Intro to Project Management: Project Communications Management - Communications Management Processes, Plan Manage Monitor

What This Is

Communications Management Processes are essential for successful project delivery. Effective communication helps stakeholders understand project goals, progress, and issues. For example, consider a software development project where the project manager must communicate changes in the project scope, timeline, and budget to the client. Without clear communication, the client may become dissatisfied, leading to project delays or even termination.

Key Terms & Formulas

• Stakeholder Register: A list of stakeholders, their interests, and communication requirements.
• Communication Plan: A document outlining how, when, and to whom information will be communicated.
• Communication Matrix: A table showing the communication requirements for each stakeholder.
• Earned Value (EV): EV = % complete × BAC (Earned Value = percent complete times Budget at Completion).
• Cost Performance Index (CPI): CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost).
• Schedule Performance Index (SPI): SPI = EV / PV (Schedule Performance Index = Earned Value / Planned Value).
• Cost Variance (CV): CV = EV - AC (Cost Variance = Earned Value - Actual Cost).
• Schedule Variance (SV): SV = EV - PV (Schedule Variance = Earned Value - Planned Value).
• Budget at Completion (BAC): The total budget for the project.
• Planned Value (PV): The budgeted cost of work performed to date.
• Actual Cost (AC): The actual cost of work performed to date.

Step-by-Step / Process Flow

1. Identify stakeholders: Create a stakeholder register to list all stakeholders, their interests, and communication requirements.
2. Develop a communication plan: Outline how, when, and to whom information will be communicated.
3. Monitor and control communications: Regularly review and update the communication plan to ensure stakeholders are informed and engaged.
4. Report progress: Use earned value metrics (EV, CPI, SPI, CV, SV) to report project progress to stakeholders.
5. Manage stakeholder expectations: Regularly communicate with stakeholders to manage their expectations and address any concerns.

Common Mistakes

• Mistake: Failing to identify all stakeholders.
• Correction: Create a comprehensive stakeholder register to ensure all stakeholders are accounted for.
• Mistake: Not updating the communication plan regularly.
• Correction: Regularly review and update the communication plan to ensure stakeholders are informed and engaged.
• Mistake: Using earned value metrics incorrectly.
• Correction: Use earned value metrics (EV, CPI, SPI, CV, SV) correctly to report project progress to stakeholders.

Exam Tips

• Distinguish between earned value and actual cost: Earned value is the value of work completed, while actual cost is the cost of work performed.
• Understand the difference between CPI and SPI: CPI measures cost performance, while SPI measures schedule performance.
• Be aware of the difference between CV and SV: CV measures cost variance, while SV measures schedule variance.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Under budget. Explanation: A CPI of 0.8 indicates that the project is performing better than expected, resulting in a lower actual cost.
2. If the EV is $100,000 and the AC is $120,000, what is the CV? Answer: -$20,000. Explanation: The CV is the difference between EV and AC, which is -$20,000.
3. If the SPI is 1.2, is the project ahead or behind schedule? Answer: Ahead of schedule. Explanation: An SPI of 1.2 indicates that the project is performing better than expected, resulting in a shorter planned duration.

Last-Minute Cram Sheet

• Stakeholder Register: A list of stakeholders, their interests, and communication requirements.
• Communication Plan: A document outlining how, when, and to whom information will be communicated.
• Earned Value (EV): EV = % complete × BAC (Earned Value = percent complete times Budget at Completion).
• Cost Performance Index (CPI): CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost).
• Schedule Performance Index (SPI): SPI = EV / PV (Schedule Performance Index = Earned Value / Planned Value).
• Cost Variance (CV): CV = EV - AC (Cost Variance = Earned Value - Actual Cost).
• Schedule Variance (SV): SV = EV - PV (Schedule Variance = Earned Value - Planned Value).
• Budget at Completion (BAC): The total budget for the project.
• Planned Value (PV): The budgeted cost of work performed to date.
• Actual Cost (AC): The actual cost of work performed to date.
• Earned Value is not the same as Actual Cost.
• CPI measures cost performance, while SPI measures schedule performance.
• CV measures cost variance, while SV measures schedule variance.