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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.
KEyPOINtS
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.
KEyPOINtS
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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
KEyPOINtS
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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.
KEyPOINtS
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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.
KEyPOINtS
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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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