project management body of knowledge1... · project management body of knowledge faculty of...

Project Management Body Project Management Body Of KnowledgeOf Knowledge

Faculty of Computers and InformationFaculty of Computers and Information

Academic Year 2014/ 2015Term (1)

Ass iut UniversityAss iut University

Elective Course – Year 4

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• What is a Project?

• What is a Project Management?

• Relationships among PortfolioPortfolio Management, ProgramProgramManagement, ProjectProject Management, and Organizational Project Management

• Relationship Between ProjectProject Management, OperationsOperationsManagement and Organizational Strategy

• Business Value

• Role of the Project Manager

Copyright 2014 – Dr. Hossam Ragab

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What is a project?

�A project is temporary endeavor undertaken to create a unique product, service, or result. ¡ Temporary means that every project has a definite

beginning and a definite end.¢The end is reached when the project's objectives have been achieved, or

when it becomes clear that the project objectives will not or cannot be met and the project is terminated because its objectives will not or can not be met. (project may also be terminated if the client wishes to do so)

¡ Create a unique product, service, or results

¡ Progressive elaboration Continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available as the project progresses.


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What is Project management?� The project Management is the application of knowledge, skills, tools, and

techniques to project activities to meet the project requirements

� The project Management includes, but is not limited to;

¡ Identifying requirements

¡ Addressing the various needs, concerns, and expectations of the stakeholders in planning and executing the project

¡ Setting up, maintaining, and carrying out communications among stakeholders that are active, effective, and collaborative in nature

¡ Managing stakeholders towards meeting project requirements and creating project deliverables

¡ Balancing the competing project constraints, which include, but are not limited to;

ØScope, Quality, Schedule, Budget, Resources, and Risks


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Relationships Among Portfolios, Programs and Projects

�Portfolio refers to a collection of projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives.

�Program is comprised of sub-programs, projects, and/or other work that are managed in a coordinated fashion in support of the portfolio.

�Sub-Project is a set of work units assigned to a single project organizational unit to divide the project into more manageable components.

“Individual projects that are either within or outside of a program are still considered part of a portfolio”


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� Program Management is defined as a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually.

� Portfolio Management is how the top management manage projects, programs, sub portfolios and operations as a group to achieve strategic objectives of the organization.

� Projects and Strategic Planning, projects are often utilized as a means of directly or indirectly achieving objectives within an organization’s strategic plan.

� Project Management Office (PMO) is a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The PMO responsibilities can range from providing Support, controlling, and Direct

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Relationship Between Project Management, OperationsManagement and Organizational Strategy

�Operations management is responsible of overseeing, directing, and

controlling business operations.

�Operations evolve to support the Day-To-Day business, and are necessary to

achieve strategic and tactical goals of the business.

�Project in nature is a temporary endeavor undertaken, which means project

has a definite beginning and a definite ending.

�Projects can help achieve the organizational goals when they are aligned

with the organization’s strategy.

�Projects require project management activities and skills sets, while

operations require business process management, operations management

activities, and skills set. Copyright 2014 – Dr. Hossam Ragab

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Operations and Project Management� Operations are ongoing endeavors that produce

repetitive outputs with resources assigned to do basically the same set of tasks

� Operation management is an area of management concerned with ongoing production of goods and/or services.

� Projects can intersect with operations at various points during the product life cycle, such as;¡ At each closeout phase

¡ When developing a new product, upgrading a product, or expanding outputs

¡ While improving operations or the product development process

¡ Until the end of the product life cycle.

Organizations and Project Management

� Organizations use governance to establish strategic direction and performance parameters.

� Strategic direction provides the purpose, expectations, goals, and action necessary to guide business pursuit and is aligned with business objectives.

� Project management activities should be aligned with top-level business direction, and in case of change project objectives need to be realigned.

Relationship Between Project Management, OperationsManagement and Organizational Strategy


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Business Value• Business Value is a concept that is unique to each Organization, and can be defined as

the entire value of the business. It is the total sum of all tangible and intangible elements.

• Tangible elements include;

– Monetary assets ( األصول النقدیة),

– Fixtures )التركیبات أو األشیاء المثبتھ في المكان( ,

– Stockholder equity ) رأس المال المساھم(

– Utility ) المنفعھ(

• Intangible elements include;

– Good will ) السمعھ/ حسن النیھ (

– Brand recognition )سمعة المتنج(

– Public benefit ) المنفعھ العامة(

– Trademarks ) العالمھ التجاریھ(

• Business value scope can be short, medium or long-term, and is created through the effective management of ongoing operations.

• Whether an organization is a privet, government agency or a nonprofit organization, all organizations focus on attaining business value for their activities.


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Role of the Project Manager�Project Manager is the person assigned by the performing

organization to lead the team that is responsible for achieving the project objectives

�Based on the organizational structure and management type, the project manager may report to a functional manager or be may be one of several project managers report to program or portfolio manager.

�Project manager requires to possess the following competencies;

Ø Knowledge : What the project manager knows about project management

Ø Performance: What the project manager is able to do or accomplish

Ø Personal : How the project manager behaves when performing the projecte.g. attitudes, core personality characteristics, and leadership.


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üA project manager is the individual responsible for:Ø Planning and organizing the work

Ø Managing the day-to-day activities of a project

Ø Delivering the project deliverables to the client

Ø Identifying potential stakeholders

üA project manager enhances the probability that a project will

v Produce quality products

v Stay on schedule

v Complete within budget

v Satisfy the client's requirements

v Lead to follow-on business

v Achieve success


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Key Competencies مھارات of a Successful Project Manager� Team development قادر علي تكوین فریق عمل متناغم و متعاون

� Assertiveness حازم في التصرفات و القرارات

� Feedback to team members لدیھ القدرة علي التواصل مع فریق العمل

� Relations with functional managers لدیھ القدرة علي التواصل مع اإلدارة العلیا

� Standards of performance اإللتزام بالقواعد و معاییر األداء

� Drive & Goal pressure قیادي و یسعي لتحقیق الھدف

� Delegation (permissiveness) التفویض و السماح بالقیام ببعض المھام اإلداریھ نیابة عنھ

� Recognizing performance تقیم االداء للفرق و المشروع بوجھ عام

q Long-range perspective بعد نظر

q Risk-taking في إتخاذ القرار مقدام و شجاع

q Clarification of goals ذو بصیره و رؤیھ واضحھ لألھداف

q Innovation and creativity لھ القدره علي اإلبتكار و التطویر

q Participative problem solving مشارك في حل المشاكل

q Systematic thinking and planning لدیھ منھجیة التفكیر و التخطي

q Strategic inquiry تحقیق االستراتیجیة

q Political awareness حس سیاسي

q Team member facilitation یعمل علي تیسیر األمر و الصعوبات لفریق العمل

Resp

on

sibilities

Enhances Success probability

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Single Point of ContactSingle Point of Contact

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•Organizational Influences on Project Management

•Project Stakeholders and Governance

•Project Team

•Project Life Cycle


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ORGANIZATIONAL INFLUENCES ON PROJECT MANAGEMENT

•Organizational Cultures & Styles•Organizational Communications•Organizational Structures•Organizational Process Assets•Enterprise Environmental Factors

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Organizational Cultures and Styles

�Culture and styles are group phenomena known as cultural norms, which develop over time, norms include established approaches to initiating and planning projects.

�Organizational culture is shaped by the common experiences of members of the organization;¡ Shared visions, mission, values, beliefs, and expectations

¡ Regulations, policies, methods, and procedures

¡ Risk tolerance

¡ View of leadership, hierarchy, and authority relationships

¡ Code of conduct, work ethicCopyright 2014 – Dr. Hossam Ragab

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Organizational Communications

�The success of project management in any organization is highly dependent on the effectiveness of the organizational style.

�Organizational communications capabilities have great influence on the way of the organization conduct / manage projects

�The Org. Comm. Influence the project management team building (virtual teams) and the communication with project’s stakeholders.


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�Organizational structure is an enterprise environmental factor, which can affect the availability of resources and influence how projects are conducted / managed.

�Organizational structures range from functional to Projectized, with a variety of matrix structures in between.

Organizational Structures


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Functional Organization

• Is a hierarchy where each employee has one clear superior

• Staff members are grouped by specialty, e.g. Marketing, Production, Accounting,

• Project approval comes from the executive level (CEO / MD)

• Project coordination takes place at the level of function managers

• No direct communication on the level of project team members.


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Projectized Organization• Projectized Org. is the opposite end of

the spectrum to the functional Org.

• Team members are often collocated, and Virtual collaboration techniques are often used to accomplish the benefits of collocated teams (No-Home)

• Org.’s resources are involved in project work, and project managers have great deal of independence and authority.

• Projectized Org. often have Organizational units called Dep., but they can either report directly to project manager or provide support services to the various projects


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Matrix organizations

ü In Matrix Org. structure project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project.

ü Matrix Org. reflect a blend of Functional & Projectized characteristics.

Ø Weak matrix Org.

Ø Balanced matrix Org.

Ø Strong matrix Org.

ü Composite Organization involves all of the previous structures at various levels


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Matrix organizations - “Weak matrix org.”• Weak Matrix Org. maintain many of the Functional Org

• The role of project manager is more of a coordinator or expediter.

• Expediter works as staff assistant and communication coordinator, he can not make or influence a decision.

• Coordinator has some limited power / authority

• Project Manager and Project team members are all part-time working in the project.

• Still in weak matrix Org. function managers are those who officially run the project


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Matrix organizations - “Balanced matrix org.”• Balance Matrix Org. recognizes the need for a project manager.

• But still the project manager dose not have the full authority over the project and its funding

• Project Manager usually appointed from the functional Dep. as a full-time , however the project team are working on a part-time bases


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Matrix organizations - “Strong matrix org.”

• Strong Matrix Org. have many of the Projectized Org characteristics

• Project Manager and Project team members are all Full-Time working in the project.

• Project Manager has a considerable authority over all project management process and officially run the project


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Composite Organization• Organizations involve Function & Matrix structures at various levels, are called

COMPOSITE Org.

• Composite Org. manage most of its projects in a strong matrix, but allow small projects to be managed by functional departments.

• Fundamentally functional organizations may create a special project team to handle a critical project


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Influence of Organizational Structures on ProjectsInfluence of Organizational Structures on Projects

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Organizational process assets

� Organizational process assets are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization.

� The Organizational process assets include the Org. knowledge bases such as lessons learned, and historical information. It also include completed schedules, risk data, and earned value data.

� Organizational process assets are input to most planning processes

� Organizational process assets may be grouped into TWO categories;Ø Processes and Procedures

Ø Corporate Knowledge baseCopyright 2014 – Dr. Hossam Ragab

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Enterprise environmental factors

�Enterprise Environmental Factors refer to conditions, not under the control of the project team, that influence, constrain, or direct the project.

�Enterprise Environmental Factors are considered input to most planning processes

�Enterprise Environmental Factors vary widely in type or nature;§ Org. Culture, Structure, and Governance

§ Geographic distribution of the facilities and resources

§ Infrastructure

§ Company Work authorization System

§ Stakeholder Risk Tolerances

§ Marketplace conditions

§ Political Climate

§ Commercial databases


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PROJECT STAKEHOLDERS AND GOVERNANCE

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Project stakeholders

�Project Stakeholders –Individuals, group and/or organizations such as customers, sponsors, performing organization and the public, that are actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project; they may also exert influence over the project and its deliverables

�Stakeholder analysis - Provides an important input for your approach to managing a project Identifies the influence and interests of the various stakeholders and documents their needs, wants, and expectations Selects, prioritizes, and quantifies the needs, wants, and expectations to create requirements

�Know your stakeholder groups Their profile, their concerns, their expectations, and the channels by which they can be reached


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Examples of project Stakeholders;ü Sponsorü Customers & Usersü Sellersü Business Partnersü Organizational Groupsü Functional Managers ü Procurement , SME, … .

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project Stakeholders

Sponsor is an individual or an organization that has the authority to perform, delegate, or ensure completion of the following project commitments:

üFormalization of an agreement with the delivery organization

üApproval to proceed with the start of the project or of a phase

üAcceptance of the deliverables from the project

üSpending for the cost or price, or both, of the project as specified in the agreement


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Relationship between stakeholders & the project

ØStakeholders have varying levels of responsibility and authority when participating on a project, this level can be change over the project’s life cycle.

ØStakeholders involvement may range from occasional contributions is surveys and focus groups to full project sponsorship, which includes providing financial, political, or any other support.

ØStakeholder identification is a continuous process throughout the entire project life cycle.

ØAn important part of a Project Manager’s responsibility is to manage stakeholder expectations.


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Project governance أشیاء حاكمھ للمشروع

�Project governance – is an oversight function that is aligned with the organization’s governance model and that encompasses the project life cycle. (PM Methodology)

�Project governance framework- Provides the project manager and team with structure, processes, decision-making models and tools for managing the project, while supporting and controlling the project for successful delivery.

�Project governance framework include;¢ Project Success and deliverable acceptance criteria

¢ Process to identify, escalate, and resolve issues that arise during the project

¢ Relationship among the project tem organizational groups and external stakeholders

¢ Project organization chart that identifies project roles

¢ Project decision-making processes

¢ Project life cycle approach

¢ Process for stage gate or phase reviews

¢ Process to align internal stakeholders with project process requirements


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PROJECT TEAM

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Project team� The project team includes the project manager and the group of individuals

who act together in performing the work of the project to achieve its objectives.

� The project manager is responsible and accountable for setting realistic and achievable boundaries for the project and to accomplish it within the approved baselines (within the constraints of scope, time, cost, quality, resources and risk)

� The team is comprised of individuals from different groups with specific subject matter knowledge or skills set to carry out the required work of the project.

� Composition of project teams varies based on factors such as org. culture, scope, and location. However, the relationship between project manager and project team varies depending on the authority of the project manager.

� Examples of basic project team compositions;� Dedicated. All or a majority of the team members are assigned to work Full-time on the

project, team may be collocated or virtual and report to the project manager� Part-Time. Project established as temporary additional work for all project team including

project manager, usually in this type of teams the functional manager will control over the team members and other resources allocated to the project.


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• Project Management Staff (PMO)• Project Staff

• Supporting Experts - SME• Business Partners

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PROJECT LIFE CYCLE

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Project life cycle• A project life cycle is the series of phases that a project passes through

from its initiation to its closure.

• Phases are sequential and their names and numbers are determined by the management and control needs of the org. or org. involved in the project.

• Phases can be broken down by functional or partial objectives, intermediate results or deliverables, specific milestones within the overall scope of work, or financial availability.

• Phases are generally time bounded, with a start and ending or control point.

• The life cycle provides the basic framework for managing the project, regardless of the specific work involved.


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Characteristics of the Project life cycle

•All projects can be mapped to the following generic life cycle structure;

•Starting the project

•Organizing and preparing

•Carrying out the project work

•Closing the project

•The life cycle should not be confused with the Project Management Process Groups, which consist of activities performed within each project phase.

•The project life cycle is independent from the life cycle of the product produced / modified by the project.


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Characteristics of the Project life cycle

• Cost and Staffing levels are low at the start, peak as the work is carried out, and drop rapidly as the project draws to a close

• The typical cost and staffing curve may not apply to all projects, some projects may require secure the needed resources early in its life cycle

• Risk and uncertainty are greatest at the start of the project, and then decreases over the life of the project as decisions are reached and as deliverables are accepted

• The ability to influence the final characteristics of the project’s product, without significantly impacting cost, is highest at the start and decreases as the project progresses towards completion

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Project phases�A project phase is a collection of logically related project activities

that culminates in the completion of one or more deliverables.

�Project Phases typically are completed sequentially, but can overlap in some project situations.

�The phase structure allows the project to be segmented into logical subsets for ease of management, planning, and control.

�A project can have several phases or only one, according to its complexity, size, and the degree of control applied.

� In the multiple-phase project, at the closure of each phase some form of transfer or hand-off of the work will happen. This point is called; Stage Gate, Milestone, Phase review point, phase gate or kill point.


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Phases and process groups�Project management is achieved through the 5 process groups;

Ø Initiation

Ø Planning

Ø Execution

Ø Monitoring & Controlling

Ø Closing

� Project may have one or more stages/phase, however, the project management 5 process groups can be applied to each project stage/phase.

�Phase-to-phase relationships; if project has more than one phase then the relation’s type between phases is either

Ø Sequential relationship, or

Ø Overlapping relationship


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Project life cycle

•Project life cycle can be;•Predictive or Plan-driven

•Adaptive or Change-driven (Agile)

•Iterative and Incremental

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Predictive Life Cycle

�Known as a fully plan-driven

� The scope, time, and cost required to deliver the project scope are determined as early in the project life cycle as possible.

� The project proceed through a series of sequential or overlapping phases, each phase focusing on a subset of project activities and project management processes.


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Adaptive Life CycleKnown also as change-driven or Agilemethods.

Agile focuses on early delivery of business value, continuous improvement of the project’s product and processes, scope flexibility, team input, and delivering well-tested products that reflect customer needs.

Adaptive methods are generally preferred when dealing with a rapidly changing environment, when requirements and scope are difficult to define in advance.

And when it is possible to define small incremental improvements that will deliver value to stakeholders


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Iterative and Incremental Life Cycle

� It is in which project phases intentionally repeat one or more project activities as the project team’s understanding of the product increases.

� Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product. So the product be developed both iteratively and incrementally.

� Iterative and incremental projects may proceed in phases, and the iterations themselves will be performed in a sequential or overlapping.

� In most iterative life cycles, a high-level vision will be developed for the overall undertaking, but the detailed scope is elaborated one iteration at a time.

� Generally preferred when an organization needs to manage changing objectives and scope, to reduce the complexity of a project, or when the partial delivery of a product is beneficial and provides value for one or more stakeholders groups without impact to the final deliverable or set of deliverables

� Large and complex project are frequently executed iteratively to reduce risk by allowing team to incorporate feedback and lessons learned between iterations


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