PMA Reference Book 2014

PMA Reference Book
P roject M anagement A pproach

(PMA)
R EFERENCE B OOK
Version 2014
Holcim Technology Ltd
INN - Knowledge Management
Holderbank, Switzerland
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PMA Reference Book
TABLE OF CONTENTS
1
Introduction
The Holcim Project Management Approach (PMA)
2.1
2.2
2.3
2.4
2.5
3
3.1
3.2
3.3
3.4
3.5
Vision, Mission & Benefits

The 5 PMA Phases
2.2.1 Phase I
2.2.2 Phase II
2.2.3 Phase III
2.2.4 Phase IV
2.2.5 Phase V
Dependencies between projects
Level of detail when using PMA
Overview all steps of the Five Phases
5
5
6
6
7
7
7
8
8
10
Details of all Steps within the 5 Phases
11
Steps within Project Definition

3.1.1 Assessment of Initial Situation
3.1.2 Stakeholder analysis
3.1.3 Search for Lessons Learned
3.1.4 Definition of product or service (deliverables)
3.1.5 Milestone schedule
3.1.6 Outline Project Organization
3.1.7 Estimation of Project Costs & Benefits
3.1.8 Risk Identification & Countermeasures
3.1.9 Agreement with the Client
Steps within Project Planning
3.2.1 Project Team Set-up
3.2.2 Project Schedule
3.2.3 Communication Plan
3.2.4 Project Budget
3.2.5 Project Kick-off
Steps within Project Realization
3.3.1 Activity List
3.3.2 Project Review (within Team)
3.3.3 Capture of Knowledge
3.3.4 Project Status Report
3.3.5 Client / Steering Group Review
Steps within Project Completion
3.4.1 Hand-over
3.4.2 Final Report
3.4.3 Closing Meeting
Steps within Project Evaluation and Transfer
3.5.1 After Action Review (AAR)
3.5.2 Learning Summary
3.5.3 Knowledge Transfer
12
12
13
14
15
16
17
18
19
20
21
21
22
23
24
25
26
26
27
28
29
30
31
31
32
33
34
34
35
36
Glossary
37
Appendix A:
How the 5 Phases and the corresponding steps are interrelated
41
Appendix B: Project Risk Management
42
Bibliography
45
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1 Introduction
Purpose
This Book provides a detailed insight of the Holcim Project Management Approach (PMA).
It serves as a reference in the application of PMA.
Target Audience
This Reference Book has been written to support Holcim employees regularly involved in projects (especially project managers) who have been introduced to the Holcim PMA through at
least one training session.
Applicability
The PMA defines the generic methodology to be applied in all projects managed by Holcim
employees. The PMA is defined by 5 phases with 25 underlying steps. Whatever size and
contents a project may have, it will always go through the 5 phases. Only the level of detail
when using the PMA differs as the complexity of projects varies (see paragraph 2.4)
Structure
This Reference Book:
explains the 5 phases defined within the PMA (see chapter 2)
provides a detailed explanation of all 25 steps within the 5 phases (see chapter 3)
explains the objective and benefits of each step
helps with the application through practical procedures, review questions and tips for use
includes a glossary to explain terms used within the PMA (see chapter 4)
What is a Project?
A project is a temporary endeavor undertaken to produce a unique product, service or result:
With defined start and end dates
Is always different from other projects even if some common elements are repeated
Is unique, there are always uncertainties about products, costs, time, etc.
Since a project is typically new to a team, it needs more planning than routine work
Typically involves several people across different businesses and levels
How are projects started?

Projects are triggered by a business need or issue detected by the Project Client, e.g. increase production, improve profit margins, improve employee morale, etc. Usually there are a
number of alternatives to tackle the business need. In order identify and select the best alternative to tackle the business issue, Project clients and Project Managers could apply Solve!
Holcim systematic problem solving tool, to quantify the issue, identify the root causes and
select the best solution/alternative to implement, in order to achieve the expected business
objectives.
How are projects linked to the business cycle?
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Projects are the key mechanism to improve a business. When companies need to achieve
specific goals, they typically start projects. All business plans of Holcim Group Companies
display the key projects to be implemented to achieve the expected business goals. After being identified, a project is developed and implemented so that at its end, the delivered product
or service allows the client achieve the business goals.
Who is usually involved in a project?

Projects always have a number of people involved including:
Project Client: the person who requests the project to be executed, approves what is to
be implemented, provides resources (funds in particular) to execute the project, receives
the project upon completion and uses it to achieve the expected business goal of the project
Project Steering Group: the group of people who supports the client to guide the project
throughout its life.
Project Manager: the person who organizes the work needed to deliver the expected outcome of the project. The project managers responsibilities include leading the team, engaging stakeholders and managing risks to ensure successful completion of the project.
Project team members: people who work to deliver the expected outcome of the project.
Team members need to manage their own operational work as well as the project work,
interacting with other team members to ensure successful completion of the project.
Stakeholders: people not regularly involved in the project, whose interests may be affected (positively or negatively) by the project.
What is project portfolio management?

Project portfolio is a collection of projects that are grouped together to facilitate effective management of work to meet strategic business goals. Projects within a portfolio may or may not
be interdependent of each other.
Project portfolio management is the process of identifying, prioritizing, authorizing, managing
and controlling projects to achieve specific strategic business objectives. Resources and cash
flows are allocated among projects within a portfolio.
The Link between the PMA and other Holcim Guidelines

Within the Group, various guidelines have been established to deal with specific projects within a given environment. Since the Holcim Project Management Approach provides a generic
basis for all types of projects, other guidelines can be mapped onto this approach.
Over the last few years Holcim Group Support Ltd. has developed specific extensions to PMA
for Capex projects. In the cement business, the approach is called ProMap. More details can
be found in the Holcim Portal under Business Tools CAPEX / ProMap. In the Aggregates
and Construction Materials business, the approach is called ACMPro, and it is divided into
AggPro (for Aggregates projects), RMXPro (for RMX projects) and AspPro (for Asphalt projects). These can be found in the Portal under Group Functional Areas Aggregates and
Construction Materials Investment Support / ACMPro.
The Link between the PMA and other Project Management

standards
There are several associations for Project Management in the world, such as the Project
Management Institute (PMI), Association for Project Management (APM), IPMA, etc. All those
bodies collect and publish best practices in Project Management. The Holcim PMA is fully
aligned and consistent with those worldwide best practices.
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2 The Holcim Project Management Approach (PMA)
The Holcim Project Management Approach holds
a VISION aiming at . . .
. . GETTING PEOPLE TO WORK SYSTEMATICALLY . . .

. . TO USE AVAILABLE KNOWLEDGE REPEATEDLY . . .
. . AND TO IMPROVE WITH EVERY PROJECT
2.1 Vision, Mission & Benefits
The M I SSI O N of this Reference Book is to support Holcim employees in the understanding and constant application of the PMA. The objective of the PMA lies within the
creation of a common language that provides the Group with a logical and practical approach in the area of project management. Explicit integration of the search for
knowledge already available at the start of a project and the transfer of gained
knowledge at the end contribute to the objectives of becoming a faster learning organization.
Consistent use of the PMA results in a number of substantial BENE FI TS for the
current project as well as for future ones, e.g.:
2.2 The 5 PMA

Phases
All relevant stakeholders are explicitly involved

Project deliverables are precisely defined and accepted by the Client
Relevant risks/opportunities and countermeasures are considered
Project progress is reviewed regularly to ensure that schedule, budget and deliverables meet the objectives
The approach focuses on teamwork and cross-functional communication
Project communication becomes easier throughout the Holcim Group
Transfer of lessons learned from one project to other projects
The 5 phases as described below are the basis of the approach.

Phase I
Phase II
Phase III
Phase IV
Project
Definition
Project
Planning
Project
Realization
Project
Completion
Phase V
Project
Evaluation &
Transfer
Within each individual phase, a number of steps are defined. These steps serve as a
systematic easy-to-use checklist to guide the project team through the project life cycle.
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2.2.1
Phase I
Project Definition
Objective
The objective of this phase is to build a relationship with the Client and to really understand his objectives. Another objective is to gather sufficient information to ensure that
the project is properly defined and that it is realizable and acceptable for the project
team.
Steps
Assessment of initial situation

Stakeholder analysis
Search for lessons learned
Definition of product or service (deliverables)
Milestone schedule
Outline project organization
Estimation of project costs & benefits
Risk identification & countermeasures
Agreement with the Client
for details see page 12

During this phase it is important to be explicitly clear to the Client and the project team
not only on what will be within the definition of the project, but also on what will not be
realized in this project. In order to offer the best possible proposition one will have to
address the assumptions made by the Client and by the project team.
There can be several meetings on the project definition (depending on the project size) in
order to agree and share a common understanding on all the necessary details. The first
meeting is between the Client and project manager (preferably with a PMA trainer) to
have an initial discussion about the initial situation, project deliverables, team composition and time constraints. The project manager initiates this meeting.
2.2.2
Phase II
Project Planning
Objective
The objective of project planning is to detail the project as outlined during the definition
phase in terms of the tasks that are to be planned and costs that are involved. Furthermore, a communication plan has to be established. The purpose of all these steps is to
give as complete a description as possible on the way of working during the other phases of the project.
Steps
Project team set-up

Project Schedule
Communication plan
Project Budget
Project kick-off

Since the project team must be able to start delivering the defined product or service at
the end of this phase, everybody has to fully understand and be committed to the project.
One has to fully understand how communication and reviews will be handled, where
documents will be stored, what tasks are to be fulfilled to reach the milestones, and how
the various tasks interact. If required, the project team will have to be trained before engaging on the project.
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2.2.3
Phase III
Project Realization
Objective
The purpose of Phase III is to ensure delivery of the defined product or service in accordance with the project definition. Therefore, a certain number of project team reviews and
reviews with the Client are needed to properly control costs, results and time.
Steps
Activity list
Project review (within team)
Capture of knowledge
Project Status Report
Client/Steering Group review

To deliver the product or service, issues need to be discussed openly within the team and
the Client/Steering Group during review meetings. Changes to the project definition or
project planning have to be made in accordance with the mechanism for handling changes which is part of the project definition. In addition, it is important to capture knowledge
during the realization of the project to generate the necessary input for phase V.
2.2.4
Phase IV
Project Completion
Objective
The objective of this phase is to ensure that the Client accepts the product or service and
that the ownership is properly transferred to the Client so that the project team can be
discharged of its responsibility to deliver.
Steps
Hand-over
Final report
Closing meeting

This phase focuses on handing over the product or service that has been defined during
Phase I (Project Definition). It must be absolutely clear that after the project completion
phase, the Client (and his/her organization) is fully responsible for sustaining and maintaining the product or service that has been delivered by the project team. Any outstanding actions aside from the activities within Phase V will have to be explicitly documented
and agreed upon during handover (Step 1).
2.2.5
Phase V
Evaluation and Transfer

Objective
The objective of the last phase is to evaluate the way of working with the Client and the
project team during the project. It has to be ensured that all lessons learned are summarized. Finally, actions to transfer lessons learned will have to be defined.
Steps
After Action Review (AAR)

Learning summary
Knowledge transfer

Learning can be derived from various aspects such as the contents of the project (e.g.
technical aspects) or the process one has gone through (way of working). Both the output
of knowledge gained during the realization as well as the output of After Action Review
will be integrated in the learning summary.
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2.3 Dependenci
es
between
projects
Frequently - especially in larger projects - specific complex tasks are handled as subprojects. Such a sub-project will follow its own 5-phase approach, having its own Client,
project team, etc. Therefore, a situation may arise where several related projects apply the
PMA in parallel.
Overall
OverallProject
Project
Phase I
Phase I
Project
Project
Definition
Definition
Phase II
Phase II
Project
Project
Planning
Planning
Phase I
Phase I
Project
Pr ojec t
Definition
De finition
Phase III
Phase III
Project
Pr oject
Realization
Realization
Phase II
Phas e II
Project
Proje ct
Planning
Pla nning
Phase III
Phase III
Project
Pr ojec t
Realization
Re alization
Phase IV
Phase IV
Project
Project
Completion
Completion
Phase IV
Phase IV
Project
Proje ct
Completion
Comple tion
Phase V
Phase V
Project
Project
Evaluation
& Evaluation
Transfer
& Transfer
Phase V
Phas e V
Project
Proje ct
Evaluation
Evaluation
& Transfer
& Tr ansfe r
SubSub-Project
Sub-Project
The project manager and the team responsible for the sub-project will apply the PMA in
their sub-project. The responsibility to apply the PMA to the overall project will remain with
the project manager responsible for the overall project.
It is important that sub-projects are aligned with the overall project in order to achieve the
overall objectives.
2.4 Level of
detail when
using PMA
Following the principles of all PMA phases and all steps rigidly and consistently is key to
get the benefits from the approach. However, since no single project is fully identical to
another, project managers have to check to what level of detail the steps of the 5 phases
need to be applied. Therefore the expression rigid principles, flexible application is created. This expression means that while it is mandatory to follow all the phases and steps for
each project, compliance e.g. to the documentation and frequency of review meetings may
vary from one project to another. The more complex a project is, the more detail should be
used in the application of the PMA.
To help project managers in determining the level of detail in the application of the PMA to
1
their specific project, three project categories are outlined:
A. Project of high complexity:
the answer to 4 to 6 questions can be yes
B. Project of medium complexity:
C. Project of low complexity:
1. Are project costs in excess of 50,000 USD?

2. Does project duration exceed 3 months?
3. Are there more than three people involved in the
project team (including the project manager)?
4. Are the Clients expectations towards the project
unclear?
5. Do we have little or no experience in creating

the desired product or service?
6. Would any project failure have a strong negative
impact on the project team /
organization?
It is not possible to make the categorization of the level of detail in a fully precise way hence the suggestions
should be combined use, according to the rules of common sense.
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For each category, the level of detail when applying the PMA is indicated in the table on the next page. The
table contains all 25 steps and an indication of the level of detail suggested for the three project categories.
Phase
Assessment of Initial Situation.
Milestone schedule
Estimation of project costs
Risk identification & countermeasures
Project team set-up
Project Schedule
Communication plan
Project Budget
Project kick-off
Activity list
Project review (within the team)
(exception report only)
(exception report only)
Phase IV:
Hand-over
Project Completion
Final report
Closing meeting
Learning summary
Knowledge transfer
Phase I:
Project Definition
Phase II:
Project Planning
Phase III:
Project Realization
Phase V:
Project Evaluation
& Transfer
Step
Full compliance
Project documentation must be available to demonstrate that all aspects of

the steps are taken into consideration
Partial compliance
Project documentation must be available to demonstrate that relevant aspects of the step are taken into consideration
Limited compliance
No project documentation is required; one only needs to be aware of the

step
PMA Reference Book
2.5 Overview all steps of the Five Phases

The graph below gives an overview of all steps. In the appendix a graph is included showing how all steps are connected with one another.
1.
Phase I
Phase II
Phase III
Phase IV
Phase V
Project
Definition
Project
Planning
Project
Realization
Project
Completion
Project
Evaluation
& Transfer
Assessment of initial situ- 1.

ation
2.
3.
Project team set-up
1.
Activity list
1. Hand-over
Project Schedule
2.
Project review
(within team)
2. Final report
3.
Search for lessons

learned
4.
Project Budget
3.
3. Closing meeting
5.
Project kick-off
4.
Project status report
4.
Definition of product or
service (deliverables)
5.
Client/Steering Group
review
5.
Milestone schedule
6.
7.
Estimation of project
costs & benefits
8.
Risk identification & evaluation
9.
2.
Communication plan
1.
After Action Review

(AAR)
2.
Learning summary
3.
Knowledge transfer
PMA Reference Book
3 Details of all Steps within the 5 Phases

Phase I
Project
Definition
Phase II
Project
Planning
Phase III
Project
Realization
Phase IV
Project
Completion
Phase V
Project
Evaluation &
Transfer
In this chapter, the project management approach as

presented in the previous chapter will be covered in
more detail, the steps from each phase will be described
using the following structure:
Objective and benefits

Procedure for use
Review questions
Tips for use
Cross reference to other steps of the PMA
PMA Reference Book
3.1 Steps within Project Definition

3.1.1
Assessment of Initial Situation
OBJECTIVE
The objective of this step is to arrive at a common understanding of the Project Definition by
giving a structured explanation of the Clients initial situation. This will help in getting a clear
picture of the Clients reasons for starting the project. The assessment of the initial situation
ensures that the Clients real motives for initiating the project are made fully transparent and
understood by the project team in order to proceed with the project definition.
AND
BENEFITS
1. Organize a meeting or workshop with the Client to start project definition

2. Find out the root causes (current or past issues, business risks or opportunities) of the Clients decision to initiate the project
PROCEDURE
FOR USE
3. Together with the Client, define SMART business objectives that are to be achieved through
the project (link the objectives clearly to the overall business objectives)
4. Agree on the mission assigned to the project team to meet the business objectives (boundary/scope of the project). A mission is a statement of what the project team is going to do to
achieve the defined objectives.
5. Capture, review and agree on the outcome with the Client and document in the templates.
REVIEW
QUESTIONS
Has the project team discussed the root causes, business objectives and mission together
with the Client?
Are root causes based on facts resulting from previous analysis?
Do the Client and project team have a clear and common understanding of the overall business objectives of the project?
Do the business objectives of the project contribute to reach the overall company objectives?
Does the mission (scope statement) clearly describe the assignment the project team will
carry out throughout the project life cycle?
TIPS FOR USE
Cross-reference
The assessment of the
initial situation provides
input to the definition of
the product or service
(3.1.4, page 15)
Before meeting the team to start the project, the Client and Project Manager should get together to prepare the basic element of the project definition (see project charter template, available in
the PMA section of the Holcim Portal)
2 The assessment of initial situation will only bring the full benefits if it has been defined together
with the Client. Dont make assumptions since this might set a false direction to the project.
3 Identifying the root causes of the project is a pre-requisite to start searching for solutions.
Solve!, Holcim systematic problem-solving process, can be used to identify root causes of the project, and select the most effective solutions (deliverables, 3.1.4, page 15)
4 Business risks are possible root causes since, if not addressed, they could materialize and impact the business
5 Projects can originate because of market demand, organizational need, customer requests,
technological advance, legal requirements, ecological requirements, social needs, etc.
6 Making objectives SMART (Specific, Measurable, Attainable, Relevant, situated in Time) will
help the Project team and Client to determine whether those have been achieved or not.
7 Involve experienced personnel in the assessment to address all assumptions made by the Client and the project team
8 The business objectives of the project must be derived from the functional plan/business plan
of a Group Company. They should be linked to the functional or companys KPIs.
PMA Reference Book
3.1.2
OBJECTIVE
The objectives of this step are to identify the projects stakeholders, to understand their level of
interest and influence on the project, to find out their specific interests and to agree on
measures to be taken in order to incorporate those to the project. Stakeholder analysis helps
gain buy-in by directly involving the stakeholders in the project. It forces thinking around issues
that might impact the project (positively or negatively) and make these explicit with the Client. It
ensures the project manager; team members and the Client have a common view on the project environment.
AND
BENEFITS
1.
Identify the relevant stakeholders with the Client (also include third parties, e.g. environmental organizations, the government, etc.)
2.
Categorize stakeholders depending on the level of influence they have on the projects results, and the level of interest they have on the project execution and/or deliverables (High,
Medium, Low)
3.
Contact important stakeholders to find out their interests (needs, requirements and expectations) in the project
4.
Analyze information as a result of interviews workshops, surveys, prototypes, etc. with

stakeholders.
5.
Review and agree with the Client on the implications of the stakeholder analysis to the project. Define actions to be taken in order to address stakeholder interest and gain buy-in
PROCEDURE
FOR USE
REVIEW
QUESTIONS
Have all stakeholders who have an interest in our project been identified?
Have important stakeholders been asked about their interest in the project?
Have corresponding measures been taken to incorporate stakeholders' interests in the project?
TIPS FOR USE
1
2
Do not make assumptions about stakeholder interests; make sure these come from them
Do not talk to stakeholders without the Clients consent ,ensure confidentiality of information if
required
3 Ignoring stakeholders interests may lead to unsuccessful completion of a project (additional
costs, delays, partial achievement of objectives, etc
4 Create the document in such a way that both the Client as well as the project team will get an
understanding of various stakeholder interests.
5 Ensure that the interest of stakeholders with high or medium level of influence and interest are
addressed (e.g. incorporate the stakeholders requirements on the product & specifications, etc.)
Cross-reference
The stakeholder analysis provides input for:
- Definition of the product or service (3.1.4 page 15)
- Project schedule (3.2.2 page 22)
- Communication plan (3.2.3 page 23)
- Risk identification and countermeasures (3.1.8 page 19)
PMA Reference Book
3.1.3
Search for Lessons Learned
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
The objective of this step is to ensure that lessons learned from previous projects are taken into
account. Using these lessons learned to make decisions about the project content or the management of the project will help you improve your project in terms of time, cost and/or quality.
1.
Identify the relevant stakeholders with the Client (also include third parties, e.g. environmental organizations, the government, etc.)
2.
Find out similar projects within and outside the company. Identify these projects, where
these were carried out, and the names of project managers and/or Clients
3.
Find out lessons learned from similar or any other projects applicable to this project
4.
List all source of potential information (experienced people, literature, the Holcim Portal,
etc)., to search for similar experiences and/or lessons learned
5.
Review and analyze the benefits of the lessons learned
6.
Determine which experiences/lessons learned will be integrated into the project (and
how/where), as well as which ones you are not going to integrate into your project
7.
Review the lessons learned throughout the project life cycle in order to use them at the appropriate moment
Have all stakeholders who have an interest in our project been identified?
Have both internal (e.g. databases, similar projects) and external sources been used in the
search for lessons learned?
Have the owners (sources) of lessons learned been interviewed to gather more information?
Have decisions been made based on the lessons learned?
QUESTIONS
TIPS FOR USE
1 Search for useful experiences (good and bad), search for potential pitfalls in the project
2 Search for subject-related l (content of the project) and project management-related (schedule, organization, etc) lessons learned.
3 The lessons learned should describe what needs to be done/ not done, and the reason why it
should be done or not done.
4 Use easy tools like the Internet and Holcim Portal for quick search
5 Keep the work practical and straightforward; in most cases there will not be enough time for a
very detailed study
6 If the team members dont remember the content of lessons learned from previous projects,
use the pending list to create an action and a responsible to search for lessons learned.
7 Contact subject matter experts (SMEs) within Group Companies and HGRS to identify similar
projects.
Cross-reference
The search for lessons learned provides input
to all other aspects of the project definition, as
well as the other phases of the project. It is not
a one-time event; it should be a continuous
activity throughout the project life cycle
PMA Reference Book
3.1.4
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
The objective of this step is to agree on the product or service to be delivered by the project
team, in order to achieve the expected business objectives. Creating a SMART product (Specific, Measurable, Attainable, Relevant, situated in Time) makes the project easier to control at
a later stage. Finally, the criteria to measure the overall project success should be defined. A
detailed, complete list of deliverables and specifications is crucial for successful project completion
1.
Together with the Project Client and Team, recall the project mission (defined in the assessment of the initial situation)
2.
Describe the product or service the project team needs to deliver to achieve this mission,
making the defined product or service SMART
3.
Describe quality specifications, time and / or cost constraints as these will have an impact
on the teams capability to deliver the product or service
4.
Identify, document and validate all assumptions made during the definition and planning
phases of the project as well as the special conditions required by the team
5.
Present the definition of the product or service to important stakeholders (if Client agrees)
and incorporate their requirements
6.
Agree on the final version of the definition of the product or services with the Client
7.
Define and agree on the overall project success KPI
Do the Client and project team have a clear and common understanding on the deliverables of the project?
Are the products or services defined in a SMART manner?
REVIEW
Do the defined deliverables contribute to the achievement of project objectives?
QUESTIONS
Have all assumptions and/or special conditions been understood and accepted by the Client and project team?
Do the Client and the project team agree on the criteria to measure project success (OPS)?
TIPS FOR USE
1 Solve!, Holcim systematic problem solving process, can help the team identify the most effective
products/services to address the project root causes.
2 The Work Breakdown Structure (WBS) technique can be used to decompose the project deliverables into smaller, more manageable components.
3 It is very important to agree on what is part of the deliverables, and what is NOT part of the deliverables or what is excluded (in and out of scope)
4 Involve experienced personnel to verify all assumptions made by the Client and the team
5 Have a good understanding about how results will be measured. Overall Project Success (OPS)
is about project management success (completing the project within the expected cost, time and
quality) as well as project success (achieving business objectives).
6 Some Capex Projects in Holcim use an Investment Scorecard, which describes the business
objectives (KPIs or project drivers) of the project. This can be used or referred to in the OPS
7 When defining the product or service, include elements that will ensure sustainability of the
product/service after the project end date.
Cross-reference
The definition of the product or service provides input for:
- Outline of the project organization (3.1.6 page 17)
- Definition of the milestone schedule (3. 1.5 page 16)
- Estimation of the projects costs (3.1.7 page 18)
- Agreement with the Client (3.1.9 page 20)
- Hand-over of the project (3.4.1 page 31)
- Final report (3.4.2 page 32)
PMA Reference Book
3.1.5
Milestone schedule
OBJECTIVE
AND BENEFITS
The objective of this step is to define the milestones that need to be achieved in order to deliver the agreed product or service. Once the product or service is defined, the milestone
schedule shows how it will be accomplished. Identifying intermediate results helps in monitoring the projects progress. SMART milestones (specific, measurable, attainable, relevant,
situated on time) make the project easier to control at any stage. The definition of the milestones allows a first estimation of resources needed for the project. Defining the milestones
makes it possible to set up a more detailed project schedule and activity list in the succeeding phases of the project.
1. Define milestones and make sure these are SMART.

2. Discuss and agree on the milestones with the Client.
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3. Make the due dates of the milestones visible by putting them into a milestone schedule.
4. Discuss and agree on the time frames needed with the project team.
5. Evaluate the resources estimated and the resources available.
6. Discuss and agree the milestone schedule with the Client
REVIEW
QUESTIONS
Does the milestone schedule clearly reflect the sequence of major achievements
throughout the project life?
Do the defined milestones enable the Client to monitor progress against time?
Are the milestones fully understood and agreed on by the Client and project team?
Are the milestones described as the start or the end of a number of tasks?
TIPS FOR USE
1 Make sure the milestones are built up logically to ensure delivery of the defined product or
service
2 Some projects have to be planned based on a given completion date (backward planning).
Fix the project completion date, and then plan milestones and due dates from the end to the
beginning of the project.
3 The duration between milestones can vary from days to months. The level of detail depends
on the span of control needed from the perspective of the Steering Group (including the Client)
and the project team.
4 Only outline the milestone schedule. Do not go into details at this stage, as this will lead to
detailed discussions at a stage where general understanding between the Client and the project team is the prime objective.
5 Check if there are deliverables to be handed over after the completion of each milestone.
6 Depending on the nature of the project, sometimes the tasks (Phase II, step 2) need to be
defined before the milestones become apparent.
Cross-reference
The milestones & the milestone schedule are input for the:
- Agreement with the Client (3.1.9, page 20)
- Project schedule (3.2,2 page 22)
PMA Reference Book
3.1.6
Outline Project Organization
OBJECTIVE
The objective of this step is to create the project organizational chart, defining the roles and responsibilities of the persons involved in the project. Additionally, the document flow, and meeting schedule should be agreed on, to facilitate coordination among team members and Client/Steering Group. A clear definition of responsibilities and authority reduces conflicts and
helps collaboration among people involved in the project.
AND
BENEFITS
PROCEDURE
FOR USE
1.
Check project organizations of similar projects.
2.
Consider skills needed to perform different responsibilities/tasks
3.
Prepare an initial organizational chart including (suggested) names (names of project manager and Steering Group must be known)
4.
Agree on roles of each individual and describe their responsibilities & authorities
5.
State the time dedication of each team member; consider other commitments, planned holidays, training, etc.
6.
Obtain the agreement of superiors on each team members time dedication in the project.
7.
Discuss the organizational chart with the Client and the project team
8.
Outline, discuss and agree on the document flow and meeting schedule. Clarify how interactions with the Steering Group (including Client) will take place.
Have all roles of team members (including responsibilities, time dedication and authorities)
been defined and agreed within the team?
Have all roles of team members (including responsibilities, time dedication and authorities)
REVIEW
QUESTIONS
been agreed with all functional managers?
Are all project meetings and documents defined and agreed within the team and the Client?
TIPS FOR USE
At this stage not all of the project team members may be identified, but the skills needed for the
project have to be known and understood.
2 Organization charts, tables with roles and responsibilities and RACI charts are complementary
tools to enable the Project Manager that enable the project manager to agree on the project organization
3 Take the time to explain to the Client and Steering Group members their responsibilities to the
project.
4 The role of a person in a project may be very different from his/her role in his/her organization.
Therefore its important to agree on this with the Client.
5 Ensure that all team members are aware of the level of commitment required in the project.
6 Fix the dates for the Steering Group meetings in advance (use various means of communication to ensure that the Steering Group will come together to act on their responsibilities)
7 Full understanding on the document and meeting schedule prevents future misunderstandings
Cross-reference
The outline of the project organization provides input for the:
- Definition of the milestone schedule (3.1.5 page 16)
- Estimation of projects costs & benefits (3.1.7 page 18)
- Project team set-up (3.2.1 page 21)
PMA Reference Book
3.1.7
Estimation of Project Costs & Benefits
OBJECTIVE
AND
BENEFITS
The objective of this step is to estimate project costs in order to compare this with the Clients
cost constraint (step 1.4). It gives a first insight into the feasibility of the project taking costs and
benefits into consideration. Calculating project returns helps the Project Client and Manager
get approval to proceed with the project.
1. Agree on the resources required to complete the project.
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2. Make an estimate of all costs like material (varies from building materials to communication
materials, etc.), expenses (travelling, etc.), third party assistance (subcontractors), etc.
3. Estimate the level of accuracy of each estimate, and establish a contingency shall there be
risks in the estimate.
4. Discuss and agree on the costs within the project team
5. Identify and quantify the benefits of the project to calculate payback time, NPV, etc.
6. Identify non-monetary benefits of the project
Have the estimated project costs been broken down according to the main cost compo-
REVIEW
QUESTIONS
nents?
Have the estimated benefits and payback time been considered?

Have non-monetary benefits been discussed and identified?
TIPS FOR USE
1 All costs should be clearly related to the definition of the product or service. When estimating
costs of the project, the benefits should also be taken into account
2 The more details available, the higher the accuracy of the project cost estimates
3 Pay attention to specific tools for calculating project costs to be used within different types of
projects (e.g. CAPEX Valuation Tool CVT, Investment Cost Presentation ICP, etc.)
4 The costs associated with the initial phase (Project definition) of a project can be lost if the project is not approved (and will have to be expensed). Therefore it is advisable to explicitly state the
costs required to reach project approval.
5 Document and make sure the Client is aware of all assumptions made when estimating costs
to avoid surprises
6 Cost estimates can be based on different techniques (analogous estimating, parametric estimating, bottom-up estimating, etc).
7 The accuracy of cost items reflects the level of confidence on the estimates. Contingency costs
should be based on the accuracy of the cost items as well as the risk in each estimate.
8 Make sure that the Client agrees on the costs at this stage, to avoid discussions that may interfere with the project delivery at a later date.
9 A further cost evaluation shall be made in the planning phase (Phase II, step 4, Project budget).
Cross-reference
Project costs are input for:
- Project budget (3.2.4 page 24)
PMA Reference Book
3.1.8
Risk Identification & Evaluation (Countermeasures)
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
The first objective is to consider the risks that may influence the project. Risks typically have a
negative effect on a project; however there could be risks with a positive effect (opportunities).
At this early stage of the project, there is still a degree of freedom to modify project parameters
in order to minimize the risks. The second objective is to establish the framework for systematic
risk management throughout the project. This allows an integration of the Holcim standardized
approach to business risk management in order to align views on risk profile and mitigating actions.
1. Review the product, specifications, assumptions, stakeholders, milestones, costs and organization to identify possible risks that may lead to unsuccessful completion of the project, Also
look at risks that occurred in past projects (lessons learned). Finally, consider doing a brainstorm to complete the risk identification.
2. Quantify the risks according to their impact on the project and their likelihood of occurrence
(probability that the risk will happen). Prepare a risk map if useful.
3. Focus on the high severity risks; these are the ones with a high significance and a high likelihood. The risk threshold should be defined by the project team and Client.
4. For each of the identified risks with a high severity, come up with a proposed countermeasure.
5. Assign persons responsible and due dates to tackle the proposed countermeasures
Have the major risks and opportunities been identified?
REVIEW
QUESTIONS
Have all project team members considered possible risks within their area of responsibility?
Have countermeasures been agreed to treat high severity risks or to realize the opportunities?
Has a responsible been assigned for each proposed countermeasure?

Has a responsible been assigned for each proposed countermeasure?
Has the Client been involved in the risk analysis?
TIPS FOR USE
1 See appendix for details on Risk Management.

2 For major projects (like a large CAPEX-project) also consult Business Risk Management (BRM)
in order to fulfill specific risk management requirements
3 Organize a workshop (with the Client if feasible) on risk identification and evaluation
4 If major risks are identified, be sure that these are communicated to the Client
5 Learn from past projects: the failures of the past are the best source of risk control information.
6 Possible risk countermeasures are: for high severity risk: avoid (eliminate) or transfer (e.g. to a
supplier); for medium severity: mitigate (reduce likelihood or impact); for low severity risks: accept,
including a contingency (in terms of cost, time, resources, etc). See PMBoK
7 For justifying certain Capex projects, there is an evaluation of the risk level of NOT doing the
project (ProMap risk matrices).
Cross-reference
Risk identification and evaluation provide input for:
- Search for lessons learned (3.1.3 page 13)
- Project schedule (3.2.2, page Error! Bookmark not
defined.)
- Activity list (3.3.1 page 26)
- Project review (3.3.2 page 27)
- Client/Steering Group review (3.3.5 page 30)
PMA Reference Book
3.1.9
OBJECTIVE
AND
BENEFITS
The objective of this step is to get the Clients formal approval to launch the project. This approval is based on all aspects of the project definition. The sign-off by the Client ensures
his/her full commitment to the definition made. This agreement prevents misunderstandings
(between the project team and the Client) on the project contents. The agreement also demonstrates shared vision among the team, the Client and senior/top management.
1. Be sure that all pending items in phase 1 are listed down.
PROCEDURE
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2. Prepare the project approval form (summary of previous steps)

3. Present the project approval form to the Steering Group
4. Ensure that a formal sign-off is given by the Client
5. If no sign-off is given redo the necessary parts of the Project Definition
Have the Client and project team agreed on the outcomes of each step in phase I?
REVIEW
QUESTIONS
Have all steps of phase I been completed before signing the agreement?
Has the agreement been signed by both the project manager and the Client?
TIPS FOR USE
1 Talking to the Client, always be clear about the contents and possible pitfalls in the agreement
in order to prevent unnecessary discussions at a later stage
2 This agreement is not a legal document. However, in some projects there can also be a formal
agreement in terms of legal contract.
3 Be aware that you need the Clients agreement to finalize the planning phase of the project.
You may start planning before agreement is obtained knowing that some changes may be needed
on the plan.
4 It is possible to have more than one project definition meeting with the Client before an agreement is reached.
Cross-reference
The agreement with the Client enables further work
in the next phase - Project planning (3.2, page 21).
PMA Reference Book
3.2
3.2.1
Steps within Project Planning

Project Team Set-up
OBJECTIVE
The first objective of this step is to complete the project organization as outlined during the project definition (see 3.1.6, page 17), with all the names of the people involved including the
roles, responsibilities and authorities. The second objective is to start the team building process; an important part of this is to create awareness on each team members tendency to contribute to the team as well as how to relate with other team members.
AND
BENEFITS
1. Define additional persons who will be part of the team: complete the roles and responsibilities template (following the procedure)
PROCEDURE
FOR USE
2. Ensure that new team members understand the project definition as well as their specific
roles in the team.
3. Explain the importance of having an efficient team, and of starting the team building process
4. Use available in the company personality tests (eg., team roles of Belbin, conflictology,
etc). Ask your local human resources functions to support you in assessments and result
interpretation.
5. Prepare responsibility assignment matrix (RACI-based). It is a grid to show which project
resources as well as stakeholders are assigned to what project activity and in what role.
6. Agree on team norms to speed up team building process.
REVIEW
QUESTIONS
Have all project team members been made aware of the project definition and their role in
it?
Is responsibility assignment matrix prepared and agreed on by the team and relevant stakeholders?
Is the entire project aware of the roles and authorities individually and as a team?
Have team norms been discussed and agreed within the team?
TIPS FOR USE
Ensure that all team members have a clear understanding of individual preferences and areas of
support required.
2 Identify strengths of the project team.
3 Effective team work is key to project success. Teams go through phases known as forming, storming, norming, performing, adjourning; achieving the performing phase quick is important
4 Team building exercises help team members get to know each other, learn how to work together,
and set up team rules and norms much faster and with far less conflicts. They are recommended when
team members have limited or no experience working together.
5 Project Management (PMA) training ensures consistency of the approach among all team members
(especially for larger projects).
6 If appropriate, invite other employees during certain tasks in the project, to balance the team.
7 For further information about available personality tests, please, consult your HR.
Cross-reference
The project team set-up provides input for:
- Outline project organization (3.1.6 page 17)
- Risk identification and evaluation (3.1.8 page 20)
- Project kick-off (3.2.5 page 25)
PMA Reference Book
3.2.2
Project Schedule
OBJECTIVE
AND
BENEFITS
The objective of this step is to detail the agreed milestone schedule by describing the tasks
needed to reach the milestones. The project schedule provides the team with a control tool that
shows all the tasks to be done including their interdependencies. Understanding which tasks
are in the critical path (= sequence of tasks that determines the earliest possible finish date of
the project) enables a more focused project control during the realization phase.
1. Define the tasks needed to reach the agreed milestones
PROCEDURE
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2. Assign a responsible person for each task.

3. Estimate the duration of each task
4. Define links between tasks
5. Determine the end date of each task and draw a bar (or Gantt) chart
6. Determine the critical path to check whether additional measures are needed to finish the
project on time
NOTE: You may include major risk countermeasures and communication actions in the project
schedule
Are all tasks in the project defined in a clear and concise manner?
REVIEW
QUESTIONS
Are all the tasks needed to achieve the milestones agreed upon with person responsible to get
them done?
Have all interdependencies, durations and due dates been agreed by the project team?
Has the schedule been discussed with external parties (if any) to incorporate delivery times
and external constraints?
Have all pending actions in phase I (search for lessons learned, risks, etc.) been included in the project schedule?
Are all team members aware of the critical path of the project?
Have all steps from phases IV and V been included in the project schedule?
TIPS FOR USE
1 Ensure that there is sufficient detail in the schedule to control the overall project and the interdependencies of tasks. It is to be noted that going into too much detail may lead to a loss of overall control. Detailed control is covered through the use of activity lists (phase III)
2 Ensure that all team members are fully aware of, and have agreed to, the tasks they must perform
3 Check the work load of each team member to prevent overloading; if possible, assign non-critical
tasks during periods of low work load level.
4 Consider other constraints e.g. plant shutdowns, equipment delivery times, etc when doing the
schedule.
5 Use of available scheduling tools (Microsoft Project, Primavera and SAP-PS/PPM Projects) is encouraged, but make sure your team members and stakeholders can view your schedule.
Cross-reference
The project schedule provides input for:
- Project budget (3.2.4, page 24)
- Risk identification and evaluation (3.1.8 page 19)
- Project kick-off (3.2.5, page 25)
- Activity lists (3.3.1, page 26)
PMA Reference Book
3.2.3
Communication Plan
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
The objective of the communication plan is to ensure that appropriate communication with key
stakeholders takes place at the right times, in order to proactively manage stakeholders expectations. This will secure their involvement and continuous buy-in towards the project and avoid
unpleasant surprises in the future due to a lack of communication. Another objective is to define a contact list to be shared by all team members in order to facilitate communication within
team and with stakeholders
1. Retrieve the stakeholder analysis from phase I and highlight those with whom the project
team will communicate during the project life.
2. Define what has to be communicated to them.
3. Define how to communicate with those stakeholders taking into consideration the different
tools/media available.
4. Assign a person responsible for communication action and plan the frequency (or dates)
when communication will be carried out.
5. Establish a contact list by filling in the contact list template.
REVIEW
Have communication actions been defined for the key stakeholders (high or medium level
of interest and/or influence)?
Will the subject of communication (what to communicate) and the manner of communicating (how to communicate) effectively engage the stakeholders?
Does the contact list include information on all team members and stakeholders of the project?
QUESTIONS
TIPS FOR USE
1 Although face to face communication is the most effective medium, the use of other technologies
(video and phone conference) will ensure exchange of information and knowledge transfer
2 Consider using creative tools/media for communication (presentations, special newsletters, etc.)
when planning communication to stakeholders to increase the span of attention.
3 Explain to the team the importance of communicating any changes in contact information to keep
the list updated. The updated contact list must be accessible to all team members
4 Look into communication skills of the team: The Human Resources department can be contacted
to provide tips on communication skills.
Cross-reference
The communication plan provides input for:
- Project schedule (3.2.2, page 22)
- Project kick-off (3.2.5, page 25)
- Activity list (3.3.1, page 26)
- Project review (3.3.2, page 27)
- Steering Group review (inc. Client) (3.3.5, page 30)
PMA Reference Book
3.2.4
Project Budget
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
The objective of this step is to plan in detail the costs to be incurred during the project and when
these costs will occur. It is an aggregation of the estimated cost of the individual activities and
work The project budget enables the project team to compare actual costs versus the planned
costs (cost baseline) and take action if needed
1.
Find out if budgeting procedures exist in your company. If these do not exist, use the template provided.
2.
Use the project schedule to break down the tasks into the various cost components needed
to execute them
3.
Define when all costs will be incurred
4.
Use this project budget as a control tool during project realization
Is the project budget aligned with the cost estimation in phase I?
Does the project budget show in detail all costs to be incurred during the project life cycle?
Is the budget set up in a way that allows a timely control of costs?
Are costs for contingency added into the budget?
Does the project budget use all information from the product definition and project schedule?
TIPS FOR USE
1 Use the company budget tools or the standard PMA template

2 Ensure that the budget is set up in such a way that regular control during the project realization is
possible
3 Discuss the budget with the project team: since this increases cost awareness and supports better
cost management within the whole team
4 If you have sub-projects within a large project, consider having a budget for each sub-project
5 Cost requires expert input. Ask people who will be doing the work about their charges for time and
materials
6 In case you define contingency actions, budget for the costs of these actions.
7 Preparing a cash flow projection will help you determine the funding requirements for your project.
Cross-reference
The project budget provides input for:
- Project kick-off (3.2.5 page 25)
PMA Reference Book
3.2.5
Project Kick-off
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
The objective of the project kick-off is to conclude the planning phase and to ensure that all aspects are in place to start the realization phase. The kick-off meeting also helps in the process
of team building and maximizes the momentum to start the realization by creating common
commitment. Being one team with a shared understanding and commitment is especially important when the project faces problems during the realization phase
1.
Invite the Project team and Client (and SG members, stakeholders if appropriate) to the
kick-off meeting.
2.
During the meeting, get the Client to revisit key elements of the project with the team
3.
Review and agree on the planning documents (project team setup, project schedule,
communication plan, project budget)
4.
Review the team norms/ground rules
5.
If needed, fine tune the project schedule, communication plan and risks identification and
countermeasures
6.
Update and distribute the documents with the agreed changes (if any)
Have all steps in phases I and II been completed before the kick off meeting?
Are the project team and Client (and/or Steering group and stakeholders) present during
the kick off meeting?
Are the participants committed to the project and agree to their roles and responsibilities in
the project?
TIPS FOR USE
1 Maximum involvement will ensure that all aspects of the planning will receive full commitment from
the project team
2 Client and/or Steering Group attendance will support the realization of the project (active leadership
from Top Management);
3 Send the documentation in advance to all participants to increase the effectiveness of the meeting
4 Reviewing the ground rules/norms of the team helps to intensify teamwork during the realization
phase
5 In some cases, the approval of the project (agreement with the client, Phase I step 9) happens only
after this phase is also concluded.
Comment: The kick off meeting should create the right momentum to start realizing the product or service.
PMA Reference Book
3.3 Steps within Project Realization

3.3.1
Activity List
OBJECTIVE
The objective of this step is to establish the sequence of activities required to complete the
tasks set in the project schedule. .A detailed definition of activities and a clear assignment to
responsible persons will ensure proper coordination and control. The activity list is a time management tool for the project.
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
1.
Define the period to cover (weeks)
2.
Break down the tasks from the project schedule into activities (including risk monitoring
and communication plan).
3.
Agree on a responsible person, effective time needed to complete the activity and planned
due date.
4.
Review and adjust the activity lists during the project review meeting
5.
After completion of activities, record actual time spent, actual due date and comments if
needed.
6.
Analyze deviations between the plan and actual durations and due dates, and agree on
actions.
Have the project schedule tasks been broken down into detailed activities at the lowest
useful level for the upcoming period?
Are activities issues proactively addressed to avoid project delays?
Have actual hours spent and actual due dates been recorded to allow for review and
reporting?
Does the project manager support the team members actively when issues arise during
the planning or execution of activities?
TIPS FOR USE
1
2
3
4
The period covered by an activity list depends on the span of control needed in the project
Short interval control through activity lists helps to identify possible problems at an early stage
Remember the saying the devil is in the detail. Dont go into more detail than is really needed.
The activity list as described above is for the project activities. Nevertheless, it can also be used
for personal/other activities.
Cross-reference
The activity list provides input for project review (3.3.1 page 26)
PMA Reference Book
3.3.2
Project Review (within Team)
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
The objective of this step is to review all activities with the team in order to have proactive control
of project progress and to identify and address issues encountered. This requires a common understanding of the achievements in terms of costs, time spent and the quality of deliverables. Issues need to be resolved by making a decision and/or defining an action. Project review is the
main control system for the project manager and the team.
1.
Make sure all team members are prepared for the project review meeting (follow up on actions, identify issues, etc.)
2.
During the meeting, analyze performance, on time, cost and deliverables.
3.
Review and update the plan for the coming period (schedule of the succeeding few weeks)
4.
Review risks and countermeasures and include new ones as needed.
5.
Review communication plan and add/modify as needed.
6.
Use the change request form to address changes.
7.
Review team dynamics (norms, leadership)
8.
Resolve issues, review and update the action and decision log.
9.
Distribute the action and decision log to the agreed recipients within one day of the meeting.
10. Capture knowledge as it occurs (see next step) as part of the review meeting.
REVIEW
QUESTIONS
Are regular project review meetings carried out as agreed in the outline project organization?
Are the project review meetings properly prepared, (agenda, invitation, etc.)?
Is the project status reviewed and all review meeting documentation (schedule, budget, approved changes, action & decision log, etc.) updated to reflect current status?
Is the project team making decisions proactively in to avoid any cost/time/quality deviations?
Are communication actions as well as risk analysis and countermeasures regularly reviewed
during project review meetings?
Are requested changes analyzed and agreed on formally with the client?
TIPS FOR USE
1 Ensure that all team members regard the review as a means to support attainment of project mission
2 Developing interpersonal skills (inc. conflict management) help to increase productivity
3 Ensure that the project schedule and budget are updated; agree on any corrective actions needed
to keep the project within the agreed cost, time and quality specifications.
4 If persons are not present during the meeting, ensure that actions assigned are communicated to them.
5 Ensure that the action and decision log is updated each time an action or decision is agreed upon
6 Monitor the key project risks as part of the project review (revise the risks defined in phase I)
7 Ensure that the change request forms are used and approved by appropriate people
8 Change request include corrective and preventive actions, defects repair and updates
Cross-reference
The project review meeting (within the team) provides input for:
- Capture of knowledge (3.3.3 page 28)
- Project status report (3.3.4 page 29)
PMA Reference Book
3.3.3
Capture of Knowledge
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
The objective of this step is to capture knowledge as it occurs. Knowledge can be captured after evaluating the progress of the project regarding budget, time and quality (in regular After
Action Reviews). Capturing knowledge immediately after the learning takes place ensures that
all important elements of the knowledge are understood. Furthermore, it makes Phase V of the
project (evaluation & transfer) much easier to conduct. This leads to a more efficient transfer of
knowledge
1.
Hold regular After Action Reviews (AAR) of the project. This can be done as part of or independently of the project review meeting.
2.
In the AARs, discuss what went well and what did not go so well. Analyze reason for the
deviations/success and agree on the lessons learned: what should be done next time so
that success can be repeated and deviations can be avoided
3.
Capture any lessons learned as soon as they occur.
4.
Using the template, record the lessons learned from the last period
5.
Decide, depending on the importance and impact of the lesson learned, whether
knowledge should be transferred immediately (through assigning an action for it during the
review meeting) or logged for review in phase V of the project.
Are project evaluations (or AARs) carried out regularly to correct deviations and capture
knowledge?
Are all lessons learned clearly defined and captured in order to be reviewed in phase V?
If appropriate, are the key lessons learned transferred before the end of the project?
Tips for use
1 Doing regular After Action Review (AAR) after completing some of the larger and more important
tasks/milestones will help you not only to identify lessons learned but also to set the project on the
right track. For information on the AAR please refer to paragraph (3.5.1, page 56)
2 Openness regarding mistakes is a prerequisite for improvement and for the capture and transfer of
lessons learned
3 Knowing how quickly the lessons learned have to be distributed depends on certain criteria, e.g.
safety, impact on costs etc.
Cross-reference
Capture of knowledge provides input for the learning summary
(3.5.2 page 35)
PMA Reference Book
3.3.4
OBJECTIVE
The objective of this step is to report to the Client (including the Steering Group) on the status
of the project as agreed upon in the outline project organization (documents and meetings). It
provides the Client with the information to actively work on his/her role. The project status report ensures proper control for the project team, Client and Steering Group.
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
1.
Select the period to report on.
2.
Collect information on the quality of the deliverables, costs, time schedule, key issues and
actions to resolve, and areas where support from the Steering Group is needed, etc.
3.
Prioritize and summarize the project key information in the project status report.
4.
Use a traffic light colour system to indicate the status of the projects
5.
Send the status report to agreed recipients
Does the project status report incorporate the outcomes of the project review meeting?
Does the project status report provide the right information for the Client and Steering
Group to steer the project (review progress and provide support)?
Are the project status reports regularly distributed among team members/Steering Group?
QUESTIONS
TIPS FOR USE
The contents of the status report will be derived from the project review meeting. Ensure that the
Client gets the latest information on the status of the project.
2 A status report should be limited to 1 page. In case you have a lot of information to report on, prioritize it to fit in a one-page report. Additional information can be provided in appendices.
3 Making status reports available to the project team helps in sharing a common understanding about
the project
Hand in the status report at the agreed times defined in phase I, step 6, outline project organization.
Cross-reference
The project status report provides input for the Steering Group review
(including Client) (3.3.5 page 30)
PMA Reference Book
3.3.5
Client / Steering Group Review
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
The objective of this step is to formally review project progress together with the Client/Steering
Group as agreed in the outline project organization (documents and meetings). Regular reviews with the Steering Group ensure that proper attention is given to the project environment
and its business context.
1.
Prepare the agenda and contents of the meeting (include review of risks and communication plan)
2.
Send (if any) the change request forms to be discussed during the meeting
3.
If needed, pre-present to the individual Steering Group members and adapt contents on
the basis of feedback
4.
During the meeting, review the status of the project, risks and countermeasures and communication plan.
5.
Log and summarize all actions and decisions agreed upon during the meeting
6.
Distribute the action and decision log within a day of the meeting
Are the meeting agenda and latest status report sent out in advance to the Client /all SG
members?
Are all relevant issues discussed during the Client/SG meeting and corresponding actions
& decisions recorded?
Are the project communication plan and risk analysis reviewed and updated with the Client/SG members?
Are change requests being discussed and agreed with the Client?
QUESTIONS
TIPS FOR USE
1 Early planning and communication of Client/Steering Group meetings to the Client and all SG
members ensures that these meetings are efficient and effective
2 Topics outside the scope of the meeting should be set aside and addressed in a separate meeting.
3 Do not be over-optimistic with regard to the number of topics that can be handled and the time allocated for each topic.
4 Since it might be difficult to arrange a meeting with the Client and all Steering Group members
physically present, arrange meetings in advance and make use of other communication media, e.g.
telephone conferences, if needed
5 Including a review of the risk evaluation and the communication plan in the agenda ensures that
these aspects are being managed actively at the level of the Client/SG
Comment: The review of progress with the Steering Group is used to identify whether changes are needed in project
definition. At the end of the realization phase, the Client / Steering Group will decide whether the hand-over can
commence
PMA Reference Book
3.4 Steps within Project Completion

3.4.1
Hand-over
OBJECTIVE
The objective of the hand-over step is to ensure that explicit acceptance of the product or service is made by the Client. Further actions to complete the project are agreed between the Client and the project team. The hand-over process clearly signals that the responsibility is
changing from the project team to the Client.
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
1.
Depending on the project, organize an acceptance test (e.g. performance test, user acceptance test, etc.) or review of the product or service delivered to the Client
2.
Together with the Client, agree on all actions resulting from the test to ensure that the
product or service is compliant with the agreed project definition
3.
Also agree on further actions to be taken to ensure proper project completion
Is the project hand-over conducted with the Client and relevant Steering Group members?
Are objectives and deliverables from the project definition compared to the actual project
results and delivered products?
Have all pending hand-over actions been agreed to ensure full satisfaction of the Client?
Have the dates for the closing meeting and/or phase V workshop been agreed with all participants?
TIPS FOR USE
Dont allow the hand-over to be regarded as a clean up process (to quickly end the project and
leave the Client with lots of open issues). In case of delay, the delivery date has to be re-negotiated
with the Client/Steering Group as soon as possible
2 Make the hand-over a structured transition to achieve future responsibility for use and maintenance
of the product or service delivered
3 Make all completion dates for hand-over actions realistic and make sure that the actions are being
reviewed by the Client and endusers
4 In Capex projects, this is the so-called Commissioning phase, and it could consist of a series of
tests (start up, cold commissioning, hot commissioning and provisional take over, etc.).
Cross-reference
The hand-over provides input for the:
- Closing meeting (3.4.3 page 33)
PMA Reference Book
3.4.2
Final Report
OBJECTIVE
The objective of the final report is to summarize the delivered results, their quality, costs and
time spent and compare, these with the agreement made at the definition phase of the project.
The report serves two purposes: first, it provides the Client and the Steering Group with a
summary of the project at its end state; secondly, it serves as a quick reference for other projects.
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
1.
Define the basic structure of the report including: objectives, definition of product or service, the project schedule, and the cost as agreed with the Client.
2.
Describe and compare the actual outcome in terms of the above mentioned aspects
3.
Give a short explanation of any deviations
4.
Review and agree on the report with the Steering Group (including Client)
5.
Include the learning summary (phase V) as part of the Final Report
Is the structure of the final report agreed on by the Client and the project team?
Does the final report reflect the complete summary of the overall project?
Is the final report sent to all relevant persons for their review?
TIPS FOR USE
Ensure that any deviations have been reviewed with the Client and appropriate stakeholders (if
needed) before inclusion in the final report
2 If amendments have to be made after the presentation of the final report, these must be documented
and dated
3 For Capex projects, make sure you review the original agreement made in the Capex request form
and/or the Investment scorecard, to analyze whether the project has been successful or not.
4 Including the learning summary into the final report will allow this document to be a complete reference for future projects.
Cross-reference
The final report provides input for the closing meeting (3.4.3 page 33)
PMA Reference Book
3.4.3
Closing Meeting
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
The objective of the closing meeting is to formally complete the project and to officially release
the project team from any further responsibility to deliver. This is also the last meeting with the
Steering Group. In this meeting the Client gives the final approval of the project. The meeting
normally has an informal character to celebrate the successful completion of the project.
1.
Prepare the agenda and contents of the meeting and send them to the attendees.
2.
Calculate the overall project success (OPS)
3.
During the meeting, review completion of hand-over actions and get the approval (by
means of signature) of the project from your Client
4.
Decide on further communication and marketing of the results
5.
Ensure that the project is formally ended and that the project team is released from further
responsibilities to deliver
6.
Communicate the responsibility of the project team and the Client to complete the project
evaluation and transfer (phase V)
Has the meeting agenda been sent out to all participants in advance?
Have the hand-over actions been completed before the meeting date?
Did the Client and the project manager sign-off the project approval?
Has the Client taken full ownership of the product and formally released the project team
members from further responsibility to deliver?
TIPS FOR USE
1 Review the contents of the meeting, agenda, etc. with the Client prior to the meeting in order to revise contents if needed.
2 Consider including the element of social event as part of the closing meeting to recognize and celebrate success.
3 Depending on the magnitude of the project, invite important guests to witness the project results.
4 Ensure the continuity of persons if a follow-up project needs to be defined
Cross-reference
The closing meeting marks the formal completion of the project and
gives way to the After Action Review (3.5.1 page 34)
PMA Reference Book
3.5 Steps within Project Evaluation and Transfer

3.5.1
OBJECTIVE
The objective of the After Action Review in this phase of the project is to systematically capture
the experiences, focusing on performance of the team and enabling participants to discover for
themselves what happened, why it happened and how to sustain strengths and improve on
weaknesses. Capturing these experiences helps to improve future projects by improving not
only collective performance (better project results) but also individual performance. AARs may
also be conducted after critical project phases or milestones to enable continuous fine tuning
and improvement.
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
1.
Select participants for the After Action Review
2.
Check the need to for an external or independent facilitator to support the After Action Review (formal AAR)
3.
Conduct a structured AAR following the terms of reference (template) and the Guideline on
After Action Review to capture the lessons learned
4.
Inform people how information from the AAR will be will be handled
Are all relevant participants (including the Client) attending the AAR of the project?
Is the facilitator of the AAR acting in a neutral manner (balancing positive and improvement points)?
Are key topics pre-selected and evaluated during the AAR?
Have the key lessons learned been identified for the benefit of future project teams?
Have the outcomes of the AAR been recorded?
TIPS FOR USE
1
2
3
4
5
6
Distinguish between must act on this aspect and nice-to-know aspects

Organize the After Action Review immediately after the completion of the project.
Ensure that everybody participates by asking open-ended questions.
Create a safe climate for people to feel free to make contributions
Use of questionnaires may help prepare for the meeting to gather information
Focus on learning points, problems and solutions
Cross-reference
The After Action Review provides input for the learning summary (3.5.2 page 35)
PMA Reference Book
3.5.2
Learning Summary
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
The objective of the learning summary is to distill the learning captured during the project. It
takes into account both the outcomes of the After Action Review and the knowledge captured
during the realization phase. It provides a quick insight for future projects that might have to
deal with similar situations. The learning summary can contain both technical and project management aspects. It helps to enable better execution of future projects.
1.
Review lessons learned captured during phase III as well as the outcome of the After Action Review
2.
Decide on the most important lessons learned which can benefit future projects.
3.
Copy and paste the lessons learned and ensure that they are clearly linked to the cause of
the learning
4.
Include the learning summary in the Final Report of the project in order to give context to
the learning.
Are lessons learned (captured during phase III and phase V) evaluated to filter out the
most important learning of the project?
Can lessons learned be traced back to the source for more in-depth understanding?
TIPS FOR USE
1 The learning summary should include key recommendations for future project teams who will be
undertaking similar projects.
2 Putting the learning summary in the Final Report helps other project teams understand the content and context of the knowledge gained.
Cross-reference
The learning summary provides input for
- Knowledge transfer (3.5.3 page 36)
PMA Reference Book
3.5.3
Knowledge Transfer
OBJECTIVE
AND
BENEFITS
PROCEDURE
FOR USE
REVIEW
QUESTIONS
The objectives of this step are to determine who will receive the lessons learned (as agreed
upon in the learning summary), and to define practical actions regarding how the lessons
learned can be transferred. Knowledge transfer is the last step in the process of the project. It
ensures that knowledge is not just available but that it has been transferred in the most pragmatic way.
1.
Upon completion of the learning summary, define who can benefit from the lessons
learned.
2.
Decide on the most effective mechanism to transfer lessons learned within your department/Company/Group
3.
Agree on actions to make the transfer happen, using the Action & Decision Log
4.
Ensure that the Project Manager transfers knowledge
Has the team clearly defined the knowledge to be transferred, to whom, how and by
whom?
Have the lessons been transferred?
TIPS FOR USE
1 Follow the KISS (Keep It Simple and Straightforward) principle

2 Make use of the corporate resources/events to transfer lessons learned worldwide
3 Consider making the final report available (containing the learning summary) as a future reference
for other projects, using the Holcim Portal or any other Holcim wide knowledge-sharing platform.
Comment
The knowledge transfer marks the end of the Project Management Approach (PMA)
GLOSSARY
Holcim PMA Reference Book
4 Glossary
Activity
Elements of work needed to achieve a task. Each
task is broken down into activities. An activity normally has a responsible, an expected duration, and
an expected start and finish date.
Client
Representative of the end users with the authority
to take decisions on behalf of his/her organization
during project phases.
Activity list
Step of the project realization phase where the
tasks are broken down into activities.
Closing meeting
Step of the project completion phase to formally
release the project team from the responsibility to
deliver the defined product or service.

An After Action Review is an end-of-action evaluation (review) for teams and/or persons responsible
and involved in the action to be evaluated. It is used
during phase V; however it can also be used during
other phases.
Communication plan
Step of the project planning phase to describe what
is to be done to provide important stakeholders with
the right information and involve them at the right
time.

Summary of the project definition that has to be
explicitly approved by the Client and the project
manager, in order to proceed with the project.
Contingency reserve
A reserve (e.g. time or money) that allows for an
alternative strategy to be used to ensure project
success if specified risk events occur.
Assessment of initial situation

The first step of the definition phase. In this step,
the root cause for starting the project, the objectives
related to the project and the mission of the project
are defined.
Control
The process of comparing actual performance with
planned performance, analyzing variances, evaluating possible alternatives and taking appropriate
action and/or decisions as needed.
Assumptions
Factor considered true, certain or real for planning purposes. They need to be checked or
validated before approving the project, since
they could pose risks to the project.
Cost
See project cost.
Business Objective
A business result or target to be achieved through
the project. It should be aligned with the long-term
corporate goals as described in the Strategic and
Business Plan and the Operational Road Map
(ORM).
Step of the project realization phase to explicitly
identify and store lessons learned for future use in
Phase V or to enable immediate transfer if required.
Changes
Agreed adaptations to the project content (definition
and planning). Changes to documents as part of the
project planning can be made by the project team.
Changes to documents as part of the project definition have to be made by the Client/Steering Group.
Critical path
The sequence of tasks which determines the earliest date of project completion. The critical path will
usually change as tasks might be completed ahead
of or behind schedule. Although normally calculated
for the entire project, the critical path can also be
determined per milestone.
Definition of product or service
Step of the project definition phase to clearly describe what will be delivered (product / service) to
the Client as a result of the realization phase.
End users
The organization that will make use of the product /
service delivered by the project team.
Estimation of project costs
An approximation of project costs and benefits. This
approximation should always include some indication of accuracy. The level of accuracy improves as
GLOSSARY
the project concept is developed (preliminary, conceptual, feasibility, order of magnitude or definitive)
Final report
Step of the project completion phase to summarize
the comparison between the project definition
agreed upon and the actual product or service, actual costs and degree of schedule compliance. It
also includes hand-over summary, learning summary and further recommendations related to sustainability of the product or service.
Hand-over
Step of the project completion phase used to describe the activities that ensure that the product or
service is accepted by the Client. It is also in this
step that outstanding actions are explicitly agreed
upon between the project team and the Client.
Issue
A point or matter in question, which the project
team has to manage to completion by assigning
actions or making decisions.
Knowledge transfer
Step of the project evaluation and transfer phase to
define the mechanism and actions to ensure that
transfer of the lessons learned to the appropriate
recipients takes place.
Learning summary
Step of the project evaluation and transfer phase to
distil the key lessons learned derived from the After
Action Review and the capture of knowledge.
Lessons learned
New knowledge acquired during the project. It
should describe what to do or avoid to ensure completion of a specific aspect of the project
Milestone
A significant achievement that summarizes the
completion of an important set of tasks or the completion of an important event in a project. It is the
means by which the Client and Steering Group will
monitor progress against plan.
Milestone schedule
A schedule which shows the milestones of the project.
Mission
A statement of what the project team aims to do to
reach the defined objective. Also called scope
statement or team assignment.

Step of the project definition phase. First definition
of the hierarchical set-up of the project including
roles, responsibilities and authorities of the Steering
Group, Client, project manager and identified team
members. It also outlines document flow and meeting schedule.
Performance indicators
Measurable values to visualize the status of the
progress in realizing the product or service.
Phase
A collection of logical steps to achieve properly controlled project progress. Often but not necessarily,
each phase is active at any time.
Problem
A deviation from the expected performance. It is
detected when there is a gap between what is happening (actuals) and what should be happening
(plans).
Product or service
The items that the project team will deliver to the
Client. They are the means by which the business
objectives will be achieved.
Project
A one-time, multi-task job that has clearly defined
starting and ending dates, a specific scope of work
to be performed and a budget to achieve the defined business objectives.
Project budget
Step of the project planning phase to describe the
project costs in detail to allow cost control during
the realization phase
Project charter
A document created before the project definition
phase, that describe the initial understanding of the
client and project manager of the new product or
service to be delivered, including: root causes to
start the project, business objectives, project mission, deliverables, high-level milestone schedule,
high-level cost, high-level risks and required project
team members
Project completion (phase IV)
The fourth phase of the Project Management Approach (PMA) which ensures that the ownership of
the product or service is properly transferred to and
accepted by the end users, so that the project team
can be released from their responsibility to deliver.
GLOSSARY
Project costs
The actual costs incurred by the project team to
realize the product or service and to manage the
project.
Project definition (phase I)
The first phase of the Project Management Approach (PMA), used to build a relationship with the
Client and to gather sufficient information to ensure
an agreement can be reached with the Client.
Project evaluation and transfer (phase V)
The fifth phase of the Project Management Approach (PMA) used to evaluate the way of working
with the Client and the project team and to ensure
that distilled lessons learned are being transferred
to enable future improvements in projects.
Project Failure
Projects that are terminated with or without mutual
consent between the Client and the project team.
Projects that fail do not deliver the expected business objectives and consequently they waste resources.
Project kick off
Step at the end of the project planning phase which
ensures that the project team is fully aligned to
commence the realization phase.
Project life cycle
The collection of the 5 phases defined by the Project Management Approach
Project Management Approach (PMA)
The Holcim Project Management Approach which
defines the principles under which projects within
the responsibility of Holcim management will be
conducted.
Project manager
The person accountable for delivering the agreed
product or service, and responsible for the day-today management of the project.
Project organization
The reporting structure and organizational chart that
details "Roles and Responsibilities".
Project planning (phase II)
The second phase of the Project Management Approach (PMA) to detail the project as outlined during the project definition phase in terms of the tasks
that are to be planned for, the costs involved, as
well as to form the project team and to describe the
way of working during the rest of the project.
Project realization (phase III)

The third phase of the Project Management Approach (PMA) to ensure that delivery takes place in
accordance with the agreement made during the
project definition phase; includes project reviews
within the team and with the Client to properly control and report on progress.
Project review (within the team)
Step of the project realization phase to assess the
status of the project with the project team and to
assign actions and make decisions to address identified issues.
Project schedule
Step of the project planning phase to describe tasks
within the project, together with the associated time
scale in which they are planned to be undertaken.
Project status report
Step of the project realization phase to summarize
and communicate the status of the project performance indicators (cost, time and quality), achievements, plan for the next period issues and corrective actions taken, and support required from the
Steering Group.
Project team
Individuals involved in the execution and the management of the project work
Project team set-up
Step of the project planning phase where the project organization is further outlined and the team
building process is started.
Risk
A risk is an uncertain event or condition that, if it
occurs, could have a:
Negative effect: e.g. partial or complete failure

to achieve the business objectives, overrun of
budgeted cost and time limits, etc
Positive effect: e.g. exceeding targets/business

objectives, lower cost or shorten realization
time, etc
Risk identification and countermeasures
Step of the project definition phase to create a prioritized list of negative (and positive) risks and define
actions to avoid (or exploit), transfer (or share), or
mitigate (or enhance) their potential impact.
Risk owner
Individuals accountable for the management of individual risks (See "Standardized Approach to Risk
Management").
Risk profile
The risk profile comprises the total of all risks with
their significance and likelihood.
GLOSSARY
A risk profile can be graphically represented by a
risk map (individual risks placed in a diagram with
the two axes "Significance" and "Likelihood").
Risk management
Risk management is the sum of all actions taken
with the aim to identify and cope with risks.
Every member of the project organization assigned
to perform a certain task is accountable for managing the risks related to this task.
Root cause
The deepest underlying cause(s) triggering the occurrence of a specific effect.
Schedule
See project schedule.
Step of the project definition phase to incorporate
previous experience into the definition phase.
Standardized approach to risk management
The standardized approach to risk management
comprises the systematic identification of and coping with risks. Its core element is a process consisting of the following steps 1) risk identification, 2)
analysis of risk sources/drivers/influences, 3)
measurement of significance and likelihood, 4)
evaluation of actual and definition of target risk profile (including definition of respective actions), 5)
assurance that risks are managed in order to
achieve target risk profile, and 6) continuous monitoring of development of risk profile and monitoring
of implementation of action plans.
Standardized risk management is the responsibility
of the Steering Group. Individual members of the
Steering Group or of the Project Team are accountable for management and monitoring of individual risks (Risk Owners).
Stakeholders
Internal or externa individuals and / or organizations
(or parts of organizations) who have an interest in
or can be affected by the project. Influential stakeholders provide input for project deliverables.
Step of the project definition phase to identify all
stakeholders and interact with them to determine
their interest in the project and to define measures
to be taken in order to incorporate those interests in
the project (mainly in deliverables).
Steering Group
Individuals representing the end users; they provide
the financial resources and must approve and
agree on project definition, budget, plans and
changes to the project definition.
Step of the project realization phase to assess the
status of the project with the Client and/or Steering
Group, assign actions and make decisions to address identified issues and risks.
Step
A component of a phase. All steps have to be finished to complete the phase of a project.
Task
A task is a cohesive unit of work in a project (one
that is not too big nor too small to be tracked). A
milestone is broken down into tasks. Normally, a
task will be broken down into a series of activities to
enable proper monitoring of progress.
Team norms
Guidelines that the team agrees to follow as it conducts its work. Most newly-organized teams find it
effective to start out with an initial set of norms with
the understanding that these will need to be reviewed and modified frequently. The creation and
adherence to team norms foster not just a successful project outcome, but also a satisfying work experience.
Workflow (meetings and documents)
Set of interrelated meetings and documents to ensure that planning, controlling and reporting during
the project is being dealt with in a structured manner and that any required changes are made to
ensure delivery of the product or service to the Client.
Appendix A
PMA Reference Book
5 Appendix A: How the 5 Phases and the corresponding steps are interrelated
Phase I
Explanation of
who is involved
high
i
n
v
o
l
v
e
m
e
n
t
C
l
i
e
n
t
Phase III
Phase IV
assessment of initial
situation
low
I
n
v
o
l
v
e
m
e
n
t
Phase II
project definition
meeting
with client
hand-over
stakeholder analysis
hand-over
list
definition of product
or service
risk identification and
countermeasures
action and
decision log
Client/
steering group
review meeting
project approval
meeting
Final report
closing
meeting
agreement with
the client
search for lessons
learned
project status
report
after action
review
p
r
o
j
e
c
t
t
e
a
m
Phase V
project team set-up
project definition
meeting
internal
outline project
organization
project schedule
milestone schedule
communication
plan
estimation of project
costs and benefits
4
learning
summary
activity
list
action and
decision log
project budget
project kick off
meeting
project
review meeting
knowledge
transfer
capture of
knowledge
new projects
low
high
Explanation of figures
Explanation of change / update indicators

1
Meeting
Input indicator
2
Document
Change / update indicator

3
Document related
to a meeting
Executed if the steps of the project planning show that the

agreement with the client is incorrect / incomplete
Executed if the steering group (incl.. the client) decides that the
agreement with the client needs to be updated / changed
Executed if the project team decides that one of the steps in
the project planning needs to be updated / changed
Executed if the project team decides that the activity list
needs to be updated / changed
Appendix B
PMA Reference Book
6 Appendix B: Project Risk Management

General
Projects are exposed to risks which typically may lead to the following:
partial or complete failure to attain the objective, i.e. nonachievement of project objectives (qualitative and/or quantitative), or
partial achievement of the defined product or service but not within
budgeted cost and time limits (downside or negative risks), or
missing additional benefits or missing possibilities to lower cost or

shorten realization time (opportunity risks).
Risks may occur in various areas:
Company external project context, e.g. industry/market, external

stakeholders, laws/regulations, environment etc. (basic business
assumptions)
Company internal project context and project concept, e.g. strategic

planning, technology, human resources etc.
Project management and project implementation, e.g. project organization, performance of project management function, contractors etc.
To a great extent, project management inherently comprises project risk

management: a lot of tasks are performed and most of the decisions are
taken to minimize threats and to profit from opportunities. Nevertheless,
partial or complete project failures occur and are due to:
Lack of risk awareness
Project scope and objectives unclear or unrealistic, i.e. overly optimistic
Inadequate project organization
Insufficient allocation of resources, work overload of persons involved in the project
Project organizations/teams not familiar with (standard) project procedures, etc.
Performing a standardized approach to project risk management improves this situation and supports project management much like a
safety net. With its standard approach (see below) and its forms and
checklists which have been developed for specific types of projects (e.g.
for CAPEX Projects) it has following objectives:
Improvement of risk awareness throughout the project organization

from inception to project completion
Anticipation of problems of all kinds, detection of non-addressed

opportunities
Alignment of views in Project Steering Group and Project Team on

risk profile and actions to be taken to manage risks
Comprehensive and systematic coping with project risks.
Appendix B
Standardized Approach
to Project Risk
Management
PMA Reference Book
The standardized approach to project risk management consists of a 6-step

process:
Step 1: "Identify"
Purpose: Create risk awareness.
Tasks:
- Identification of risks (categorizing by brain storming); results of brainstorming require clear structuring and categorization prior to further processing
- First prioritization of risks with regard to their significance and their likelihood of occurrence.
Step 2: "Source"
Purpose: Understand the logic and origin of individual risks.
Tasks:
- Analysis of sources/drivers of risks, identification of links and interdependencies.
- Nomination of Risk Owners (individuals accountable for the management
of individual risks).
Step 3: "Measure"
Purpose: Review first prioritization; define key risks.
Tasks:
- Quantification of risks with regard to significance and likelihood
- Quantification with facts and figures wherever possible, qualitative ranking
where not possible
Remarks:
1) Net risks shall be quantified, i.e. considering risk mitigating measures
(e.g. insurance) actually in place.
2) Focus shall be on realistic scenarios and not on unlikely worst cases.
Step 4: "Evaluate"
Purpose: Check acceptability of risk profile (risk profile: risk situation as defined by outcomes of Steps 1 to 3) and draw conclusions.
Tasks:
- Analysis of risk levels of individual risks as well as of aggregated risk situation
- Definition of target risk profile (-> risk tolerances) including
measures/actions to reach this profile; depending on the project and its
status, this can mean anything between isolated measures to cope with
isolated risks and complete redefinition or even canceling of the project.
Step 5: "Manage"
Purpose: Ensure adequate management of risks.
Tasks:
- Ensure implementation of risk mitigating measures/action plans (-> milestones, allocation of resources, and definition of responsibilities)
Step 6: "Monitor"
Purpose: Avoid surprises.
Tasks:
- Continuous monitoring of identified risks and keeping the radar open for
new risks
- Giving notice of favorable as well as unfavorable developments and making sure that adequate actions are taken in time
- Reporting on implementation of action plans (progress reporting) as well as
on changes in the risk profile
Appendix B
PMA Reference Book
Responsibility for Risk Management

6.
Control
risks
Every member of the project organization who has

been assigned a certain task is accountable for
managing the risks related to this task.
1.
Identify
risks
5.
Manage
risks
2.
Source
of risks
4.
Evaluate
risks
Standardized risk management is the responsibility

of the Steering Group. Individual members of the
Steering Group or of the Project Team are accountable for management and monitoring of individual risks (Risk Owners).
3.
Measure
risks
Application of Standardized Approach to Risk Management in Individual Projects

Project Management Phase I - Project Definition
-
Performance of Risk Management Process

Steps 1 to 5 by Steering Group, in a form adequate to the project (participants to the process, level of detail, degree of formalization)
Determination of standardized risk management activities in the other Project Management Phases (II to V)
Starting with the standardized approach to risk

management in parallel with the project allows
to already defining the project bearing risk considerations in mind. This proactive approach
should prevail throughout the project: risk considerations should be a standard element in all
decision making processes, thus reducing the
necessity for emergency actions due to surprises or foreseeable negative developments.
Project Management Phases II to V:

-
Performance of Risk Management Process

Step 6 (responsibility of the Steering Group)
Standardized procedures as defined by the

Steering Group in Phase I (e.g. formal reviews
of Risk Management Process Steps 1 to 5,
formal reporting requirements etc.)
Additional activities as defined by Project Manager (e.g. application of Process Steps 1 to 6

on sub-projects)
Bibliography
PMA Reference Book
7 Bibliography
GRAY, Clifford F., LARSON, Erik W., Project Management, The management process, Irwin
McGraw-Hill, 2000, 479 pages.
BAKER, Kim & Sunny, The complete idiots guide to Project Management (second edition), Alpha
books, 2000, 404 pages.
LEWIS, James P., The Project Managers desk reference (second edition), Mc Graw Hill, 1999, 546
pages.
WEISS, Joseph W., WYSOCKI, Robert K., 5-Phase Project Management , A practical planning and
implementation guide, Perseus Books Publishing, L.C.L., 1992, 121 pages.
WYSOCKI, Robert K, Effective Project Management, WILEY, Sixth, 2012, 774 pages.
GOLDRATT, Eliyahu M., Critical Chain A business novel, The North River Press, 1997, 246 pages.
MARTIN & TATE, Project Management, Memory Jogger, GOAL/QPC
Project Management Institute, A guide to Project Management Body of Knowledge, Fifth edition,
2013, 590 pages
Justice, Thomas. Jamieson, David W., The Facilitatorss Fieldbook, Anacom, 1999, 460 pages

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