Pmbok 4th edition chapter 2 - Project Life cycle and Organization

CHAPTER 2PROJECT LIFE CYCLE AND ORGANIZATION

Ahmad H. MaharmaPMP®

PROJECT LIFE CYCLE AND ORGANIZATION

• Projects and project management take place in an environment that is broader than that of the project itself.

• Understanding this broader context helps ensure that work is carried out in alignment with the goals of the enterprise and managed in accordance with the established practicemanaged in accordance with the established practice methodologies of the organization.

• This chapter describes the basic structure of a project as well as p p jother important high-level considerations including how projects impact ongoing operational work, the influence of stakeholders beyond the immediate project team, and how organizational structure affects the way the project is staffed, managed, and executed.

2.1 The Project Life Cycle-0verview

•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 organizationdetermined by the management and control needs of the organization or organizations involved in the project, the nature of the project itself, and its area of application.

•While every project has a definite start and a definite end, the specific deliverables and activities that take place in between will vary widely with the project. y p j

•The life cycle provides the basic framework for managing the project, regardless of the specific work involved.

2.1 The Project Life Cycle-0verview

2.1 The Project Life Cycle-0verview

2.1.2 Product vs. Project Life Cycle Relationships

The product life cycle consists of generally sequential, non-overlappingproduct phases determined by the manufacturing and control need of the organization.

The last product life cycle phase for a product is generally the product's retirement. Generally, a project life cycle is contained within one or more product life cycles.

Care should be taken to distinguish the project life cycle from the product life cycle.

All projects have a purpose or objective, but in those cases where the objective is a service or result, there may be a life cycle for the service or result, not a product life cycle.

2.1.3 Project Phases

•Project phases are divisions within a project where extra control is needed to effectively manage the completion of a major deliverableneeded to effectively manage the completion of a major deliverable .

• Project phases are typically completed sequentially, but can overlap in some project situations.

•The high level nature of project phases makes them an element of the project life cycle.

• A project phase is not a project management process group. Regardless of the number of phases comprising a project, all phases have similar characteristics:

Project Phases

When phases are sequential, the close of a phase ends with some form of transfer or handoff of the work product produced as the phase deliverable. This phase end represents a natural point to reassess the effort underway and to change or terminate the project if necessary.

These points are referred to as phase exits, milestones, phase gates, decision gates stage gates or kill points The work has a distinct focus thatdecision gates, stage gates, or kill points. The work has a distinct focus that differs from any other phase.

This often involves different organizations and different skill sets. The i d li bl bj i f h h i d fprimary deliverable or objective of the phase requires an extra degree of

control to be successfully achieved..

Projects vs. Operational Work Organizations

Projects• Performed by people

Operations• Performed by peoplePerformed by people

• Constrained by limited resourcesPlanned executed and

y p p• Constrained by limited 

resourcesPlanned executed and• Planned, executed and 

controlled• Temporary

• Planned, executed and controlled

• Ongoing

• Unique • Repetitive

STAKEHOLDERS

2.3 StakeholdersDefinition:Stakeholders are 

persons or organizations who are actively involved in the project or whose interests may be positively or negatively affectedb h f l i f h jby the performance or completion of the project. 

Examples of persons or organizationsExamples of persons or organizationscustomerssponsorspthe performing organizationthe public

2.3 StakeholdersExert influence on the project, its deliverables, and the project p j , , p jteam members. 

The project management team must identify both internal and external stakeholdersin order to determine thein order to determine the project requirements and expectations of all parties involved. 

Furthermore, the project manager must manage the influence of the various stakeholders in relation to the project requirements to ensure a successful outcome. 

2.3 StakeholdersConcepts:p

Project Team [Members]

Project Management Team

iOperations Management

Functional ManagersFunctional Managers

2.3 StakeholdersStakeholders Responsibility and Authority:p y y

Varying levels when participating on a project 

Change over the course of the project life cycle. 

RANGE from occasional contributions to full project sponsorship

Caution! Can have an adverse IMPACT on the project objectives.

2.3 StakeholdersStakeholder Identification:

Stakeholder identification is a continuous process 

It can be difficult. 

Identifying stakeholders and understanding their relative degree of influence on a project is critical. Failure to do so can extend theinfluence on a project is critical. Failure to do so can extend the timeline and raise costs substantially. 

Impact of late recognition of a stakeholder

ORGANIZATIONAL INFLUENCES ON PROJECT MANAGEMENT

ORGANIZATIONAL CULTURES AND STYLESPROJECT MANAGEMENT

2.4 Organizational Influences on Project ManagementThe organizational culture, style, and structure influence how g , y ,projects are performed. 

A project manager should understand these as they affect a project. 

An organization’sAn organization’s degree of project management maturity and its project management systemsits project management systems

can also influence the project. 

When a project involves more than one organizations, the project will be influenced all of them. 

The organizational culture is an enterprise environmental factor.

2.4 Organizational Influences on Project ManagementCultures and styles may have a strong influence on a project’s ability y y g p j y

to meet its objectives. 

Cultures and styles are typically known as “cultural norms” 

The “norms” include [Or What do the cultural norms include?]The “norms” include [Or What do the cultural norms include?]a common knowledge regarding how to approach getting the work done, what means are considered acceptable for getting the work done, and who is influential in facilitating the work getting done.The project manager must know which individuals in the organization are the decision makers and work with them toorganization are the decision makers and work with them to influence project success.

2.4 Organizational Influences on Project ManagementMost organizations have developed unique cultures that manifest in g p q

numerous ways including, but not limited to: • Shared visions, values, norms, beliefs, and expectations,• Policies, methods, and procedures,• View of authority relationships, and• Work ethic and work hours• Work ethic and work hours.

Detailed study of ‘organizational culture’ is beyond the scope of thisDetailed study of  organizational culture  is beyond the scope of this course. 

ORGANIZATIONAL INFLUENCES ON PROJECT MANAGEMENT

ORGANIZATIONAL STRUCTUREPROJECT MANAGEMENT

2.4 Organizational Influences on Project Management

Organizational structure is an enterprise environmental factor

Why it is important to by understood?It affect the availability of resources and influence how projects are conductedconducted. 

What are the different types of structures?What are the different types of structures?Organizational structures range from functional to projectized, with a variety of matrix structures between them. Functional StructureMatrix Structures [Weak, Balanced, and Strong]P j i d SProjectized Structure

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project ManagementFunctional Organization: Key Pointsg y

Each employee has one clear superior [Unity of Command]Employees are grouped by specialty [Finance, HR, Marketing etc]Each department will do its project work independent of other department. 

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project ManagementProjectized Organization: Key Pointsj g y

Team members are co‐located

Most of the organization’s resources are involved in project work

j h d l f i d d d h iProject Managers have great deal of independence and authority

Projectized organizations often have organizational units calledProjectized organizations often have organizational units called departments, but these groups either report directly to the project manager or provide support services to the various projects. 

2.4 Organizational Influences on Project ManagementProjectized Organization: Key Pointsj g y

2.4 Organizational Influences on Project ManagementMatrix Organizations: Advantages and Disadvantagesg g gMatrix Organizations are a blend of functional and projectized characteristics. 

Advantages DisadvantagesHighly visible project objectives Extra administration is requiredg y p j j q

Improved project manager control over resources

More than one boss for project teams

f f i l l i d lMore support from functional areas More complex to monitor and control

Maximum utilization of scarce resources

Tougher problems with resource allocation

Better coordination Need extensive policies and procedures

Better horizontal and vertical f f

Functional manager may have different dissemination of information priorities than project managersTeam members maintain a “home” Higher potential for conflict

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project ManagementWeak Matrix Organization: Key Pointsg y

Maintain many of the characteristics of a functional organization

Project Manager’s role is more of a coordinator or expediter than that of a true project manager.

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project ManagementBalanced Matrix Organization: Key Pointsg y

Balanced Matrix organization recognizes the need for a project manager. But it does not provide the project manager with the full 

th it th j t d j t f diauthority over the project and project funding. 

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project ManagementStrong Matrix Organization: Key Pointsg g y

Have many of the characteristics of the projectized organization

Can have a full‐time project managers with considerable authority

Can have full‐time project administrative staff

2.4 Organizational Influences on Project ManagementProject Expeditor j p

Act primarily as staff assistant and communication coordinator 

Cannot personally make or enforce decision 

2.4 Organizational Influences on Project ManagementProject Coordinator j

Has some power make decision, some authority 

Report to a high level manager

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project Management

ORGANIZATIONAL INFLUENCES ON PROJECT MANAGEMENT

ORGANIZATIONAL PROCESS ASSETSPROJECT MANAGEMENT

2.4 Organizational Influences on Project ManagementDefinition: 

Organizational process assets include any or all process related assets, from any or all of the organizations involved in the project th t b d t i fl th j t’that can be used to influence the project’s success. 

Examples: formal and informal plans policies procedures and guidelinesformal and informal plans, policies, procedures, and guidelines. organization’s knowledge bases such as lessons learned and historical information. completed schedules, risk data, and earned value data. 

Key Points:Updating and adding to the organizational process assets is necessary throughout the projectnecessary throughout the project Generally, is the responsibility of the project team members. 

2.4 Organizational Influences on Project ManagementCategorization: gOrganizational process assets may be grouped into two categories: 

1. Processes and Procedures >> for conducting work

2. Corporate Knowledge Base >> for storing and retrieving information>> for storing and retrieving information 

2.4 Organizational Influences on Project ManagementProcesses and ProceduresOrganizational standard processes such as 

standardspolicies [safety and health, ethics, and project management] standard product and project life cycles 

li li i d d [ di iquality policies and procedures [process audits, improvement targets, checklists, and standardized process definitions for use in the organization]g ]

Standardized guidelines, work instructions, proposal evaluation  criteria, and performance measurement criteria

Templates [risk work breakdown structure project scheduleTemplates [risk, work breakdown structure, project schedule network diagram, and contract templates]

2.4 Organizational Influences on Project ManagementProcesses and ProceduresGuidelines and criteria for tailoring the organization’s set of standard processes to satisfy the specific needs of the project;Organization communication requirements Project closure guidelines or requirements Financial controls proceduresFinancial controls procedures Issue and defect management proceduresChange control proceduresChange control proceduresRisk control proceduresProcedures for prioritizing, approving, and issuing work authorizations.

2.4 Organizational Influences on Project ManagementCorporate Knowledge Basep gProcess measurement databases used to collect and make available measurement data on processes and products,Project filesHistorical information and lessons learned knowledge basesIssue and defect management databasesIssue and defect management databasesConfiguration management knowledge bases Financial databasesFinancial databases

For more information do not hesitate to contact me.

Ahmad H. Maharma ‐ PMP®

Ramallah, Palestine Phone: + (972) (2) 2968644Phone: + (972) (2) 2968644Mobile: + (972) (599) 001155E‐Mail: [email protected]