GANTT CHART

A Gantt chart, commonly used in project management, is one of the most popular and useful ways of
showing activities (tasks or events) displayed against time. On the left of the chart is a list of the activities
and along the top is a suitable time scale. Each activity is represented by a bar; the position and length of
the bar reflects the start date, duration and end date of the activity. This allows you to see at a glance:

What the various activities are

When each activity begins and ends

How long each activity is scheduled to last?

Where activities overlap with other activities, and by how much

The start and end date of the whole project

To summarize, a Gantt chart shows you what has to be done (the activities) and when (the schedule).
GANTT HISTORY
The first Gantt chart was devised in the mid-1890s by Karol Adamiecki, a Polish engineer who ran a
steelwork in southern Poland and had become interested in management ideas and techniques.

Some 15 years after Adamiecki, Henry Gantt, an American engineer and project management consultant,
devised his own version of the chart and it was this that became widely known and popular in western
countries. Consequently, it was Henry Gantt whose name was to become associated with charts of this
type.

Originally Gantt charts were prepared laboriously by hand; each time a project changed it was necessary to
amend or redraw the chart and this limited their usefulness, continual change being a feature of most
projects. Nowadays, however, with the advent of computers and project management software, Gantt
charts can be created, updated and printed easily.

1. Karol Adamiecki
2. Henry Gantt
Today, Gantt charts are most commonly used for tracking project schedules. For this it is useful to be able
to show additional information about the various tasks or phases of the project, for example how the tasks
relate to each other, how far each task has progressed, what resources are being used for each task and so
on.
Work Breakdown Structure (WBS)

A work breakdown structure (WBS) is a key project deliverable that organizes the team's work into
manageable sections. The Project Management Body of Knowledge (PMBOK) defines the work
breakdown structure as a "deliverable oriented hierarchical decomposition of the work to be executed by
the project team."

The work breakdown structure visually defines the scope into manageable chunks that a project team can
understand, as each level of the work breakdown structure provides further definition and detail. An easy
way to think about a work breakdown structure is as an outline or map of the specific project. A work
breakdown structure starts with the project as the top level deliverable and is further decomposed into
sub-deliverables using the following outline hierarchy.

Why use a Work Breakdown Structure?

The work breakdown structure has a number of benefits in addition to defining and organizing the project
work. A project budget can be allocated to the top levels of the work breakdown structure, and department
budgets can be quickly calculated based on each project's work breakdown structure. By allocating time
and cost estimates to specific sections of the work breakdown structure, a project schedule and budget can
be quickly developed. As the project executes, specific sections of the work breakdown structure can be
tracked to identify project cost performance and identify issues and problem areas in the project
organization. Project work breakdown structures can also be used to identify potential risks in a given
project. If a work breakdown structure has a branch that is not well defined, then it represents a scope
definition risk. These risks should be tracked in a project log and reviewed as the project executes. By
integrating the work breakdown structure with an organizational breakdown structure, the project manager
can also identify communication points and formulate a communication plan across the project
organization.
Work Breakdown Structure Guidelines

The following guidelines should be considered when creating a work breakdown structure:

The top level represents the final deliverable or project:

Sub-deliverables contain work packages that are assigned to an organization’s department or unit
All elements of the work breakdown structure don’t need to be defined to the same level
The work package defines the work, duration, and costs for the tasks required to produce the
sub-deliverable
Work packages should not exceed 10 days of duration
Work packages should be independent of other work packages in the work breakdown structure
Work packages are unique and should not be duplicated across the work breakdown structure.

Tools to Create a Work Breakdown Structure:

Creating a Work Breakdown Structure is a team effort and is the culmination of multiple inputs and
perspectives for the given project. One effective technique is to organize a brainstorming session with the
various departments that will be involved with the project. Project teams can use low-technology tools like
a white board, note cards, or sticky note pads to identify major deliverables, sub-deliverables, and specific
work packages. These cards can be taped to a wall and reorganized as the team discusses the major
deliverables and work packages involved in the project.
The low-technology approach is easy to do; however, it does not work well with distributed teams or
translate easily into an electronic format. There are several tools available that support mind mapping,
brainstorming, and work breakdown structures. Match Ware Mind View is an easy-to-use mind mapping
software package that supports work breakdown structures, project outlines, Gantt charts, and exports
easily into Microsoft Project for further schedule definition.
What is Corporate Performance Management (CPM)?
Corporate Performance Management (CPM) refers to a tool used by corporations to
formulate organizational strategies through prescribed methodologies, data analysis, processing
and reporting to monitor and manage the performance of an enterprise. In other words, CPM
helps corporations use proven and tested methods and processes to improve their business management.
Although CPM is described as a business intelligence and strategic management tool, its concept is pretty
straightforward. For instance, it includes all collaborative efforts, successful performances, and failures of
a corporation. It means that the CPM output is vital to the organization in ensuring it maintains its key
metrics to improve its revenues and subsequently grow its profits.

Sources of Metrics for Building CPM

Information used in the creation of CPM metrics originates from books of accounts like cash flow
statements, balance sheets, and income statements. Other sources may include budgeting and forecasting
data, which contain reports such as revenues, expenses, and inventory. The fundamental goal lies in
providing insights using processes like strategic financial planning, budgeting, scenario analysis,
forecasting, financial consolidation, and data reporting.
It is prudent to caution that corporate performance management is not a strategy by itself. Instead, it is a
constituent of intelligent business tools to measure the performance of a company. Therefore, companies
should put in place viable frameworks to ensure there is actual performance management. Below are
common frameworks.

EFQM Excellence Model – A framework that lays strategies on how a competitive organization should
operate
MPO – Maps strategies or trends Balance Scorecards – A collection of several organizations viewpoints
of how a business should be adapting to the changing global business experiences
Six Sigma – A data-driven framework that ensures the successful operations of a company by
eliminating defects using a simple DMAIC (define, measure, analyze, improve and control) approach
Key Performance Indicators (KPIs) – Measures performance of the above frameworks
Human Performance Management (HPM) vs. CPM
Sometimes in corporate management, it is not apparent what strategic managers mean when they refer to
performance management. A worst-case scenario is a confusion between human performance management
(HPM) and corporate performance management. However, there are distinctions between the two.
In HPM, performance management refers to a subset of human resource about employee turnovers. It
pertains to the employees’ productivity, their level of satisfaction, or their operational capabilities. On the
contrary, CPM doesn’t even outline or refer to employees anywhere. In fact, it is all about how to
communicate, align, and deliver actionable strategies through strategic frameworks, as discussed earlier.
Therefore, it’s important to clarify the context of performance management in the discussion.

How to Avoid Corporate Performance Management Pitfalls

When a company communicates effective performance management across the organization, it must draw
critical expectations, as well as expected results. However, it does not always happen smoothly. As a result,
CPM faces significant challenges that need remedies in the initial stage as outlined below.

1. Strategic alignment of major elements

This refers to ensuring that every part of the organization processes and all vital elements are aligned with
the primary objective such as budgets, project and program management, risk management, etc.

2. Smart automation
A poorly executed CPM will mean absolute failure. That’s why a corporation should put an accessible,
elaborate, and appropriate ICT infrastructure to ensure information is easily integrated, processed and
reported as per proposed standards.

3. Goals synchronization
Companies should not just use existing strategies without even focusing on their unique strategies. They
should instead focus on articulating their primary goals across the corporations so that CPM and all
stakeholders are in line with the set strategies.

4. Collection of Key Performance Questions (KPQ)

Though derived from KPIs, KPQ is about collecting meaningful, relevant, and usable data by asking the
right questions to the proper departments and sources.

5. Fostering a positive learning environment

Once data has been collected, analyzed, and interpreted, the next course of action is using the information
in meaningful ways. That is, ensuring that organizations have empowered relevant departments to use,
correct, and improve areas suggested by CPM metrics.
Importance of Corporate Performance Management Software

In the era of business management intelligence, it’s important that corporations embrace processes
automation. Here are some of the benefits of adopting a CPM solution.

1. Real-time feedback

Performance management software has smart dashboards which contain every measurable metric a
management team may need to use in its decision-making. However, the detail is not in the variety. It’s in
the ability to read and use data as changes happen in real-time across all parts of the organization.

2. Data consolidation for easy management

The tools have the intelligence to gather, group, and combine data from multiple sources, be it departments,
spreadsheets, or even companies.

3. Provide ease of risk management

One significant advantage of CPM is the integration of tools like what-if models. For instance, the model
empowers managers to mitigate risks and make informed decisions based on the simulation of the
best-worst case scenarios.

4. Provide simple data feedback and access

Performance management tools enable managers to have ease of access to information while still fostering
accuracy and quality.

5. Ease of collaboration

CPM tools are not only locally integrated but also cloud connected to allows all users to stay in sync across
all departments.
How to Choose an Effective CPM Software Solution?

With the wide range of options in the market, it can be difficult to choose a high performing CPM software.
Therefore, below are two fundamental elements to consider when shopping for a CPM solution.

1. High rating

A good product must have positive feedback because it drives satisfaction. The opposite is also true for an
average product. However, there is an exception to this rule. Some companies may have a great product,
but they are relatively new in the market and are yet to receive some feedback. The best way forward, in
this case, is to use their trial version before committing to purchasing the full package.

2. A product from a reputable organization

Even though it’s not always true that reputable businesses will attract excellent ratings, these providers
have the resources, significant market share, and a wide range of options. Meaning, their CPM solutions
will probably make the grade.

https://corporatefinanceinstitute.com/resources/knowledge/strategy/corporate-performance-management-c
pm/
PERT
In project management, Project Evaluation Review Technique or PERT is used to identify the time it takes
to finish a particular task or activity. It is a system that helps in proper scheduling and coordination of all
tasks throughout the project. It also helps in keeping track of the progress, or lack thereof, of the project. In
the 1950s, Project Evaluation Review Technique was developed by the US Navy to manage the Polaris
submarine missile program of their Special Projects Office.

Knowing the time, it would take to execute a project is crucial as it helps project managers decide on other
factors such as the budget and task delegation. No matter how big or small a project is, estimates can be
too optimistic or pessimistic, but using a PERT chart will help determine more realistic estimates.

CREATING A PERT CHART

A flowchart is used to depict the Project Evaluation Review Technique. Nodes represent the events,
indicating the start or end of the activities. The directional lines indicate the tasks that need to be
completed, and the arrows show the sequence of the activities.

There are four definitions of time needed to finish an activity:

*Optimistic Time - the least amount of time to complete a task.

*Pessimistic time - the maximum amount of time to complete a task.

*Most likely Time - assuming there are no problems, it is the best estimate of how long it would take to
complete a task.

*Expected Time - assuming there are problems, it is the best estimate of how long it would take to
complete a task.

Here are several terms used in a PERT chart:

*Float/Slack – refers to the amount of time a task can be delayed without resulting in an overall delay to
the other tasks or the project.

*Critical Path – indicates the longest possible continuous path from the start to the end of a task or event.

*Critical path activity – refers to an activity without slack.

*Lead time – refers to the amount of time needed to finish a task without affecting subsequent tasks.

*Lag Time – the earliest time by which a successor event can follow another event.

*Fast Tracking – refers to the handling tasks or activities in parallel.

*Crashing Critical Path – shortening the amount of time to do a critical task.

To implement a PERT chart:
*Identify the different tasks needed to complete a project. Make sure to add these in the right order and
indicate the duration of each task.

*Create a network diagram. Use arrows to represent the activities and nodes as milestones.

*Determine the critical path and possible hack.

ADVANTAGES OF PERT:

Here are the benefits of using PERT in project management:

It helps maximize the use of resources.

It makes project planning more manageable.

It’s useful even if there is little or no previous schedule data.

It enables project managers to determine a more definite completion date.

DISADVANTAGES OF PERT:

Like any other method, PERT comes with its share of limitations:

In complex projects, many find PERT hard to interpret, so they also use a Gantt Chart, another popular
method for management.

It can be tedious to update, modify and maintain the PERT diagram.

It entails a subjective time analysis of activities, and for those who are less experienced or biased, it may
affect the projects schedule.