the projected

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duration of the project. Any contractor who is given the contract for such a job should ensure
that the road is completed on time. Another point to note about completion time of projects is
that late completion or delivery of an agreed project will not please the sponsor of a project.
Consider, for example, that the Federal Ministry of Works awards a contract for the
dualisation of the Owerri-Onitsha Road to Julius Berger and the road is to be completed in 24
months under the terms of the underlying contract. If Julius Berger, the contractor, fails to
complete the road project in 24 months, the Ministry of Works will not be pleased with it.
Besides, time is money and if a contractor fails to operate within a time frame, inflation may
set in and delay the project completion or increase the cost.
Performance
All projects have objectives which they set out to achieve. For example, a public hospital
project should have the objective of providing safe and affordable healthcare to the
community.
Also, a private sector fast food project has the objective of manufacturing hamburgers, fish
cake, hot dogs, etc. for its customers. This is a performance objective.
Also, apart from the performance objective, most projects have a quality objective. For
example, a hospital should have the objective of providing healthcare. This is a performance
objective. But the provision of the service should be safe. For example, hospital workers
(nurses, doctors, etc.) while treating patients must take adequate care so as not to infect the
patients with the HIV through use of unsterilized needle.
Most organisations have quality as one of their major objectives. See, for example, what
Daimler Benz has done with Mercedes Benz cars. Sony products are reputed for their
amazing quality.
Finally, another aspect of performance is reliability. A good product should also be reliable
especially in the case of medical testing devices like PH meters.
In patient care, an unreliable thermometer may raise a false alarm concerning the health of a
patient and lead to wrong diagnosis.
Budget
All projects involve financial outlays. The financial outlays (expenditures) attached to a
project are usually controlled by the budget. The budget sets a limit as to the quantity of
funds a project can consume. In most organisations, the budget for every project is usually set
aside. The reason why a project should be monitored is that failure to do so in some cases
may lead to exhaustion of funds and abandonment of the project in question.

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We have seen that projects may have three main objectives, namely: time, performance and
budget objectives. A major task facing project managers is how to balance these three
objectives. What it means is that at all times the focus of managers must be on the three
items. To retain our understanding of project objectives, we will go a step further to look at a
simple triangle of objectives. Quality, Cost, Time and People

Unit 2
Project Management

Project management is the practice of planning, organizing, directing, and controlling

resources to achieve specific goals within a specified timeframe. It involves coordinating
various aspects of a project, including time, cost, scope, quality, risk, and resources, to ensure
successful completion.

Key components of project management include:

Project Planning: This involves defining the project scope, objectives, deliverables, and
timeline. Planning also involves identifying tasks, estimating resources, and creating a
schedule.
Resource Management: Project managers allocate resources such as people, materials, and
equipment to tasks according to the project plan. They also manage the availability and
utilization of resources throughout the project lifecycle.
Risk Management: Identifying potential risks to the project, assessing their impact and
likelihood, and developing strategies to mitigate or respond to them is essential. Risk
management aims to minimize the impact of uncertainties on project outcomes.
Communication Management: Effective communication is crucial for project success. Project
managers facilitate communication among team members, stakeholders, and other relevant
parties to ensure everyone is informed and aligned with project goals.
Quality Management: Ensuring that project deliverables meet the required standards and
stakeholders' expectations is vital. Quality management involves establishing quality
objectives, implementing quality assurance processes, and conducting quality control
activities.
Monitoring and Control: Project managers continuously monitor project progress, compare it
to the plan, and take corrective actions as needed to keep the project on track. This involves
tracking key performance indicators, managing changes, and addressing issues that may arise.

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Stakeholder Management: Engaging and managing stakeholders throughout the project
lifecycle is essential for achieving their support and buy-in. Project managers identify
stakeholders, understand their needs and expectations, and involve them in decision-making
processes.
Documentation and Reporting: Keeping accurate records of project activities, decisions, and
outcomes is essential for accountability and future reference. Project managers often prepare
regular reports to update stakeholders on project status, progress, and performance.
Project management methodologies, such as Agile, Waterfall, and Lean, provide frameworks
and best practices for managing projects effectively. The choice of methodology depends on
factors such as project complexity, requirements, and organizational culture. Ultimately,
successful project management requires a combination of technical skills, leadership abilities,
and effective communication to deliver projects on time, within budget, and to the required
quality standards.

Goal Achievement: Project management ensures that projects are completed within defined
goals, including scope, time, and budget constraints. It helps in aligning project activities
with organizational objectives.
Resource Optimization: Efficient project management enables the optimal utilization of
resources, including human resources, finances, and materials. It ensures that resources are
allocated effectively to maximize productivity and minimize waste.
Risk Management: Project management involves identifying, assessing, and mitigating risks
throughout the project lifecycle. It helps in minimizing the impact of unforeseen events on
project outcomes and enhances the project's resilience.
Stakeholder Engagement: Effective project management involves engaging stakeholders
throughout the project lifecycle, ensuring their involvement, support, and satisfaction. It
fosters collaboration, communication, and trust among stakeholders, leading to successful
project outcomes.
Quality Assurance: Project management includes processes for monitoring and controlling
project deliverables to ensure quality standards are met. It involves implementing quality
assurance measures and conducting quality checks to deliver high-quality project outcomes.
Time Management: Project management emphasizes the importance of scheduling and time
management to ensure timely project delivery. It involves setting realistic timelines,
monitoring progress, and taking corrective actions to avoid delays and meet deadlines.

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Cost Control: Project management involves budgeting, cost estimation, and cost control
measures to ensure projects are completed within the allocated budget. It helps in managing
project finances effectively and optimizing costs throughout the project lifecycle.
Communication: Effective communication is essential for project success, and project
management facilitates communication among project team members, stakeholders, and other
relevant parties. It ensures that information is shared promptly, accurately, and appropriately
to support decision-making and problem-solving.
Continuous Improvement: Project management encourages a culture of continuous
improvement by conducting post-project evaluations, capturing lessons learned, and
implementing best practices for future projects. It helps in enhancing organizational
capabilities and achieving greater efficiency and effectiveness in project execution.
Customer Satisfaction: Ultimately, successful project management leads to satisfied
customers by delivering projects that meet or exceed their expectations. It focuses on
understanding customer requirements, managing expectations, and delivering value-added
solutions to enhance customer satisfaction and loyalty.
ADVANTAGES OF PROJECT MANAGEMENT
Project management offers several advantages that contribute to the successful completion of
projects. Here are some key advantages:

Organized Approach: Project management provides a structured and organized approach to

managing tasks, resources, timelines, and budgets. It ensures that everyone involved in the
project understands their roles and responsibilities, leading to better coordination and
efficiency.
Clear Communication: Effective communication is crucial in project management. It ensures
that all stakeholders are informed about project progress, changes, and issues. Clear
communication helps in managing expectations and resolving conflicts efficiently.
Risk Management: Project management involves identifying potential risks and developing
strategies to mitigate them. By addressing risks proactively, project managers can minimize
the impact of unforeseen events on project timelines and budgets.
Optimized Resource Allocation: Project management helps in optimizing resource allocation
by identifying resource requirements, allocating resources effectively, and avoiding resource
conflicts. This ensures that resources are utilized efficiently, leading to cost savings and
improved productivity.

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Defined Scope and Objectives: Project management involves defining clear project scope and
objectives at the outset. This helps in setting realistic goals, managing stakeholder
expectations, and measuring project success against predefined criteria.
Improved Time Management: Project management emphasizes the importance of setting
deadlines and milestones to track progress and ensure timely completion of tasks. It helps in
identifying critical path activities and allocating resources accordingly to avoid delays.
Quality Assurance: Project management ensures that quality standards are defined and
adhered to throughout the project lifecycle. It involves quality control measures to identify
defects early and implement corrective actions to maintain product or service quality.
Increased Stakeholder Satisfaction: Effective project management leads to increased
stakeholder satisfaction by delivering projects on time, within budget, and meeting quality
standards. It fosters positive relationships with stakeholders and enhances the reputation of
the project team.
Continuous Improvement: Project management involves monitoring and evaluating project
performance to identify areas for improvement. Lessons learned from past projects are
documented and used to refine processes, methodologies, and best practices for future
projects.
Adaptability and Flexibility: Project management frameworks like Agile allow teams to adapt
to changing requirements and customer feedback throughout the project lifecycle. This
flexibility enables teams to respond quickly to market dynamics and deliver value
incrementally.
Overall, project management facilitates efficient project execution by providing a systematic
approach to planning, executing, monitoring, and controlling project activities. It helps
organizations achieve their strategic objectives and drive business success.
DISADVANTAGES OF PROJECT MANAGEMENT
Project management, while widely recognized as crucial for successful completion of
projects, also comes with its own set of challenges and disadvantages. Some of these include:

Complexity: Managing projects involves dealing with various stakeholders, resources,

timelines, and tasks, leading to inherent complexity. Keeping track of all these elements can
be overwhelming, especially for large-scale projects.
Uncertainty: Projects often face uncertainty in terms of scope, requirements, resources, and
external factors. Uncertainty can lead to project delays, cost overruns, and even failure if not
managed effectively.

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Risk Management: Identifying, assessing, and mitigating risks is a critical aspect of project
management. However, it requires time, effort, and expertise. Failure to effectively manage
risks can result in project setbacks or failure.
Resource Constraints: Projects typically have limitations in terms of budget, time, and
available resources. Balancing these constraints while meeting project objectives can be
challenging and may require trade-offs.
Communication Challenges: Effective communication is essential for successful project
management, but it can be challenging, especially in large teams or when dealing with
diverse stakeholders. Miscommunication or lack of communication can lead to
misunderstandings, delays, and conflicts.
Scope Creep: Scope creep refers to the tendency for project scope to expand beyond its
original boundaries. It can result from unclear requirements, changing stakeholder
expectations, or inadequate change management processes, leading to delays and increased
costs.
Conflict Management: Projects often involve multiple stakeholders with different interests
and priorities. Conflicts may arise due to disagreements over objectives, resources, or
decision-making authority. Managing these conflicts requires diplomacy and negotiation
skills.
Time Management: Time management is crucial in project management to ensure tasks are
completed within deadlines. However, unexpected delays, resource constraints, or scope
changes can disrupt schedules, requiring adjustments and potentially impacting project
timelines.
Cost Overruns: Projects may exceed their allocated budgets due to unforeseen expenses,
scope changes, or inaccurate cost estimation. Cost overruns can strain resources, jeopardize
project viability, and erode stakeholder confidence.
Technological Challenges: In today's increasingly digital environment, projects often rely on
complex technologies and tools. Implementing and integrating these technologies can be
challenging, requiring specialized expertise and potentially introducing technical risks.
Despite these disadvantages, effective project management practices, such as comprehensive
planning, risk management, stakeholder engagement, and communication, can help mitigate
these challenges and increase the likelihood of project success.

Unit 3
Team-Based Structures

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In a very large organisation including a multinational, we come across situations where there
are many teams within the organisation. The teams may be created for various purposes. Let
us briefly discuss some examples of teams in a practical organisation setting. To organise our
thoughts, we shall define team-based structures as "employee teams". It is a design where
work is structured for groups. The groups are then given authority and discretion over matters
such as process improvement, service development, quality management or even new product
development. Team approach to management was developed mainly by Japanese companies
like Toyota, Honda, Mitsubishi, Sony, and a whole lot of others. What we see today are giant
Japanese firms which control a large segment of global trade? Let us briefly discuss some of
the team-based structures that are in place in some organisations.
Pure Project Teams
A pure project team is a specially constituted work group formed within the organisation and
given a special assignment or task. The assignment could be any of the following:
a. installation of a new computer system
b. design of a new product
c. design of a new service format.
Usually, members of a pure project team are nominated to join the team based on certain
criteria. A team leader or manager is usually placed at the head of the team. In most cases,
after the assignment has been completed, the team is disbanded.
Task Force Teams
A task force is created by top management to tackle or solve a major problem. In the Nigerian
setting, we have witnessed the advent of one task force or the other. There was Presidential
Task Force on COVID-19. Members of a task force are usually drawn from various
organisations with a team leader as the head. Usually at the end of the assignment or when
the task force loses focus, it is disbanded.
Quality Improvement Teams
Today, quality has become an issue that has taken the front line in business discussions. Most
organisations are drawing heavily from the Japanese firms that have long imbibed quality as
their watch word. In Nigeria today, total quality management (TQM) has become an
important issue and many firms are setting up internal quality teams specifically empowered
to address ways to improve quality.
Group Dynamics and Team Building

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Usually, organisations grow out of the need for people to cooperate for the achievement of set
goals. The coming together is based on the fact that different people have different skills.
That precisely explains briefly the origin of teams or groups.
Although teams have been variously defined in the literature, our working definition is that a
team is a collection of two or more people who perceive themselves as a group, share a
common interest, goal, norm and a sense of belonging. They may have a leader.
Invariably, the following can be seen as teams:
a. a computer steering committee
b. a product launch committee.
We have just defined a team but we need to go further to examine the team content. In an
ideal project team or group, there will be different people from different backgrounds and
different skills. When people join a project team or group, they may lose their work identity
especially if the team they joined has a work culture or ethics. Practically, organisations use
groups or teams for the following purposes:
a. To distribute work along clearly defined lines. In a bank, for instance, you could find the
energy team, treasury team, etc.
b. To monitor and control work. After a team has been formed, the team needs to be managed
and that is why every team or team should have a leader.
c. Problem solving. At times, teams are used to solve organisational problems as they arise.
Problems facing an organisation are many. They may be major or minor. In most cases, when
major problems arise, management can set up a team to look into the problem.
Team Work
Building project teams is not the end of the task ahead. The most important task is how to
build team spirit. Like we said earlier, members of the team may come from various units or
departments to join a particular team set up at the head office. The critical task and which is
the duty of the team leader is to ensure that the group members see themselves as members of
a team and also work like a team. If members of a team are to perform as team players and
work towards team objectives, then certain things should be present in the team such as. Let
us examine those things:
One Unit Goal
It is important that every member of a team perfectly understands the goals and objectives of
the team. Every action of each member must be directed towards the set objectives of the
team. This is in line with one of the fourteen principles of management as articulated by

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Henri Fayol which says that individual objective should be subordinated to the corporate
objective.
Group Cohesiveness and Support
A group is made up of a number of people with different qualities and characteristics. A good
group is one in which there is that cohesiveness. This cohesiveness binds the group together
and makes them act in one direction and towards the same objectives.
Team Spirit
Individual spirit is not the same as team spirit. Team spirit is based on group affinity and
affection amongst members. Team spirit makes an individual member imbibe the spirit of a
group and behave like the group. It was team spirit that made Robert Owen and his
employees to form cooperative societies.

High Expectations
There must be high expectations amongst the various members of a team. For example, when
you form a 15-man football team to represent Nigeria, each team member usually will have
high expectations arising from team dynamics and spirit.
Willingness
Team members must be willing to be members of the team. They should not be unwilling
members because if they are, they will be frustrated and this will affect the team as a whole.
Communication within Project Team
We need to now discuss communication within a project team. In a project team, there will be
a lot of people who need to communicate with each other. Communication is the process of
exchanging information between one person or another or between one person and a group of
persons. Communication also conveys knowledge of or information about a subject matter.
Communication is all about sharing information. Generally, in a team situation, there is the
need for effective communication amongst the members. The importance of communication
is that it is the life blood of any organisation and by implication the team. Communication as
a process assists management functions to be accomplished. Communication enables the
team leader to share ideas with or direct other members of the team and also enables other
team members to receive ideas and respond to the team leader. Communication provides a
link between people in a team or organisation. The real purpose of communication is to effect
change in an organisation and influence action towards organisational objectives.
Communication organises the human resources in an organisation or team. Lines of
communication in a project team include:

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Vertical Communication
Vertical communication within the project team could be from the team leader to
subordinates or from the subordinates to the team leader. Vertical communication assists in
passing information on policies and provides feedback mechanism through which staff
members respond to directives, suggestions or issues raised. Vertical communication usually
involves superior subordinate relationships.
Horizontal Communication
In a project team, communication can flow horizontally across staff at the same level in the
project team. It could be communication to all the managers in the team or at the same level.
Simply, horizontal communication exists between staff members of equal work status in a
given work environment.
External Communication
Within a project team, external communication is a situation where the team or group
exchanges information with the larger organisation. For example, when a team leader reports
progress to the managing director, we regard the information as a form of external
communication as it is outside the team

Building Good Interpersonal Relations within the Team

An organisation may possess enormous capital, good organisational structure, highly trained
manpower but if the staff do not relate properly to one another, then problems may likely
occur frequently and retard corporate performance. And so it is with a team. As discussed
earlier, a team can be made up of people from different units and backgrounds. It is therefore,
very important that at all times, managers should be aware of the need to build and maintain
good interpersonal relationship with their subordinates, bosses and peers within the
organisation. Put simply, interpersonal relations are the way people get along with one
another. It could be the relationship between one person and another or between one group of
persons (e.g. staff) and another group of persons. If people are friendly and understanding,
then good nterpersonal relations develop and everyone performs his or her tasks properly.
Practically, it has been observed that poor interpersonal relationship from one employee can
reck havoc in the organization if not properly handled.
Effects of Poor Interpersonal Relations
a. Tension between staff and other fellow staff
b. Tension between staff and management
c. Tension amongst management staff

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d. Unhealthy internal rivalry between all staff
e. Industrial misery and hostility
f. Strike
g. Corruption
h. General dishonesty
i. Lack of commitment
j. Disloyalty to the organization.
k. Pilferage
l. Ergonomics
In a situation where there is no good interpersonal relation, obviously productivity is lowered
and this gives rise to lower earnings for the organisation.
Principles of Interpersonal Relations
a. Act like a member of a team. Do not let personal interest affect that of the organisation
b. Remember that other staff come from different backgrounds and will at times behave
differently from your expectations
c. Learn to be accommodative
d. Keep your boss informed of your movements at all times
e. Avoid gossips in the workplace
f. Display a positive attitude to your job
g. Be friendly and cooperative
h. Treat your subordinates with respect
i. Stick to the chain of command
j. Learn to wear a smile on your face always
k. Show interest in other peoples‘ problems
l. Always learn to say "thank you"
m. Avoid aggressive behaviour
n. Always learn to apologise when you are wrong
o. Greet people in the morning, afternoon and evening
p. Be polite
q. Be respectful
r. Be honest
s. Be responsive
t. Show good hygiene.

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Unit 4
Planning for Sustainable Business Success
Introduction
Sustaining business success requires a great deal of planning. The type of plans to be adopted
depends on the nature and structure of project involved and the type of leadership driving it.
Given current technological development, particularly in the areas of software development,
organizations are careful to planning systems that ensure sustainability of business successes.
Planning in Occupation
The nature of planning in occupation varies and is peculiar with goals associated with it.
Irrespective of public or private occupations, several reasons serve as motives for planning;
namely; finance, strategic, contingency, succession, tactical and operational.
1. Financial Planning:
Long-term profit planning is aimed at generating greater return on assets, growth in market
share, and at solving foreseeable problems. It goes without saying that you must have a
tangible financial plan for your business, but with the infinite number of ways you can
develop yours, what do you do? When it comes to our financial planning, we‘ve found the
strongest results after following this handful of ―musts‖:
a. The plan must have buy-in from employees at all levels of the organization.
b. The plan must be clearly communicated.
c. The plan must be rooted in reality.
d. The plan must be forward-looking.
e. The plan must be reviewed formally; progress must be tracked on an ongoing basis.
2. Strategic Planning:
A strategic plan is the intended long-term relationship between an organization and its
external environment. It is also called grand or master strategy, and is always the prerogative
of top management. A strategic plan defines the overall character, mission and directions of
an organization. A strategic plan is a high-level overview of the entire business, its vision,
objectives, and values. This plan is the foundational basis of the organization and will dictate
decisions in the long-term. The scope of the plan can be two, three, five, or even ten years. It
answers such relevant questions as
1. What business are we in now and in what business will we be in the next 10 years?
2. Who are our customers and who should they be?
3. How do we compete?
4. What kind of organization are we?

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5. What are we trying to achieve?
It should be noted that every organization operates in an environment harbouring certain
controllable factors, such as economic and technological changes, competitors’actions,
control and regulation of government and its agencies/agents, labour unions, customers
unpredictable behaviour, and so on. All these factors not only affect the realisation of an
organization‘s goals, but its very survival. In strategic planning, emphasis is usually placed
upon predicting the future behaviour of external (uncontrollable) variables and the
development of alternative courses of action in readiness for expected and unexpected events.
Since strategic planning involves more than long-range planning, it must therefore adopt a
more systematic and integrative approach to all the organization‘s activities. In doing so,
there should be a detailed analysis of
1. The corporate structure of the company
2. The economy of the country
3. The position of the company in its markets and that of competitors
4. Trends in the economic and political arena
5. Possible future trends
6. Organizational audit or capability profile which analyses or diagnoses an organization‘s
weaknesses, opportunities, threats and strengths.
An objective analysis and diagnosis of the above-mentioned factors is very important because
once a strategic decision is made and implemented, the organization is irreversibly committed
to large expenditures. As such a serious mistake in strategic planning can be disastrous. The
perils are increased because of the uncontrollable nature of relevant factors. For example, a
company may build a N50m plant which may become useless because its competitors also
have overbuilt. Strategic planning is especially complicated in many highly technical
industries that are subject to the ―law of acceleration‖ This law suggests that changes tend to
occur at an increasing rate.
Finally, because of the complex and unpredictable nature of strategic plans, only qualified,
experienced and dedicated high-level managers should participate in their formulation and
implementation. Managers at every level will turn to the strategic plan to guide their
decisions. It will also influence the culture within an organization and how it interacts with
customers and the media. Thus, the strategic plan must be forward looking, robust but
flexible, with a keen focus on accommodating future growth.
The crucial components of a strategic plan are:
a. Vision

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Where does the organization want to be five years from now? How does it want to influence
the world? Vision describes set of ideals and priorities, a picture of the future, a sense of what
makes the organization special and unique, a core set of principles that the organization
stands for, and a broad set of compelling criteria that will help define organizational success.
A framework for examining vision is put forward by Collings and Porras (1991). They
conceptualize vision as having two major components: a guiding philosophy, and a tangible
image. They define the guiding philosophy as a system of fundamental motivating
assumptions, principles, values and tenets. The guiding philosophy stems from the
organization‘s core beliefs and values and its purpose.
b. Mission
Mission statement is the first stage of strategic planning. A well-defined mission statement
can be described as a message that a business sends to its internal and external environments
in which its business (goods and services produced, production activities, markets), values,
philosophy, business approaches and differences from other businesses are described (Ülgen
ve Mirze, 2005). An effective mission statement should also cover values of all stakeholder.
To whom, where, and to which processes the business provides goods? What is its business
philosophy, values, and its difference from other businesses in the same sector? Answers to
these questions are found in business‘ mission statement. The difference of a business from
others is stated by explaining employed technology, business values and philosophy. With
similar approach, mission statement includes business‘ activity, main competitive advantages,
differentiating features from others, philosophy, image, style, standards, and approach
towards stakeholders
c. Values
Values are standards or ideals with which we evaluate actions, people, things or situations
e.g. Honesty, Peace, Justice. In thinking about values, it is useful to distinguish into three
kinds
a. Personal Values – Values endorsed by an individual
b. Character Values – Character values are the universal values that you need to exist as a
good human being.
c. Work Values – Work values are values that help you find what you want in a job and give
you job satisfaction.
As you can see, there are really no rules to writing the perfect strategic plan. This is an open-
ended, living document that grows with the organization. You can write whatever you want

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in it, as long as it dictates the future of your organization. For inspiration, just search for the
value/mission/vision statement of your favorite companies on Google.
3. Contingency Planning:
In addition to the other types of plans – strategic, tactical, single use and standing plans, a
contingency plan is also an element of an effective planning system. Contingency planning is
the development of alternative courses of action to be taken if an intended plan is
unexpectedly disrupted or rendered inappropriate. For example, suppose Mr. Biggs (a fast
food subsidiary of U.A.C PLC) has made a plan of opening 30 new outlets in all major towns
of the country in each of the next 5 years. Mr Biggs‘ top managers should realise that a shift
in the economy and a change in consumer preferences might call for a different rate of
expansion. In the light of this, the firm should develop two contingency plans alongside the
long-term plan:
1. If the economy begins to expand beyond certain anticipated level (contingency event), then
the rate of the firm‘s growth will increase from 30 to 50 new outlets per year (contingency
plan).
2. If the economy takes a further down turn coupled with high rate of inflation, the expansion
rate may be reduced from 30 to 15 outlets per year.
As part of a development process, organizations and their managers usually consider various
contingency events. Since there is an infinite array of contingency events, only those with
high probability of occurring and whose effects would have a substantial impact on the
organization, should be pinpointed and used in the contingency planning process.
4. Succession Planning:
Succession planning is a process for identifying and developing internal people with the
potential to fill key business leadership positions in the company. Succession planning
increases the availability of experienced and capable employees that are prepared to assume
these roles as they become available. What if your manager or an executive left suddenly? Is
your organization prepared to replace a major player on your team? While ―missing‖ them is
one thing, making sure your organization continues to grow beyond their departure is crucial
to your overall success (obviously!). To make sure you don‘t skip more than a beat, you need
to beef up your succession planning process.
Succession planning, however, needs to be more than just naming a successor for major
company positions. A strong succession plan creates opportunities for managers as well as
succession candidates because with a developed successor in place, managers are primed to
move into new positions and pursue opportunities when those arise as well. Therefore,

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succession candidates must be groomed, developed and prepared to step into a new role when
the opportunity arises so that the multi-shift can happen simultaneously as needed (not to put
off until candidates are ―ready‖). You won‘t experience that lag time trying to figure out
who can take over their responsibilities and continue on your path to growth without wasting
time or additional resources.
5 Tactical Plan
The tactical plan describes the devices the organization plans to use to achieve the ambitions
outlined in the strategic plan. It is a short range (i.e. with a scope of less than one year), low-
level document that breaks down the broader mission statements into smaller, actionable
chunks. If the strategic plan is a response to ―What?‖, the tactical plan responds to ―How?‖.
Creating tactical plans is usually handled by mid-level managers.
The tactical plan is a very flexible document; it can hold anything and everything required to
achieve the organization‘s goals. That said, there are some components shared by most
tactical plans:
a. Specific goals with fixed deadlines
Suppose your organization‘s aim is to become the largest shoe retailer in the city. The tactical
plan will break down this broad ambition into smaller, actionable goals. The goal(s) should
be highly specific and have fixed deadlines to spur action – expand to two stores within three
months, grow at 25% per quarter, or increase revenues to $5m within six months, and so on.
b. Budgets
The tactical plan should list budgetary requirements to achieve the aims specified in the
strategic plan. This should include the budget for hiring personnel, marketing, sourcing,
manufacturing, and running the day-to-day operations of the company. Listing the revenue
outflow/inflow is also a recommended practice.
c. Resources
The tactical plan should list all the resources you can muster to achieve the organization‘s
aims. This should include human resources, cash resources, etc. Again, being highly specific
is encouraged.
d. Marketing, funding, etc.
Finally, the tactical plan should list the organization‘s immediate marketing, sourcing,
funding, manufacturing, retailing, and PR strategy. Their scope should be aligned with the
goals outlined above. If you‘re struggling to create a strong tactical plan, this course on
drafting great business plans will point you in the right direction.
6 Operational Plan

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The operational plan describes the day-to-day running of the company. The operational plan
charts out a roadmap to achieve the tactical goals within a realistic timeframe. This plan is
highly specific with an emphasis on short-term objectives. ―Increase sales to 150 units/day‖,
or ―hire 50 new employees‖ are both examples of operational plan objectives.
Creating the operational plan is the responsibility of low-level managers and supervisors.
Operational plans can be either single use, or ongoing, as described below:
a. Single use plans
These plans are created for events/activities with a single occurrence. This can be a one-time
sales program, a marketing campaign, a recruitment drive, etc. Single use plans tend to be
highly specific.
b. Ongoing plans
These plans can be used in multiple settings on an ongoing basis. Ongoing plans can be of
different types, such as:
i. Policy: A policy is a general document that dictates how managers should approach a
problem. It influences decision making at the micro level. Specific plans on hiring
employees, terminating contractors, etc. are examples of policies. What differentiates a policy
from a rule is while policies are flexible, rules are rigid.
ii. Rule: Rules are specific regulations according to which an organization functions. The
rules are meant to be hard coded and should be enforced stringently. ―No smoking within
premises‖, or ―Employees must report by 9 a.m.‖, are two examples of rules.
iii. Procedure: A procedure describes a step-by-step process to accomplish a particular
objective. For example: most organizations have detailed guidelines on hiring and training
employees, or sourcing raw materials. These guidelines can be called procedures.
Ongoing plans are created on an ad-hoc basis but can be repeated and changed as required.
Operational plans align the company‘s strategic plan with the actual day to day running of the
company. This is where the macro meets the micro. Running a successful company requires
paying an equal attention to now just the broad objectives, but also how the objectives are
being met on an everyday basis, hence the need for such intricate planning

CONCLUSION
Planning have variance methods either in public or private. Some core areas which planning
approach in job are discussed include; finance, strategic, contingency, succession, tactical and
operational. The measure, methods and uniqueness of each has being explained which can aid
Project Planning Management, Monitoring and Evaluation.

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