Introduction

To Project
Management
Chapter 1
 After completing this chapter, you
should be able to:
1. Understand why project
management is becoming such a
powerful and popular practice in
business.
2. Recognize the basic properties of
projects, including their
Chapter 1 definition.

Learning 3. Understand why effective project

management is such a challenge.

Objectives 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.
 After completing this chapter, you
should be able to:
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
Chapter 1 “success,” including various
definitions of success, as well as the
Learning alternative models of success.
8.Understand the purpose of project
Objectives 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.
What is a Project?
 Projects are complex, one-time
processes.
 Projects are limited by budget,
schedule, and resources.
 Projects are developed to resolve a
clear goal or set of goals.
 Projects are customer-focused.

A project is a temporary endeavor undertaken to

create a unique product, service, or result.
 Projects are ad hoc endeavors with a clear life cycle.

Projects are building blocks in the design and execution of

organizational strategies.

General
Projects are responsible for the newest and most improved
project products, services, and organizational processes.

characteristics
Projects provide a philosophy and strategy for the
management of change.

Project management entails crossing functional and

organizational boundaries.
 Traditional management functions of planning,
organizing, motivation, directing, and control
apply to project management.

General Principal outcomes of a project are the

project
satisfaction of customer requirements within the
constraints of technical, cost, and schedule
objectives.

characteristics

Projects are terminated upon successful

completion of performance objectives.
 Differences Between Process and
Project Management

PROCESS PROJECT
Repeat process or product  New process or product
 One objective
Several objectives
 One-shot-limited life
Ongoing  More heterogeneous
People are homogenous  Integrated system efforts
Well-established systems  Greater uncertainty
 Outside of line organization
Greater certainty
 Violates established practice
Part line organization  Upsets status quo
Established practices
Supports status quo
 Software & hardware Over half of all IT
projects fail at a 65% projects become
rate. runaways.

Project Only 30% of technology-

Ten major government
contracts have over $16

Success based projects and

programs are a success.
billion in cost overruns
and are a combined 38
years behind schedule.
Rates
More than $8 billion of
Only 2.5% of global
$53 billion the Pentagon
businesses achieve 100%
spent on Iraqi
project success and over
reconstruction projects
50% of global business
was lost due to fraud,
projects fail.
waste, and abuse.
 Shortened product life cycles

Narrow product launch windows

Why are
projects Increasingly complex and technical products

important? Emergence of global markets

An economic period marked by low inflation

PROJECT LIFE CYCLES
 A project life cycle refers to the stages in a project’s development and are
divided into four distinct phases:

Conceptualization – development of the initial goal and technical

specifications of the project. Key stakeholders are identified and signed on at
this phase.

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

Life Cycles
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 and their effects
Quadruple constraint of project
success
Four dimension of project success
 Project management maturity (PMM)
models are used to allow organizations to
benchmark the best practices of successful
project management firms.

Project
management
maturity Benchmarking is the practice of
systematically managing the process
improvements of project delivery by a
single organization of a period of time.
Spider web diagram
Spider web with embedded organizational
evaluation
Project Management Maturity Generic
Model
 Project Management Maturity
(PMM) Models
Center for Business
Developing 
Practices

Project  Kerzner’s Project

Management Maturity
Management Model

Maturity  ESI International’s Project

Framework
 SEI’s Capability Maturity
Model Integration
Level 1: Initial Phase

Level 2: Structure, Process, and Standards

Level 3: Institutionalized Project

Management

Level 4: Managed

Level 5: Optimizing
 Level 1: Common Language

Level 2: Common Processes

KERZNER’S
PMM Level 3: Singular Methodology

MODEL
Level 4: Benchmarking

Level 5: Continuous
Improvement
 Level 1: Ad Hoc

Level 2: Consistent

ESI
INTERNATIONAL’S Level 3: Integrated
PROJECT
FRAMEWORK
Level 4: Comprehensive

Level 5: Optimizing
 Level 1: Initial

SEI’S Level 2: Managed

CAPABILITY
MATURITY Level 3: Defined

MODEL
INTEGRATION Level 4: Quantitative Management

Level 5: Optimizing
Project Elements and Text Organization
(Figure 1.11)
 Selecting a team

Developing project objectives and a plan for execution

Project Performing risk management activities

Manager
Responsibilities Cost estimating and budgeting

Scheduling

Managing resources