Table of Contents
Identification of key stakeholders.
Introduction to the project idea.
Importance of the project idea.
Details of financial analysis.
Assessment of project viability.
Identification of key risks
Conduction of sensitivity analysis.
Why should a manager approve the project
Whenever a project starts in the company, or any implementation of change takes place. Some steps are significant to follow to imply a successful project or a change. A project has some attributes which differentiate it from the ongoing processes and operations in the organization, and also, the projects do not have a time limit. Therefore, to work on some project, there are a lot of factors which the company observes and note down. A project manager is a person who plays an essential role of change agent within the premises of an organization who develops the idea and then formulates the project's goals and document them (Meng et al.2017). The project manager then communicates the idea or project objectives to all possible critical stakeholders of an organization. The reason behind the change or project communication can differ from situation to situation.
In this particular business report, being a project manager, one has to communicate the project/venture to all the stakeholders of an organization to collect the funds so that they implement the project successfully. Therefore, the project idea which needs funds to get implemented in a software house is the "training and development program" for the employees. Further, in the report, the entire funding process will be communicated to the internal stakeholders of a software house, to present the project idea to them along with the financial and risk analysis of the selected project. At last, the manager will get a text with a conclusion explaining why this deal needs to be confirmed and what benefit does this project will bring to the organization.
As mentioned in the assessment that all the funding which will be raised for the implementation of the projects has to be internal, including banks, angel investors, micro-finance organizations, crowdfunding, and more. Therefore, the stakeholders with whom a project manager will communicate the project idea, and its details would be the ones who play a role in the processes of the organization internally. These will not be external ones at all as the project of training and development of employees is not a small project and needs a lot of resources to be implemented successfully. So this responsibility lies in the project manager to identify the right stakeholders and communicate the entire project idea to them along with its benefits so that the organization can get enough funding.
First of all, the entire project team is a stakeholder who would join the project manager during the project idea communication to make the process of persuasion easy. Secondly, another stakeholder is the financial management executive. This person will be a part of a connected bank of an organization. The executive will be there to listen to the entire idea, and then he will suggest if the projects are worth to funds or not (Reutzel et al.2016). Then comes the lender who is another stakeholder who the project manager will communicate the entire project so that he can lend some amount to a software house. Thus the resources for training and development program can be managed. The fourth stakeholder for this project is the technical managers of the organization. These people will be there to understand the importance of this project so that they can communicate this project further in their department and their linked stakeholders (Green 2015). In this way, the company will collect more funding. The trainer is another stakeholder in this entire process who will be appointed to continue the project of training and development of the employees. The trainers will also be able to communicate the project and its objective in a better way to the lenders and the bank executives.
Further, the financial manager of the software house will also be considered as the stakeholder for this project. He will assess the needed funds and will evaluate the collected funds and whether they are enough for the mentioned project or not. The manager of the software house will also be a key stakeholder of the organization who will accept or reject the project. Therefore, the manager will be the one who needs to get persuaded at any cost.
For a project manager, this is imperative to introduce the project to all the stakeholders. All the objectives of the project idea need an adequate level of communication to get enough funds from the stakeholders. First of all, the project aims to establish the concept of training and development in the organization, which is a software house is about the initiation of training and development program for employees. Before getting into the details of the project plan, it is crucial to understand that what does training and development of employees within an organization means. Employee training and development is a term that is often used among various sectors and includes different learning processes of the employees (Tahir et al. 2014).
This program is going to initialize in the software house through which employees will get enough training and development guidelines, which will help them to enhance their working and delivering capabilities and performance. This project idea revolves around the training and development of the employees. There will be a lot of resources that need to manage this project and will be a monthly based project. By this plan, it means that some seminars and workshops are going to be conducted for the employees where all of them will get a chance to express themselves, their problem, issues faced by them, and unsolved challenges. This factor will result in a better understanding of each other's issues, and most of the challenges will get solved through mutual communication among peers of the organization. The trainer will also be present, who will provide training to the employees about their beliefs. He will be telling them how they can achieve more and be efficient by following some necessary steps. Moreover, this training and development project plan will lead to the skills development in the employees, which will help them to be efficient in a particular skill set so that that they can achieve more in less time (Falola et al.2014).
Moreover, training includes the complete process of programs whose objective is to enable employees to learn various skill sets and to gain enough knowledge so that their performance increases (Sung et al.2014). Employee growth and effectiveness is the core objective of the training and development programs within an organization. Therefore, budget and resource allocation is required as a priority in the organization to implement the projects of training and development for employees. Thus budget and resource allocation help the company to maximize employee performance and bring improvement in the career roles. Therefore, the required funds for this projects would estimate between $1000 to $1500. The resources for which the funds are needed included the training fee of trainers, the refreshment expenses, venue for the seminar or workshops, travelling expenses for employees and trainers, and provision of other resources needed for training to be successful and healthy (Falola et al.2014).
The aim of organizing this development program is to enhance the effectiveness and performance efficiency of the employees. In the software houses, a massive number of employees are present who used to work hard to bring the best use of technology for their organization and its clients. There is a considerable margin in an organization where employees can get discarded, demotivated, and tired of doing work regularly. Sometimes employees get devastated and exhausted, looking for shortcuts to complete their regular tasks and projects. The projects establishing the curriculum of training and development in the software house will lead to the enhancement of organizational capabilities, performance, and efficiency of employees. Another tremendous importance of this venture is that it will result in more market capitalization of the organization. According to one report given by Harvard business review stated that there is a deep and direct linkage between the investment process on the training and development in an organization and the market capitalization (Falola et a.2014).
Therefore, the implementation of this training and development program in an organization will lead to the delivery of customer goals with significant results and products. This project has a massive significance because employees will be able to learn more and will have an open chance to test their abilities through training. After the successful establishment of this project of giving training to the employees of the software house, employees will provide better performance with more level of understanding and observance. Another great deal of importance for this project is that the program initiated for the training and development of the employees will bring more competency and retention among them. More the employees would be able to achieve more learning and training, and more they will become competent towards delivering more and achieving more.
Moreover, in the software houses, it is crucial because the learning and development process in the technology industry plays a vital role in increasing the attrition rate of an organization. And also to keep the employees up-to-date with the most advanced technologies continuously evolving in the world with time (Tahir et al. 2014). This project will affect the business of software house a lot because of the increased performance of employees, and they will be able to deliver more in less amount of time with more efficiency. This action will result in customer satisfaction for the software house, and customer loyalty will increase consequently.
Before proceeding to the risk analysis of the specified project idea, it is vital to identify the details of financial analysis an organization will go through as a result of this project implementation. The economic analysis takes place in an organization to carry out assessment and evaluation of the performance of a particular entity. This analysis is done through performing the investigation of business results and the financial reports present in the organization from already running projects and ideas (Palepu et al.2013). To implement the mentioned project in the software house, one has to perform the economic analysis. According to the financial research done keeping the entire project in mind, it declares that this project will bring long-term benefits to the software house. First of all, the profitability of the organization will increase because after training, and employees will work more efficiently and show their best performance to complete the given tasks.
There are many ways through which financial analysis can be carried out i.e. leverage, rate of return, profitability, growth, liquidity, efficiency, cash flow and more. The profits of this software house can be assessed that company is making profit of almost $300 million annually and used to return 20 cents per share while the expectations of the software development market was 18 cents per share. As far as the growth analysis of this particular software house is concerned, due to the subscription and serviced based generated revenue jumped to 77% from 54% during the last year. This shows how fast the company is growing with time.
After evaluating the results of the benefits a software house can achieve through financial analysis, the assessment of project viability is processed. The project viability for any project idea is defined as the assessment of the capacity and capability of the project up to which it can meet its specified objectives and goals (Delgado et al.2016). A project viability assessment is performed to generate the essential financial and economic achievements of the projects. These achievements are then communicated to the stakeholders of that particular project. Therefore, the viability assessment of this project will cover all the aspects, including the advantages and disadvantages of this. Still, it is also mentioned that the project viability is not the only way for the software house to approve the project. There are some other ways, too, through which the benefits of projects can be assessed, and they are even more effective as compared to the assessment of project viability.
Project viability entirely depends upon the factors involved in the regular operations of the organization other than the economic ones. This does not only means that the project idea of training and development in a software house will bring economic benefits to the organization. Additionally, the project viability seeks such cases in the project, which needs enough resources and investments, which lead to the profits or loss of the organization. Therefore, there are some aspects present which is known to bring some remarkable benefits to the organization. However, some elements are also present, which does not accompany the services but play a role of change resistants' in the organization. Such aspects are also present in the software house during the assessment of this project and will be covered in the next part as the risks. Before acceptance of the project, it is imperative for the company to establish the social and financial assessment as well as the economic viability.
In the execution of the process of either small or larger scoped project, there are a lot of identified risks that have to be managed to implement a successful change or a project within an organization. For the identified project in a software house, i.e., the training and development program for employees, some risks are present. First of all, the cost risk is present, which can occur as a result of inadequate or incomplete cost and fund estimation. The needed funds to fulfill the project scope needs to be estimated efficiently to overcome these risks. Another risk for this particular project is schedule risk. This risk arises as a result of ineffective time estimation for the completion of the project. Therefore, the risk is present that the training and development program may take longer than the estimated period. Performance risk is another significant risk which leads to the chance that this project will not provide enough output and may fail to give the results which follow the already specified objectives of the project. These three are the significant risks for this project that has a chance to arise and can affect the project execution to a considerable extent. Some other bets are assessed in the next portion after fetching the results of sensitivity analysis.
Sensitivity analysis is a form of crucial research that results from the mapping of different values of the independent variables present for the project and to which extent does that variable effect the dependent variable under some confirmed set of observations and assumptions. Moreover, there are some uncertainty factors present that identify the level to which the mathematical model contributes to the overall uncertainty of an entire project. In the world of economics and business, sensitivity analysis is used on a broader scope to achieve better insight into present risks mathematically. According to pieces of evidence, the sensitivity analysis is also referred to as What-if or simulation analysis. For the project of training and development program within the software house, an analyst was hired who determined how the changes occurred in one variable among the given set of variables affect the outcome and result of the entire project (Iooss et al.2015). Two variables, including the target and another one, was inputted, also called as dependent or independent variables are analyzed while doing the sensitivity analysis. The analyst identified the level up to which the target or needed output is changed by the action imposed by the input variable. Sensitivity analysis is always done to identify such risks which can affect the desired outcome of the project, Therefore, to achieve decided results of this project, sensitivity analysis is done from where some risks are identified as a result.
First of all, the strategic risk is identified, which is resulted from the use of technology being an independent variable on the project, which is a dependent variable. The use of inappropriate or ambiguous technology will lead to ineffectiveness of the results of the training and development program. Some legal risks are also identified through sensitivity analysis, which says that an independent variable of obligatory regulations that may be imposed on the software house from the government can affect the performance of the trainer and the employees at the same time, no matter training is taking place or not.
There are a lot of compelling ways to follow as a project manager to get the approval of the project. The project appears to be simple and not following many complexities. Therefore, there can be several objectives to communicate with the manager of the software house. First of all, the project shares with the manager all its risks and benefits, along with the assessment of project viability. In the last part of the report, all the aspects are considered, which needs to be assessed during the implementation of any project.
Employees will get able to deliver more in less amount of time as their efficiency towards work will get increased if they will get good training from the organization. The educated trainer will be hired who would participate in this project with all his heart and sentiments. Teamwork is guaranteed during the implementation of these projects that no actor, employees, or management of software house will let other people down at any cost. The manager will be provided with more shreds of evidence that this project is going to be a big success for the software house, and employees will get more satisfaction as a result.
It is concluded that a project manager is a person who plays an essential role of change agent within the premises of an organization who develops the idea and then formulates the project's goals and document them. The project manager then communicates the idea or project objectives to all possible critical stakeholders of an organization. The reason behind the change or project communication can differ from situation to situation. the stakeholders with whom a project manager will communicate the project idea, and its details would be the ones who play a role in the processes of the organization internally. The stakeholder are not external ones at all as the project of training and development of employees is not a small project and needs a lot of resources to be implemented successfully. So this responsibility lies in the project manager to identify the right stakeholders and communicate the entire project idea to them along with its benefits so that the organization can get enough funding. There are some aspects present which are known to bring some remarkable benefits to the organization. However, some elements are also present, which does not accompany the services but play a role of change resistants' in the organization. Such aspects are also present in the software house during the assessment of this project.
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