Project Management and OrganizationsThe name of the game, the players, and the rules

GoalsUnderstanding what is a project, what is the life cycle of a project and how it differs from other types of worksUnderstanding the influences organizations exert on project and project executionsUnderstanding the players and the relationships among themDetailing the process groups and the knowledge areas

Internet ReferencesBookshttp://www.esse3.unitn.ithttp://www.pmi.orghttp://www.sybex.com

Historical References: http://www.wikipedia.org;look for: http://en.wikipedia.org/wiki/Timeline_of_project_managementFrederick Winslow Taylor, Henry Laurence Gantt

What is a projectA project is a temporary endeavor undertaken to create a unique product, service, or result

What is a projectTemporary:definitive begin and end (either because the goals are met or the project is closed - goals cannot or will not be met)projects results are not necessarily temporary (see project and product lifecycle)Unique products, service, or result:A product which is quantifiable (e.g. a component, )A capability to perform a service, such a business functionA result, such as knowledge (collected in documents, presentation, )Progressive elaborationDevelopment by steps and in increments (need for keeping project scope)

Projects and Operational WorkWork can be categorized either as project or operational. Common characteristics:Performed by peopleLimited resourcesPlanned, executed, and controlledDifferences:Project: obtain goals and termimateOperational Work: sustain the business

ExamplesCooking dinnerPreparing a dinner for friendsMass producing a carDesigning a carPublishing papersDeveloping a software system

Projects vs. Strategic PlanningProjects are a means of organizing activities that cannot be achieved using organizations normal operation limits and are often used to achieve an organizations strategic plan

Typically authorized by:A market demandAn organizational needA customer requestA technological advanceA legal requirement

Project Management ContextProject and Program Managementset of projects managed in a coordinated way in order to achieve some sort of benefitPrograms may be cyclical (fundraising, publishing a newspaper, )Portfolios and Portfolio ManagementA collection of projects or programs and other work grouped together to facilitate management and meet strategic objectives

Project Management ContextSubprojectsProjects may be divided in subprojects (altough the sub-projects may be referred to as projects and managed as such).Examples: (based on the process) a phase of a project, (based on skills) plumbing or wiring in building a house, (based on technologies) automated testing of a software product.

Characteristics of a Project (Part II)(some of) The rules(and the board game)

Project Life CycleProjects are usually organized in phasesTypically (but not necessarily) organizations define (or adopt) their own life cycles, namelyThe technical work to be done in each phaseThe deliverables to be produced by each phase (a deliverable is a measurable and verifiable work products)Who is involvedThe rules of transition from one phase to the next

Project Life CycleInitialFinalIntermediateInputsPhasesOutputsIdeaPM TeamCharterScope StatementPlanBaselineProgressAcceptanceHandoverApprovalProduct

Project Life CycleInitial PhaseInitial PhaseClosing PhaseCost and StaffCost of changeInfluence of stakeholder

Project Life Cycle and Product Life CycleDivestmentOperationsBusiness PlanIdeaUpgradeProduct

What is a project (part 2)Projects can be seen from (at least) two points of view:As a sequence of phasesAs a variation of the plan-do-act-check loop

Some common characteristics and relationships:Hierarchical (each major process is decomposed in smaller processes)Iterative (it may repeat over time)(sort of) mutually recursive (think, e.g., of subprojects)

Process GroupsIf we take a slightly different point of view, we can start organizing the activities necessary to carry out a project in process groupsThe organization is a variation of the plan-do-act cycle

Process Groups

Process GroupsInitiating: defines and authorizes the projectPlanning: defines and refines the project objectives and plans the course of actionsExecuting: integrates people and resources to carry out the project management planMonitoring and controlling: measures and monitors progress to identify variancesClosing: formalizes acceptance of the product, service, or results and brings the project to an orderly end.

Levels of ActivityExecutePlanInitiateClosing

Process Groups and Project BoundariesInitiatingPlanningExecutingClosingMonitoring & ControllingDeliverablesProject RecordsProject InputsProject Initiator/SponsorEnd UserProcessAssets

Project and Organizations(Some of) the players and (some of) the rules

Functional/Hierarchical

RemarksOperational decisions originate at the top of the hierarchy and propagateSharp distinction of functions and rigid structure

Good for small firms, geographically concentrated, with a small set of standard products, mainly focused in operational workOrganization of work in projects is clumsy (unless project managers are in the Direction)

Divisional

RemarksFirst example: Du Pont (1921)Strategy located in the DirectionResponsibility and operational decisions are taken by the DivisionAllows for specialization to specific markets/sectors (e.g. expert in the A.I.)Profits and losses are shared

Remark(Fierce) competition among divisionsDivisions tend to operate on smaller term goalsDuplication of functions may increase costs

Projects within Division are relatively simple. Interdivisional projects more complex.

ProjectizedProject is centralDisadvantages:lack of specializationcontinuity of work and reallocation of people after the project ends

Matricial

Matricial

MatricialStructural accommodation of projectsMay or may not contain a PMO (Project Management Office) for sharing resources, monitoring and controlTwo bosses syndromeThe point is where the decisions are taken:Weak matrixBalanced matrixStrong matrix

Weak MatrixResponsibility mainly located in the functional areasPM more as a facilitator (helps keeping focus, monitor and control) and negotiator

Useful in structures where products are standardized but production is complexFacilitates an orientation of the organization towards a project management culture

Strong MatrixPM is responsible of:Planning operational activities (it tells functional areas what has to be done - in practice slightly weaker than that!)Coordinating peopleMonitoring and Controlling progressesFriction between PM and Functional Areas:PM focused on shorter term goalsFunctional area responsible inclined to think of the lending personnel as a favour. Necessity of mediating requests of different projects and project managers for the Functional AreasGood for complex products with standard production cycles

Balanced MatrixSomething between Strong and WeakNeed for a PM PM hasnt got all the authority of a Strong Matrix (usually embedded in a functional unit - it may report to the person responsible of an area)

Dedicated Team

Dedicated TeamA special unit is created for the duration of the project. PM has complete responsibility over the planning, team, etc.Similar to projectized organization Example: Lockheed-Martin (sixties):60 C54 airplanes (milliard dollars contract), 12000 pieces per airplane, several subcontractorsDedicated team with ~ 11000 hundred people Disadvantages include:Strong focus on shorter term goalsRe-allocation of people after the projects endIntegration in the company (e.g. evaluation of people, feeling of belonging to the company)

Summing up

FunctionalWeak MatrixBalanced MatrixStrong MatrixProjectizedPM AuthorityLittle or noneLimitedLow to ModerateModerate to HighHigh to almost TotalResource AvailabilityLittle or noneLimitedLow to ModerateModerated to HighHigh to almost totalWho controls the project budgetFunctional ManagerFunctional ManagerMixedProject ManagerProject ManagerProject Manager RolePart-timePart-timeFull-timesFull-timeFull-timeProject Management Administrative StaffPart-timePart-timePart-timeFull-timeFull-time

A side remarkChanges in a structure are subjected to the Organisational Lag (organizations and personnel have hysteresis - Kerzner)Technology/changesorganizationpersonnel

Strategy for introducing new techniques (Swartz and Davis)Resistance to changeStrategic importanceLowMediumHighLowMediumHigh

Strategy for introducing new techniques (Swartz and Davis)Resistance to changeStrategic importanceLowMediumHighLowMediumHigh

Projects and their EnvironmentThe players

The playersProjectSponsorProjectManagerProjectManagementTeamProject TeamProject Stakeholder

The PlayersStakeholders:who is involved in the project and/or people whose interest may be affected by the projectStakeholders:may have different influence and varying level of responsibility during the projectmay have positive or negative influence on the projectmay be difficult to identify

The PlayersCustomer/User: person or organization that will use the results of a project. There may be multiple layers of users.Performing Organization: the organization mostly involved in the projectProject team members: the group performing the workProject management team: the members of the team directly involved in project managementSponsor: person or group providing the financial resourcesInfluencers: people or groups not directly related to the project who could influence the course of a project

The Players (ctd)There may be overlaps among different stakeholders (the customer may also be the sponsor)There are other characterisations:Internal/externalSellers and contractors

The Players (you)Project Manager:person responsible of managing the projectperson responsible of managing stakeholder expectationsa negotiator and a facilitatorthe reference person for a project

Some skillscommunication and negotiation skillsa little predisposition to riskgoal orientedLeadership

Summing up (according to Sernia):Solid know-howA lot of common senseProfessional correctnessA bit of style

The role of the PMThe PM ensures that the project goals are met according to the constraintsCostTimeQuality

The PM and its environmentPMsponsorprojectteaminfluencerscustomerperformingorganizationAchievable goalsExpectations,resourcesProducts, Services, or resultsrequirementsConstraints, opportunitiesAchievable goals,Information,CommitmentGoals, plan, resourcesresults

Process Groups and Knowledge Areas

Process Groups and Knowledge AreasProcess Groups defines the activities necessary to carry out a projectKnowledge areas organize the skills necessary to carry out the project groups

InitiatingPlanningExecutingMonitoring and ControllingClosingProject Management IntegrationDevelop Project charter and preliminary scope statementDevelop project management planDirect and manage project executionMonitor and control project work;Integrated control changeClose projectProject Scope ManagementScope planning, scope definition, create WBSScope verification; scope controlProject Time ManagementActivity Definition, sequencing, resource and duration estimation, schedult developmentSchedule controlProject Cost ManagementCost estimation, cost budgetingCost controlProject Quality ManagementQuality planningQuality assuranceQuality controlProject Human Resource ManagementHR planningAcquire project team, develop project teamManage project teamProject Communication ManagementCommunications planningInformation distributionPerformance reporting, stakeholder managementProject Risk ManagementRisk Management planning, risk identification, qualitative and quantitative risk management, risk response planningRisk monitoring and controlProject Procurement planningPlan purchases and acquisition; plan contractingRequest seller responses; select sellersContract administrationContract closure