PrinciplesofProj ect Management ProjectSkills By Saad Ali BS(Hons) Commerce Virtual University of Pakistan Gujranwala
PrinciplesofProjectManagement
ProjectSkills
By Saad Ali
BS(Hons) Commerce
Virtual University of Pakistan
Gujranwala
PRINCIPLESOFPROJECTMANAGEMENT
TableofContents
Preface
2VisitOurWebsite
3Introduction
4ProjectManagementPrinciples
5ProjectManagementDeinition
7ProjectManagementPerspectives
12ProjectOrganization&Structure
15Projectsina Matrix-ManagementEnvironment
19ProjectStakeholderDeinition
23ProjectSponsor&ProjectManagerDeinitions
27ProjectLifeCycleDeinition
32FunctionalAreasofProjectManagement
36Summary
40OtherFreeResources
41References 42
1
PRINCIPLESOFPROJECTMANAGEMENT
PrefaceOrganizationsareincreasinglyusingprojectmanagementtechniqueswithintheiroperationsandthespecialistlanguageofprojectmanagementhasbecomemoreandmorecommonplaceinmanagerialandexecutivemeetings.Thistrendisheretostayanditmeansthatmanagersneedtobefamiliarwithprojectmanagementroles,termsandprocesses.
Youwilllearn:
● Howprojectsaredeinedandwhytheydifferfrombusinessprocesses
● Howthestructureofanorganizationimpactsprojectmanagement
● Howprojectmanagementrolesandresponsibilitiesaredeined
● Howallprojectscanbemappedtothesamebasiclifecyclestructure
● Howprojectmanagementcanbeorganizedintofunctionalareas
2
PRINCIPLESOFPROJECTMANAGEMENT
3
PRINCIPLESOFPROJECTMANAGEMENT
IntroductionTheimpactoftechnologyanditsinluenceonorganizationalprocessesisanessentialaspectofanygrowths tr ategy. Itishardtoindanydevelopmentorproceduralchangethatdoesnothaveaninformationtechnologyaspectandinmanycasesitisactuallythechangesinavailabletechnologythatdrivetheneedtochangeorganizationalprocesses.
ThishasledtoamergingofITworkingpracticesintothatofgeneralmanagementincludingtheuseofprojectmanagement.
• InformationTechnology(IT)nowplaysasignificantrolein
StrategicGrowth
ITProcesses
• ITspecialisttermsintegratewith managementvocabulary
• themost significantmethodologyis
ProjectManagement
Managersnowindthattheyarefrequentlyinvolvedinprojectsthatarebeingmanagedusingaformalizedprojectmanagementmethodology.Communicationsformsakeypartofsuchprojectsandifyouaregoingtobesuccessfulinyourroleasamanageritisessentialthatyouhaveathoroughunderstandingofprojectmanagementterminology,processes,andprocedures.
PMBOK Agile SixSigma
PRINCIPLESOFPROJECTMANAGEMENT
ProjectManagementPrinciplesTherearevariouswaysinwhichprojectscanbeapproachedandahostof‘methodologies,’‘frameworks,’and‘processes’havebeendevelopedoverthepast60yearsorso.Someofthesehavetheiroriginsinacademicresearchwhereasothershavegrownoutofproprietarymethodsdevelopedbyorganizationsthatarehighlyprojectfocused,forexamplemanagementconsultancies.
Key ProjectManagement Methodologies
PRINCE2 COBIT CriticalChain
Eachoftheseapproacheshasitsownwayoflookingatprojectsanditsownterminologyforthedocumentsandprocessesthatmakeupprojectmanagement.Therehasbeensomerationalizationinrecentyearsbuttherearestilladozenwidelyusedmethods.TheonesyouaremostlikelytoencounterarePMBOK®,PRINCE2,CriticalChain,andAgile.
PMBOK®isshortforProjectManagementBodyofKnowledge,whichdescribesprojectmanagementpracticesthatarecommonto‘mostprojects,mostofthetime.’ThePMBOK®ispublishedbytheProjectManagementInstitute(PMI),whichwasformedintheUSAin1969.ThePMIalsooffersvariouslevelsofcertiicationandthePMBOK®iswidelyusedandrespected.
PRINCE2isaprocess-basedapproachforprojectmanagement,providinganeasilytailoredandscalablemethodologyforthemanagementofalltypesofprojects.ThemethodisthestandardforpublicsectorprojectsintheUKandispracticedworldwide.TheacronymstandsforProjectsinaControlledEnvironmentandthisisaprojectmanagementprogramthatsharesmoreofthefunctionalandinancialauthoritywithseniormanagement,notjusttheprojectmanager.
TheCriticalChainmethodisnotfundamentallydifferentfromthecurrentmainstreamapproachesbutitdiffersinthewaythatithandlesriskandcontingency.Developedin
PRINCIPLESOFPROJECTMANAGEMENT
1997itisamethodofplanningandmanagingprojectexecutiondesignedtodealwithuncertaintiesinherentinmanagingprojects,whiletakingintoconsiderationthelimitedavailabilityofresources.
TheAgileapproachusesaniterativemethodofdeterminingrequirementsforengineeringandsoftwaredevelopmentprojectsinahighlylexibleandinteractivemanner.Itismostoftenusedinsmall-scaleprojectsorincaseswheretheinaldeliverablesaretoocomplexforthecustomertounderstandandspecifybeforetestingprototypes.
TheprojectmanagementeBooksonthiswebsiteareforanyonewhowantstoindoutmoreaboutastructuredapproachtoprojectmanagement.Somuchworkisnowrunasprojectsandsofewpeoplehavethenecessaryskillstomanagethemproperlythatthereisahugedemandforgoodprojectmanagersandthatdemandisincreasingallthetime.
Insummary,organizationsareincreasinglyusingprojectmanagementtechniqueswithintheiroperationsandthespecialistlanguageofprojectmanagementhasbecomemoreandmorecommonplaceinmanagerialandexecutivemeetings.Thistrendisheretostayanditmeansthatmanagersneedtobefamiliarwithprojectmanagementroles,termsandprocesses.
OurfreeProjectManagementPrincipleseBookwillhelpyoutounderstandtheprinciplesofprojectmanagement.
4Managersnowindthattheyarefrequentlyinvolvedinprojectsthatarebeingmanagedusingaformalizedprojectmanagementmethodology.
4Eachoftheseapproacheshasitsownwayoflookingatprojectsanditsownterminologyforthedocumentsandprocessesthatmakeupprojectmanagement.
4 The projectmanagementeBooksonthiswebsitewillbehelpfulifyou arerelativelynewtothesubject.
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PRINCIPLESOFPROJECTMANAGEMENT
ProjectManagementDefinitionBeforeconcerningourselveswiththedetailsofprojectmanagementdocumentsandprocesses,itisagoodideatotakeastepbackandthinkaboutwhatmakessomethingaprojectandwhyitneedstobemanageddifferentlyfromtheday-to-dayworkoftheorganization.Inotherwords,
‘Whydoweneedprojectmanagement?’
Therearemanydifferentdeinitionsofwhatconstitutesaproject:
ProjectManagementInstitute—‘Aprojectisatemporaryendeavorundertakentocreateauniqueproduct,serviceorresult.’
PRINCE2—‘AProjectisatemporaryorganizationthatiscreatedforthepurposeofdeliveringoneormorebusinessproductsaccordingtoanagreedBusinessCase.’
AssociationforProjectManagement(APM)—‘Anendeavorinwhichhumanmaterialandinancialresourcesareorganizedinanovelwaytodeliverauniquescopeofworkofgivenspeciicationoftenwithinconstraintsofcostandtimetoachievebeneicialchangesdeinedbyquantitativeandqualitativeobjectives.’
H.Kerzner—‘Projectmanagementistheplanning,organizing,directingandcontrollingofcompanyresourcesforarelativelyshort-termobjectivethathasbeenestablishedtocompletespeciicgoalsandobjectives.Furthermore,projectmanagement utilizesthesystemsapproachtomanagementbyhavingfunctionalpersonnel(theverticalhierarchy)assignedtoaspeciicproject(the horizontal hierarchy)’(2009).
Manyorganizationsalsohavetheirowndeinitionofwhatconstitutesaproject.Whicheverdeinitionyoupreferdoesnotreallymatter;theimportantthingistobeabletoidentifyworkthatc
onstitutesaprojectsothatitcanbeproperlymanaged.
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PROJECT:occursoncewithhighdegreeofrisk&uncertainty
Constituteallactivitieswithinanorganization
PRINCIPLESOFPROJECTMANAGEMENT
Adefinitestart&en
dpoint
ProjectCharacteristics
Oncetheendpointisreachedtheprojectisover
Itisattemptingtoachievesomething
new
Projectshavesomeorallofthefollowingcharacteristics:
● Theyhaveadeinitestartandendpoint
● Oncetheendpointisreachedtheprojectisover
● Theyareattemptingtoachievesomethingnew
Projectscanvaryinsizeandsmallprojectscanbeplannedandmanagedbythesamepersonwhereaslargerprojectsmayemploythousandsofpeopleworkingonmanysitesandrequireadedicatedgroupinordertomanageandcoordinatetheactivities.
Everythingthatanorganizationdoescanbecategorizedeitherasaprojectorprocess.Aprocessissomethingthathappenscontinuallyandhasalowriskassociatedwithit,whereasaprojecthappensonceandhasarelativelyhighlevelofrisk.
Toillustratethis,imagineanorganizationthathasanannualstaff appraisal processinwhichmanagersmakeawrittenassessmentoftheirstaffagainstcriteriaspeciiedbytheHRdepartment.Thisisaprocessbecauseevenifthecriteriachangefromyeartoyeartheprocedureundertakenbyeveryoneinvolvedremainsmoreorlessthesame.
PROCESS:lowriskactivitythathappenscont
inually
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PRINCIPLESOFPROJECTMANAGEMENT
IftheorganizationdecidedtointroduceanITsystemtofacilitatethisprocessthentheselection,implementation,andtestingofthenewsystemwouldrepresentaprojectbecauseitwouldbeaone-offactivitywhichcarriestheriskofexceedingthebudgetortimescaleallocatedtoit.
Itisperfectlylogicalfordifferentorganizationstoseethesameactivityinadifferentway.Forexample,thesupplierofthecomputersystemmayseethisactivityasaprocessbecauseitissomethingthatitdoeseverytimeitsellsasystem.Eachtimeitdoesso,itgainsmoreexperience,whichallowsittoplanandexecutefutureinstallationsbasedonwhatithaslearnedpreviously.
Thisdistinctionisimportantbecauseprojectmanagementisusedwherethereisahighdegreeofuncertaintyandriskbecausethereisnoexperienceofperformingtheactivity.
Sointhisscenario,
Theo
rganizationbuyingthesystemwouldtreatitasaproject.Thevendorw
ouldtreatitaspartofaprocess.
Thevendorwouldseeitasaprocessthatcouldbereinedwitheachiterationinordertoreducecostsandincreasethequality . Thedistinctionbetweenprojectsandprocessesdependsonwhethertheorganizationrepeatsanactivityoftenenoughforittobecomeroutine.Onceanactivityisrepeatedoftenenoughwithinanorganizationtobecomeroutineitisnolongerconsideredaproject—itbecomesoneoftheirmanymanagementprocesses.
Projectscanbebroadlyclassiiedintoengineeringprojectsandmanagementprojects.Engineeringprojectsencompasscivil,electrical,andmechanicalengineeringandtheinaldeliverablesarephysicalobjects,forexampleabuilding,reservoir,bridge,reinery,orpre-productionsample.Specialistcompaniesorconsortiainvariablyundertakethesetypesofproject.
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ManagementProjects
Intangibleitems
Officemove
NewITsystem
Marketingcampaign
PRINCIPLESOFPROJECTMANAGEMENT
EngineeringProjects
Physicalitems
Building,bridge
Refinery
Pre-productionsample
Managementprojectsincludethingslike:restructuringtheorganization,preparingforanexhibition,developinganITsystem,launchinganewmarketingcampaign,movingofices,orindeedanythingwheretheobjectiveistoproduceanendresultthatisnotidentiiableasaphysicalitem.TogainagreaterunderstandingofthedifferentfunctionswithinthesetypeofprojectslookattherangeoffreePDF P r oject Manag ementeBooks onthiswebsite.
Abroadrangeoforganizationsperform projectsofthistype,including:commercialcompanies,governmentdepartments,charitiesandNGOs(NonGovernmentalOrganizations),andothernot-for-proitorganizations.Thedifferencesbetweenthesetypesofprojectare:
UseofSpecialistStaff
Engineeringprojectsalmostalwaysrepresenttheday-to-dayworkoftheorganization.Forexample,aconstructioncompanywillemploypeoplewhospecializeinbuildingoficeblocks,publicbuildings,houses,orroads.
Similarly,amanufacturingcompanywillhavedesignengineerstotakeaproductfromconception,throughthedesignprocessandprototypingbeforetheworkishandedovertoproductionengineerswhowillthenberesponsibleformassproduction.
Thisisquitedifferentfromamanagementprojectwherepeoplewhodon’tusuallyrunprojectsmayindthemselvesdoingmuchthework.
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PRINCIPLESOFPROJECTMANAGEMENT
EnvironmentalIssues
Thechallengesofengineeringprojectsareoftenphysicalinnature. Forexample,aconstructionprojectmaybeheldupbybadweather,thediscoveryofarchaeologicalremains,orotherunforeseenenvironmentalproblems.
Managementprojectsontheotherhandusuallytakeplaceontheorganization’sownpremisesandarenotsubjecttothesesortsofissues.
SpeciicationofFinalDeliverable
Inthecaseofengineeringprojectstheinaldeliverableisusuallyspeciiedindetailatthebeginningoftheprojectbecauseitwillneedtocomplywithexistingstandardsorlegislation.Ifthedeliverableisamechanicalorelectronicpartthenitwillneedtoitwiththerestoftheinishedproduct.
Thisisnotusuallythecasewithmanagementprojectswheretheexactformoftheinaldeliverablemaynotbecomeclearuntilsomeoftheworkoftheprojecthasbeendone.Itmayalsoalterastheprojectdevelops,orinresponsetomarketresearchorotherdevelopments.
Generallyspeaking,engineering projects andmanagement projectsare quite differentthingsandourprojectmanagementeBooksareaimedatmanagersundertakingmanagementprojectsratherthanengineeringprojects.
4Everythingthatanorganizationdoescanbecategorizedeitherasaprojectorprocess.
4Aprocessissomethingthathappenscontinuallyandhasalowriskassociatedwithit.
4Aprojecthappensonceandhasarelativelyhighlevelofrisk.
4Projectsareattemptingtoachievesomethingnew,theyhaveadeinitestartandendpoint,andoncetheendpointisreachedtheprojectisover.
4Engineeringprojectsencompasscivil,electrical,andmechanicalengineeringandtheinaldeliverablesarephysicalobjects,forexampleabuilding,reservoir,bridge,reinery,orpre-productionsample.
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Time
Quality Scope Cost
PRINCIPLESOFPROJECTMANAGEMENT
4Managementprojectsincludethingslike:restructuringtheorganization,preparingforanexhibition,developinganITsystem,launchinganewmarketingcampaign,movingofices,orindeedanythingwheretheobjectiveistoproduceanendresultthatisnotidentiiableasaphysicalitem.
ProjectManagementPerspectivesProjectmanagementisthedisciplineofplanning,organizing,motivating,andcontrollingresourcestoachievespeciicgoals.Aprojectisatemporaryendeavordesignedtoproduceauniqueproduct,serviceorresultwithadeinedbeginningandend(usuallytime-constrained,andoftenconstrainedbyfundingordeliverables),undertakentomeetuniquegoalsandobjectives,typicallytobringaboutbeneicialchangeoraddedvalue.
Theprimarychallengeofprojectmanagementistoachievealloftheprojectgoalsandobjectiveswhilehonoringtheconstraintsonscope,time,qualityandcost.Projectsneedtobemanagedtomeettheirobjectives,whicharedeinedintermsofexpectationsoftime,cost,andquality.
Forexample,P r ojectScope :Tomovetheorganization’sheadoficetoanotherlocation.Itsrequirementsare:
Time:CompletebyMarch2017
Quality:Minimizedisruptiontoproductivity
Cost:Notspendmorethan$125,000
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PRINCIPLESOFPROJECTMANAGEMENT
Thescopeoftheprojectisdeinedas:‘thetotalityoftheoutputs,outcomes,andbeneitsandtheworkrequiredtoproducethem’.
Thiscanchangeovertime,anditistheprojectmanager’sresponsibilitytoensuretheprojectwillstilldeliveritsdeinedbeneits.Consequently,aprojectmanagermustmaintainfocusontherelativeprioritiesoftime,cost,andqualitywithreferencetothescopeoftheproject.
TheProjectManagementInstitute(PMI)deinesprojectmanagementinthefollowingway:
‘Projectmanagementistheapplicationofknowledge,skills,toolsandtechniquestomeetprojectrequirements.’
Thisdeinitionbegsthequestion‘Exactlywhatknowledge,skills,tools,andtechniqueswillIneedtosuccessfullymanageaproject?’Inordertoanswerthisquestion,itishelpfultolookatprojectmanagementfromthreedifferentperspectives.
1. Howtheprojectitsintotheorganization–Thisreferstoboththeprojectandtheindividualswhowillbeinvolvedinit,includinghowtheirresponsibilitiesaredeinedandhowtheyinteractwitheachother.
2. Howtheprojectwillevolveovertime—Thisisreferredtoastheprojectlifecycleandisthechronologicalsequenceofactivitiesthatneedtohappeninordertodelivertheproject.Whatevertheirdifferences,allprojectswillbydeinitionshareasimilarlifecycle;theywillallhaveabeginning,middle,andanend.
3. Whatskillsarerequiredtosuccessfullymanagetheproject—Theseareusuallyreferredtoas‘ProjectFunctionalAreas’becausetherearediscreteareaswithinprojectmanagementthatcanbeconsideredinisolationeventhoughtheyareinterdependent.
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Organizational
FunctionalAreasProjectPerspectives
PRINCIPLESOFPROJECTMANAGEMENT
3KeyQuestionstoask:
1. Howdoestheprojectfitintotheorganization?
2. Howwillitevolveovertime?
3. Whatskillsareneededtosuccessfullymanagetheproject?
Thismightsoundunnecessarilycomplicated,butlookingataprojectfromeachofthesethreeviewpointswillgiveyouamuchbetterunderstandingofthewholeprocessthanusinganyoneofthemindividually.
Touseananalogy:
ImaginethatashipistravellingfromLondontoNewYork.
Theorganizationalperspectivewouldbeconcernedwithwhichmembersofthecrewwereresponsiblefordoingwhatandhowtheycommunicatedandinteractedwitheachother.
Thelifecycleofthevoyagewouldbeconcernedwithwheretheshipwasandwhatitwasdoingatanypointfromthebeginningtotheendofthejourney.
Thefunctional areas wouldbethingslikenavigation,collisionavoidance,routinemaintenance,etc.Eventhoughtheseactivitieswouldbetakingplacecontinuouslyandinterdependently,itisstillpossibletothinkaboutthemasdiscreteareasofknowledge.
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Project-BasedOrganizations
Construction
Consultants
SoftwareDevelopers
AdvertisingAgencies
PRINCIPLESOFPROJECTMANAGEMENT
Thisanalogyisnotperfectbutitdoesillustratethatwhenyouarestudyingacomplexactivityitcanbehelpfultolookatitfromavarietyofperspectivesinordertogainabetterunderstandingofthewhole.
4Projectmanagementisthedisciplineofplanning,organizing,motivating,andcontrollingresourcestoachievespeciicgoals.
4Theprimarychallengeofprojectmanagementistoachievealloftheprojectgoalsandobjectiveswhilehonoringtheconstraintsonscope,time,qualityandcost.
4Projectmanagementcanbethoughtofintermsoforganizational,lifecycle,andfunctionalareaperspectives.
ProjectOrganization&StructureThewayinwhichanorganizationisstructuredislargelyaresultofwhetheritsday-to-dayworkisprocessdrivenorprojectdriven.
Process-BasedOrganizations
Utilities
Manufacturers
NGO’s
GovernmentDepartments
Charities
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PRINCIPLESOFPROJECTMANAGEMENT
ProjectFocused
Theseorganizations’day-to-dayworkinvolvesdeliveringuniqueprojectsforexternalcustomersforasettimeperiod.Theirmanagementstructureisdesignedtosupportprojectsandeveryoneworkingintheorganizationisassignedtooneormoreprojects.Examplesinclude:Constructioncompanies,Consultingorganizations,Softwaredevelopers,andAdvertisingagencies.
ProcessFocused
Theday-to-dayworkoftheseorganizationspredominantlyinvolvescontinuallydeliveringproductsorservicesforexternalcustomers.Theirmanagementstructureisdesignedtosupporttheprocessrequiredtodelivertheproductorservicetotheendcustomer.Examplesinclude:Utilitycompanies,Manufacturingcompanies,Governmentdepartments,Charities,andNGOs.
Inreality,eventhemostprocess-focusedorganizationswillrunoccasionalprojectsandsomemayhavepartsoftheorganizationthatarededicatedtoproject-basedworking.Thevastmajorityofthestaffinpublicutilities(electricity,gas,andwater)willbeemployedtoprovideanongoingservicetotheircustomerbase.Buttherewillbesomeareasofthebusinessconcernedwithphysicalormanagementinfrastructurethatarewhollyprojectdriven.Forexample:
Staffresponsibleforthedevelopmentofnewinformationsystemsandthoseresponsiblefortheconstructionofnewphysicalinfrastructure,likeelectricalsubstationsandwatertreatmentplants.
Theextenttowhichyourorganizationhasthenecessaryassetsandprocessestoconductsuccessfulprojectswillplayasigniicantroleinyourprojectcostsandlevelofrisk.Thelessexperienceithas,thehigheryourprojectcostswillbeandthegreaterdegreeofriskcomparedtoaproject-drivenorganization.
Everyorganizationisuniqueandtheseclassiicationsareonlyusefulinthattheyillustratethefactthatprojectmanagementislikelytopresentmoreofachallengeinprocess-focusedorganizationsthaninthosethatareprojectfocused.
Iti
sbettertothinkoforganizationalstructuresexistingonacontinuumasdescribedbelow.Thisisnotonlymorerealisticbutitallowsustobeginthinkingabouthowexactlytheorganizationalstructurewillimpactaprojectinpracticalterms.
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PRINCIPLESOFPROJECTMANAGEMENT
Atoneextremeareorganizationsinwhichemployeesareisolatedwithintheirdepartmentordivisionasshown.
Corporate Management
DivisionA DivisionB DivisionC
BusinessLine BusinessLine BusinessLine
BusinessLine BusinessLine BusinessLine
Finance,HR, IT,etc BusinessLine Finance,HR,
IT,etc
Finance,HR, IT,etc
Inthisscenario,seniormanagementallocatecapitaltoeachdivision,whichthenoperateautonomouslytoreturnasmuchproitaspossible.Eachdivisioniscompletelyindependentoftheothersandthereisnomechanismtoallowcommunicationacrossdivisionsotherthanbygoingupthehierarchytoseniormanagementwhowouldthenhavetopassthedecisiondowntotheotherdivisions.
Thistypeofstructuremakesproducingalimitedamountofproductsorserviceseficientandpredictable,butwouldmakeitalmostimpossibletorunaprojectthatcutacrossdivisional boundaries.
Areinementofthisstructureisshownbelowandisreferredtoasaweakmatrix.Thisisbecausealthougheachdivisionoperatesindependently,theynolongerhavedirectcontroloversupportfunctionslikeIT,inance,andhumanresources.
Thistypeofstructuremakessensebecausethesesupportfunctionsdonotneedtobeduplicatedandcanbesharedbetweenthedivisions.Thissavesmoneyandenablesthesupportdepartmentstobebiggerandemploymorespecialiststaff.
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PRINCIPLESOFPROJECTMANAGEMENT
CorporateManagement
Support Departments
Finance Human Resources
InformationTechnology
StrategicPlanning
LegalCounsel
etc.
DivisionA DivisionB DivisionC
BusinessLine BusinessLine BusinessLine
BusinessLine BusinessLine BusinessLine
BusinessLine
Theimplicationforprojectmanagementisthattherewillbemechanismsforcommunicatingacrossdivisionsandthatpeoplewillbemoreacceptingofworkingwithothersoutsideoftheirowndivision.
4Organizationsmaybeeitherprocessdrivenorprojectdriven.
4Even themostprocess-focusedorganizationswillrunoccasionalprojectsandsomeorganizationsmayhavepartsthatarededicatedtoproject-basedworking.
4Therearevariouswaysofstructuringtheprojectenvironmentdependingonthetypeoforganization.
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PRINCIPLESOFPROJECTMANAGEMENT
ProjectsinaMatrix-ManagementEnvironmentThistypeofstructurecanbetakenfurthertogivewhatisknownasapurematrix-managementenvironment.
DepartmentA DepartmentB DepartmentC DepartmentD
ProjectX
ProjectY
ProjectZ
Thisisatypeofstructureinwhicheventhoughanindividualmay‘belongto’aparticulardepartment,theywillbeassignedtodifferentprojectsandreporttoaprojectmanagerwhileworkingonthatproject.Therefore,eachindividualmayhavetoworkunderseveralmanagerswhilstperformingtheirrole.
Forexample,
SomeonewhoisworkinginDepartmentCandwhoisassignedpart-timetoprojectsXandZwillindthemselvesreportingtothreedifferentmanagers,allofwhomwillhavesomedegreeofauthorityoverthem.
• Theirlinemanager(DeptC)
• ProjectManagerforprojectX
• ProjectManagerforprojectZ
Matrixmanagementisnowfairlycommonandexistsatsomelevelinmostlargeorganizations,particularlythosethathavemultiplebusinessunitsandinternationaloperations.
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PRINCIPLESOFPROJECTMANAGEMENT
AdvantagesofMatrixManagement• Efficientexchangeofdata• Democraticleadershipstyle• Improve
dsatisfaction&motivationforindividual
DisadvantagesofMatrixManagement• Conflictbetweenline&projectmanagers• Issuesof resource allocation• Lackofrecognitionforindividuals
Oneoftheadvantagesofimplementingamatrixstructureisthatitcanleadtoamoreeficientexchangeofinformationaspeoplefromdifferentareasworkcloselytogether.Thisenhancesoverallproductivitybecauseitfacilitatesquickdecision-making.Forexample,
Individualsfromthecustomersupportandproductiondepartmentsmayconferwithoneanothertoixproblemsassoonastheyappear.Ratherthantheproductiondepartmentremainingunawarethatthereisaproblemuntilitsurfacesmonthslaterinamanagementreportormemo.
Thematrixstructurealsoencouragesademocraticleadershipstylethatincorporatestheinputofteammembersbeforemanagersmakedecisions.Theabilitytocontributevaluableinformationbeforedecisionsaremadeleadstoemployeesatisfactionandincreasedmotivation.
Adisadvantageofthematrixstructureisthatitisarecipefordisagreementbetweenthelinemanagerandtheprojectmanagers.Thisisbecausethelatterwilloftentrytominimizeeachdepartment’sbillingtotheproject,whereasthedepartmentalmanagerswillusuallytrytosecureasmuchoftheproject’sbudgetaspossible.
Therecanalsobedisagreementsaboutresourceallocationandprioritization.Thisoccursbecauseprojectmanagerstendtoviewtheirownprojectasthemostimportantactivityandforgetthatthelinemanagermayhaveothercommitmentsthathisdepartmentisexpectedtomeet.
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PRINCIPLESOFPROJECTMANAGEMENT
Firstly,linemanagershaveiniteresourcesattheirdisposalandoftenhavetojuggletheseinsuchawayasto‘satisfymostofthedemandformostofthetime.’Inaddition,theyoftenhavenumerousdeadlines,relatingtobothdepartmentalwork-in-progressaswellastoeachprojectthattheyaresupplyingresourcesto.
Secondly,projectsinprogressmaybesubjecttochanges,followingtheagreementandcommitmentofthelineresourcesrequired.Thismayresultfromafailuretoachievetheexpectedprogressinanyareaofworkandislikelytohaveaknock-oneffectontheabilityofthelinemanagertosupplytheresourcestheyarecommittedto.Asalinemanager,youmayalsohavetoaccommodateunexpectedresourceshortagesduetoabsenteeismandstaffturnover.
Allofthesefactorsmeanthatconlictisunavoidableinorganizationsthatarestructuredinthiswayandmanyoftheseissuesdescribedmaybecomplicatedfurtherifstaffareworkingonmorethanoneprojectatatime.
Anotherfeatureofthematrixstructureisthatitcanleadtostaffmembersbecomingconcernedabouttheextenttowhichtheeffortstheyexpendonproject-relatedworkwillberecognizedandrewardedinancially.Thisproblemmaybecompoundediftheyfeeltheirproject-relatedworkwillnotberecognizedwithintheirowndepartmentandnomatterhowhardtheyworkontheprojectitwillnotaffecttheirchancesofadvancement.
Thisconcernisprimarilyanissuewithstaffsecondedtoprojectsonafull-timebasisastheymayfeelincreasinglyisolatedandleftbehindinrelationtotheirlong-timecolleaguesandthedepartmentalpracticeswithwhichtheyarefamiliar.Also,individualsinvolvedwithlong-termprojectsmayhaveworriesaboutwhathappenstothemattheendoftheproject.Theirfearcouldbethattheirdepartmenthaslearnttocopewithoutthem,ordevelopednewprocedureswhilsttheywereassignedtotheproject.
Asaprojectmanageryoushouldensureeachindividual’sperformanceisrecordedandreportedtotheirlinemanagersothatitcanbeassessedintheirannualappraisal.Youcancheck
outthecompleterangeofProjectManagement PDF eBooks freefromthiswebsite.
Projectsareallaboututilizingexistingresourcesandexpertiseinaneficientandeffectivewaytogetthingsdone.Thedownsideofthis,fromastaffperspective,maybethatprojectsarenotseenas training-oriented environments inwhichto developpersonal skills.
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PRINCIPLESOFPROJECTMANAGEMENT
Thequestionsraisedbytheproblemofestablishingasoundprojectmanagementstructurerevolvearoundthecreationofeffectivereportinglines.Therearetwoorganizationalextremesthatcanbeadopted:
● Allofthepersonnelworkingontheprojectremainintheirnormalsituation,reportingtotheirlinemanagers.Inthiscase,theprojectmanagementstaffwillneedtocoordinatetherequiredprojectworkthroughthelinemanagers.
● Aprojectteamiscreatedandallpersonnelworkingontheprojectaredrawnintoaprojectteamandreportexclusivelytotheprojectmanager.
Inpracticeacombinationoftheseapproachesisoftenfoundtobethebestsolution,andisbyfarthemostcommonmethod.However,thisorganizationalframeworkrisksbreakingoneofthetenetsofgoodmanagement—thatofmatchingresponsibilitywithauthority.Theprojectmanagerwillberesponsibleforperformanceontheprojectbutmaylacksuficientauthoritywherecontributorsreporttotheirownlinemanagers.
Allofthesefactorsmeanthatunlessyourorganizationiscompletelyprojectfocusedthenyoucanexpectconlict,disagreement,andcompromisetobeanintegralpartoforganizingaproject.
4Inamatrixenvironment,anindividualmay‘belongto’aparticulardepartmentbuttheywillbeassignedtodifferentprojectsandreporttoaprojectmanagerwhileworkingonthatproject.
4Anadvantageof thematrix structureis thatitcanlead toamoreeficientexchangeofinformationaspeoplefromdifferentareasworkcloselytogether.
4Adisadvantageofthematrixstructureisthatitisarecipefordisagreementbetweenthelinemanagerandtheprojectmanagers.
4Unlessyourorganizationiscompletelyprojectfocusedthenyoucanexpectconlict,disagreement,andcompromisetobeanintegralpartoforganizingaproject.
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Sponsor
Manager
ProjectStakeholders
ProjectTeam
ProjectManagementTeam
ProjectManager
ProjectSponsor
PRINCIPLESOFPROJECTMANAGEMENT
ProjectStakeholderDefinitionIrrespectiveofhowtheorganizationisstructured,therearecertainrolesandresponsibilitiesthatarerequiredinallprojects.Differentorganizationsmayusedifferentnamesfortheserolesbuttheresponsibilitiesofeachonewillbethesame.
StakeholdersEssentia
lProjectRoles
ItisimportantthatyouunderstandtherationaleforeachoftherolesintheprojectalongwiththeirresponsibilitiesastheseareusedextensivelythroughouttheProject Management Skills eBooks series.You willheartheterm‘stakeholders’usedwithreferencetoaparticularprojectanditisimportanttounderstandwhatthistermmeans.Stakeholdersareanyonewhowillgainorlosefromtheproject.
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PRINCIPLESOFPROJECTMANAGEMENT
Theprojectmanagementteammustidentifythestakeholders,determinetheirrequirementsandexpectations,and,totheextentpossible,managetheirinluenceinrelationtotherequirementstoensureasuccessfulproject.
Thosewith authorityt
oallocateresources
&setpriorities
Thosewhohavevestedinterestinthechanget
heprojectoffers
ProjectManager
SeniorManagement
ProjectTeamMembers
ProjectStakeholders
ProjectCustomer
ProductUserGroup
LineManagers
ProjectTesters
Suppliers &Customers
Therearenarrowerviewsofthetermstakeholder,focusingontheinluencersanddecision-makersofabusinessortechnologicalchange.Inthiscontext,stakeholdersaremanagerswhohavetheorganizationalauthoritytoallocateresources(people,money,services)andsetprioritiesfortheirownorganizationsinsupportofachange.
Oneofthekeystoasuccessfulprojectissuccessfullymanagingtherelationshipsbetweeneveryoneinvolved—thestakeholders.
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Stakeholdersmaybe:Employees
Competitors Laborunions
GovernmentLocalCommunities
InvestorsPotentialEmployees
NationalCommunitiesShareholders
PRINCIPLESOFPROJECTMANAGEMENT
maybeaffectedbyproject
could impact project
StakeholderscanbeidentifiedasPeopl
e, Group
sorBodieswho
Therearethreeprocessesinvolved:
1) IdentifytheProjectStakeholders
Thisinvolvesidentifyingthepeople,groups,ororganizationsthatcouldimpactorbeimpactedbyadecision,activity,oroutcomeoftheproject.Itanalyzesanddocumentstheirinterestsinandinluenceontheproject.Astakeholderisdeinedasanyonewithaninterestintheproject,irrespectiveofwhetherthatinterestispositiveornegative.Theymaybeindividualsororganizationsthatareactivelyinvolvedintheproject,orwhoseinterestsmaybeaffectedbytheexecutionorcompletionoftheproject.
ProfessionalAssociations
ProspectiveCustomer
sSuppliers
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Publ
PRINCIPLESOFPROJECTMANAGEMENT
Aprojectmanagermustbesuretoidentifyandlistallpotentialstakeholdersforaproject.Inadditiontothoseontheprojectteampotentialstakeholdersincludethoseshowninthediagram.
Stakeholderscanbeinternaltotheorganizationorexternal.Inmanyprojectsthepublicatlargewillbecomeastakeholdertobeconsideredduringtheproject.Thechallengefortheprojectmanagerwhenthepublicisastakeholderwillbetoactwhileconsideringpublicneeds.Oftenthereisnodirectrepresentativeofthepublictobeconsultedduringprojectplanningandexecution.
2) Analyzetheirpotentialinvolvementwiththeproject
Thisistheprocessthatdevelopsappropriatemanagement strategies toeffectivelyengagestakeholdersthroughouttheproject.Stakeholderanalysisissoimportantthatawidevarietyofexpertsareconsultedtohelpanalyzetheactuallevelandthedesiredlevelofengagementlevelofthevariousstakeholders.Theseexpertsarethesameonesthatwereconsultedinthepreviousprocesstoidentifythestakeholdersandanalyzetheirinterestand/orinluenceontheprojectinordertodeterminethegeneralstrategyforengagingthem.
3) Managetheirengagementwiththeproject
Thisistheprocessthatcommunicatesandworkswithstakeholderstomeettheirneedsandexpectations,addressissuesastheyoccur,andsupportstakeholderengagement.Itdetailshowyoucommunicatewithstakeholdersandensuresappropriateengagementlevels.
Ifyouintend to manage aproject thenyouwillneedadetailed knowledge oftheserolesandtheirresponsibilities.However,inordertounderstandthebasicprinciplesofprojectmanagementthereareonlytworolesthatyouneedtoknowaboutinanydetail,theprojectsponsorandtheprojectmanager.
4Irrespectiveofhowtheorganizationisstructured,therearecertainrolesandresponsibilitiesthatarerequiredinallprojects.
4Projectstakeholdersareindividualsandorganizationsthatareactivelyinvolvedintheproject,orwhoseinterestsmaybepositivelyornegativelyaffectedbyexecutionoftheprojectorprojectcompletion.
KEyPOINtS
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Presentingthebusinesscase
Approvingthebudgetfunds
ProjectSponsor–anindividual
responsiblefor:
Identifying&definingproject
Managingseniorstakeholders
Appointingprojectmanager
Authority&drivetoovercomeissuesorcancelproject
PRINCIPLESOFPROJECTMANAGEMENT
ProjectSponsor&ProjectManagerDefinitionsThesponsorisresponsibleforsecuringtheinancingandoverallresourcebudgetapprovalandownstheopportunitiesandrisksrelatedtotheinancialoutcomeoftheproject.Theymaybereferredtoasthe‘businesssponsor,’‘projectsponsor,’or‘executive’andareusuallyaseniormanagerwithadirectinterestinthebusiness case behindtheproject.
Eventhoughthisimpliesthattheprojectsponsorcanbeagroupofpeople,itisusuallyfarbetterifthereisonenamedindividualwhohasbeengiventhisrole.Aneffectivesponsorwillbesomeonewiththeauthorityandpersonaldrivetoovercomemajorobstaclestocompletingtheproject.
Thesponsordoesnotconcernhimselforherselfwiththeday-to-dayrunningoftheproject(thatistheresponsibilityoftheprojectmanager),butrepresentsthe‘buyer’oftheprojectonbehalfoftheorganization.Itcanbehelpfultothinkaboutthisintermsoftheprojectmanagerworkingforthesponsorwhoisinturnworkingfortheorganization.
Theprojectsponsormaybeeitherinternalorexternaltotheorganizationthatwillbeundertakingtheprojectwork.Manydifferentpermutationsarepossible—forexample,aninternalsponsormaycommissionaprojectthatwillcallonlyonresourceswithintheorganization.Alternatively,theentireprojectmaybeoutsourcedtoathirdparty.
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PRINCIPLESOFPROJECTMANAGEMENT
Theroleoftheprojectsponsoristoapproveandfundtheproject,butnottogetinvolvedinday-to-daymanagementorinancialcontrol.Theprojectsponsorshouldappointaprojectmanagertotakeontheresponsibilityfordeliveringtheprojectinaccordancewithitsobjectives.
ProjectSponsorIdentifies&definesproject.Producesbusinesscase&cancancelifnolongermeet
sneeds.P
rojectManagerResponsiblefor
deliveryofdefinedproject&its
day-to-daymanagement.
Therearetwomaindifferencesbetweenprojectsponsorshipandprojectmanagement.Firstly,projectsponsorshipincludestheidentiicationanddeinitionoftheproject,whereasprojectmanagement isconcerned with delivering aproject that is alreadydeined,ifonlyquiteloosely.
Secondly,theprojectsponsorisresponsiblefortheproject’sbusinesscaseandshouldnothesitatetorecommendcancellationoftheprojectifthebusinesscasenolongerjustiiestheproject.
Itisimportantforeveryprojecttohaveasponsorto:
● Ensureseparationofdecision-makingresponsibilitiesbetweenprojectmanagerandprojectsponsor
● Ensureaccountabilityfortherealizationofprojectbeneits
● Ensureoversightoftheprojectmanagementfunction
● Carryoutseniorstakeholdermanagement
Theprojectmanagerisappointedtodelivertheprojectasitisdeinedintheproject charter orprojectplan.Theyhavetheauthoritytousecashandotherresourcesuptothelimitsetintheprojectcharter.Iftheybelieveatanystagethattheprojectcannotbe
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PRINCIPLESOFPROJECTMANAGEMENT
deliveredwithintheassignedbudgetandtimescalethentheymustnotifytheprojectsponsorsothatremedialactioncanbetaken.
ProjectManage
r r
esponsiblefor:
• Deliveryofdefinedproject• Useo
f$’s&resourcesuptoprojectcharterlimits
• Day-to-daymanagement• Reportingsignificantissuesto
ProjectSponsor
ProjectManagermusthave:
• Experienceindomainoftheproject
• Knowledgeofprojectmanagementprocesses
Aprojectmanagershouldhaveexperienceintheprojectdomainandshouldalsobefamiliarwiththeprocessesthatmakeupprojectmanagement.
Youshouldnowhaveanunderstandingofsomeoftheproblemsinvolvedwhensettingupaprojectthatneedstorun‘across’organizations,whichtendtohaveverticalmanagementstructures.Youshouldalsobeawareofsomeoftheissuesthatareraisedwhenassigningpeopletoprojects,particularlyiftheyhavecontinuingdutiesintheirowndepartment,andyoucanbringattentiontopotentialissuesbeforetheyarise.
Finally,withtheknowledgeofthespeciicrolesandresponsibilitiesoftheprojectsponsorandtheprojectmanageryoucanensurethatotherswithinyourorganizationareawareoftheserequirementswhendevelopingaproject.
Theprojectmanagershouldbeappointed,bytheprojectowner,toassumeday-to-daymanagementoftheproject.Theprojectmanagershouldberesponsibleforplanningattheprojectandsub-projectlevel,exercisingcontrol,ensuringproductdeliveryandformanagementandmotivationo
fstaffworkingontheproject.
Successfulprojectmanagementinvolvesdealingeffectivelywithmanagersandsupportingpersonnelacrossdepartmentalandfunctionallines,oftenwithlittleornoformalauthority.
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PRINCIPLESOFPROJECTMANAGEMENT
The project manager shouldwork withtheprojectowner to appointthe sub-projectmanagersandtodeinetheirresponsibilities.Thereafter,thesub-projectmanagerswillreportdirectlytotheprojectmanager,viaregularprogressreports.Theseprogressreportsrepresentanup-to-datesummaryofthestatusoftheprojectandshouldbecompiledonaregularbasis,usuallyweeklyofeverytwoweeks.
Itistheprojectmanager’sresponsibilitytoanalyzeandcollatetheprogressreportsandtosummarizethisinformationinregularhighlightreports,whichshouldbepresentedtotheprojectowner.Highlightreportsshouldbeproducedatregularintervals,forexamplemonthly,andmayalsobeproducedinresponsetoexceptionalcircumstances.
Theprojectmanagerwillneedtomaintainclearcommunicationswithothermanagementbodies,appropriatetothesizeoftheproject.Theyshouldsubmittheprojectplansandsub-projectplanstotheprojectownerforapprovalandthenadvisetheownerifthereareanysigniicantdeviationsfromthem.Iftolerancesarebeingexceededthenremedialplansmayalsoneedtobesubmittedfortheapprovaloftheprojectowner.
Animportantfunctionoftheprojectmanageristoestablishanappropriateenvironmentwithinwhichtheprojectistooperate.Anumberofissuesneedtobeaddressedearlyontoensurethattheprojectcanproceedeficientlyandeffectivelyfromtheoutset.
Inadditiontopreparingtheprojectplan,theprojectmanagershouldspecifyorcreateaconigurationmanagementmethodfortheproject.Conigurationmanagementcoversthetracking,documentationandissueofallprojectdocumentsandproducts,throughouttheprojectlifecycle.
Theprojectmanagershouldagreethetechnicalandqualitystrategyfortheproject,withthesectionthatisresponsiblefororganizationalpolicy.Itisimportantthattheprojectmanageralsomaintainsclearcommunicationwithanyrelatedprojectstoensurethatworkisneitheroverlookednorduplicated.
Decisionswhicheffectthestrategicdirectionofaprojectwillalmostcertainlyneedtobereferredtoaseniormanagementbodyorindividual,butitistheprojectmanagerwhowillhavetomaketherecommendationsandthenputintoeffectthedecisionsmade.
Theprojectmanagershouldbeawarethatdisagreementshavethepotentialtoariseatalllevels.Theintensityofanyparticularconlictmaybeaffectedbyavarietyoffactors
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PRINCIPLESOFPROJECTMANAGEMENT
includingapproachingdeadlines,asqueezeonresourcesortheindividualcharacteristicsofthoseinvolved.
Theissuethatunderliesaparticularconlictmaynotbeimmediatelyapparent.Personalityclashesareaclassicunderlyingproblemthatveryfewpeoplefeelabletoraiseanddiscuss.Itiscommonforpersonalityconlictstomanifestthemselvesasadisputeoversomeprojectissue—forexampleatechnicalstand-off.Thisiswhereexperienceisinvaluable,enablingtheprojectmanagertoidentifytherealissuesandthentoaddressthem effectively.
4Thesponsorisresponsibleforsecuringtheinancingandoverallresourcebudgetapprovalandownstheopportunitiesandrisksrelatedtotheinancialoutcomeoftheproject.
4Theprojectmanagerisappointedtodelivertheprojectasitisdeinedintheprojectcharterorprojectplan.
4Dutiesinclude:submittingtheprojectplanstotheprojectownerforapproval,appointingteamleadersanddeiningtheirresponsibilities.
4Theprojectmanagerwillalsoneedtoliaisewithprojectoficestafftomaintainprojectintegrityandmakerecommendationsandputintoeffectthedecisionsmade.
4Beawarethatdisagreementshavethepotentialtoariseatalllevels.
4Personalityconlictsoftenmanifestthemselvesasadisputeoveraprojectissue.
KEyPOINtS
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PRINCIPLESOFPROJECTMANAGEMENT
ProjectLifeCycleDefinitionThereisverylittleagreementaboutthelifecyclephasesofaprojectandmanyorganizationshavetheirowninternaldeinitionsandtemplates.Thisisunderstandablebecauseofthecomplicatednatureanddiversityofprojects,whichcanvaryenormouslyinsizeandcomplexity.
ProjectLifeCy
cle
Closure–closingtheproject
Initiation–
startingtheproject
Execution–
carryingoutthework
Planning–o
rganizing&preparing
Despitethis,allprojectscanbemappedtothefollowingsimplelifecyclestructure:
● Startingtheproject
● Organizingandpreparing
● Carryingoutthework
● Closingtheproject
Thisisknownasafour-phaselifecycleandthephasesareusuallyreferredtoas:
1. ProjectInitiation
2. ProjectPlanning
3. ProjectExecution
4. ProjectClosure
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PRINCIPLESOFPROJECTMANAGEMENT
Eachofthesephasesismadeupofdiscreteactivities,eachofwhichhasanassociateddeinitionandguidelines.Thenumberofactivitiesdependsonthescopeoftheproject.
Asimpleprojectwill involve onlyafewactivitieswhilea more complexprojectmayinvolvehundredsorthousandsofindividualactivities.Thismodelcanbeappliedtoavarietyofprojectscenariosalthoughthecostanddurationofeachphasewillvaryaccordingtotheparticularproject.Projectsaretemporarystructuressetupwiththespeciicaimofdeliveringanidentiiableend-product.Allprojectswillthereforehaveanidentiiablelifecycle,thecharacteristicsofwhichwillvaryaccordingtothesizeandcomplexityoftheproject.
Forexample,inthecaseofaprojectwhoseaimistoevaluate,recommendandimplementacomputerizedaccountssystem.Thecostsoftheprojectarerestrictedtotheselectionofthemostsuitablesystemavailableandthetrainingandimplementationnecessaryforitsintroduction.Theactualpurchaseofthesystemisnotwithinthetermsofreferenceoftheproject,asthiscapitalcostwillbetakenfromaseparatebudget.
Atypicallifecyclewillrunfromtheformalinitiationofaprojectthroughtoapos t implementat ion review (PIR) ofthedeliveredend-product.Thispostimplementationreviewisnotshownasitisusuallyheldsomemonthsaftertheprojecthasbeenformallyclosed.Thereisoftenlittleagreementbetweenindustries,orevenbetweenorganizationswithinthesameindustry,aboutthelifecyclephasesofaproject.Thisisunderstandablebecauseofthecomplicatednatureanddiversityofprojects.
Aive-phaseprojectlifecyclemodelcanbeappliedtoavarietyofprojectscenariosalthoughthecostanddurationofeachphasewillvaryaccordingtotheparticularproject.Theconceptualphaseincludesthepreliminaryevaluationofanidea.Itiscommonforthisphasetoincludeairstcutfeasibilitystudyfortheproposedproject.Thisanalysisshouldalsoincludeapreliminary ri sk asses sment .
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PRINCIPLESOFPROJECTMANAGEMENT
5PhaseProjectLifeCycle
Conceptualphase
Definitionphase
Productionphase
Operationphase
Divestmentphase
Thedeinitionphaseisprimarilyareinementofthoseareasconsideredintheconceptualphase.Theresourcesrequiredbytheprojectshouldbedeinedalongwithtime,costandperformanceestimates.Projectestimationisadificulttask—especiallyinthisearlyphase.Howeveritisessentialthatcostsarequantiied,asthisinformationisneededtoestablishwhetherornottheprojectshouldproceed.
Oncea project hasreceived thefundingand backingof seniormanagement itcanproceedtotheproductionphase.Thisincorporatestheproduction,oracquisition,oftheend-productspeciied.Thisbeginswiththeupdatingofdetailedplans,startedintheprecedingphasesandencompassestheidentiicationandmanagementoftheresourcesrequired.Thisphasealsoincludesthedevelopmentofmanuals,plansandotherdocumentationthatwillsupporttheendproductinitsliveenvironment.
Theoperationphaseinvolvestheintegrationoftheend-productorserviceintotheorganizationalenvironment.Iftheend-productwasamarketableproductthenthisphasewouldtypicallyincludetheproductlifecyclephasesofmarketingandreinement.Thedivestmentphaseinvolvesthereallocationofresourcesthatarenolongerrequiredby thecurrentproject.Theend-productofanyprojectwillhave
ainitelifespanandthereforeitsabilitytogeneraterevenuewillbelimited.Theorganizationwillusuallyneedtorunfutureprojectstoguaranteeitsrevenuestream.
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PRINCIPLESOFPROJECTMANAGEMENT
Itisthereforeimportanttoretaintheservicesofstaffandotherresourcesthatcanbeusedinforthcomingprojects.Thisphasealsoincorporatesthepostimplementationevaluationofthedeliveredend-product,andthisshouldserveasinputtotheconceptualphaseoffutureprojects.
Theuseofresourcesovertimewillvaryaccordingtoeachparticularproject.Whilstitmaybepossibletocharacterizelifecycleproileswithindifferentindustrysectors,thiscangiveafalseimpressionasindividualprojectscanvaryradicallyfromthegenericproile.
4Allprojectscanbemappedtothefollowingsimplelifecyclestructure:startingtheproject,organizingandpreparing,carryingoutthework,andclosingtheproject.
4Thisisknownasafour-phaselifecycleandthephasesareusuallyreferredtoas:initiation,planning,execution,andclosure.
4Projectscanalsobethoughtofashavingaivephaselife-cycleconsistsingofconceptual,deinition,production,operationanddivestmentphases.
4Thismodelcanbeappliedtoavarietyofprojectscenariosalthoughthecostanddurationofeachphasewillvaryaccordingtotheparticularproject.Thismodelcanbesimpliiedintoathreeorfourphaseviewtowhichformalorganizationalprocessescanbeapplied.
KEyPOINtS
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Risk
FunctionalAreasofaProjectMgmt
Quality Team
Budget Scope
Schedule
PRINCIPLESOFPROJECTMANAGEMENT
FunctionalAreasofProjectManagementSofarinthiseBook,wehavedealtwiththeorganizationalaspectsoftheprojectandtheprojectlifecycle,bothofthesewaysoflookingatprojectscanhelpyoutoappreciatetheprinciplesofprojectmanagement.However,youcanalsolookatprojectmanagementfromtheperspectiveoftheindividualprocessesinvolved.
Theseprocessescanbeorganizedintofunctionalareas,forexample:
● ManagingtheScope,
● ManagingtheCosts,
● ManagingtheSchedule,
● ManagingRisk,etc.
Thereasonfordoingthisisthatitallowscomplexhigh-leveltaskstobebrokendownintosmallertasks,acommonpracticewhenlearningsomethingnew.Forexample,whenlearningtodriveyouconcentrateonspeciictasks,suchasgearchanging,hillstartsetc.,beforeyoudriveonaninterstateroadormotorway.
Extendingthisapproachtoprojectmanagementmakestaskseasiertomanage,resource,andcontrol.Thinkingaboutprojectmanagementactivitieslikescoping,scheduling,
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PRINCIPLESOFPROJECTMANAGEMENT
quality,andriskinisolationbeforetryingtointegratethemintoarealprojectminimizesthepotentialformisinterpretation,andmakeseachareaeasiertounderstand.However,whilstthesefunctionalareascanbepresentedasbeingmoreorlessself-contained,inpracticetheyoverlapandinteractinauniquefashionthatrelectsthenatureofaproject.
Consequently,thefunctionalareasarenotmeanttobeprescriptiveactivitiesthatareexecutedoneaftertheother.Youdonotperformscoping,thenscheduling,thencosting,thenqualitycontrol,etc.insequence.Youneedtobecontinuallyreviewingeachareaastheprojectprogressesandnewinformationbecomesavailable.
Forexample,lookingatthescopemanagementactivityassomethingdiscretemakessensebecauseevenifitisbeingdoneatthesametimeasoneormoreoftheotherprocessesitisalwaysdoneinthesameway.Thereisnoneedtododifferenttypesofscopemanagementatdifferentstagesoftheprojectbecausescopemanagementisscopemanagementnomatterwhenyoudoitandnomatterwhatelseishappeningatthesametime.
TheprojectmanagementeBooksonthiswebsiteinclude:
ManagingtheProjectteamThisincludesalloftheprocessesusedtoputtogether,develop,andmanagetheprojectteam.Italsoincludesidentifyingwhatinformationneedstobecommunicatedandtowhom,inordertoensurethattherightpeoplegettherightinformationattherighttime.
ManagingtheProjectScopeThisistheprocessbywhichtheprojectmanagerdeinestheboundariesoftheprojectandensuresthatanychangestotheoriginalscopearecarefullymanaged.Itdeinesexactlywhatisincludedintheprojectandwhatisexcluded.
ManagingtheProjectScheduleThisinvolvesmakingsurethatthingshappenontimeandkeepingtheprojectonschedule.Itincludestechniquestoestimatehowlongthingswilltake,toplanaccordingly,andthentokeepeverythingontrack.
ManagingtheProjectBudgetThisinvolveskeepingtheprojectonbudgetandincludestechniquesforestimatingcostsplanningand
budgetingaswellasmonitoringandcontrollingthecosts.Someofthematerialsandservicesrequiredtocompletetheprojectmayneedtobeobtained
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PRINCIPLESOFPROJECTMANAGEMENT
fromoutsidesuppliers.Ifthisisthecasethentheprojectmanagerwillalsoneedanunderstandingofcontractandsuppliermanagement.
ManagingProjectQualityThisensuresthattheprojectmeetsitsrequirementsandthatthedeliverablesdowhatisexpectedofthem.
ManagingProjectRiskThisinvolvestheidentiicationandevaluationofriskaswellasplanningresponsestoensurethatcorrectiveactionistakeniftherisksmaterialize.
Itwouldbemucheasier(althoughfarlesslexible)ifitwerepossibletospecifyasimplelinearpathinvolvingpreparing,planning,doingandreviewing.Unfortunately,thisapproachisonlypossibleinverysimpleprojectsandeventhenitfallsapartassoonassomethingunexpectedhappens.Lookingatprojectmanagementintermsofit’sfunctionalarea approachisfarmore lexible,butitdoesrequire thatyou are abletoselecttherighttoolattherightstageintheprojectandthisrequiresjudgment.
Thisjudgmentrequiresknowledgeandexperience,whichisonereasonwhyexperiencedprojectmanagersarealwaysinhighdemand.Italsounderlinestheimportanceofrecordingasmuchaspossibleabouthowprojectsareperforming.Thisinformationcanbeusedtoanalyzehowandwhyprojectshavesucceededorfailedinthepast.
Bydeinitionaprojectisgoingtochangesomethinginthewaythattheorganizationworksandthisissomethingthatneedstobeexplainedtoalloftheprojectstakeholdersinordertogetthemonboardandthentokeepthemthere.Thisiseasiersaidthandoneandwhatmakesthedisciplineofprojectmanagementsocomplexisthatinordertosatisfyallstakeholderrequirementsyouneedtomanageinteractionsacrossorganizationalandprocessboundaries.
ProjectManag
ersmustmanageinteractions
between
ProcessBoundaries
OrganizationalBoundaries
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PRINCIPLESOFPROJECTMANAGEMENT
Agreatdealofthismanagementtakesplaceattheboundaryoftheprojectandinvolvesresourcesotherthanthosethatarecontrolleddirectlybytheprojectmanager.Consequently,akeypartofprojectmanagementistogaincommitmentfromothersoutsideoftheprojecttoprovidetheseresourcesasandwhennecessary.Thisissomethingthatreliesonhighlydevelopedinterpersonalskillsincludingpersuasionandnegotiation.Complexprojectsneedmoremanagementtoolsandtechniquesthansmallprojectsandaprojectmanagerneedstoknowwhichtoolstouseandwhen.
SuccessfulProjectManagers
Gaincommitmentfromoutsidetheproject
Negotiatefornecessaryresources
Decidesthebesttechniquestouse
Aidsdecisionforchosentoolstobeusedbyprojectteam
Makesthoroughassessmentateachprojectphasebeforeprogressing
Theaim ofeveryprojectmanagershould be to usethe smallestnumber of projectmanagementtoolsandtechniquespossibletodelivertheprojectobjectives.Remember,projectmanagementmustneverbecomethefocusofeffort.Itisalwaysameanstoanend,notanendinitself.
4Projectprocessescanbeorganizedintofunctionalareas,forexample:ManagingtheScope,ManagingtheBudget,ManagingtheSchedule,ManagingRisk,etc.
4Thinkingaboutprojectmanagementactivitieslikescoping,scheduling,quality,andriskinisolationbeforetryingtointegratethemintoareal/liveprojectmakesthemeasiertounderstand.
KEyPOINtS
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PRINCIPLESOFPROJECTMANAGEMENT
4TheProjectManagementeBooksonthiswebsiteinclude:ManagingtheProjectScope,ManagingtheProjectSchedule,ManagingtheProjectBudget,ManagingtheProjectQuality,ManagingtheProjectTeam,ManagingtheProjectCommunications,ManagingtheProjectRisk,andManagingtheProjectSuppliers.
4Agreatdealofthismanagementtakesplaceattheboundaryoftheprojectandinvolvesresourcesotherthanthosethatarecontrolleddirectlybytheprojectmanager.
4Projectmanagementmustneverbecomethefocusofeffort—itisalwaysameanstoanend,notanendinitself.
SummaryProjectmanagementisacomplexactivitythatrequiresastructure,proceduresandprocessesthatareappropriatetoyourproject.Thiswillenableyoutomanagetheinevitablechangesthatoccurthroughoutaproject’slifespaninaprofessionalmannertoensuresuccess.Eachprojectfunctiondescribestheexpertise,skillsandtoolsneededforyourproject.
Somuchworkisnowrunasprojectsandsofewpeoplehavethenecessaryskillstomanagethemproperlythatthereisahugedemandforgoodprojectmanagersandthatdemandisincreasingallthetime.
TheotherprojectmanagementskillseBooksavailablefromwww. fr ee-management - ebooks.comprovideyouwithanopportunitytoreadamorein-depthdescriptionofeachfunctionalarea.
● ProjectManagementProcesses● ManagingaProjectTeam● ManagingtheProjectScope● ManagingtheProjectSchedule● ManagingtheProjectBudget● ManagingProjectQuality● ManagingProjectRisk
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PRINCIPLESOFPROJECTMANAGEMENT
OtherFreeResourcesTheFreeManagementeBookswebsiteoffersyouover500freeresourcesforyourownprofessionaldevelopment.OureBooks,Checklists,andTemplatesaredesignedtohelpyouwiththemanagementissuesyoufaceeveryday.TheycanbedownloadedinPDF,Kindle,ePub,orDocformatsforuseonyouriPhone,iPad,laptop,ordesktop.
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PRINCIPLESOFPROJECTMANAGEMENT
ReferencesBillingham,V.(2008),ProjectManagement:HowtoPlanandDeliveraSuccessfulProject(Studymates),3rdedn,TheProjectManagementExcellenceCentreInc.
Kerzner,H.(2009),ProjectManagement—ASystemsApproachtoPlanning,SchedulingandControlling,10thedn,JohnWiley&SonsInc.
Knapp,B.W.(2010)EssentialProjectManagementTemplates,TheProjectManagementExcellenceCentreInc.
Larson,E.W.andGray,C.F.(2010),ProjectManagement:TheManagerialProcess,5thedn,McGraw-HillHigherEd.
Lock,D.
(2007),TheEssentialProjectManagement,3rdedn,GowerPublishingLtd.Lock,D.
(2007).ProjectManagement,9thedn,MPGBooksLtd.
Maylor,H.(2010),ProjectManagement(withMSProjectCD-Rom).4thedn,PrenticeHill,FinancialTimes.
Newton,R.(2007),ProjectManagementStepbyStep—HowtoPlanandManageaHighlySuccessfulProject,PearsonBusiness.
NokesS.andKelly,S.(2007),TheDeinitiveGuidetoProjectManagement,2ndedn,PrenticeHill,FinancialTimes.
ProjectManagementInstituteGlobalStandard(2008),AGuide to theProjectManagementBodyofKnowledge(PMBOK®Guide),4thedn,ProjectManagementInstitute.
Shenhar,A.J.andDvir,D.(2007),ReinventingProjectManagement:TheDiamondApproachtoSuccessfulGrowthandInnovation,PearsonBusiness.
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