Project Milestones & project budgeting

Morning session

What is a milestone? Mark critical points in completion of the

contracted work.

A significant development, event or accomplishment in your plan of attack

Achievements that help verify that the project is on track and on schedule

An essential component of good project management

Note: Milestones should be closely related to the anticipated project outcome/s, objectives and project budget

Milestones are used to:

Measure progress – management tool

Provide the basis for review & reporting

Give sponsors confidence that the project is on track & is well managed.

Getting started Define what you hope to achieve from the project.

The milestones should always relate back to your objectives.

Brainstorm ideas – what are the different tasks, steps that you will need to do to get to an end result?

List all the things you are going to do for each year of your 3 year programme & break these into definable chunks.

Identify the critical points, the key markers. These are your milestones.

Milestones need to include:

What will be achieved

Specific criteria (If the milestone can be interpreted in more than one way it is not specific)

Quality measures (These are particularly important if you have contracted someone else to do the work.)

Target date

Milestones also need to be realistic – do you have the capacity ($ and people) to achieve them?

Some examples

Submitted milestone Focus farm network operational. Target date:

Nov 2004.

Revised milestone Focus farm network involving 14 properties

spread throughout NZ operational. (Farms, community groups & facilitators selected & work programme agreed). Target date Nov 2004.

Example 1

Some examples

Submitted milestone Commence literature search. Target date: Feb

2005.

Revised milestone Literature review of community attitudes to

landscape planning completed according to agreed terms of reference. Target date Feb 2005.

Example 2

Some examplesSubmitted milestone First workshop undertaken Target date: Feb

2003.

Revised milestone First workshop on organic farming techniques

undertaken. (At least 20 participants in attendance) Target date Feb 2003

Just because you have held a workshop doesn’t mean that you have made progress. You might have been better to spend the money on something else. e.g. newspaper articles)

Example 3

Some examples

Submitted milestone Nitrogen treatments applied, trial regime and

measurement site decided for year 2, soils chosen for characterisation from other growing regions, gold spatial data collected from Zespri and soil data from EBOP, fruit softening data collected from Zespri and corresponding fertiliser data from suppliers, presentation in Zespri Kiwi-tech seminars completed on progress to date.(Target August 2005)

Example 4

Check! Ask yourself the question – will your milestones get

you to where you want to go?

Are all the milestones/tasks absolutely necessary? ie. If you leave this step out will it make a difference to the project?

Are there milestones missing? Are there steps or tasks that you need to include that you haven’t listed?

Are your milestones specific & measurable?

Milestones & project budget Use the milestones as the basis for preparing your budget.

Cost out each milestone using the categories in the budget sheet.

You must be able to justify the figures that you include in your budget.

Don’t forget to include budget provision for project management.

Confirm cash contributions

Assess in-kind contributions

In-kindIn-kind expenses are those which are incurred during the running of a project and are contributed on a no payment basis. They can include virtually anything which can be deemed a legitimate cost to the project.

In-kind contributions provide an indication of the level of community/group/industry support for the project and also provide the leverage to access funding.

You will need a reliable system for recording in-kind contributions. Costs included must be realistic and be able to be verified.

Recording in-kind contributions is an essential part of project management but how you do it is up to you.

Assessing in-kind Step 1: List all the different parties who potentially are contributors

to the project and the contribution they are likely to make.

Step 2: Assign the contributions to the categories as set out in the SFF claim form and draw up an in-kind budget. This will help you track progress overtime

Step 3: Devise a system for recording the individual contributions. Develop a system that works for you.

Step 4: Keep regular checks on how things are going. Ask your contributors to return an update each quarter of their in-kind expenses.

Remember: Recording in-kind contributions is a matter of horses for courses. It’s a matter of finding an approach that works for you and your group.

Setting up your project for success

Afternoon session

The project management process

•Milestones

•Budget

•Systems

•Contracts

•Mgt team

•Implement plan

•Action

•Coordination

•Communication

•Liaison

•Budget

•Milestones

•Feedback

•Research

•Mgt review

•Evaluate options

•Revise plan is necessary

P

D

M

I

Plan Do Monitor Improve

Key areas Management setup (i.e Committee, chairperson, project

manager, finance manager)

Contracts with providers

Communication – within and outside of the project group group

Monitoring & review (i.e. Having the right systems that enable you to assess how well you are doing)

Reporting (e.g 1/4 reports) – to SFF & Mgt committee

Capacity – does your group have the people with the skills and the time to manage the project?

Management Committee role

Governance/oversight Carry overall responsibility for the project Set and approve policies / operating

procedures etc Approve delegations Approve budget/budget variations Approve accounts for payment Act as link with different stakeholders

Chairperson’s role

Uphold the rules/constitution of the group Ensure the milestones are being achieved Act as chair at meetings Ensure that office bearers are for filling their

roles Represent the organisation to the outside world Have co-responsibility for sign-off of financial

reports/media releases To act on behalf of group in interval between

meetings

Project Manager's role Research & development of initial project Set milestones & prepare timeline Set up project/systems etc Source and contract suitable contractors Manage contracts Organise & oversee works programme Monitor progress Monitor budget in association with Finance Manager Project communication/liaison Project reporting Authorise all accounts & co sign-off Keep management committee informed

Finance Manager’s role

Control of bank account Budget preparation Pay accounts for approved expenditure Operate accurate cash book To be aware of current financial position To keep Project Manager & management team

informed on financial matters GST returns Produce a set of annual accounts

Contracts

Why do you need them? Gives you control over your project They clearly define what you expect of

your contractors/consultants Give you a mechanism for negotiation

on price. Basis of dispute resolution

Communications strategyWhy do you need one? To ensure that the projects key aims and messages are

delivered & are consistent & understood by all parties To build awareness of the project among a wider audience

and user group To secure commitment of key stakeholders to the project

aims To influence specific policies & policy makers To encourage participation among researchers and partner

bodiesCommunication principles To produce honest, succinct, credible & cost effective

communications To ensure that all communication is planned, timely and

consistent with key message To ensure all project communication is approved by the

appropriate person

Monitoring & review

For effective monitoring & review you must have the right systems in place.

It can take a while to set up right systems up but when you do the advantages will out way the disadvantages.

Good systems enable you to maintain control of your project & make adjustments where necessary.

Good systems give your project credibility

Reporting

Your management group requires good information to be able to make the right decisions and effectively manage the project.

SFF need to know that their funds are being used well That the work contracted will be delivered within the

timeframe, quality & $ promised. If work is not on track the right actions are undertaken

to rectify the problem. If contract variation is required it is not a surprise.

The ¼ ReportThe ¼ report should include: Milestone progress Additional results Proposed activities next ¼ Milestone variations Financial update Other

Management group feedback Stakeholder liaison Linkages with other projects Information dissemination Upcoming events

Capacity

Does your group have the necessary expertise or people with time to manage the project??