Step 7: Project leadership

The key elements to the successful implementation of projects are sound planning, strong leadership and constant monitoring and involvement in the project.

In general project fail because:

This last point is particularly important - and for good project planning and implementation , the manager is required to manage a set of relationships associated with the project. These include:

The qualities of a good manager as discussed earlier apply equally to the qualities required by a good project leader.

Evaluation and Monitoring.

Monitoring of the project usually occurs against the Performance indicators, Gantt chart and Budget. The Gantt chart is a very useful monitoring instrument. This is a visible and transparent "information system"which can be used by all involved in the process to monitor activities and the general progress of the project. The resource plan and budget is also useful in determining what resources and how much is required and has been expended.

The most important monitoring and evaluation tools are the objectives and performance indicators. In the final assessment it is these two tools that will assist in evaluating the success of the project.

It is important to note that any deviations from the original project plan must be assessed to determine impact on the timelines and budget - and where necessary adjustments must be made timeously.

Ongoing budget monitoring - Variance analysis

If the project is set to continue over some time it is useful to develop a budget that is broken down on a monthly basis. This will allow you to monitor expenditure against budget on an ongoing basis rather than wait until the end of the project to discover an over or under expenditure. Using variance analysis on a monthly basis it is possible to identify cost drivers and main areas of over expenditure in order rectify the problem. Undertaking a variance analysis depends upon the reliability and accuracy of the available financial systems. The table below sets out the information that can be derived from a monthly expenditure report and set out to look at areas of variance - over or under expenditure.

Variance analysis - to be completed monthly:
Activity/ Line item Total budget Monthly budget Actual expenditure in the month Difference between budget and expenditure Over/under expenditure (as % of monthly budget ) Total budgeted year to date Total expenditure year to date Difference between total budget and expenditure year to date as % of total budget to date
                 
                 
                 
                 

ACTIVITY

Table 1 is a Budget Expenditure table from an HIV/AIDS Peer educator training programme which data are the basis of your task at this Step. The Programme is run over an 8 month period and consists of 4 X one week blocks. Participants are accommodated and catered for during the block period.

A total of 20 HIV peer educators and counsellors are trained each block.

The table below represents expenditure for the period 1 January 2003 - 31st July 2003. To date 3 blocks have already been run, and the last block will run in September. The total budget for 2003 has been calculated on a per training block basis and then multiplied to cover the four blocks. The expected budget to date is therefore calculated as ¾ of the total budget. (Note that usually it would be calculated on a monthly basis and the expected budget to date would be a pro rata rate. How the expected budget to date is calculated depends on the nature of the programme being run)

Perform a variance analysis on the budget/ expenditure statement, indicating areas of concern, and make suggestions for rectifying problems identified.(See Variance Analysis table for answer to calculations).


TABLE 1
Activity Budget items A: Budget 2003 B: Expected costs to 31 July 2003 C: Actual expenses to 31 July 2003 D: Variance E: % over/under expenditure of expected budget
Formulae     (A/4) x 3 B - C (D/B) x 100
Training logistics Venue hire 20000 16000 16000    
  Equipment 30000 30000 36000    
  Catering 12000 9000 15000    
             
Materials development Materials development 8000 8000 5000    
  Notes, files 8000 6000 7000    
             
Participant costs Accommodation 80000 60000 85000    
  Transport 28000 24000 35000    
             
Lecturers Accommodation 8000 6000 6000    
  Fees 24000 18000 12000    
             
Staffing Coordinator 24000 18000 18000    
  Administrator 16000 12000 12000    
             
Administration Post 8000 6000 7000    
  Telephone/Fax 8000 6000 12000    
             
Total   274000 219000 266000