Introduction: Why Project Management?

Chapter 1 Click to edit Master subtitle style

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

Learning Goals
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Understand why project management is becoming such a powerful and popular practice in business today. Recognize the basic properties of projects, including their definition. Understand why effective project management is such a challenge. Differentiate between project management practices and more traditional, process-oriented business functions. Recognize the key motivators that are pushing companies to adopt project

Learning Goals
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Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project. Understand the concept of project success, including various definitions of success, as well as the alternative models of success. Understand the purpose of project management maturity models and the process of benchmarking in organizations. Identify the relevant maturity stages that organizations go through to become

Introduction

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 critical component of successful
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What is a Project?
Considered

task that:

to be any series of activities and

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 2004
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General Project Characteristics

1. 2. 3.

4. 5.

Ad-hoc endeavors with a clear life cycle. Building blocks in the design and execution of organizational strategies. Responsible for the newest and most improved products, services, and organizational processes. Provide a philosophy and strategy for the management of change. Project management entails crossing functional and organizational boundaries.
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General Project Characteristics

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The traditional management functions of planning, organizing, motivation, directing, and control apply to project management. The principal outcomes of a project are the satisfaction of customer requirements within the constraints of technical, cost, and schedule objectives. Projects are terminated upon successful completion of performance objectives.

Process (day-to-day activity)

1.

Process vs. Project Management (Table 1.1)

Project (unique activity)
1.

Repeated process or product Several objectives On-going More homogeneous Systems in place Performance, cost, & time known

New process or product One objective One shot limited life More heterogeneous Systems must be created Performance, cost &
99 time less certain

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Why are Projects Important?

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.

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What is the Project Manager?

The person responsible for meeting the project objectives. Skilled in areas of Role functions

Leadership Planning Interpersonal skills Communication Conflict negotiation Presentation skills Risk taking Time management

Provide leadership Provide motivation Facilitate the work Maintain focus Maintain commitment Influence the organization Use resources efficiently
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Skills Needed by Project Managers

Hard Skills
Managing technical issues Planning Contracting Budgeting Measuring performance Monitoring project quality Analyzing risks

Soft Skills
Communicating Negotiating Leadership Problem solving Conflict resolution Team building Political and cultural awareness

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What is Project Management?

The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.
- PMBOK Guide
It

is accomplished through the application and integration of the project management process of

Initiating Planning Executing Monitoring Controlling

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The Project Management Process

Initiating Planning

Controlling

Executing

Closing
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Advantages to Using Project Management

Innovative,

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

produces new ideas and new

Side

note:

Can be used to find future company leaders: Will show a persons ability to manage both technical and human challenges

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Typical Objections to Using Project Management

Wont

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

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Scope of Project Management

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Project Life Cycle

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.

Collectively, these four phases make up the generic

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Conceptualization Task
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
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Planning Task
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
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Execution Task
Update

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

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Termination Task
Deliver

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

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Project Life Cycle

Man Hours
Conceptualizat Planning ion Execution Termination
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Project Life Cycles and Their Effects

Client Interest Project Stake $ Resources Creativity

Conceptualizat Planning ion

Execution

Uncertaint y Termination
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Triple Constraint of Project ------------Success ----Quadrup le

Budget Client Acceptan ce Succ ess

Schedule

Performanc e

Managing project constraints involves a constantly changing balance.

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Project Success Rates

Rememb er: 94.35% Software & hardware projects fail at a 65% of all statistics rate are fabricate Over half of all IT projects become runaways d
Up

to 75% of all software projects are cancelled

Only 2.5% of not overestimate the achieve to We should global businesses benefits

be project success 100% gained from project management while

Average

underestimating the commitment required to make it work.

success of business-critical

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Class Exercise
List

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

Succeed Fail

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Possible Answers

Succeed Fail Sound project Lack of project

requirements management

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Project Critical Success Factors

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

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Four Dimensions of Project Success

Importance Most 4 Preparing for The Future 3 Business Success

1 Project Efficiency Least Short term

2 Impact on Customer

Long term Project Completion

Time

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Developing Project Management Maturity

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 20

Center for business practices Kerzners project management maturity model ESI Internationals project framework SEIs capability Rubric categorizes the specific maturity model integration level of performance expected for

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Project Management Maturity Generic Model

High Maturity Institutionalize d, seeks continuous improvement Moderate Maturity Defined practices, training programs, organizational support Low Maturity Ad hoc process, no common language, little support
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Spider Web Diagram

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

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Project Elements and Text Organization

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Chapter 1Review and Discussion

1. 2.

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What are some of the principle reasons why project management has become such a popular business tool in recent years? 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? What are the advantages and disadvantages to using project management? What are the key characteristics all projects possess? Describe the basic elements of the project life cycle. Why is an understanding of the life cycle relevant for our understanding of projects? 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? 35

Chapter 1Review and Discussion

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Consider the Expedition Everest case (page 2): What are the elements in Disneys 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? 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. 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? Explain the concept of a project management maturity model. What purpose does it serve? Compare and contrast the four project management maturity models shown in Table 1.3.

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