Project Management and
Organizations
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
Internet References
Books
http://www.esse3.unitn.it http://www.pmi.org
http://www.sybex.com
Historical References: http://www.wikipedia.org;
look for:
http://en.wikipedia.org/wiki/Timeline_of_project_management Frederick Winslow Taylor,
What is a project
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
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
Examples
Cooking dinner
Preparing a dinner for friends
Mass producing a car
Designing a car
Publishing papers
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
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
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
Characteristics of a Project (Part
II)
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
Project Life Cycle
Initial Intermediate Final
Inputs
Project Life Cycle
Initial Phase Initial Phase Closing Phase Cost and Staff
Project Life Cycle and Product
Life Cycle
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)
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
Initiating
Planning
Executing
Closing Monitoring &
Controlling
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
Levels of Activity
Execute
Plan
Initiate
Project and Organizations
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
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.)
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
Projectized
Project is central
Disadvantages:
lack of specialization
continuity of work and
reallocation of people after the project ends
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General Direction Administration
Matricial
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General Direction
Project A
Marketing Production Administration and Finance Sales Personnel
Project B
Project C
Matricial
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General Direction
PMO
Project A
Marketing Production Administration and Finance Sales Personnel
Project B
Project C
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
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
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
Balanced Matrix
Something between Strong and Weak
Need for a PM
PM hasn’t got all the authority of a Strong Matrix
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
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
A side remark…
Changes in a structure are subjected to the
Organisational Lag
(organizations and personnel have
“hysteresis” - Kerzner)
Technology/changes
Strategy for introducing new
techniques (Swartz and Davis)
Resistance to change Strategic importance
Low Medium High Low
Strategy for introducing new
techniques (Swartz and Davis)
Resistance to change Strategic importance
Low Medium High Low
Projects and their Environment
The players
Project Sponsor
Project Manager
Project Management Team
Project Team
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
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 project Project 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
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
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
The role of the PM
The PM ensures that the
project goals are met
according to the
constraints
Cost
Time
The PM and its environment
Services, or results
requirements
Goals, plan, … resources
Process Groups and Knowledge
Areas
Process Groups defines the activities necessary to
carry out a project
Knowledge areas organize the skills necessary to
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