Project Management

Lecture#02
Presented by: Umer Ghauri

Recap

Project definition
Needs behind projects
Types & examples of projects
Project Success Criteria
Why projects fail?
Why project management?
Project Lifecycle
Role of project manager

Contents of the Lecture

Project Management Framework

Organizational Structures

Operations, projects, programs, portfolios.

Stakeholder analysis
Functional
Projectized
Matrix

Triple constraint of PM
Project selection models
Project management knowledge areas &
processes

Project Management Framework

Operational work

Project

Project work ends when the specified objective is

achieved.

Program

Ongoing repetitive process. E..g. manufacturing.

A group of related projects whose management is

coordinated.

Portfolio

Generally described as a group of programs to

achieve strategic business goal. The programs
may not be related.

Portfolio in Oil & Gas

Portfolio in Banking

Project Management Office (PMO)

Provides policies, methodologies, and

templates for managing project within the
organization.

Provides support and guidance to others in

organization on how to manage projects,
provides trainings, etc.

Provides project managers for different

projects and is responsible for the results of
those projects.

Project Management Office (PMO)

Help gather lessons learned and make them

available.

Provides centralized communication about

projects.

Prioritize projects.

Monitor compliance with organizational

process.

Professional and
conscientious project
management is critical to a
successful outcome!

Why Projects Fail (You already know it!!)

Project Failure

Scope Creep

Poor Requirements
Gathering

Unrealistic planning
and scheduling

Lack of resources

Why Projects Succeed

Why IT Projects Succeed

1.

Sound project management processes

2.

Project tied to the organizations business

goals

3.

Senior management commitment

Why IT Projects Succeed

4. Good change management
5. Detailed requirements
6. Realistic schedule
7. Good stakeholder relationships

Why IT Projects Succeed

8. Empowered project manager

9. Skilled and appropriate team members
with defined
roles and responsibilities
10. Availability of funding

Project Success

Customer
Requirements
satisfied/exceeded

Completed within
allocated time frame

Completed within
allocated budget

Accepted by the
customer

What makes this all work?

A good, solid professional

PROJECT MANAGER

Role of a Project Manager

Project issues
Disseminating project information
Mitigating project risk
Quality
Managing scope
Metrics
Managing the overall work plan

Process
Responsibilities

Implementing standard processes

Establishing leadership skills
Setting expectations
Team building
Communicator skills

People
Responsibilitie
s

Keys to Successful
Projects
or
Duh?!?
Things you already
know but lets review
anyway

PLAN

PLAN
Identify all stakeholders up front!
Develop the project plan before
starting the project
Establish communications
protocols

PLAN
Define your requirements in detail
Establish a speedy conflict
resolution
process
Make contingency plans
Plan a reasonable roll-out schedule

LEAD

LEAD
Ensure strong, committed
management
support
Connect the business goals to the
project
Assign an experienced project
manager

LEAD
Establish clearly defined
directions
Be proactive
Give IT and program a seat at the
table

LEAD
Set clear performance expectations
Ask for technical assistance
Do not start roll-out until pilot is
complete!

COMMUNICATE

Communicat
e

Communicate objectives frequently

Recognize different perspectives
Check assumptions frequently

Communicat
e
Manage expectations
Share success and broadcast
achievements
Invite feedback

Wake up LOSERS!!!!!! This is how you look

like right now.

MANAGE

Manage
Ensure the system design reflects
sound planning
Hold the reins on irrational
exuberance!
(Ensure the system design reflects the
system you need and can afford at this
point
in time)

Manage
Train all staff in a timely fashion
Make extensive testing a priority!
Make the most of pilot testing!

A good project team

can be the key to a
successful project!

Manage the Project

Successful project
management is delivering a
quality product that meets
the customers
requirements within time,
scope, and budget.

PM Triple Constraint

Time
Cost
Scope
Manage these or they will
manage you!!

Triple Constraint

Increased Scope = increased time +

increased cost

Tight Time = increased costs + reduced

scope

Tight Budget = increased time + reduced

scope.

 Key

Areas of Project Management

Scope Management
Issue Management
Cost Management
Quality Management
Communications Management
Risk Management
Change Control Management

Scope Management

Primarily it is the definition and control of what IS

and
IS NOT included in the project.

Issue Management

Issues are restraints to accomplishing the

deliverables of the project.
Typically identified throughout the project and
logged and tracked through resolution.

Issue already impacting the cost, time or quality

Rope not thick

Cost Management

This process is required to ensure the project

is completed within the approved budget and
includes:

Resources
people
equipment
materials
Quantities

Budget

Quality Management

Quality Management is the process that insure

the project will meet the needs

conformance to requirements - Crosby

fitness for use - Juran
the totality of characteristics of an
entity that bear on its ability to
satisfy stated and implied need - ISO 8402:1994

Communications Management

This process is necessary to ensure timely and

appropriate generation, collection, dissemination,
and storage of project information

Risk Management

Risk identification and mitigation strategy

Risk update and tracking

Risk POTENTIAL negative impact to

project

Tree location, accessibility,

ownership

Weather

Change Control Management

Define

how changes to the project

scope will be executed

Scope
Change

Technical Specification
Changes

Schedule
changes
All changes require collaboration and buy in via the project sponsors signature
prior to implementation of the changes

Organizational Structures

Functional organizations

The organization isstructuredinto function areas such

asManufacturing, Procurement, Sales,Billingetc.
All projects occur into one functional area, as work
orinformationis needed from another functional area, a
request is made to the area head who would assign
somebody from his team.

Projectized organizations

In this case, everybody is assigned to aproject.

After completion ofproject, resources will be assigned
to anotherproject.

Organizational Structures

Matrix Organization

Strong Matrix

Power rests withProjectManager. This is more close to

Projectized structure.

Weak Matrix

A mix of functional & projectized

Power rests with Functional Manager. This is more close to

Functional structure.

Balanced Matrix

Power is shared. This is acombinationof both Functional and

Projectized. Resources would have two managers
ProjectManager and Functional Managers.
AfterProjectCompletion, resources go back to Functional
department.

Functional Organization

A hierarchy where each employee has

one clear superior is called a Functional
Organization. Staff members are grouped
by function, specialty, or expertise.
The project scope of these organizations
are usually limited to the boundaries of
the function it is organized by. Each
function is managed independently and
has a limited span of control.
As an example, the organization might
have IT, HR, Finance and Marketing
departments, and so on. IT does not run
Marketings projects and is concerned
with its own projects. If it were necessary
to get input from Marketing on a project,
IT members would follow the chain of
command.
An IT manager would speak with a
Marketing manager and get the needed
information and pass it down to the
project team.

Chief
Chief
Executive
Executive

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Functional Organization

1.

2.

In a Functional Organization a
Project Manager has little to no
authority over resources availability
and acts more as a project
coordinator. Projects in a Functional
Organization are undertaken by two
approaches:
Divided: Where a department
will work on their portion of the
project and hand it off to the next
department to complete its part,
and so on.
Cross Functional: Where
members of different departments
work together at the same time
on various aspects of the project.
Project Team Members will more
than likely remain loyal to their
Functional Managers.

Chief
Chief
Executive
Executive

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

The dotted lines on the graphic

represent where the Project Manager
coordinates projects and the gray boxes
represent staff engaged in project
activities.

Functional Organization

Project
Managers
Authority

The Project Manager has

little or no authority in a
functional organization
due to the following:
1. Staff members
report directly to
Functional Managers
2. A strict chain of
command exists
3. Corporate culture
dictates that you
follow the functional
hierarchy

Resource
Availability

The availability of
resources is determined
by the Functional
Manager allowing little
to no influence from
Project Managers.
Competition for
resources is fierce.

Control of
Budget

Functional Managers
control the budget to a
project.
The Functional Manager
is responsible for
resources performance
reviews, and their
career opportunities lie
within the functional
department- not within
the project team.

Projectized Organization

In a Projectized Organization
most of the organizational
resources are involved in
project work rather than
operations. Projectized
organizations often have
organizational units called
departments, and these groups
either report directly to the
project manager or provide
support services to projects.
Teams consist of staff members
from a variety of disciplines
and specialties. These teams
are formed and often
collocated; physically working
in the same place.

Chief
Chief
Executive
Executive

Project
Project
Manager
Manager

Project
Project
Manager
Manager

Project
Project
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Projectized Organization

In a Projectized Organization
Project Managers are
responsible for making project
decisions and acquiring and
assigning resources. They have
the authority to assign
resources from other areas
within the organization or hire
from outside. Project teams
have the potential of dissolving
upon completing of a specific
project.
Project Managers have ultimate
authority over the project in
this structure and report
directly to an executive level.

Chief
Chief
Executive
Executive

Functional
Functional
Manager
Manager

Project
Project
Manager
Manager

Project
Project
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

The dotted lines on the graphic

represent where the Project Manager
coordinates projects and the gray boxes
represent staff engaged in project
activities.

Projectized Organization

Project
Managers
Authority

The Project Manager has

ultimate authority due to
the following:
1. The focus of the
organization is the
project
2. All resources are
focused on projects
3. Loyalties are formed
to the project not
functional manager

Resource
Availability

The availability of
resources is determined
by the Project Manager
allowing little to no
influence from
Functional Managers.
Resources who are only
needed at specific times
within a project may
find themselves idle
other times.

Control of
Budget

Project Managers
control the budget to a
project.

Weak Matrix Organization

Weak Matrix
Organizations share
many of the same
characteristics of a
Functional
Organization where
the Project Manager
has limited authority
and is more of a
coordinator or
expediter than that

Chief
Chief
Executive
Executive

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

The dotted lines on the graphic

represent where the Project Manager
coordinates projects and the gray boxes
represent staff engaged in project
activities.

Balanced Matrix Organization

The Balanced Matrix

Organization recognizes the
need for a Project Manager.
While it does not provide the
Project Manager with full
authority over the project and
project funding.
There is a balance of power
between the Project and
Functional Managers. Each
manager has responsibility for
their parts of the project or
organization, and employees
get assigned to projects based
on the needs of the project, not
the strength or weakness of the

Chief
Chief
Executive
Executive

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Staff
Staff

Project
Project
Manager
Manager

Staff
Staff

Staff
Staff

The dotted lines on the graphic

represent where the Project Manager
coordinates projects and the gray boxes
represent staff engaged in project
activities.

Strong Matrix Organization

Strong Matrix
Organizations share
many of the same
characteristics of a
Projectized
Organization where
the Project Manager
has considerable
independence and
authority compared
to the Functional

Chief
Chief
Executive
Executive

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Functional
Functional
Manager
Manager

Project
Project
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Project
Project
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Project
Project
Manager
Manager

Staff
Staff

Staff
Staff

Staff
Staff

Project
Project
Manager
Manager

The dotted lines on the graphic

represent where the Project Manager
coordinates projects and the gray boxes
represent staff engaged in project
activities.

Project Selection & Justification

Net Present Value

Pay back period
Internal Rate of Return
Benefit Cost Ratio