Improving Financial Projects: Critical Success Factors & Pitfalls

This report delves into the critical success factors and potential pitfalls impacting the performance of financial projects within the Norwegian Ministry's public investment sector. It highlights the importance of quality control and assurance policies established prior to fund approval. The research emphasizes a shift from traditional project management considerations, such as organization, planning, contract management, and stakeholder management, towards prioritizing critical success factors. Key factors identified include technical equipment performance, competency, scheduling, control system formation, monitoring, goal clarity, organizational philosophy, authorization, budgeting, operational support, communication, market intelligence, client acceptance, legal/financial problem resolution, quality control, and innovation. The report draws upon case studies of road engineering projects to illustrate how neglecting these factors can lead to project flaws, particularly in planning, organizational behavior, and human resource management. Ultimately, the study advocates for improved communication, stakeholder cooperation, and a focus on overcoming past pitfalls to enhance project outcomes.

Assignment on Project Management

Contents
Abstract:................................................................................................................................................2
Introduction:..........................................................................................................................................2
Description:...........................................................................................................................................3
Findings:................................................................................................................................................6
Conclusion:..........................................................................................................................................10
References:..........................................................................................................................................10

Abstract:
In this paper, we are focusing on critical success factors and pitfalls for improving the
performance of the financial projects in public investment by the Norwegian Ministry. The
policies related with quality control and assurance should be generated before the approval
of funds before the finance ministry of Norwegian. The government is looking forward for
finding out the critical success factors and pitfalls for the betterment and improving the
condition of the projects. The focus should be given on the development of the framework
associated with the conceptual design for analysing the factors responsible for the success
and limitation of the undertaken projects. From the research, it has been analysed that
traditionally the consideration was given on the organization of the project, planning of the
project, management of the contract with the contractor, controlling of the project, and
management of the stakeholders which results into the generation of the potential pitfalls
because the critical success factors are not taken under consideration. The lacking of giving
privilege to the critical success factors of the project result into the generation of the
potential pitfall associated with it.
Keywords: Quality control, critical success factors, quality assurance, and potential pitfall.
Introduction:
The consultancies are hired for performing the task of external reviews associated with the
larger project. The handsome amount of budget is passed for external review by the ministry
of Norwegian. The consultancies works in the direction to point out the critical success
factors and associated potential pitfalls with the project. “The focus should be given on the
development of the framework associated with the conceptual design for analysing the factors
responsible for the success and limitation of the undertaken projects” (Pinto, 2015). The
critical success factors give the clear vision of project goal in terms of the measurement of the
project performance. “The fundamentals and principles of concept research program are used
for finding out the area of concern for the successful implementation of the desired project”
(Tuuli, 2015). It helps in minimising the potential pitfalls associated with the project. In this
paper, we will focus on the road engineering projects which are undertaken by the ministry of
Norwegian. The success and failure of the project can be determined on the basis of
associated critical success factors which are undertaken for the measurement of project

performance. The removal of potential pitfalls helps in measuring the level of
accomplishment of the project.
Description:
The reviewing of the past histories of the projects helps in determining the cause of the
project failure. “The project management process involved helps in accomplishing the front
end planning tools” (Belassi, 2012). The successful implementation of the project depends
upon the clear specification of the project objective and goal, desired expectation of the
output from the project, involvement of the stakeholders in the demonstration of the project
life cycle phases, the agreement should be signed with the stakeholder for the execution
process of the project development, focusing on the risk management plan, use of
contingencies approach, and the related outcomes of the project. “The feasibility study should
be undertaken in relation with the risks and control structure for the execution of the project
development phase of the project” (Cooke, 2002). The division of resources, authorities,
authentication, and responsibilities should be done for the smooth flow of project activities.
“The project should be designed according to the availability of the resources and the
adequate amount of the labour” (Merw, 2015). The potential pitfalls in the past projects
associated with the legal requirement of the project, skills related with the management of the
project, support from top executives and governance, problems associated with resolution in
resolving the disputes which occurs at the work site. The focus should be given on the
integration of the project activities, management of the effective communication, competency
and the commitment with the agreement, management of the team support, learning, and the
approaches associated with the mentoring process. “The reviewing of the conceptual ideas
associated with the project completion with regards to the critical success factors and the
potential pitfalls” (Alotaibi, 2014). The performance of the project is influenced by the
planning and designing phase of the project development life cycle. The uncertainties
associated with the project are not given importance in the development of the project design
which can result into the failure of the project. The problem domain should be clearly
identified by analysing the critical success factors. The development of interrelationship
between the critical success factors will result into the successful completion of the project. It
has been researched that there are mainly three critical success factors which are named as
validity of the technical equipment, validity of the organization procedures and methods, and

effectiveness of the organization in completing the project. Some of the critical success
factors are discussed in the table below:
Critical success factor Description
Performance related with Technical
equipment
The success of the project is measured in
terms of the technical performance of the
equipment. “The focus should be given on
the size of the project and the manager’s
efficiency in completing the larger similar
other projects” (Dennis, 2015). The
performance of the team members get
affected with the increasing size of the
project.
Competency The competency skills of the manager helps
in reducing the potential pitfalls associated
with the project
Scheduling “Synchronization and scheduling of the
processes should be given privilege for the
betterment of the project” (Allen, 2014).
Formation of the control system “The roles and responsibilities of the team
members should be clearly defined the better
management of the control system”
(Anantatmulla, 2013)
Monitoring and control The feedback system is used for keeping an
eye on the completion of the project activities
sequentially. The monitoring of the activities
helps in achieving the quality product at the
completion of the project within the
mentioned deadline. The focus should be
given on the continuous improvement
associated with the completion of each phase
of the project development life cycle.
Clear specification of the goal The goal and objective of the project should
be clearly understands by the participating

team members so that they can put their
efforts in the right direction at right time.
Organization philosophy The selection of fundamental principles
should be chosen after analysing the current
requirement of the project
Authorization and authentication The delegation of authority and
authentication is the critical decision which
should be taken by the project manager after
analysing the past history of the participating
team members.
Preparation of adequate budget The budgeting of the project should be done
accurately for minimizing the extra
expenditure which in turn helps in reducing
the cost of the project
Operational Support The selection of the team members should be
based on the operational efficiency which is
required for the completion of the project.
Implementation of the communication
channel
The success of the project can be measured
with the analysis of the communication
channels being used by the project. The
proper communication results in smooth
functioning of all the units of the project.
Use of market intelligence The availability of the raw material and
resources should be clearly studied for laying
down the operational policies so that they can
be completed with ease. The availability of
the requisite on demand helps in completing
the project on time
Acceptance of plan by the client The associated clients and stakeholders
should be satisfied by the planning and
designing of the project before setting the
plan for execution.
Resolution to the legal and the financial
problems
The study of the past experience which are
associated with the potential pitfalls of the

project helps in designing the alternatives to
the problems associated with the legal and
financial problems
Control and handling of the project Quality control policies should be used for
controlling the laid down of the procedures
used for completing the project
Innovation The market competencies should be clearly
identified with regards to the innovation and
new trends and technologies used in
completing the projects. The project should
be designed with the innovative ideas to
make it different from the associated
competitors.
From the study, we have analysed that the development of the engineering project is
equipped with the dominance of the trends and technologies. The consideration is not given
to the critical success factors and the potential pitfalls associated with the past projects. The
overcoming of the flaws in the past projects helps in reducing the errors in the undertaken
project of construction of the roads by the Norwegian ministry. The study of the potential
pitfalls should be mainly associated with the three key areas of concerns which are classified
as factors responsible with planning and designing, organization behaviour, and human
resource management program. The better utilization of human with improved planning and
control procedures helps in reducing the problems associated with the technical issues. The
management issues can be resolved with the free flow of communication path so that the
transfer of relevant information can be easily done. The subordinates should have the
freedom to share their innovative ideas and grievances with the top management for the
uplifting of the project. The coordination and cooperation of stakeholder is the prerequisite
for the flawless completion of the project within the approved scheduled deadline.
Findings:
The failure of the project is mainly due to the repetition of the potential pitfalls. The focus
should be given on overcoming the pitfalls which are analysed from the past history of the
similar engineering projects. The performance of the project can be improved by the

cooperation between the participating units of the project. The analysis of the construction of
the road undertaken by the Norwegian ministry, we concluded that the factors which are
responsible for the flaws in the completion of the project are organization of the project
planning and designing concepts, strategy mentioned in the contract, procedures used for
controlling the project, condition responsible for the stability of the project, management of
the associated stakeholders with the project, factors responsible for the technical issues,
condition responsible for the influence of marketing intelligence, management of project
objective according to the ultimate goal of the project, inefficiency in the required support
from the top management, low level management of interface and communication schemes
between different units of the projects, and incapability of the design. There are five projects
which are undertaken for the case study. The following table shows the analysis of the critical
success factors and potential pitfalls associated with the project.
Critical Success factors and potential pitfalls Number of projects
organization of the project planning and
designing concepts
5
strategy mentioned in the contract 5
procedures used for controlling the project 4
condition responsible for the stability of the
project
1
management of the associated stakeholders
with the project
3
factors responsible for the technical issues 4
condition responsible for the influence of
marketing intelligence
4
management of project objective according to
the ultimate goal of the project
3
inefficiency in the required support from the
top management
2
low level management of interface and
communication schemes between different
units of the projects
2
incapability of the design 1

According to the study of the case study, we come across that the factors associated with the
organization of the project is responsible for maintaining the good and healthy relationship
with the authority council of the project. “All the five projects have project organization as
their critical success factor and potential pitfall in the past history of the project” (Walker,
2004). The project organization and contract strategy are the two most crucial factors which
are responsible for the success of the road engineering projects. The issues related with the
flow of communication within the working curriculum of the organization should be taken
under consideration. “The strategies mentioned in the contract are based on the past history”
(Ogwueleka, 2013). It should be taken under consideration that the flaws and limitation of the
past project should be resolved before the execution of the project.
It has been identified that the planning and control policies of the project, issues related with
the technicality of the equipment, and the analysis of the utilization of the market intelligence
are the second most crucial factor for the successful deployment of the construction of the
road project. “In the given case study, four of the projects are associated with the above
success factors” (Nistor, 2005). The planning of the project is associated with the
development of the risk register, quality control procedures, involvement of the change
management, and others. During the construction of the project plan the emphasis should be
given on the cost and time associated with the completion of the project.
The success of the project depends on the involvement of the stakeholders and deployment of
the communication channels with the associated project. Here in the given scenario of the
case study, three of the project depends on stakeholder strategy with the proper flow of
information through the communication channels.
From the given theoretical study of the road project, we come across that the technical and
external expert reviews are play less role in the success of the project. “The comparison of
the road projects helps in identifying the priority associated with the successful completion of
the project on the related critical success factors” (Anantatmulla, 2013). It has been seen that
the development of the project objectives should be relevant to the goal of the project. The
participating team members should have a clear idea about the project objective of the road
engineering construction project undertaken by the Norwegian ministry of finance.
From the analysis of the research, it has been noticed that the performance of the project also
depends on the on-time delivery of the action which takes place which are classified below:

 Adequate management of the risks identified and uncertain with the proactive risks
management action plan
 Assignment of procedures for resolving the issues associated with the risks classified
 Maintenance of the risk register for the visibility of the risks identified with the
current working of the project
 The schemes related with the management of the risks should be kept updated
 The control process should be changed according to the changes occurred in the scope
management plan of the project.
 The baseline of the project should be focused for the integration of the activities to get
improved output at the delivery of the project
 The documentation of the project phases should be clearly done
 Management of the process with the involvement of integration and communication
between the participating units.
 The alignment of processes should be done for the completion of action plan
associated with the project
 Active participation of the participants helps in achieving the project on time
 The areas of PMBOK should be covered for influencing the key process of the project
management
 The relevant project process structure should be used for filling the gaps of potential
pitfalls associated with the project.
 The reporting information system should be used for the monitoring and evaluation of
the project. The framework of the logical tasks helps in demonstrating the project
appraisal.
 The linking of the project helps in managing the activities related with the alignment
of the project activities schedules.
The Log frames are used managing the different needs of the project development plan. The
goals and purpose should be clearly defined for the associated input and output of the project.
The verification and the time management schemes should be used for managing the chain
verification of the related processes. “The performance of the project can be improved by the
cooperation between the participating units of the project” (Steinfort, 2015). The reliability of
the project can be identified by analysing the verification and validation of the critical success
factors associated with the smooth functioning of the project. The potential pitfalls of the
project are mainly based on the cultural differences associated between the team members of

the project, inefficiency in fulfilling the legal requirement of the project, and maintenance of
the confidentiality needed for the alignment of the project activity sequence. The past history
of the project is used for cross sectional review of the performance for improving the current
working structure of the project. The orientation of the time is the key success factor and the
potential pitfall responsible for the failure of the project because the completion of the project
on time will be satisfactorily accepted by the stakeholder whereas delay in the project
completion result in the rejection of the project by the stakeholders. The working cultural
values should be identified for the recognition of rationality on the basis of economic
availability. The resources of the project should clearly match the political demand of the
project. The cultural background of the project is the most common element which plays a
crucial role in the hindrance process of project completion. “The efficiency of the project can
be identified on the basis of project efficiency and management of the short term and medium
term action plan” (Osorio, 2014). The scheduling of the action plan for the completion of
project is the most important process for the effective management of the leadership control.
The project can be influenced by the environment factors. The size of the project also raises
the complexity in the free flow functioning of the activities. “The effective monitoring system
within the deployment of the project helps in identifying the inefficiency in the processes
used for completing the project” (Alias, 2014). The critical success factors give the clear
vision of project goal in terms of the measurement of the project performance.
Conclusion:
The analysis of the previous record of the case study which is undertaken for study helps in
identifying the critical success factors and the potential pitfalls which plays the role of
hindrance in the successful completion of the project within the offered deadline and cost.
The findings of the research help the top management to design the project plan by giving
preference to the above discussed critical factors. The division of resources, authorities,
authentication, and responsibilities should be done for the smooth flow of project activities.
The area of the concern for the success of the project is organization of the project and the
strategies associated with the contract. The reviewing of the project objectives in regards to
the past experiences helps in overcoming the problem associated with the upcoming projects.

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