Alcion Benedict Popp

1
Alcion Benedict Popp
Application of PM to small business ventures.
The case study We choose to develop a case study
based on the hospitality industry, with a
particular focus on Dance Clubs, which pose a
high degree of risk, uniqueness and capital
investment. It is believed that by implementing
PM to dance-clubs, generalisation of the
applicability of PM can be cast across many
various small businesses and especially those in
the hospitality industry.
The secondary scope of this paper is hence, to
encourage the use of PM best practices by small
business venture operators, as a more strategic
approach, by showing that this approach is not so
complex as perceived and by providing this
document as a staring point and an example of
this.
The principal scope of the project is to
investigate the suitability and applicability of
Project Management principles in the planning and
development of a smaller business with a high
degree of risk, by developing one particular case
study fully using the Project Management
framework as given by the Project Management
Institute (PMI).
Conclusions
It can be confirmed that PM can be applied to
small start-up ventures with a high degree of
risk at least from a planning perspective,
because it has been possible to
Background information on PM Literature Review
What is a project ?
1- Organize information relating to the main case
study within the PLC as given by the PMI. 2-
Develop a high degree of detail in the WBS,
especially in the soft phases of planning
concepts and development. 3- Hypothesis and
forecast methods of actually accomplishing the
project in the implementation and termination
phases and develop control mechanisms for these
future phases.
-gt Temporary Endeavour -gt Researching, Planning
Developing -gt Time, Cost Scope elements as well
as, -gt Quality, Risk Procurement elements
Use of PM
-gt Developed by PMI (Project Management
Institute) -gt Complex and Dynamic products,
services or endeavors
It is also believed that the document developed
serves as a good guiding model of the
implementation of PM and satisfies some critical
requirements (R. Max Wideman, 1991), including
Examples (Large High Risk Projects)

• IT MindManager

1- Clarifying the scope of the project and
spelling out the sequence of events. 2- Breaking
up the phases and tasks into separate
mini-projects that are easier to handle. 3-
Rendering the process sufficiently simple and
clear, so as to be accessible by non-PM experts.
4- Show that the model can be all-inclusive.
1 Project Manager 15 developers. Developed
software for power companies throughout the
united states.

• SPACE Spirit mission to Mars

1 Project Manager, 4 Function Managers (e.g.
project scientist) sever hundred people
coordinated by this management team.
Closing Processes
Deliverable a plan

• MEDICINE Human Genome Project

• Compilation of all data gathered and
  presentation, including
• Feasibility study
• Theory
• Estimates
• Trials / Operational tests
• Plan to be used as a guide or starting point for
  an investor

13 year project 1990 2003. Involved many
countries including Germany, France Japan.
Achieved numerous goals and set new standards for
medicine. (Genome is all the DNA genes of an
organism)
Our Focus (Small High Risk Projects)
Deliverable a project
Applying the ideology to a small business with 1
project manager 2 functional managers Venue
Marketing managers

• Compilation of
• Technical documents (architectural engineer
  drawings of what has been built)
• Contacts of all parties
• Licenses
• Legal documents
• Problematic issues resolutions

Initiation (case study)
Planning Processes (case study)
Communication Plan
Market Analysis (areas of interest)
Scope Activity definitions
Executive Processes
Issues examined include the direction of
information flow, the format that the information
and the frequency with which information is
communicated.
Development of a dance club with a high degree of
risk, for future operation in the CBD of Sydney.
For example, we identify needs using the model of
buying behavior, which can be used for this case
study or other ventures alike Fig 1. Fig 2.
Solicitation Execution
Implementation of a venture such as this requires
a business plan, a proficient team and the
addressing of executive elements. Solicitation is
required on items such as

• Communication flow diagram (Fig 4.)

Constraints

• Intended Investment 300,000
• Contingency of 20
• Size 200-300 patrons
• Staffing part-time / casual

-gt The Project Management Team (previous
experience) -gt Equipment (light sound
supplier) -gt Facilities development
(trades/contractor selection) -gt Employment
(recruitment training) -gt Food Liquor
(pricing scheme proposals / supply chain
management) -gt Music, Events and Performers
(international DJs, venue promotion) -gt Marketing
(choosing the correct marketing mix)
WBS (new venture) Fig 3.
Fig 1. Model of Buying Behaviour and Processes.
Quality Assurance

• Flowcharting as a Control Mechanism

See Fig 5.

• Resolution Mechanisms

-gt Prevention Resolution (very stringent,
purchase 2 copies of everything for insurance) -gt
Inspection Resolution (extensive checking of
processes, less costly) -gt Attribute sampling vs
variability sampling resolution (allows quality
control to use an acceptable range for quality
checks)
Fig 4. Communication Flow Diagram
Fig 2. Maslow Pyramid of needs

• Competition surveyed data based on Tank,
  Home, IceBox, NV, Rogues

Fig 3. WBS (night club development )
Scope Control
Resource Planning
Scope control needs to be considered in the venue
because of various volatile issues, such as
Stakeholder Analysis

• Equipment / facilities
• Audio / Visual
• Employment
• Sources of supply distribution of products
• Marketing technology driven, human physical
  resources

• Shareholders
• Part time employees
• Banks / financial institutions
• Customers
• Community

• Environmental changes
• Failures of the initial scope
• Technological changes

Cost Estimating
Cost Control

• Operating Activities 4,787
• Investing Activities 0
• Financing Activities -950

Cost control measures can cause various types of
plan modifications
Other foreseeable challenges

• Leadership vs Management (Kotter, 1990)
• Communication issues / consensus
• Socioeconomic factors

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Risk Management Plan

• Modify by a factor, e.g. 20 (when reality and
  plan are separated by a constant percentage
  margin)
• Redevelop the plan, e.g. (when plan is
  erratically incorrect)
• Ignore (for atypical variances)

• Developed risk analysis, including risk
  identification and quantification, to illustrate
  how this would occur for a venue such as the one
  proposed.Developed a risk response and
  mitigation strategies using a risk weighting
  schedule. For example, the table below.

Fig 5. Flowcharting the Sources of Supply
Risk Control
These include

• Service risks (addressing a service class
  convenience, preference, shopping or specialty)
• Critical risks contingency (risk of injury and
  death insurance schemes used)
• Quantitative risk response (using matrices)
• Project cost variation as a risk (mitigation by
  re-assessment) Fig 6a. Fig 6b.

Fig 6a. Long run cost estimation
Fig 6b. Short run re-estimation