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Project Management and Organizations

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(1)

Project Management and

Organizations

(2)

Goals

Understanding what is a project, what is the life cycle of a

project and how it differs from other types of works

Understanding the influences organizations exert on

project and project executions

Understanding the players and the relationships among

them

(3)

Internet References

Books

http://www.esse3.unitn.ithttp://www.pmi.org

http://www.sybex.com

Historical References: http://www.wikipedia.org;

look for:

http://en.wikipedia.org/wiki/Timeline_of_project_managementFrederick Winslow Taylor,

(4)

What is a project

(5)

What is a project

Temporary:

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 function

A result, such as knowledge (collected in documents, presentation, …)

Progressive elaboration

(6)

Projects and Operational Work

Work can be categorized either as project or operational.

Common characteristics:

Performed by people

Limited resources

Planned, executed, and controlled

Differences:

Project: obtain goals and termimate

(7)

Examples

Cooking dinner

Preparing a dinner for friends

Mass producing a car

Designing a car

Publishing papers

(8)

Projects vs. Strategic Planning

Projects are a means of organizing activities that cannot be

achieved using organization’s normal operation limits and

are often used to achieve an organization’s strategic plan

Typically authorized by:

A market demand

An organizational need

A customer request

(9)

Project Management Context

Project and Program Management

set of projects managed in a coordinated way in order to achieve some sort of benefit

Programs may be cyclical (fundraising, publishing a newspaper, …)

Portfolios and Portfolio Management

(10)

Project Management Context

Subprojects

Projects 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

(11)

Characteristics of a Project (Part

II)

(12)

Project Life Cycle

Projects are usually organized in phases

Typically (but not necessarily) organizations define (or

adopt) their own life cycles, namely

The technical work to be done in each phase

The deliverables to be produced by each phase (a deliverable is a measurable and verifiable work products)

Who is involved

(13)

Project Life Cycle

Initial Intermediate Final

Inputs

(14)

Project Life Cycle

Initial Phase Initial Phase Closing Phase Cost and Staff

(15)

Project Life Cycle and Product

Life Cycle

(16)

What is a project (part 2)

Projects can be seen from (at least) two points of view:  As a sequence of phases

 As 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)

(17)

Process Groups

If we take a slightly different point of view, we can

start organizing the activities necessary to carry

out a project in process groups

The organization is a variation of the plan-do-act

(18)

Initiating

Planning

Executing

Closing Monitoring &

Controlling

(19)

Process Groups

Initiating: defines and authorizes the project

Planning: defines and refines the project objectives and plans the

course of actions

Executing: integrates people and resources to carry out the project

management plan

Monitoring and controlling: measures and monitors progress to

identify variances

Closing: formalizes acceptance of the product, service, or results

(20)

Levels of Activity

Execute

Plan

Initiate

(21)
(22)

Project and Organizations

(23)
(24)

Remarks

Operational decisions originate at the top of the hierarchy

and propagate

Sharp distinction of functions and rigid structure

Good for small firms, geographically concentrated, with a

small set of standard products, mainly focused in

operational work

Organization of work in projects is clumsy (unless project

(25)
(26)

Remarks

First example: Du Pont (1921)

Strategy located in the Direction

Responsibility and operational decisions are taken

by the Division

Allows for specialization to specific

markets/sectors (e.g. expert in the A.I.)

(27)

Remark

(Fierce) competition among divisions

Divisions tend to operate on smaller term goals

Duplication of functions may increase costs

Projects within Division are relatively simple. Interdivisional

(28)

Projectized

Project is central

Disadvantages:

lack of specialization

continuity of work and

reallocation of people after the project ends

QuickTime™ and a None decompressor are needed to see this picture.

General Direction Administration

(29)

Matricial

QuickTime™ and a

None decompressor are needed to see this picture.

General Direction

Project A

Marketing Production Administration and Finance Sales Personnel

Project B

Project C

(30)

Matricial

QuickTime™ and a None decompressor are needed to see this picture.

General Direction

PMO

Project A

Marketing Production Administration and Finance Sales Personnel

Project B

Project C

(31)

Matricial

Structural “accommodation” of projects

May or may not contain a PMO (Project Management

Office) for sharing resources, monitoring and control

Two bosses “syndrome”

The point is where the decisions are taken:

Weak matrix

Balanced matrix

(32)

Weak Matrix

Responsibility mainly located in the functional areas

PM more as a facilitator (helps keeping focus, monitor and

control) and negotiator

Useful in structures where products are standardized but

production is complex

Facilitates an orientation of the organization towards a

(33)

Strong Matrix

PM is responsible of:

Planning operational activities (it “tells” functional areas what has to be done - in practice slightly weaker than that!)

Coordinating people

Monitoring and Controlling progresses

Friction between PM and Functional Areas:

PM focused on shorter term goals

Functional 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 Areas

(34)

Balanced Matrix

Something between Strong and Weak

Need for a PM

PM hasn’t got all the authority of a Strong Matrix

(35)
(36)

Dedicated Team

A 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 subcontractors

 Dedicated team with ~ 11000 hundred people

Disadvantages include:

 Strong focus on shorter term goals

 Re-allocation of people after the project’s end

(37)

Summing up…

Functional Weak Matrix Balanced Matrix Strong Matrix Projectized

PM Authority Little or none Limited Low to Moderate Moderate to High High to almost Total

Resource

Availability Little or none Limited Low to Moderate Moderated to High High to almost total

Who controls the

project budget Functional Manager Functional Manager Mixed Project Manager Project Manager

Project Manager

Role Part-time Part-time Full-times Full-time Full-time

Project Management Administrative Staff

(38)

A side remark…

Changes in a structure are subjected to the

Organisational Lag

(organizations and personnel have

“hysteresis” - Kerzner)

Technology/changes

(39)

Strategy for introducing new

techniques (Swartz and Davis)

Resistance to change Strategic importance

Low Medium High Low

(40)

Strategy for introducing new

techniques (Swartz and Davis)

Resistance to change Strategic importance

Low Medium High Low

(41)

Projects and their Environment

(42)

The players

Project Sponsor

Project Manager

Project Management Team

Project Team

(43)

The Players

Stakeholders:

who is involved in the project and/or people whose interest may be affected by the project

Stakeholders:

may have different influence and varying level of responsibility during the project

may have positive or negative influence on the project

(44)

The Players

Customer/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 work

Project management team: the members of the team directly involved in

project management

Sponsor: person or group providing the financial resources

Influencers: people or groups not directly related to the project who could

(45)

The Players (ctd)

There may be overlaps among different

stakeholders (the customer may also be the

sponsor)

There are other characterisations:

Internal/external

Sellers and contractors

(46)

The Players (you)

Project Manager:

 person responsible of managing the project

 person responsible of managing stakeholder expectations

 a negotiator and a facilitator

 the reference person for a project

Some skills

 communication and negotiation skills

 a little predisposition to risk

 goal oriented

 Leadership

Summing up (according to Sernia):

 Solid know-how

 A lot of common sense

 Professional correctness

(47)

The role of the PM

The PM ensures that the

project goals are met

according to the

constraints

Cost

Time

(48)

The PM and its environment

Services, or results

requirements

Goals, plan, … resources

(49)
(50)

Process Groups and Knowledge

Areas

Process Groups defines the activities necessary to

carry out a project

Knowledge areas organize the skills necessary to

(51)

Initiating Planning Executing Monitoring and

Controlling Closing Project Management

Integration Develop Project charter and preliminary scope statement

Develop project

management plan Direct and manage project execution Monitor and control project work; Integrated control change

Close project

Project Scope Management Scope planning, scope

definition, create WBS Scope verification; scope control Project Time Management Activity Definition,

sequencing, resource and duration

estimation, schedult development

Schedule control

Project Cost Management Cost estimation, cost

budgeting Cost control Project Quality Management Quality planning Quality assurance Quality control

Project Human Resource

Management HR planning Acquire project team, develop project team Manage project team Project Communication

Management Communications planning Information distribution Performance reporting, stakeholder management

Project Risk Management Risk Management planning, risk identification, qualitative and quantitative risk management, risk response planning

Risk monitoring and control

Project Procurement planning Plan purchases and acquisition; plan contracting

Request seller responses; select sellers

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