i

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Project Management Methodology in Nonprofit Organization Page i of 43

Project Management Methodology

in Nonprofit Organization

An Instructional Guide for

Leadership Education for Tomorrow

Leadership Education for Tomorrow of High Point

Copyright by

Samuel Shepherd,
MPM, PMP, MOS, GLA, SSGB

High Point, N.C.

 Project Management Methodology in Nonprofit Organization Page ii of 43

Revision History
Date Revision Section Author
12Aug13 4.0 Edited&Approved XxxxXxxxx
5Aug13 3.5 EditFigures XxxxXxxxx
3Aug13 3.2 FiguresandTables XxxxXxxxx
2Aug13 3.0 SectionVI.A,.B.,andC. XxxxXxxxx
26Jul13 2.0 SectionV.A.andB. XxxxXxxxx
24Jun13 1.0 OriginalDraft XxxxXxxxx

Contributors
Team/Staff Title Contribution

XxxxXxxxx OfficeManager Editor/TechWriter
XxxxXxxxx BusinessAdvisor SME/Editor
XxxxXxxxx ProjectManager SME,BusAnalyst,TechWriter


 Project Management Methodology in Nonprofit Organization Page iii of 43

Contents
Revision History ......................................................................................................................... ii
Contributor .................................................................................................................................. ii
Figures......................................................................................................................................... v
Tables .......................................................................................................................................... v
Abstract ..................................................................................................................................... vii
I. Forward ................................................................................................................................ viii
A. About the Author:.......................................................................................................... viii
B. About LEFT: ................................................................................................................. viii
C. The Vision: .................................................................................................................... viii
D. The Mission:.................................................................................................................. viii
II. Instruction to Project Management ......................................................................................... 1
A. Introduction ...................................................................................................................... 1
1. What is a nonprofit organization? ................................................................................ 1
2. What is a Project? ......................................................................................................... 1
3. What is Project Management? ...................................................................................... 1
4. Why is Project Management Important? ...................................................................... 2
5. What is Leadership? ..................................................................................................... 2
6. What is a leader?........................................................................................................... 2
7. What is Project Leadership? ......................................................................................... 2
III. Initiation Phase Group ......................................................................................................... 3
A. Initiate: ............................................................................................................................. 3
1. Project Manager Selection: ........................................................................................... 3
2. Research: ...................................................................................................................... 4
3. Project Selection: .......................................................................................................... 5
IV. Planning Phase Group .......................................................................................................... 6
A. Overview: ......................................................................................................................... 6
B. Scope Management Plan .................................................................................................. 6
C. Time Management Plan ................................................................................................... 7
D. Cost Management Plan..................................................................................................... 8
E. Quality Management Plan ................................................................................................ 9
F. Human Resource (H.R.) Plan............................................................................................... 9
G. Communication Management Plan ................................................................................ 10
 Project Management Methodology in Nonprofit Organization Page iv of 43

H. Risk Management Plan................................................................................................... 11

1. Risk Analysis .............................................................................................................. 12
2. Risk Response ............................................................................................................ 12
I. Procurement Management Plan ......................................................................................... 12
1. Procurement: Proposal Prioritization Model .............................................................. 12
2. Contractors Capability............................................................................................... 13
3. Contractors Reliability .............................................................................................. 13
4. Contractors Financial Status...................................................................................... 14
J. Stakeholder Management Plan. ......................................................................................... 14
V. Monitoring and Control Phase Group ................................................................................... 16
A. Tracking Data: ................................................................................................................ 16
B. Six Sigma: ...................................................................................................................... 16
C. Close Phase Group ......................................................................................................... 17
1. Data Management: ...................................................................................................... 17
2. Contracts: .................................................................................................................... 18
3. Deliverable Process: ................................................................................................... 19
D. Developing the Human Resources Plan: (9.1) ............................................................... 21
E. Acquiring the Project Team: (9.2).................................................................................. 22
F. Developing the Project Team: (9.3) ................................................................................... 23
G. Managing the Project Team: (9.4).................................................................................. 24
VI. Leadership Development ................................................................................................... 26
A. Choosing a Project Manager: ......................................................................................... 26
B. Developing Leadership Skills: ....................................................................................... 27
1. Reading recommendations: ........................................................................................ 27
C. Effect of Leadership on a Project: .................................................................................. 28
VII. Reference ........................................................................................................................... 30
A. Professional Journals ...................................................................................................... 30
B. Professional Textbooks .................................................................................................. 32
 Project Management Methodology in Nonprofit Organization Page v of 43

Figures
Figure 1: Project Manager Selection............................................................................................... 3
Figure 2: Project Selection .............................................................................................................. 4
Figure 3: Approving Project ........................................................................................................... 5
Figure 4: Scope Management Plan ................................................................................................. 6
Figure 5: Work Breakdown Structure ............................................................................................. 7
Figure 6: Time Management Plan................................................................................................... 7
Figure 7- Microsoft Project - Time Management Control .............................................................. 8
Figure 8: Cost Management Plan .................................................................................................... 8
Figure 9: HR Management Plan ..................................................................................................... 9
Figure 10: Communication Plan ................................................................................................... 10
Figure 11: Risk Management Plan ................................................................................................ 11
Figure 12: Risk Management Success .......................................................................................... 11
Figure 13: Procurement Plan ........................................................................................................ 12
Figure 14: Stakeholder Management Plan .................................................................................... 14
Figure 15: Stakeholder Interest Matrix ......................................................................................... 14
Figure 16: Six Sigma's DMAIC .................................................................................................... 16
Figure 17: Deliverable Acceptance Form ..................................................................................... 19
Figure 18: Prisoner's Dilemma Game ........................................................................................... 25
Figure 19: HR Plan for PM Selection ........................................................................................... 26

Tables
Table 1: Document Assignment.................................................................................................... 17
Table 2: Contract Types / Reason ................................................................................................. 18
Table 3: Human Resource Plan..................................................................................................... 20
Project Management Methodology in Nonprofit Organization Page vi of 43

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 Project Management Methodology in Nonprofit Organization Page vii of 43

Abstract
Project managers are not just viewed as managers; they are viewed as leaders of a
project. A project manager is only as effective managing the process of a project and the people
contributing towards a project as his leadership skills allow. Leadership is a topic covering many
subtopics combining communications, decision making, planning and organization, ethics and
managing resources. Corporate management tents to make two mistakes. The first is selecting
project managers based upon technical experience versus leadership experience. The second is
the failure to distinguish between project leadership and project management, the deference of
managing a process versus leading the team who are following the process. In this research
study, using literature review, interviews and surveys, will be used to analysis and outline the
importance of leadership skills, and what these skills are. Finally provide recommended
educational tools to aid project managers in their goal to become project leaders.

Word count: 150

Keywords: Leadership, Projects, Project Management, Communications, Mentoring,

 Project Management Methodology in Nonprofit Organization Page viii of 43

I. Forward
A. About the Author:
Samuel Shepherd, PMP, is studying topics of leadership and project management at a
graduate level. He has over fifteen years of experience in leadership development and training.
This includes certified as a Project Management Professional, Six Sigma, Logistics and
Microsoft Office. He has earned over twenty certifications in management and leadership from
the United States Army. Mr. Shepherd has served on the Board of Directors for Project
Management Institute of the Triad, as well as serving in leadership roles in various nonprofit
organizations.

B. About LEFT:
Leadership Education for Tomorrow of High Point (LEFT) is an organization dedicated
to educating and training students in high school homeschool and community colleges in life
skills to improve their leadership abilities to affect their communities and develop employable
talents. These skills include: communications, decision making, financial planning, ethics,
leadership, mentoring, organization, and team building. Additional education will be in
information technology such as Microsoft and Adobe.

C. The Vision:
The vision of LEFT is to create a better life for the students of High Point and the
immediate Triad area. We make this possible by offering a wide range of well-designed,
educational opportunities in Leadership development, life skills, and development of employable
skills. LEFT, through donation support will provide these opportunities to as many people as
possible will be able to afford them.

D. The Mission:
LEFTs mission is to develop leadership, communication, financial and life skills in
young adults in two phases. Phase one is to help prepare young adults between fourteen and
twenty-four. This will be done through training, education and project practicals, both formal
and informal. Phase two will be conducted by training fathers to become leadership of their
families, and setting an example, as well as training them with the tools to coach their own
children as leaders as they grow.
 Project Management Methodology in Nonprofit Organization Page 1 of 43

II. Instruction to Project Management

A. Introduction
The purpose of the document is to provide instructions to nonprofit organization
regarding two important topics. They are project management and leadership development. The
first topic of project management this document considers is to provide instructions to nonprofit
organization on methodology of project management to help with projects and special events.
This is important since 80% of all projects fail due to either a lack of using a methodology
consistently and poor project leadership.

This document will provide guidance to project manager the methods, tools and
techniques for a nonprofit organization to follow in order to perform projects with a greater
opportunity to complete successful. This will include: the initiation and planning of the project,
the execution and monitoring the progress of the project and finally, the closing of the project
and recording of all documents.

The second topic this document will discuss is leadership. This document discusses how
to choose a leader [project managers] for a project, how to develop leadership skills of a project
team and how leaders affect the outcome of a projects. Many projects in nonprofits fail because
of a lack of a project manager; instead they use a committee to manage the project. Organization
need to learn the difference between oversight requiring a committee, and a project requiring a
leader.

1. What is a nonprofit organization?

The Internal Revenue Services (IRS) defined a nonprofit as organization with The
exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific,
literary, testing for public safety, fostering national or international amateur sports competition,
and preventing cruelty to children or animals (IRS, 2013).

2. What is a Project?

The Project Management Institute defines a project as; a temporary endeavor undertaken
to create a unique product, service, or result (PMBOK, 2013). Gray & Larson describes the
characteristics of a project with: a beginning and an end, something never been done before, an
established specific time, cost and performance requirements.

3. What is Project Management?

Project management has been used since the building of the pyramids in Egypt, until
recently it was not a defined field of professionals. Cooke and Tate explain this term is widely
used and defined differently from industry to industry, even between for-profit and non-profit
organizations.
 Project Management Methodology in Nonprofit Organization Page 2 of 43

4. Why is Project Management Important?

Project management is a skill set develop to manage projects from small $5,000 to large
$5 million projects across the globe. These skill sets are so valuable, many corporations are
developing them into a standard way of doing business (Gray & Larson, 2008). Project
management is used with Six Sigma and the Continuous Improvement movements where instead
of the select few on the project team are devoted to continuous improvements, entire
organizations are training all employees in continuous improvement techniques. Thus project
management techniques are helping the corporation as a whole improve the bottom-line.

5. What is Leadership?

How to define leadership is tricky, every expert in the field of leadership has a different
definition with portions similar to another. Let us review a few: The true measure of leadership
is influence, nothing more nothing less (Garlow, 2002). Dwight Eisenhower stated, Leadership
is the art of getting someone else to do something you want done because he wants to do it
(Brandy & Woodward, 2005).

6. What is a leader?

A leader develop and inspire followers into efficient teams and rally them to take risks to
accomplish the vision of the organization through positive influence while building relationships
through trust and respect.

Few of the characteristics of a leaders includes: vision, communication, people skills,

character, competence, boldness and a serving heart (William, 2012) as well as integrity,
humble, influential and decisive (Ramsey, 2011).

7. What is Project Leadership?

Leadership Education for Tomorrow (LEFT) values leadership skills, therefore each of
the project managers chosen to manage a project are selected based on their leadership abilities
equal to their project abilities. Because LEFT emphasis leadership skill to while managing
projects, project managers are also referred as project leaders.
 Project Management Methodology in Nonprofit Organization Page 3 of 43

III. Initiation Phase Group

A. Initiate:
The project initiation begins with an idea, a problem to be solved or creation of a new
product or service. Within the initiation phase, the project sponsors begins with collecting
information about the project requirement and objectives.

1. Project Manager Selection:

The project sponsor surveys performance reviews and professional training of potential
project manager (PM) and chooses the best candidate to assume control of the project. The
project sponsor will choose a project manager during this phase to assume responsibility of the
project and begin the planning process before the actual planning phase. Initiating a project, the
PM will need to outline the requirements of the initiating process group (PMBOK, 2013) to
include the project charter, a business case (the why of the project) and matching the projects
objective with those with the corporations strategies.

Figure 1: Project Manager Selection

Once the PM is assigned, the tasks at hand will be to: 1) identify possible stakeholders
among executives, functional managers, competitors of funding and resources, 2) Analysis the
stakeholders and determine who would be either positive or negative invested in the outcome of
the project and how to manage these stakeholders. Be aware additional stakeholders will be
identified as the project progresses. This will enable the sponsor and PM to involve the
customers, and other stakeholders during initiation creates a shared understanding of success
criteria, reduces the overhead of involvement, and generally improves deliverable acceptance,
customer, and other stakeholder satisfaction (PMBOK, 2013). 3) Research is the next step with
the topics are divided into three categories: Financial analysis, resources allocation and
availability and corporate strategy alignment.

 Project Management Methodology in Nonprofit Organization Page 4 of 43

2. Research:

Business Case is an outlines the problem to be solved or the need of a new

product/service, The PM will need to write an argument why the project is needed and how it
will benefit the corporation. If there is a Six Sigma section of the project, it will need to prove a
$150,000 savings or a return on investment (ROI). This will include information leading to the
project scope, time, quality and cost; known as the project diamond.

Analysis of financial impact of the project, the corporate revenue, investment, and
commitment are to be conducted with the accounting department auditing all calculations. These
are to include: breakeven analysis, cost to benefit ratio, return on investment, etc. The results of
these calculations the sponsor and PM will determine to submit the project for approval or
terminate or postpone the project to a later date.

Resources allocation and availability is the process the PM will examine potential team
members and contributors (employees) who will have a positive impact upon the project. The
PM will need to determine the type of skills needed for each phase of the project, who has such
skills and when they will be available to complete assignments for the project without
compromising their daily assignments. Then negotiate with functional manager to gain the use of
the employees for the duration of the project or as needed. An example of as needed would
include an accounting clerk; one who would not be need each day of the project. They would
only be needed for a few hour each week or for a day at the end of a phase.

Figure 2: Project Selection

 Project Management Methodology in Nonprofit Organization Page 5 of 43

Corporate strategy alignment is the process the PM will evaluate if the project
objectives are aligned with the objectives of corporate strategies. This is derived from PMBOK
p. 10, integrates data and information from corporate strategicand evaluates how higher level
strategic objectives are being fulfilled. For projects are implemented without being aligned with
corporate strategy will creates problems for the project and the company as a whole (Gray and
Larson, 2008). The corporate strategies involve the ability to see the business as a whole and
the direct and monitor its overall performance (Milosevic, 2003).

3. Project Selection:

All the information gathered will be placed into a SharePoint site for reference by all
project managers and executive staff by creating the lesson learned folder. Once the PM has
collected data and completed the basic analysis, the PM will submit the information to the
selection board. They will use the information to determine if the project is selected or
terminated, if selected, what priority the project will fall in regards to funding and resource
allocation. The PM will review the PMOs SharePoint site for prioritizing list.

The PMBOK addresses this issue and the news edition should be reference along with
this manual. Selecting a project is critical to make the best use of the organizations resources
(Cooke and Tate, 2005) to prevent re-work and limit over-time due to an associate over tasked.
The PM will need to monitor contributors and their progress to determine if functional
leaders/managers are interfering with the project tasks.

Figure 3: Approving Project

The selection board will proceed with the approval process beginning with the initiation
phase (stated above) and will review the: project charter, stakeholder registry (list of identified
stakeholders), draft of the Work Breakdown Structure (WBS) which will be completed in detail
during the planning phase, and the project requirements. This items are created by the sponsor
and completed by the PM before the selection board reviews the material.
 Project Management Methodology in Nonprofit Organization Page 6 of 43

IV. Planning Phase Group

A. Overview:
Once the selection board notifies the PM the project has been selected, it is the PM
responsibility to inform the project team members and contributors who have been assigned by
the sponsor or executive management and begin negotiating for additional contributors as
needed. From this point going forward, the PM, as a project management professionals will (as a
guide) use the principles and methodology established throughout the world by the Project
Management Institute (PMI) and the manual that they publish, the Project Management Book of
Knowledge (PMBOK) it which this manual is based.

The planning process will include the knowledge areas of: Integration, scope, time, cost,
quality, human resources, communications, risk, procurement (purchasing and contracts), and
stakeholder management. Integration is the process the PM will monitor and manage the nine
other knowledge areas interact between each other within the same phase. The PM will finalize
and publish the project charter, outline and begin planning the project plan, direct work from
beginning to end.

B. Scope Management Plan

Scope is critical to the success of the project. If the scope plan is not carefully created the risk of
failure increase dramatically. This includes the lack of properly defining work packages,
allowing scope creep, and failure of clearly communicating the vision and direction of the
project to the project team resulting in executing tasks inappropriately and causing the
deliverable not to meet specified requirements.

Figure 4: Scope Management Plan

a) Work Breakdown Structure

(WBS) is key to the scope plan and the overall project plan. It is defined in the PMBOK, has a
hierarchical decomposition of the work to be executed by the project team to accomplish the
project objectives and create the required deliverables (PMBOK, 2008). The WBS is important
to the project team to maintain the project on scope, time and come within cost. One major
benefit of the WBS is the prevention of scope creep. Creating a work breakdown structure &
dictionary, stakeholders analysis, risk management plan resource and cost planning, and quality
planning. These I believe through experience and education are the five most critical components
to make sure the project is a success. These components themselves do not guarantee success,
but without them, they do guarantee failure.
 Project Management Methodology in Nonprofit Organization Page 7 of 43

Figure 5: Work Breakdown Structure

C. Time Management Plan

Projects within or in partnership with LEFT are maintained with Microsoft Project 2010. This
enables the PM to create the schedule, sequence the activities, input the duration and control the
schedule of the project. Project 2010 will allow the PM and whole project team to make changes
as needed and export reports to senior management.

Figure 6: Time Management Plan

Microsoft Project 2010 and 2013 can be used to manage a project schedule, assign
resources per task, mange lag and lead time, and measure both schedule and cost variances.
Project is not the only software available for PMs to use, but LEFT choose to use Project due to
the familiarity of Microsoft products.
 Project Management Methodology in Nonprofit Organization Page 8 of 43

Figure 7- Microsoft Project - Time Management Control

D. Cost Management Plan

The PM work with the accountant assigned to the project to review each of the formulas used to
monitor the project such as the Earned Value calculations. These reviews will guide the PM to
make decisions regarding the project budget.

Figure 8: Cost Management Plan

These activities include estimating cost (PMBOK p. 205) of the project and create a cost
baseline. As the PM, consistently measure the variances to ensure the project stays within budget
or submit a change request for additional funding as changes are approved. Requesting funding
from management reserve as emergencies appear.

The PM will need to perform the Earn Value Management by tracking: planned value,
earned value and actual cost to determine the schedule and cost variances to calculate the
performance index of both. The data generated will assist the PM in forecasting Estimate to
Complete and Complete Performance Index. (PMBOK p.220).
 Project Management Methodology in Nonprofit Organization Page 9 of 43

E. Quality Management Plan

Quality Management Plan will guide the PM, but managed by the whole project team to ensure
the scope is maintained and the quality of the deliverables meet the expectations of the client.

Figure 9: Quality Management Plan

Quality management is the fifth of ten components recommends for project planning by
PMI due to the importance of completing a deliverable not only on time, but one the customer /
client will accept. The PMBOK states quality management is, processes and activities of the
performing organization that determine quality policies, objectives and responsibilities so the
project will satisfy the needs for which it was undertaken (PMBOK, 2008).

To manage the quality, there are three steps: 1) create a quality plan, learn the
requirements or standard for the project to be conducted. 2) Perform quality assurance is the
process(es) of conducting audits, measuring to set control limits. 3) Perform quality control
through monitoring records, graphs, control charts and recommending changes to the change
control board as per the integration management plan.

The quality plan is used to identify the requirements of the project and determine the best
methods of measuring and ensuring the quality of the deliverables to the client/customer. Within
this initial plan, the project team will determine which methods of maintaining the quality is to
be used, either six sigma or one of the other quality methods. The method chosen will be used
during the perform quality assurance and Perform quality control steps to maintain the quality of
the project / product.

F. Human Resource (H.R.) Plan

Project teams as part of the Project Management Plan is most project teams in most industries
may have never worked together, may be not even have ever met prior to their current
assignment. For example, my sister works for a major software corporation and was assigned to
a project two years ago. On this project it was she and a gentleman from Russia. They had never
met, spoke to each other, or even know the others name until two weeks into the project.

Figure 10: HR Management Plan

 Project Management Methodology in Nonprofit Organization Page 10 of 43

The initiation manager or project sponsor will review with the project manager the
activity resource(s) requirements of the project and determine who will compose of the project
team membership. The PM will determine if external resources will be needed; if so, a contract
will be created and negotiated based upon the needs. In this process, the PM will define the roles,
responsibilities and accountability of each member. The project manager will review the
standard operating procedures (SOP), enterprise environmental factors and LEFTs
organizational process assets to determine proper assignment of tasks. (PMBOK p. 270-275)

This information is covered in greater detail in the Team Development section of this
manual. LEFTs leadership team believes in the importance of building strong project teams
before the execution of the project to increase the likelihood of success.

G. Communication Management Plan

A communication plan is to design an network between the PM, the project team, executives (to
include the sponsor), internal stakeholders, and external stakeholders (vendors and contractors).
The network the PM creates within this plan will enable (you) to issue and receive timely
reports, performance evaluations, cost and schedule variances, and change requests. (PMBOK
p.287-292).

Figure 11: Communication Plan

The communication plan is how the PM to determine what data is collected, distributed,
to who it is distributed, the level of authorization each stakeholder has in receiving confidential
or classified information. This will include if the information is provided via hardcopy or
distributed through email and or Intranet databases such as Access, SharePoint, SQL, Linux,
etc In addition, the PM will schedule meetings to present reports to executive or with the
project team to discuss project progress within the communication plan.

The tools available to the PM for this section includes technology of communication and
database administrations, analysis techniques, models of communication, methods and meetings.
The PM will control the communication plan by reviewing issue logs, performance reports, and
progress reviews, as well as reviewing change request for approval/denial.
 Project Management Methodology in Nonprofit Organization Page 11 of 43

H. Risk Management Plan

An essential part of every project, thus the third component recommended by the author. The
project must have a plan to address every risk, known or unknown. Develop contingency plans
for the known risks and try to mitigate or avoid if possible. Create a contingency budget to have
the funds available to address the unknown when they do accrue.

Figure 12: Risk Management Plan

This process begins by, creating an outline to conduct the risk management activities of
the project. Then identify and prioritize risks in advance of their occurrence, and provide action-
oriented information to project managers as recorded in the Practice Standard for Project Risk
Management (PSPRM) published by PMI. This is usually conducted during the initiation and
planning phases as outlined in the PMBOK.

Following steps are: perform a qualitative and quantitative analysis for prioritizing and
overall effects of the risk identified. Once each known risk is categorized on the register, the
project team has to determine the best response to the risks. If it is to mitigate, transfer or avoid.
Then monitor and control risk through the execution phase of the project.

Figure 13: Risk Management Success

 Project Management Methodology in Nonprofit Organization Page 12 of 43

Research from PMI stated there are six criteria for success in risk management during a
project. These six criteria are: 1) Recognize the value of risk management. 2) Individual
responsibility. 3) Open and honest communication. 4) Organizational commitment ( as stated
before the need for buy-in by the stakeholders is critical at this point). 5) Risk should be to scale
to the project (level of risk, scope, cost and constraints should be to scale to the potential value to
the organization.

1. Risk Analysis

Risk analysis is divided into two sections, qualitative and quantitative. Qualitative
analysis uses subjective (no quantifiable) information to judge the importance of a risk.
Qualitative risk analysis helps to prioritize the risk in an order of most likely to occur (PMBOK
p.328-341).

2. Risk Response

The planning for the risks identified to develop an action plan to enhance opportunities or
reduce threats to the project, services, or products (PMBOK). The planned response to a specific
risk will be outline in the project plan, the response for risk with the contracted services or
product will be outlined in the procurement plan as well.

I. Procurement Management Plan

Supports the PM to manage the purchasing required for the project, such as: lumber for a
construction project or software for a IT upgrade project. Based upon the project, the PM will
need to negotiate a contract to purchase either material or labor to complete the project.

Figure 14: Procurement Plan

1. Procurement: Proposal Prioritization Model

The study of prioritizing contracts and selection of contractors from construction

contractor prequalification (CCPQ) to needs-based methodology to project bid evaluations.
Based upon the research of the leadership team from LEFT this paper is set forth to create a
model/template to prioritize proposal for all future projects contractual work and procurements.
 Project Management Methodology in Nonprofit Organization Page 13 of 43

This creation of a prioritize proposal model will be used for future project, but the main
purpose of choosing an architect firm to design and a contractor to build a $1 million dollar event
center in the northern section of High Point, North Carolina.
Contractor

Choosing a contractor for a service or product is very important to a project manager to

maintain cost, scope and time as well as quality of the overall project. Choosing the wrong
contractor could lead a project into overruns having to spend the contingency funds, or time and
cost by hiring another contractor to deliver the product requested and pay additional fees for a
rush order due to the first contractor failing or refusing to deliver. The importance of choosing
the contractor earns the value of 40 percent.

2. Contractors Capability

LEFT project teams will evaluate the capability of each contractor and determine
technical capacity [and] past experience (Li, et al) to evaluate if the contractor has complete
similar project, delivered in a timely manner, and meet their obligations. Past experience is
requested to a minimum of three similar work packages in term of complexity, size and type
(Bubehalt, et al) compared to the contract bidding. This is critical to the project success and
allocates a value of 14 of the 40 percent.

3. Contractors Reliability

LEFT project teams will evaluate the reliability of each contractor and determine number
of law suits, criminal negligence, failure to deliver on due dates. The ability a project manager
needs to be able to rely upon a contractor to produce a service or product on time, within budget,
and complete all deliverable criteria is key to the success of the overall project and corporation.
Thus the project manager has to complete a full analysis on each contractor to conclude their true
reliability. In addition, the project team will request affiliation and certification of the
corporation as well as the production leaders. This is critical to the project success and allocates
a value of 13 of the 40 percent.
 Project Management Methodology in Nonprofit Organization Page 14 of 43

4. Contractors Financial Status

LEFT financial team will evaluate the financial history and present asset ratio to
determine if the potential contractor has the required funding to invest into the production of a
product or services rendered to the project. This information will help the project manager to
decide if the contractor is financially stable to complete the assignment. This is critical to the
project success and allocates a value of 13 of the 40 percent.

J. Stakeholder Management Plan.

The Project Management Institute recorders this process in the PMBOK (p.391) as, a
technique of systematically gathering and analyzing quantitative and qualitative information to
determine whose interest should be taken into account throughout the project. The first step is to
determine who may exert their influence over the organization or the project (Chapleo and
Simms, 2010). These individuals who have influence can have either a positive or negative effect
on the project. The project team needs to gain buy-in from the negative stakeholder to earn their
endorsement or counter their negativity. Lawrence Leach (2005) stated in his book, Critical
Chain Project Management, the project team must ensure that all parties who have a potential
impact on project success endorse the project to the degree necessary to ensure project success.

Figure 15: Stakeholder Management Plan

The second step is communicating with those who can influence the project such as: the
senior management, the project team and the contributors of the project. You must know the
audience (the stakeholders) you are communicating with, from oral presentation to written
reports. Both internal and external communication is critical function of project management
and is critical to understand stakeholder interests and to integrate stakeholder groups into an
effective project support (Success, 2008).

Figure 16: Stakeholder Interest Matrix

 Project Management Methodology in Nonprofit Organization Page 15 of 43

Stakeholder analysis is taking the knowledge of who the stakeholders are and great
communication skills and addressing the needs and desires of the stakeholders. Meeting the
needs and desires or explaining why they are not within the scope of the project will build the
buy-in need from the stakeholders to be successful.

Communication makes up about 90 percent of project managers daily activities

(PMBOK). Dr. Arredondo states the effectiveness of a manager is not the experience or technical
skills, but the relationship with peers and subordinates. To be effective, you need to be a skillful
communicator (Arredondo).

Building relationships with contractors will enable project managers to communicate

more effectively and enable them to implement change request quicker and smoother. There will
be less drag, push back or obstructionism from the contractors.

There are changes within every project, some small some large, it is the duty of the
project manager to integrate approved changes to the project and adjust the projects scope
accordantly. This includes the cost and time of the project, but also the relationship with
contractors and their deliverables. It is this process design to manage the inevitable changes with
minimal impact upon the overall project (Rad).

The integrated change management plan and the procurement plan should include the
roles, relationships and responsibilities to the project manager, project team and the contractors.
In selection a contractors, the project manager considers the contractors ability to make changes
quickly, smoothly and with minimal cost. This is a value of ten percent or 30.

The type of contract with the contractor(s) will also be weighted within the selection
process to help LEFT determine which contract will present the least amount of risk to the
organization since it is a nonprofit group. The ability to negotiate with a contractor(s) to decide
on the type of contract to use, does it provide a win-win scenario for both parties, or is it one-
sided? This issue is weighted as 10 percent within the attribute category because of the
importance a contract will affect the outcome of the final project deliverables.

The possible contracts that LEFT has reviewed and are acceptable depending on the
situation are listed to the right. These contract type are reasonable based upon the use and
duration of the contract. A chart of contracts are listed below.
 Project Management Methodology in Nonprofit Organization Page 16 of 43

V. Monitoring and Control Phase Group

A. Tracking Data:
The reason LEFT leadership team has chosen to invest in Microsoft SharePoint is
the feature of shoring, sorting, organizing and reviewing documents. This allows the PM, the
sponsor and the whole project team to review project progression, cost and scheduling variances,
performance reviews and other documents allowing stakeholders to track the project.

The PM will track the project as it progresses through the different phases
(planning, execution, monitor and control, and closure). The PM will submit change request to
the change control board to bring the project back on track before falling outside of the
constraints or risk reprimands form the sponsor.

The PM will complete this task by creating a submission date (every seven
business days, every Friday) then review the data within 24 hours to judge if the project is
progressing according to the baseline. Ensure the team understands any variance is required to be
reported immediately.

B. Six Sigma:
Five to ten percent of the project approved for LEFT will be in the field of
continuous improvement or quality assessment/development. This will imply a Six Sigma project
using DMAIC as the project phases, (define, measure, analysis, implement, and control).

During projects not defined as a specific six sigma project, the six sigma
methodology can be used by the PM during the quality control portions. The six sigma
methodology is geared towards data gathering and fact driven to discover defects (results below
assigned goals). Each PM will complete a six sigma course prior to leading a project with a six
sigma section or will contract a six sigma professional to advice or counsel the PM as needed.

Figure 17: Six Sigma's DMAIC

 Project Management Methodology in Nonprofit Organization Page 17 of 43

C. Close Phase Group

1. Data Management:

Documents needed for a successful project will include the following as per the Project
Management Book of Knowledge, Edition 5. It is primarily the responsibility of the PM to
manage the documents listed in the chat below as well as any custom forms of the corporation
and the contracts signed for the benefit of the project being managed. The responsibility of
managing these document may be assigned by the PM to a project coordinator or SharePoint
Administrator to ensure the correct documents are accessible by the project team and authorized
stakeholders. This include: the documents are in current version (i.e. Word 2010 or PDF)
available, up-dated, and accurate.

Table 1: Document Assignment

 Project Management Methodology in Nonprofit Organization Page 18 of 43

2. Contracts:

The contracts used by LEFT are choose by the PM based upon the requirements of the
project and reason for the contract, the PM has an option of different types of contracts and will
need to verify with legal advice to ensure the choose of the correct contract/agreement.
Preventing any failure of execution of contract, legal cost and or legal actions against LEFT.

Table 2: Contract Types / Reason

 Project Management Methodology in Nonprofit Organization Page 19 of 43

3. Deliverable Process:

A deliverable is defined by the PMBOK explains, A deliverable is any unique and

verifiable product, result or capability to perform a service that is required to be produced to
complete a process, phase, or project.

The PM will include the deliverables into the scope statement and WBS; this will include
a) product scope description b) deliverable specification(s) and c) acceptance criteria of the
deliverable (PMBOK p.123). The information will be provided to the PM via the project charter
and contracts with the client. The PM has the authority to contact the client at any time to verify
the deliverables specifications as well as address the progress of the deliverables through the
various phases. This will provide the PM and client to discuss change request along the process.

The PM, project team and procurements offices will need to research material and
technology required for the project and develop a procurement plan and budget items to be
purchased. The procurement information may need to be amended to the contract or new
contract created; determine who to purchase, LEFT or client, and determine how changes will
affect the specification of the deliverable and acceptance criteria.

Accepting deliverables, the client

will verify the product specifications,
work performance documentation and sign
for delivery receipt acknowledging the
deliverables meet the acceptance criteria
and approve of the final results. If there
are any discrepancies, the client will
review them with the PM who (you are
responsible) will need to complete a
discrepancy form and documents
specifically the item(s) the client is
critiquing as violation of the contract(s).

Once this is complete, the PM will

submit formal documentation that the
deliverables have been accepted by the
client (or sponsor), through the
communication plan forward the
information to the appropriate
stakeholders then forward to the members
responsible for the closing phase to add to
the project documents, such as lessons
learned, enterprise factors, procurement
records and organization process
regulations. Figure 18: Deliverable Acceptance Form
 Project Management Methodology in Nonprofit Organization Page 20 of 43

Section II
Team Development: Team a Effective Project Team

Human Resource: (9.0)

As stated throughout this procedures guide, Leadership Education for Tomorrow of High
Point (LEFT) is a new organization and this is the procedures guide to complete project for the
organization. This is the Managing the Team Development Plan within the Human Resources
portion of the Project Management Plan to assist in developing the procedures and guidance for
the project managers, coordinators and administrators in one overall procedures guide so there is
no rework in designing new procedures, forms, documents, etc

This procedures guide will also be used to guide any external vendors, business partners,
or contracted project managers on external projects. The leadership of LEFT believes this is one
of the important section of the project plan due to each successful project is based upon team
work and collaboration of talents.

Table 3: Human Resource Plan

 Project Management Methodology in Nonprofit Organization Page 21 of 43

This guide is based on the International accepted Project Management Body of

Knowledge 4th Edition (PMBOK) published by the Project Management Institute (PMI). Thus
anyone affiliated with the PMBOK will easily affiliate with our projects and allow the
organization to work with any persons who hold the Project Management Professional (PMP) or
Program Management Professional (PgMP) certifications.

Therefore, this portion of the guide with the topic of Human Resources (Team
Development) will follow the basic format listed below, but will then address the details of team
building, performance reviews and development for the staff of LEFT to follow when developing
teams for projects, functional areas or training external clients in team building with the attached
documents.

Follows the PMBOK format of the Human Resource Management plan as: Develop
Human Resources Plan which is divided into the following three elements: 9.1 Acquire the
Project Team; 9.2 Develop the Project Team; and 9.3 Manage the Project Team (PMBOK,
2008).

D. Developing the Human Resources Plan: (9.1)

The purpose of developing a project team as part of the Project Management Plan is
most project teams in most industries may have never worked together, may be not even have
ever met prior to their current assignment to the project. For example, a woman who works for a
major software corporation and was assigned to a project two years ago. The project included
her, a few colleagues she worked with in the pass and a gentleman from Russia she never meet
or even head of prior to the assignment.

This is the point to host a kickoff party, a celebration of the projects approval and an
opportunity to introduce team member to one another. It is important to use ice-breaking games
to break the tension of the team and open the opportunity for people to start building
relationship. One example is the adjective-name game, beginning with a person who says their
name with an adjective such as Silly Sam or Load Larry. Each person repeats everyone
before them adding their name at the end. This helps everyone to remember names of people
they just meet.

In developing a team, the PM will need to evaluate each person and determine if
additional training will be required to ensure every member is at or close to the same level of
knowledge. This may include training on Microsoft Project 2010 or SharePoint 2013 so each
member has access to the project schedule (project) and documents (SharePoint).

The PM should select senior members of the team with years of experience and assigned
them too mentor a junior members to help them develop skills need to accomplish assignments.
The PM should select one of two members to mentor as well. As a PM, one should set the
example for other to follow.
 Project Management Methodology in Nonprofit Organization Page 22 of 43

E. Acquiring the Project Team: (9.2)

The initiation manager or project sponsor will review with the project manager the
activity resource(s) requirements of the project and determine the staff members who would be
qualified to complete the requirements. They will also determine if external resources will be
needed; if so, a contract will be created to contract individuals needed, vendors or consultant. In
the process of select team members, their roles, responsibilities and accountability of each
member. The project manager will review the standard operating procedures (SOP), enterprise
environmental factors and LEFTs organizational process assets to determine proper selection.

The most important aspect of this procedure is to ensure the project members have to
proper experience, training and understanding of their role in the project. What they are
responsible for within the project and how they will be held accountable for their duties. If
project members assigned to the project need additional training, the project sponsor needs to
review two sources to cover the cost of the training. If possible have the entire team trained
versus only one or two members.

The two sources are: training funds through the Human Resource Department (HRD) and
the second is from the project funds. The first source sought after should be the HRDs training
funds. This is due to the fact that even after this project, such training will be used in future
projects or during daily operations. If the training uniquely to the current project and no
foreseeable use in the near future or the cost is so great then the cost could be sought through the
project funds. If necessary the cost could be divided between project expenditure and HRDs
training funds, the percentage of the division will need to be negotiated between the project
manager and the HRDs manager.

Review pre-assigned team members

Review selection template and submitted resumes
Review project requirements and resource criteria
Begin acquisition of additional members
Complete staff assignment registry
Submit resource calendar for approval
Update project management plan
 Project Management Methodology in Nonprofit Organization Page 23 of 43

F. Developing the Project Team: (9.3)

When developing a project team with new employees or seasoned contributors the team
will go through the four stages of development; forming, norming, storming and performing.. It
is important for the team leader to understand these steps and prepare and guide the team through
these steps. In addition, the team leader needs to prepare training and team building vents
throughout the project, but especially, a weekly event for the first five to seven weeks. (refer to
the team building manual and the book 50 Team Building Activities for Busy Mangers within
the library at LEFTs corporate office.

One action that is recommended to help the process of developing a new team is a team
member reception. Similar to a kick of meeting to start the execution phase of a project, the
reception is the kick off to a new team, but this meeting is restricted to the team only. The
reception is a well-planned [event] is an important first step in creating a cohesive team. Either
during the reception or the first team meeting, the team needs to establish group rules or norms
that each member has the ability to discuss, make suggestions and the team as a whole approves
how the team members will act toward each other and hold each other accountable.

Training project members is another step in the developing a project team phase. It is
imperative that the project leader/manager provides the appropriate training for each member in
order to fulfill their duties and responsibilities. Each member must be properly trained,
equipped, and led by their leaders to enhance their probability of winning or project success.
Part of the training is team building which is important for two reasons. First, team members
commit to support each other to make the team successful. Second, data show improvements
in productivity, quality, and morale when teams are used.

The team leader is responsible for creating a reason for picking each member of the
teamrecognizing the attributes of each member to fulfill their role. This can be done by using
a selection template. A team is like a jigsaw puzzle, with each member fitting in differently
based upon strengths and weaknesses and skills that contribute each other. One facet of team
development to remember is just because someone is new doesnt mean he will not be able to
improve upon the way business is conducted (Anonymous, 2003) sometimes its the new idea
or new process that increases the project effectiveness. Ensure the team uses the communication
plan to its full effect to process new ideas, suggestions, recommendations even negative
feedback.

Review staff assignments, create alternatives and decide on training needs

Implement approved resource calendar
Schedule training events for group(s) and individual(s) as needed
Create and distribute group norms (rules) to team after approval
Ensure each member knows and understands the communication plan
Ensure each member receives a copy and understands Communication Styles
 Project Management Methodology in Nonprofit Organization Page 24 of 43

G. Managing the Project Team: (9.4)

Managing the project team, especially those who were once a peer or who have not
contributed on same projects in previous experience. The team leader will need to slowly but
surely build relationships with each member to grow levels of trust and respect. This allows
accountability to grow out of accountability. The difference is, accountability is hold one
responsible while accountability is knowing team members are there to help, trust they have
already complete their portion of the weight so you can do yours. Dr. John Maxwell share a
comment from a staff member, who said, we dont work for each other; we work with each
other (Maxwell, 2001).

A major portion of the managing project team is performance reports (as well as part of
the communication plan). From the first week to the end of the project each individual should
receive an performance appraisal for performance that can be measured quantitatively.
Subjective performance reviews that are negative will be meeting with hostility and negative
feedback, but employees cannot argue against metrics. One of the greatest tools learned from
Toastmasters International is the feedback sandwich. Sharon Armstrong explains it in Stress

Free Performance Appraisals, as:

Supervisor opens the discussion with a positive aspect of the employees performance.
The problem is identified and the supervisor explains his or her concerns.
The employee is asked to explain his or her perspective.
With examples, the supervisor outlines the effects of the behavior/action/lack of action on
organizational goals.
The employee is asked for solutions and together the supervisor and employee develop an
action plan.
The supervisor ends on a upbeat note, expressing confidence in the employees capability
to pursue a positive course.

Another portion of managing a project team is coaching. As stated in a PMI article,

project managers wear multiple hats. Those hats include coach, teacher, trainer and mentor.
When mentoring, remember people have different learning styles. Some people learn best
through examples...through telling. Still others learn best when they work hand-in-hand with
someone else (Harvard, 2004).

There is a simple difference between mentoring and coaching, but there is a difference.
When mentoring, the project leader needs to know this is not the time to be an authority figure,
rather someone who understands. When mentoring, the leader needs to be a listener more than
anything else. Help the mentee to work through problems by providing advice (not telling them
what to do).

Example: John, I noticed that you havent volunteered for project X; you might be
missing an opportunity. Versus, John, I want you to sign up for Project X today. (Harvard,
2004).
 Project Management Methodology in Nonprofit Organization Page 25 of 43

Experienced managers will testify, two people cannot work together for long durations
without a conflict. When multiple people are working together, conflict is a certainty. One of the
tools a manager will use repetitively is conflict management and most of the time the cause is
miscommunication. As the Olympics athletes compete for the Gold medal many people compete
every day for attention, funds, resources, awards or notoriety. This competition sometimes led to
conflict. Team members have a chose to cooperate or compete. See cooperate and complete
matrix.

There are different types of conflicts; substantive conflict is a disagreement over issues
that are relevant to the groups recognized goals and procedures and procedural conflict is
disagreement over the methods to group should use to complete its basic tasks (Forsyth, 2006).

Complete individual performance reviews

Complete team performance review
Review performance reviews to determine similarities, trends or irregularities among
members
Design coaching and mentoring strategies per individual member or groups of members
Design action plans to help members to improve upon their skills while on the project
Update project management plan, enterprise environment factors, organizational
procedures and SOPs

Figure 19: Prisoner's Dilemma Game

 Project Management Methodology in Nonprofit Organization Page 26 of 43

VI. Leadership Development

A. Choosing a Project Manager:

The project sponsor is responsible for the selection of a project manager for the project at
hand. The selection process begins with a review of current employees who hold the minimum
required experience, education, talent, and training. The sponsor can gain this information with
the assistance of the Human Resources Department to include information in two databases, 1)
the employee performance reviews pertaining to daily performance evaluations, leadership
evaluations, and personality test scores. 2) The employee education and training reports. These
report provide a list of (verified) degrees and continuation education, professional certification
and training.

Figure 20: HR Plan for PM Selection

Reviewing these document, the PM, can choose three to five candidates to interview.
Between the reports and the interview, the project sponsor can choose the PM best to manage
and lead the project. The project sponsor will choose a project manager during the initiation
phase to assume responsibility of the project and begin the planning process before the actual
planning phase. Initiating a project, the PM will need to outline the requirements of the initiating
process group (PMBOK) to include the project charter, a business case (the why of the project)
and matching the projects objective with those with the corporations strategies.

Skills and talent the sponsor will seek within a project manager include the following:

Project management professional certification

Time management / ManPower scheduling
Microsoft Office 2010 or 13 certification
Six sigma certification
Change management
Soft / People skills
Public speaking
 Project Management Methodology in Nonprofit Organization Page 27 of 43

B. Developing Leadership Skills:

LEFT leadership team has developed a process of developing leader and prepare
employees to assume a position as a project manager. In North Carolina, business owners /
leader have stated the community colleges and university provide students with technical, and
academic knowhow and ability to interact in a diversity environment, but they lack leadership
skills. This is the foundation of why LEFT was created and we practice what we preach.

Each project manager is required as of selection, to recruit one employee who is listed as
a low level in talent and skills to become an administrative assistant. Through the duration of
the project, as PM, will train, mentor and educate this employee in the knowledge of business
administration, project methodology, and technology. The PM can develop a schedule for the
Assistant to complete assignments with team members to increase the opportunities for
teachable moments.

In addition, the PM needs to select team members to work together in sub-team to

facilitate cross training in skills and shared experience. The LEFT leadership has discovered this
informal mentoring is productive and allows team members to build upon their own skills while
help others, developing trust, respect, and mutual collaboration. On project that have used these
methods, the percent of project completion increased as well as the percentage of the project
labeled as successful.

Each PM is required to submit a progress report upon themself. The report cover self-
directed improvement and course/training completed. LEFT leadership team believe a leader
should constantly seek opportunities for improvement. The PM has the option of choosing their
own methods, just need to submit the evolution to senior management to inform them of what
the opportunities are. These may be books on various topic of leadership, management,
communication or ethics. Online course at home, or classes at community college or universities.

In addition, LEFT constantly seek opportunities to provide train to their employees,

specifically, leaders. A list of courses is provide at beginning of the calendar year, and added to
throughout for employees to register. They include: Microsoft products, project management, six
sigma, Cisco, Adobe, public speaking and communication, decision making, etc

1. Reading recommendations:

Mentoring Developing the Leader within You

Good to Great Developing the Leaders Around You
EntreLeadership The Six Sigma Way
Lead Like Jesus Six Sigma Hand Book
The Mentor Leader Project Management Toolbox
The Power of Vision Developing Management Skills
5 Levels of Leadership Essentials of Risk Management
Leadership Excellence HR skills for the Project Manager
High Performance ethics Project Management Book of Knowledge
 Project Management Methodology in Nonprofit Organization Page 28 of 43

C. Effect of Leadership on a Project:

LEFTs research team investigated project leadership and discovered positive leadership
had significant impact on performance of the project (Chaudley et al). Research analyst,
Kenneth Thompson, argues in his report, project leadership is critical to the success of a project.
Specifically, he note the use of the leadership model of Servant Leadership. Author and
leadership expert, Ken Blanchard shares servant leadership is effective in management
positions, using ones authority to support subordinates and place the needs of the subordinates
ahead of ones own. The leadership team of LEFT encourage PMs to learn servant leadership
techniques and philosophy and implore it in day to day activities.
 Project Management Methodology in Nonprofit Organization Page 29 of 43

VII. Index
Business Case, 4
Communication Plan, 10, 19, 23, 24
Construction Contractor Prequalification, 12
Critical Chain Project Management, 14
DMAIC, v, 16
Dr. John Maxwell, 23
Earn Value Management, 8
Financial Analysis, 3
Internal Revenue Services, 1, 33
kick of Meeting, 23
leadership, vii, viii, 1, 2, 10, 12, 16, 20, 26, 27, 28, 32, 33, 34
Leadership Education for Tomorrow, i, viii, 2, 20
Microsoft Project, v, 7, 21
Microsoft SharePoint, 16
Performance Reviews, 3, 16, 21, 24, 25, 26
Planning Phase, 3, 5, 26
PMBOK, 1, 3, 5, 6, 8, 9, 10, 11, 12, 14, 15, 19, 21, 26, 33
Prioritize Proposal Model, 13
Pproject Charter, 3, 5, 6, 19, 26
Project Leader, 23, 24
Project Management, vii, viii, 1, 2, 6, 14, 22, 25, 27, 31, 32, 33
Project Management Book of Knowledge, 6, 17, 27
Project Management Institute, viii, 1, 6, 14, 21, 33
Project Management Plan, 9, 20, 21
Project Manager, vii, 1, 3, 10, 13, 14, 15, 22, 26, 27, 32, 33
Project Managers, vii, 1, 2, 5, 11, 15, 20, 24, 31
Project Sponsor, 3, 10, 22, 26
Project Team, 1, 2, 6, 7, 9, 10, 11, 13, 14, 15, 16, 17, 19, 21, 22, 23, 24
Qualitative Risk Analysis, 12
Quality Management, 9
Risk Analysis, 12
Risk Management, 6, 11, 12, 32
Scope, iii, v, 6
Sharon Armstrong, 24
Six Sigma, iv, v, viii, 2, 4, 16, 27
Stakeholder Analysis, 15
Stakeholders, 3, 5, 6, 10, 12, 14, 15, 16, 17, 19
Standard Operating Procedures, 10, 22
Team Development, 10, 20, 21
Team Leader, 22, 23
WBS, 5, 6, 19
Work Breakdown Structure, v, 5, 6, 7
 Project Management Methodology in Nonprofit Organization Page 30 of 43

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