Project
Management
Planning the Project
Dr. Tianyi Wu 2024-11-18
• Introduction
• Barriers to Planning
• Planning Defined
CONTENTS • Change the Plan
• Effective Planning
• Project Planning Steps
• Conclusion
01
Introduction
Why do you think most projects fail?
Case Study: The Cost of Poor Planning
Background:
In the early 1990s, Denver International Airport (DIA)
attempted to implement a fully automated baggage handling system. It
was designed to reduce handling times and improve efficiency across
the airport.
Case Study: The Cost of Poor Planning
Timeline: DIA Baggage System Failure
Project initiated to Airport Project
implement an System Inadequate opening abandoned
automated design testing identified delayed by after $560
baggage system began critical issues 16 months million in costs
1991 1992 1993 1994 1995
Case Study: The Cost of Poor Planning
What Went Wrong:
•Inadequate Planning: Key stakeholders failed to align on objectives,
timelines, and budget requirements.
•Unrealistic Deadlines: The system was expected to go live within two
years, leaving insufficient time for testing.
•Complexity Overload: The technology used was ahead of its time, but
it lacked thorough vetting.
Case Study: The Cost of Poor Planning
Poor Planning
Results:
•Cost overruns exceeded $560 million. Unclear Objectives
•The system delayed the airport’s opening
by 16 months. Unrealistic Deadlines
•Ultimately, the project was scrapped, and
traditional baggage handling was adopted.
Testing Failures
Case Study: The Cost of Poor Planning
Poor Planning
Unclear Objectives
Project Failures
Unrealistic Deadlines
Testing Failures
High Cost of Poor Planning
Financial Losses:
• Organizations lose $109 million for every $1 billion invested in
projects and programs.
• Companies waste $97 million for every $1 billion invested due to
poor project performance.
• Project failures cost organizations globally an estimated $1.2
trillion annually.
Time Overruns:
• On average, projects experience a cost overrun of 45%.
• 63% of projects exceed their original budget.
• Only 56% of projects meet their original deadlines.
02
Barriers to Planning
Two Barriers to Effective Planning
1. Prevailing Paradigms 2. Human Resistance
1. Prevailing Paradigms
Definition:
A paradigm refers to a deeply held belief about how the
world works. It influences actions and decisions, often unconsciously.
Key Points:
People often act based on their "theories-in-use" rather than
"espoused theories" (Chris Argyris)
1. Prevailing Paradigms
Examples:
1. Planning is a waste of time
2. Deadline is more important than process
2. Human Resistance
Definition:
People resist planning because it is uncomfortable or
because they fear being held accountable for uncertain estimates.
Key Points:
Resistance may stem from fear of scrutiny if planned
outcomes aren't met.
2. Human Resistance
Examples:
1. You can't schedule creativity
2. A programmer hesitates to estimate task durations, worried about
being held to "best guesses" without historical data.
The Absolute Imperative of Planning
Importance of Control
1. Without a plan, control is impossible
because there's no benchmark for
comparison.
2. Effective control systems depend on
both a clear plan and accurate
progress tracking.
The Absolute Imperative of Planning
Planning Under Time Constraints
Myth: We don‘t have time to plan; we
need to act now. Really?
Reality: Tight deadlines make planning
even more critical to ensure focused,
efficient work.
03
Planning Defined
Planning is answering questions
3 kinds of activities in planning
1. Strategy: refers to the overall method you will employ to do the job.
2. Tactics: Once you have decided the strategy, you must work out all of the
details of how it will be done.
3. Logistics: how to move resources like money, time, people
Discussion
If you’re planning to held a birthday party, what is the
strategy, what is the tactics and what is the logistic
Plan Ingredients
Consider the minimum ingredients that should be contained in a project plan
1. Problem statement
2. Project mission statement
3. Project objectives
4. Project work requirements
5. Exit criteria
6. End-item specifications to be met
7. Work breakdown structure
8. Schedules
9. Required resources
10. Control system
11. Major contributors
12. Risk areas with contingencies when possible
Sign-Off of the Plan
Once the plan has been prepared, it should be submitted to stakeholders for
their signatures.
• A signature means that the individual is committed to his contribution,
agrees with the scope of work to be done, and accepts the specs as valid.
• The plan should be signed in a project plan review meeting, not by mail.
• People should be encouraged to “shoot holes in the plan” during the review
meeting, rather than wait until problems develop later.
04
Change the Plan
Change the Plan
Any plan is bad which is not susceptible to change.
1. Changes should be made only when a significant deviation occurs.
2. Change control is necessary to protect everyone from the effects of scope
creep—changes to the project that result in additional work.
3. Causes of changes should be documented for reference in planning future
projects.
05
Effective Planning
Effective Planning
1. Plan to Plan
2. The people who must implement a plan should participate in preparing it.
3. The first rule of planning is to be prepared to replan.
4. Always conduct a risk analysis to anticipate the most likely ones.
5. Begin by looking at the purpose
6. Use the Work Breakdown Structure
Effective Planning
1. Plan to Plan
It is always difficult to get people together to develop a plan. The
planning session itself should be planned, or it may turn into a totally
disorganized meeting of the type that plagues many organizations.
Effective Planning
2. The people who must implement a plan should participate in preparing it.
You risk having contributors who feel no sense of commitment to the
plan; their estimates may be erroneous, and major tasks may be forgotten.
Effective Planning
3. The first rule of planning is to be prepared to replan
You risk having contributors who feel no sense of commitment to the
plan; their estimates may be erroneous, and major tasks may be forgotten.
Discussion:
Remember your first plan? How did it go?
Effective Planning
4. Always conduct a risk analysis to anticipate the most likely ones.
Because unexpected obstacles will crop up, always conduct a risk
analysis to anticipate the most likely ones. Develop Plan B just in case Plan A
doesn’t work.
2 tips:
Asking, “What could go wrong?”
You are NOT trying to identify every possible risk—just those that are fairly likely
Effective Planning
5. Begin by looking at the purpose
Develop a problem statement. All actions in an organization should be
taken to achieve a result, which is another way of saying “solve a problem.”
Effective Planning
6. Use the Work Breakdown Structure
Use the Work Breakdown Structure to divide the work into smaller
chunks for which you can develop accurate estimates for duration, cost, and
resource requirements. This WBS will be discussed in Lecture 6
06
Project Planning Steps
Project Planning Steps
The basic planning steps are as follows
1. Define the problem to be solved by the project.
2. Develop a mission statement, followed by statements of major objectives.
3. Develop a project strategy that will meet all project objectives.
4. Write a scope statement to define project boundaries (what will and will not
be done).
5. Develop a Work Breakdown Structure.
6. Using the WBS, estimate activity durations, resource requirements, and
costs.
7. Prepare the project master schedule and budget.
8. Decide on the project organization structure
9. Create the project plan.
10. Get the plan signed off by all project stakeholders.
07
Conclusion
Conclusion
1. Effective planning is the cornerstone of successful project
management
• Without a plan, control and corrective action are impossible.
• Planning ensures alignment with objectives and helps mitigate risks.
2. Barriers to planning must be addressed to achieve success
• Prevailing Paradigms: Beliefs about how things should work can hinder
planning.
• Human Resistance: Stemming from discomfort or fear of accountability.
3. The absolute imperative of planning
• Planning is even more critical under tight deadlines.
• Early planning may cause initial discomfort but ultimately reduces long-
term pain.
Conclusion
Conclusion
Quote to Remember:
"If you have no plan, you have no
control.“
Planning is not optional for any project that aims to succeed.
THE END
THANKS
