1
ITAPBUS
Chapter 1: Introduction to Project Management
Advantages of Using Formal Project Management
 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 morale
PROJECT
 “a temporary endeavor undertaken to create a unique product,
service, or result” (PMBOK® Guide, Fifth Edition, 2012)
 Operations is work done to sustain the business
 Projects end when their objectives have been reached or the
project has been terminated
 Projects can be large or small and take a short or long time to
complete
 This means that a project is done only one time. If its repetitive,
its not a project. A project should have definite starting and
ending points (time), a budget (cost), a clearly defined scope- or
magnitude- of work to be done and specific performance
requirements that must be met.
 A project is a problem scheduled for solution.- J. M. Juran
Examples of IT Projects
 A team of students creates a smartphone application and sells it
online
 A company develops a driverless car
 A small software development team adds a new feature to an
internal software application for the finance department
 A college upgrades its technology infrastructure to provide
wireless Internet access across the whole campus
Top Strategic Technologies for 2012 (Gartner)
 Media tablets and beyond
 Mobile-centric applications and interfaces
 Contextual and social user experience
 Internet of things
 Cloud computing
PROJECT ATTRIBUTES
 has a unique purpose
 is temporary
 is developed using progressive elaboration
 requires resources, often from various areas
 should have a primary customer or sponsor
 The project sponsor usually provides the direction and
funding for the project
 involves uncertainty
NOTE:
Identifying the customer’s true need — the most fundamental problem
or opportunity — is the most important step in the entire process.”
MENTAL PREPAREDNESS
 “Although you won’t see it addressed in project management
reference books, the reality is that mental preparedness may
prove to be just as critical to your ultimate success as a project
manager as your knowledge base or skill set. Gaining a sound
understanding of what is involved in this new role is a critical step
toward being mentally prepared.”
PROJECT AND PROGRAM MANAGERS
 Project managers work with project sponsors, project team,
and other people involved in a project to meet project goals
 Program: group of related projects managed in a coordinated
way to obtain benefits and control not available from managing
them individually (PMBOK® Guide, Fifth Edition, 2012)
 Program managers oversee programs; often act as bosses for
project managers
The Triple Constraint of Project Management
1. Scope: What work will be done as part of the project? What
unique product, service, or result does the customer or
sponsor expect from the project? How will the scope be
verified?
2. Time: How long should it take to complete the project? What is the
project’s schedule? How will the team track actual schedule
performance? Who can approve changes to the schedule?
3. Cost: What should it cost to complete the project? What is the
project’s budget? How will costs be tracked? Who can authorize
changes to the budget?
Managing the triple constraint involves making trade-offs
between scope, time, and cost goals for a project.
 For example, you might need to increase the budget for a project
to meet scope and time goals. Alternatively, you might have to
reduce the scope of a project to meet time and cost goals.
Experienced project managers know that you must decide which
aspect of the triple constraint is most important. If time is most
important, you must often change the initial scope and cost goals
to meet the schedule. If scope goals are most important, you
may need to adjust time and cost goals.
PROJECT FAILURES
 The reason for many project failures is consistently found to be
inadequate project planning. People adopt a ready-fire-aim
approach in an effort to get a job done really fast and end up
spending far more time than necessary by reworking errors,
recovering from diversions down blind “alleys,” and so on.
 Studies often point to interpersonal and behavioral problems as
root causes of project failure. The art of project management is
all about getting work done through other people.
Structure:
Project Initiation > wild enthusiasm > disillusionment > chaos
> search for the guilty punishment of the innocent > promotion of non-
participants > definition of the requirements
PROJECT MANAGEMENT
 Project management is “the application of knowledge, skills,
tools and techniques to project activities to meet project
requirements” (PMBOK® Guide, Fourth Edition, 2012)
 Project managers strive to meet the triple constraint (project
scope, time, and cost goals) and also facilitate the entire process
to meet the needs and expectations of project stakeholders
 2
probability/impact matrices, etc.
Project management is accomplished through the application 9) procurement Make-or-buy analyses, contracts, requests
and integration of the project management processes of: for proposal, etc.
1. initiating
2. planning
3. executing SUPER TOOLS
4. monitoring and controlling  are those tools that have high use and high potential for
5. closing improving project success, such as:
 Software for task scheduling (such as project management
Project Life Cycle: software)
1. Initiating process  Scope statements
2. Planning process  Requirements analyses
3. Executing process  Lessons-learned reports
4. Monitoring and controlling process  Tools already extensively used that have been found to
5. Closing process improve project importance include:
 Progress reports
PROJECT STAKEHOLDERS  Kick-off meetings
 Stakeholders are the people involved in or affected by project  Gantt charts
activities includes:  Change requests
 project sponsor
 project manager PROJECT SUCCESS
 project team Several ways to define project success:
 support staff  The project met scope, time, and cost goals
 Customers  The project satisfied the customer/sponsor
 Users  The results of the project met its main objective, such as making
 Suppliers or saving a certain amount of money, providing a good return on
 opponents to the project investment, or simply making the sponsors happy

10 Project Management Knowledge Areas What Helps Projects Succeed?

 Knowledge areas describe the key competencies that project 1. User involvement
managers must develop 2. Executive support
 Project managers must have knowledge and skills in all 10 3. Clear business objectives
knowledge areas (project integration, scope, time, cost, quality, 4. Emotional maturity
human resource, communications, risk, procurement, and 5. Optimizing scope
stakeholder management) 6. Agile process
7. Project management expertise
PROJECT MANAGEMENT TOOLS AND TECHNIQUES 8. Skilled resources
 assist project managers and their teams in various aspects of 9. Execution
project management 10. Tools and infrastructure

Common project management tools and techniques by
knowledge area
Knowledge Area/ Tools and Techniques
Category
1) Integration Project selection methods, project
management methodologies, stakeholder
analyses, work requests, etc.
2) Scope Scope statements, work breakdown
structures, statements of work, requirement
analyses, etc.
3) Time Gantt charts, project-network diagrams,
critical path analysis, etc.
4) Cost Project budget, net present value, return on
investment, payback analysis, etc.
5) Quality Quality methods, checklists, quality control
charts, Pareto diagrams, etc.
6) Human resource Motivation techniques, emphatic listening,
responsibility assignment matrices, etc.
7) communications Communication management plans, kick-
off meetings, conflict management,etc.
8) risk Risk management plans, risk registers,
Top 3 Reasons Why Federal Technology Project Succeed
1. Adequate funding
2. Staff expertise
3. Engagement from all stakeholders
What the Winners Do…
a) Recent research findings show that companies that excel in
project delivery capability:
b) Use an integrated project management toolbox (use
standard/advanced PM tools, lots of templates)
c) Grow project leaders, emphasizing business and soft skills
d) Develop a streamlined project delivery process
e) Measure project health using metrics, like customer satisfaction
or return on investment
PROGRAM MANAGEMENT
 “a group of related projects managed in a coordinated way to
obtain benefits and control not available from managing them
individually” (PMBOK® Guide, Fifth Edition, 2012)
 A program manager provides leadership and direction for the
project managers heading the projects within the program

 Examples of common programs in the IT field include
infrastructure, applications development, and user support
PROJECT PORTFOLIO MANAGEMENT
 As part of project portfolio management, organizations group and
manage projects and programs as a portfolio of investments that
contribute to the entire enterprise’s success
 Portfolio managers help their organizations make wise
investment decisions by helping to select and analyze projects
from a strategic perspective
Project Management Compared to Project Portfolio
Management
BEST PRACTICE
 “an optimal way recognized by industry to achieve a stated goal
or objective”*
 Robert Butrick suggests that organizations need to follow basic
principles of project management, including these two mentioned
earlier in this chapter:
 Make sure your projects are driven by your strategy. Be able to
demonstrate how each project you undertake fits your business
strategy, and screen out unwanted projects as soon as possible
 Engage your stakeholders. Ignoring stakeholders often leads to
project failure. Be sure to engage stakeholders at all stages of a
project, and encourage teamwork and commitment at all times
The Role of the Project Manager
 Job descriptions vary, but most include responsibilities like
planning, scheduling, coordinating, and working with people to
achieve project goals
 Remember that 97% of successful projects were led by
experienced project managers, who can often help influence
success factors
Suggested Skills for Project Managers
a) The Project Management Body of Knowledge
b) Application area knowledge, standards, and regulations
c) Project environment knowledge
d) General management knowledge and skills
e) Soft skills or human relations skills
10 Most Important Skills and Competencies for Project
Managers
1. People skills
3
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities
Different Skills Needed in Different Situations
 Large projects: Leadership, relevant prior experience, planning,
people skills, verbal communication, and team-building skills
were most important
 High uncertainty projects: Risk management, expectation
management, leadership, people skills, and planning skills were
most important
 Very novel projects: Leadership, people skills, having vision
and goals, self confidence, expectations management, and
listening skills were most important
Importance of Leadership Skills
 Effective project managers provide leadership by example
 A leader focuses on long-term goals and big-picture objectives
while inspiring people to reach those goals
 A manager deals with the day-to-day details of meeting specific
goals
 Project managers often take on the role of both leader and
manager
PROJECT MANAGEMENT OFFICES
 In the 100s, many companies began creating PMOs to help them
handle the increasing number and complexity of projects
 A Project Management Office (PMO) is an organizational group
responsible for coordinating the project management function
throughout an organization
ETHICS IN PROJECT MANAGEMENT
 Ethics, loosely defined, is a set of principles that guide our
decision making based on personal values of what is “right” and
“wrong”
 Project managers often face ethical dilemmas
 In order to earn PMP certification, applicants must agree to PMI’s
Code of Ethics and Professional Conduct
 Several questions on the PMP exam are related to professional
responsibility, including ethics
Chapter Summary
 A project is a temporary endeavor undertaken to create a unique
product, service, or result
 Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet project
requirements
 A program is a group of related projects managed in a
coordinated way
 Project portfolio management involves organizing and
managing projects and programs as a portfolio of investments
 Project managers play a key role in helping projects and
organizations succeed
 The project management profession continues to grow and
mature
 4
Ways to generate revenues:
 Asset sale Usage free subscription fee
CHAPTER 2: THE BUSINESS MODEL  Lending Licensing
 Brokerage fees Advertising
Business Model
 “Our common language” Pricing tactics
 Systematically understands design, and differentiate your A. Cost based model- in this more traditionaal product pricing
business model. - alex osterwalder model, the price is set at 2-5 time the product cost.
 A shared language for describing, visualizing, assessing and B. Value model
changing business models a) Product is free but you pay for services- bthe product
 Traditionally, start with an operating plan and financial model is give away for free and the customers are charged for
 Describes the rationale of how an organization creates, delivers, installation, customization, training or other services.
and captures value. b) Product line pricing- is relevant only if you have multiple
product and services, each with a different costs and utility.
Business model vs. Business plan Here your objective is to make money with the portfolio.
 We are not saying never to a business plan C. Tiered or volume pricing
 We are saying, “not first.” a) Feature pricing- this approach works if your product can
 Pans are static be sold “bare- bones” for alow price and price increments
 Models are dynamic added for additional features.
 Planning comes before the plan. b) Razor blade model- like cheap printers with expensive in
cartridges, the base unit is often below cost, with the
THE BUSINESS MODEL CANVAS anticipattion of ongoing revenue from expensive supplies
1. Customer segments
 different groups of people or organizations an enterprise aims to 6. Key resources-the most important assets required to make a
reach and serve business model work.
 Make conscious decision about which segments to serve and
which to ignore Categories:
 Can have multi-sided platform  Physical
 Intellectual
2. Value proposition- the bundle of products and services that  Human financial
create value for a specific customer segment
7. Key activities- the most important things a company must do to
Example: make its business model work
 Something new Performance
 Customization Getting the job done Categories:
 Design Brand/status  Production
 Price Quality  Problem solving
 Cost reduction Risk reduction  Platform/network
 Accessibility Convenience
8. Key partnerships- the network of suppliers and partners that make
3. Channels- how a company communicates with and reaches its the business model work.
customer segments to deliver a value proposition (Can be direct or
indirect) Types :
 Strategic alliance between non-competitors competition- strategic
Channel phases: partnership between competitors.
 Awareness Evaluation  Joint ventures to develop new businesses
 Purchase Delivery  Buyer supplier relationships to assure reliable supplies
 After sales
Key motivations
4. Customer relationships- types of relationships a company  Optimization and economies of scale reduction of risk and
establishes with specific customer segments uncertainty
 Acquisition of particular resources and activities
Examples:  Access to markets
 Personal assistance Dedicated personal assistance
 Self service Automated service 9. Cost structure- all costs incurred o operates a business model.
 Communities Co-creation
Classes of business model cost structures:
5. Revenue streams- the cash a company generates from each  Cost driven Value driven
customer segment
 Costs must be subtracted from revenues to create earnings Characteristics of costs:
 Fixed Variable
 5
 Economies of scale Economies of scope