Chapter 1 1. 2 .

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Introduction: Why Project Management?

Chapter 1

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http://www.acentre.com/cartoons_projects.html

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1. Understand why project management is becoming such a powerful and popular practice in business.

2. Recognize the basic properties of projects, including their definition.

3. Understand why effective project management is such a challenge.

4. Differentiate between project management practices and more traditional, process-oriented business functions.

5. Recognize the key motivators that are pushing companies to adopt project management practices.

Learning Goals

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6. Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project.

7. Understand the concept of project “success,” including various definitions of success, as well as the alternative models of success.

8. Understand the purpose of project management maturity models and the process of benchmarking in organizations.

9. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques.

Learning Goals

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Examples of projects◦ Chunnel between England and France◦ Introduce Windows 7◦ Passing a college course◦ Olympics

These are examples of project management used to; improve operations, respond rapidly to changes, achieve breakthroughs, streamline development, manage the rising challenges

A critical component of successful organizations and employees today

“Projects, rather than repetitive tasks, are now the basis for most value-added in business”

-Tom Peters

Introduction

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Considered to be any series of activities and task that:◦ Are complex, one-time processes◦ Developed to resolve a clear goal or set of goals◦ Consume resources; time, money, people, etc.◦ Constrained by budget, schedule and resources◦ Are customer focused

A project is a temporary endeavor undertaken to create a unique product, service, or result.

-PMBOK® Guide –Fourth Edition

What is a Project?

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Project Definitions SummarizedA project can be considered any series of activities and tasks that have:Specific objectives to be completed within

certain specifications,Defined start and end dates,Funding limits,Human and nonhuman resources, andMultifunctional focus.

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1. Ad-hoc endeavors with a clear life cycle.◦ Predetermined timeline◦ Clear beginning and end

2. Building blocks in the design and execution of organizational strategies.

3. Responsible for the newest and most improved products, services, and organizational processes.

4. Provide a philosophy and strategy for the management of change.

5. Project management entails crossing functional and organizational boundaries.

◦ Interrelated Tasks◦ Involve People

General Project Characteristics

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6. The traditional management functions of planning, organizing, motivation, directing, and control apply to project management.

7. The principal outcomes of a project are the satisfaction of customer requirements within the constraints of technical, cost, and schedule objectives.

8. Projects are terminated upon successful completion of performance objectives.

◦ Fixed Budget◦ Unique and Specific Deliverable (Product, Service, or Result)

General Project Characteristics

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Process vs. Project Work

Project Takes place outside

the normal, process-oriented world

Unique and separate from routine, process-driven work

Continually evolving

Process• Ongoing, day-to-day

activities to produce goods and services

• Use existing systems, properties, and capabilities

• Typically repetitive

A project is a temporary endeavor undertaken to create a unique product, service, or result.

-PMBOK® Guide

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The purpose of operational tasks is to carry out day-to-day activities and sustain the business while the purpose of a project is to meet specific objectives.

Operational vs. Project Work

Process Management vs. Project Management (Table 1.1)

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Process (day-to-day activity)

1. Repeated process or product

2. Several objectives

3. On-going

4. More homogeneous

5. Systems in place

6. Performance, cost, & time known

7. Part of the line organization

8. Bastions of established practice

9. Supports status quo

Project (unique activity)

1. New process or product

2. One objective

3. One shot – limited life

4. More heterogeneous

5. Systems must be created

6. Performance, cost & time less

certain

7. Outside of line organization

8. Violates established practice

9. Upsets status quo

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To help organizations achieve their strategic goals.

Due to pressures organizations find themselves facing:

◦ Shortened product life cycles.◦ Narrow product launch windows.◦ Increasingly complex and technical products.◦ Emergence of global markets.◦ Economic period marked by low inflation.

Why are Projects Important?

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Skilled in areas of◦ Leadership◦ Planning◦ Interpersonal skills◦ Communication◦ Conflict negotiation◦ Presentation skills◦ Risk taking◦ Time management

Role functions◦ Provide leadership◦ Provide motivation◦ Facilitate the work◦ Maintain focus◦ Maintain commitment◦ Influence the

organization◦ Use resources

efficiently

What is the Project Manager?

The person responsible for meeting the project objectives.

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Initiate the Project Develop Project Management Plan Direct and Manage Project Execution Monitor and Control Project Work Perform Integrated Change Control Close Project

Project Manager Key Responsibilities

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Hard Skills Soft SkillsManaging technical issues

PlanningContractingBudgeting

Measuring performanceMonitoring project quality

Analyzing risks

CommunicatingNegotiatingLeadership

Problem solvingConflict resolution

Team buildingPolitical and cultural awareness

Skills Needed by Project Managers

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What are your strengths and weaknesses?

Are you a leader or a manager?

Are you proactive or reactive?

Project Manager ExerciseQuick Self-Evaluation

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“Project management is the process of the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.”

- PMBOK® Guide –Fourth Edition)

It is accomplished through the application and integration of the project management process of ◦ Initiating ◦ Planning ◦ Executing◦ Monitoring◦ Controlling

What is Project Management?

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The Project Management Process

Initiating Planning

Controlling Executing

Closing

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Innovative, produces new ideas and new products

Geared toward accomplishing a specific goal Provides known dedicated resources Aimed at customer satisfaction

Side note:◦ Can be used to find future company leaders: Will

show a persons ability to manage both technical and human challenges

Advantages to Using Project Management

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Won’t work on our projects Too time consuming Just busy work Too complicated Rigid/inflexible technique Cost too much Not necessary, we’re doing okay without it

Typical Objections to Using Project Management

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Program is “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.” -PMBOK® Guide –Fourth Edition

What is a Program?

Common Objective

Program

Project 1 Project 2 Project 3

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Process ManagementProject ManagementProgram ManagementPortfolio Management

Scope of Project Management

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Conceptualization - the development of the initial goal and technical specifications.

Planning – all detailed specifications, schedules, schematics, and plans are developed.

Execution – the actual “work” of the project is performed.

Termination – project is transferred to the customer, resources reassigned, project is closed out.

Project Life Cycle

Collectively, these four phases make up the genericproject life cycle.

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The Project Phases

Conceptualization Termination

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Select Project Define Scope Develop Project Relationship Perform Needs Analysis Define Requirements Create Project Charter Analyze Benefit-to-Cost Ratio Determine Net Present Value and Internal

Rate of Return Get Project Approval

Conceptualization Task

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Develop Specifications Design Reviews Write Standard of Work (SOW) Build a Schedule Develop Work Breakdown Structure (WBS) Allocate Resources Build the Team Configure the Budget Plan for Procurement Assess Change Control Process

Planning Task

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Update Requirements Manage Change Control Delegate the Work Manage the Team Monitor the Project Complete Tasks Analyze Variances Report Status

Execution Task

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Deliver Product Document Lessons Learned Make Payments Verify Customer Satisfaction Celebrate Recognize and Reward Team Members

Termination Task

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A project life cycle is “a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization.” -PMBOK® Guide –Fourth Edition

Project Life Cycle

Project Life Cycles

Man

Hou

rs

Conceptualization Planning Execution Termination

Fig 1.3 Project Life Cycle Stages

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Project Life Cycles and Their Effects

Conceptualization Planning Execution Termination

Uncertainty

Client Interest

Project Stake $

Creativity

Resources

Client

Acceptance

Quadruple------------------

Schedule Performance

Budget

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Triple Constraint of Project Success

Success

Managing project

constraints involves aconstantly changing balance.

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Software & hardware projects fail at a 65% rate

Over half of all IT projects become runaways

Up to 75% of all software projects are cancelled

Only 2.5% of global businesses achieve 100% project success

Average success of business-critical application development projects is 35%

Project Success Rates

We should not overestimate the benefits to be gained from project management while underestimating the commitment required to

make it work.

Remember: 94.35% of

all statistics are

fabricated

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List four factors that contribute to the success or failure of a project.

Class Exercise

Succeed Fail

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Possible Answers

Succeed Fail

Sound project management processes

Projects tied to the organization’s strategic and business goals

Senior management commitment and support

Detailed requirements Skilled and appropriately

aligned team members Clearly defined roles and

responsibilities Realistic schedule

Lack of project requirements Lack of defined or clear and

concise requirements Lack of senior management

sponsorship and commitment

Inadequate project planning Absences of user

involvement through out the project

Lack of business ownership

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Clear understanding of the goals and objectives

Clear understanding of the customer requirements

Involvement of clients and management Realistic estimates and schedules Day-to-day control of the project Effective communication

Project Critical Success Factors

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Four Dimensions of Project Success

Project Completion

Time

Importance

1ProjectEfficiency

4Preparing forThe Future

2Impact onCustomer

3 Business Success

Short term Long termLeast

Most

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Allows organizations to benchmark the best practices of successful project management firms

Shows a relative assessment of an organizations project management development

Project management maturity models (rubric style) see Table 1.3 page 21◦ Center for business practices◦ Kerzner’s project management maturity model◦ ESI International’s project framework◦ SEI’s capability maturity model integration

Developing Project Management Maturity

Rubric – categorizes the specific level of performance expected for several levels of quality.

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Project Management MaturityGeneric Model

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0

0.5

1

1.5

2

2.5

3Project Scheduling

Structural Support forProject Management

Portfolio Management

Coaching, Auditing andEvaluating Proejcts

Control Practices

Project StakeholderManagement

Networking BetweenProjects

Personnel Development forProjects

a useful way to display multivariate observations

the length of each ray is made proportional to the size of that variable

a.k.a a Radar Chart

can be easily created in MS Excel

Spider Web Diagram

Project Elements and Text Organization

FIGURE 1.11  Organization of Textbook 42

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1. What are some of the principle reasons why project management has become such a popular business tool in recent years?

2. What do you see as being the primary challenges to introducing a project management philosophy to most organizations? That is, why is it difficult to shift to a project-based approach in many companies?

3. What are the advantages and disadvantages to using project management?

4. What are the key characteristics all projects possess?5. Describe the basic elements of the project life cycle. Why is an

understanding of the life cycle relevant for our understanding of projects?

6. Think of a successful project and an unsuccessful project with which you are familiar. What would you say distinguishes the two, both in terms of the process used to develop them and their outcomes?

Chapter 1Review and Discussion

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7. Consider the Expedition Everest case: What are the elements in Disney’s approach to developing their theme rides that you find particularly impressive? How can a firm like Disney balance the need for efficiency and smooth development of projects with the desire to be innovative and creative? Based on this case, what principles appear to guide their development process?

8. Consider the six criteria for successful IT projects. Why is IT project success often so difficult to assess? Make a case for some set of factors being more important than others.

9. As organizations seek to become better at managing projects, they often engage in benchmarking with other companies in similar industries. Discuss the concept of benchmarking. What are its goals? How does benchmarking work?

10. Explain the concept of a project management maturity model. What purpose does it serve?

11. Compare and contrast the four project management maturity models shown in Table 1.3.

Chapter 1Review and Discussion