Challenging Aspects of Modern Project Management

Challenging Aspects of

Modern Project Management

Yamanta Raj Niroula, PMP, PMI-SP

Planning and Project Controls Manager

International Organization for Migration (IOM)

[email protected]

Project Management:

Project Defined:

– PMBOK Guide, Fifth Edition : “A project is a temporary endeavor

undertaken to create a unique product, service, or result.”

– A complex, non-routine, one-time effort limited by time,

budget, resources, and performance specifications designed

to meet customer needs.

Major Characteristics of a Project:

– Has an established objective.

– Has a defined life span with a beginning and an end.

– Requires across-the-organizational participation.

– Involves doing something never been done before.

– Has specific time, cost, and performance requirements.

Success and failure is no longer within the total

control of that project

Project Management:

Project Management Defined:

– PMBOK Guide, Fifth Edition : “Project management is the application

of knowledge, skills, tools, and techniques to project activities to

meet the project requirements.”

– Project Management : a well-understood discipline.

– Produce predictable, repeatable results.

Project Management Processes:

– A project management process is the management process of

planning and controlling the performance or execution of a project.

– According to PMI, project management is accomplished through the

appropriate application and integration of the 47 logically grouped

project management processes, which are categorized into five

Process Groups - Initiating, Planning, Executing, Monitoring and

Controlling, and Closing.

Project Management Process:

InitiationComplete

&

Assess

Tracking

& Control

Reporting

Review

Planning

Initiation

Plan

Detailed

Plan

Status

Report

Post

Project

Review

Report

The Project Life Cycle:

A representation of the phases that a project typically goes through.

General, but representative of the common flow of activities on a project.

The phases represented at the bottom of the graphic below describe the

way in which a project typically progresses.

Project Success:

The 'Golden Triangle of

Project Success

Objectives

Time Cost

Project success occurs when we have:

I

I

I

I A delighted client (expectations met)

Delivered the agreed objectives

Met an agreed budget - resources etc.

Within an agreed time frame

and

I Done it all professionally &

safely

Project Failure:

• I've been involved in several projects that;

- went over budget,

- were delivered late, and

- didn't make the customer happy.

• But I've never heard any of them actually called "failures".

• What is Project Failure?

A project is considered a failure when it has not delivered

what was required, in line with expectations.

In US, more than $250 billion dollars is spent each year on

IT application development in approximately 175,000

projects.

Project Failure:

• Summary of 2009 Standish Group CHAOS report:

• This result shows a marked decrease in project success rates.

Why Do Projects Fail?:

The number of reasons can be infinite. However, if weapply the 80/20 rule the most common reasons for failurecan be found in the following list:

Poor sponsorship

Unclear requirements

Unrealistic timescales or budgets

Scope creep

Poor risk management

Poor processes/documentation

Poor estimating

Poor communication/stakeholder engagement

Poor business case

Inadequate/incorrectly skilled resources

Project Management Maturity Model

No formal

consistent process

Adhoc

(1)

Foundation

(2)

Consistent, basic approach to

project execution

Managed

(3)

Consistent, comprehensive

approach

Integrated

(4)

Institutionalized & integrated

Into planning

Optimizing

(5)

Project-centered

organization

• A common method of determining the current level of project management

capability and maturity is to use the project management maturity model

illustrated by five distinct levels of maturity as shown in the

following diagram:

Level 1 – Adhoc:

No formal, consistent process to execute a project.

Many, incomplete, informal approaches.

Project outcomes unpredictable.

Little organizational support for project management.

Lesson learned are not gathered and passed on to

other projects.

Projects happen without correct initiation.

Communication is poor.

Interdependencies are not managed.

Standards, if any, are poorly defined or unenforced.

Adhoc

(1)Success rate less

than 20%

Level 2 – Foundation:

Consistent, basic approach to project execution is

adopted.

Managed support for project management.

Repeatable processes are applied to basic project

management steps

Project outcomes are more predictable

Use of common tools and techniques for key project

management processes

Foundation

(2)

Success rate of

20% to 40%

Level 3 – Managed:

Consistent, comprehensive approach to project

execution

Senior management support for project management

Organization can efficiently plan, manage, integrate

and control single projects

Repository of previous project experience is

maintained and utilized

Team members and project managers trained in

project management

Consistent use of tools and techniques for project

management processes

Managed

(3)

Success rate of

40% to 60%

Level 4 – Integrated:

Project portfolio management is institutionalized and

integrated into the organization’s business planning

process.

Active senior management support for integration of

business planning and project execution.

Organization can efficiently plan, manage, integrate

and control multiple projects

Database of previous project data is maintained and

utilized (Organizational Process Assets).

Success rate of

60% to 80%Integrated

(4)

Level 5 – Optimization:

Project-centered organization with an established

approach to continuous improvement of project

Management.

Project management environment improvement is

actively encouraged.

Flexible, project-centered organization structure.

Career program for project managers.

Project management training is a key component in

staff development.

Success rate better

than 80%Optimization

(5)

Why Should We Care?:

To answer following questions:

- Where does your organization fit today? How importantare successful projects to your business?

- Based on the level of business importance is yourorganization at the appropriate level? For example, ifthe successful delivery of projects is important to yourbusiness success then you will likely want to be at levelthree or greater. If you have a software developmentcompany, consulting company or engineering firm thatis totally based on projects then you will likely want tobe at level four or five.

- Each organization is different and must carefullyanalyze their position in terms of the impact projectshave on their own bottom-line.

Project Management - Key Challenges:

Key challenges of today's project managements are:

- Increased magnitude of project complexities.

- Uncontrollable changes.

- Communication and liaison with team members andstakeholders.

- Managing and dealing with multiple people from differentregions / countries (in global projects).

- Obtaining resources with right skills or characteristics.

- Managing high risk projects.

- Non-centralized communication flow.

- Padding of estimates (Parkinson's Law).

Management Techniques:

To increase the likelihood of project success you must manage:

Stakeholders

Risks

Issues

Change

ProjectAcademic &

Business Units

Who Are Stakeholders?

Outside Groups

(Vendors)

Team

Members

Information

Technology

Steering

Committee

Clients & Users Senior Mgmt

Interdependent

Projects

How to Manage Stakeholders:

Project stakeholders are individuals, groups, or organizationswho may affect, be affected by, or perceive themselves to beaffected by a decision, activity, or outcome of a project.

Every project will have stakeholders who are impacted by or canimpact the project in a positive or negative way. They exertinfluence over the project and its deliverables and could causethe success or failure of the project.

The ability to correctly identify and manage these stakeholders inan appropriate manner can mean the difference betweensuccess and failure.

Stakeholder management is all about engagement. Engagementis about involvement. Involvement means communication, but italso means participation. Get your stakeholders to participate inthe project and you can manage them better.

Get them involved; Keep them informed; Gain their endorsement

Stakeholder Management Overview:

Identify Stakeholders

Plan Stakeholder Management

Manage Stakeholder Engagement

Control Stakeholder Engagement

Risk Management:

What is “risk”?

An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives such as scope, schedule, cost, and quality.

To be successful, an organization should be committed to address risk management proactively and consistently throughout the project.

Risk Management Overview:

Identify Risks

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Responses

Control Risks

Issues Management:

Unresolved issues will drive a project towards failure and consume a significant part of a project manager’s time.

Stakeholders play key role in issues management and resolution

- Establish Issues log, review, escalation process

Change Management:

Uncontrolled changes to a project will probably account for up to 30% of a project’s total effort.

If these changes are not managed, the project will be viewed to be over time and over budget.

- Establish a Change management process

Project Management Best Practices:

Project planning : the project definition, the work plan, and the project management procedures.

Plan the work by utilizing a project definition document.

Create a planning horizon : detailed work plan, including assigning resources and estimating the work.

Define project management procedures up front.

Look for warning signs.

Ensure that the sponsor approves scope-change requests.

Guard against scope creep.

Identify risks up front.

Continue to assess potential risks throughout the project.

Resolve issues as quickly as possible.

The Project Management Certification:

Certification allows for industry wide recognition.

It is an excellent way for new graduates to gain the attention of the companies they apply for and work in.

Shows dedication and knowledge in industry.

Represents experience on the job.

Aids employers in the management of costs, time and quality.

The Project Management Certification:

Better control of financial, physical, and human resources

Improved customer relations

Shorter development times

Lower costs

Higher quality and increased reliability

Higher profit margins

Improved productivity

Better internal coordination

Higher worker moral.

The Project Management Institute (PMI):

Founded in 1969. Largest Not-for-Profit Organizationfor Project Management Professionals.

Truly global membership with representation in 190+countries.

PMI has 12 standards for project, program and portfoliomanagement and they are most widely recognizedstandards in the profession.

Credentials, Research, Standards, Promotion of ProjectManagement Profession.

PMI offers 6 global certifications – PMP, CAPM, PgMP,PMI-SP, PMI-RMP, PMI-ACP

More than 250 chapters, and 30 industry or interest-based communities of practice.

More than half million members and credential holdersworldwide.

PMP – Certification Benefits:

A truly global certification. Provides professional andpersonal recognition.

Expedites professional advancement.

Creates job growth and opportunities within anorganization.

Provides a framework for standardized projectmanagement requirements.

Increases an employee’s value to the organization.

PMI Certified Project Managers are a preferred lot byany organization worldwide.

High Demand due to short supply of Certified ProjectManagers.

Increase in compensation within the organization.

PMP Journey:

PMP Prerequisites:

Secondary Diploma + 5 Years Experience in Project Management + 7500 Hours + 35 Hour PM Education

Or

4 years degree + 3 Years Experience in Project Management + 4500 Hours + 35 Hour PM Education

PMP Costs of Certification:

Registration fees for 35 Contact Hours program througha R.E.P.

PMI Membership Fees for General Candidates: $129

PMP Examination Fees

- Non-Members : USD 555

- PMI Members : USD 405

Re-Examination Fees

- Non-Members USD 375

- PMI Members USD 275

Nine steps in the Journey towards PMP:

1. Become a PMI member.

2. Mandatory training/PM education for 35 hours of credits(chapter, university, institute or REP).

3. Prepare for Exam

4. Submit PMP examination Application (You get 90 days tocomplete application).

5. Receipt of PMP examination eligibility notice from PMI.

6. Submit Fees (Cost: US$ 405).

7. Application Audit (if selected).

8. Get Eligibility Letter. Schedule Exam.

9. Execute, Succeed & Celebrate

Post Successful PMP Certification:

Certificate is valid for 3 years.

Within three years, individual need to earn 60 PDUs.

Go to www.pmi.org for registering 60 PDUs & paying60$ (current fee)

Your certificate will be renewed for next three years.

Thank You