02.1-Project Management Framework

The Project Management Framework The Project Management Framework
CHAPTER 1
Introduction
Madras Management Training W.L.L Email: info@mmt-institute.com www.mmt-institute.com 2008 All Rights Reserved
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Session Objective
Understand the growing need for better project management
Explain what a project is, provide examples of projects, list various attributes of Explain what a project is, provide examples of projects, list various attributes of
projects, and describe the triple constraint of projects
Describe project management and discuss key elements of the project management
framework, including project stakeholders, the project management knowledge areas,
common tools and techniques, and project success
Discuss the relationship between project, program, and portfolio management and
the contributions they each make to enterprise success
Understand the role of the project manager by describing what project managers do,
what skills they need, and what the career field is like for information technology
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what skills they need, and what the career field is like for information technology
project managers
Describe the project management profession, including its history, the role of
professional organizations like the Project Management Institute, the importance of
certification and ethics, and the advancement of project management software
Introduction
Many organizations today have a new or renewed interest in
project management. project management.
The U.S. spends $2.3 trillion on projects every year, or one-quarter of its gross
domestic product, and the world as a whole spends nearly $10 trillion of its
$40.7 gross product on projects of all kinds.*
In 2003, the average senior project manager in the U.S. earned almost
$90,000 per year, and the average project management office director earned
more than the average chief information officer ($118,633 vs. $103,925).**
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more than the average chief information officer ($118,633 vs. $103,925).**
Project management certification is popular worldwide
*PMI, Inc., The PMI Project Management Fact Book, Second Edition, 2001.
**PMI, Inc., Project Management Salary Survey, Third Edition, 2003.
Introduction
Trying to manage a project without
project management is like trying to
play a football game without a game play a football game without a game
plan.
K. Tate
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Advantages of Using Formal Project Management
Better control of financial, physical, and human resources
Improved customer relations Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
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Improved productivity
Better internal coordination
Higher worker morale (less stress)
1.1 What is a Project ?
A Project is a temporary endeavor undertaken to create a unique, A Project is a temporary endeavor undertaken to create a unique,
product, service, or result.
Temporary endeavor with a beginning and an end.
Creates unique product, service or result.
Is Progressively Elaborated.
Distinguishing characteristics of each unique project will be
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Distinguishing characteristics of each unique project will be
progressively detailed as the project is better understood.
Project Attributes
A project:
Has a unique purpose Has a unique purpose
Is temporary
Is developed using progressive elaboration
Requires resources, often from various areas
Should have a primary customer or sponsor
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Should have a primary customer or sponsor
The project sponsor usually provides the direction and funding
for the project
Involves uncertainty
1.2 Project vs. Operational Work
To attain its objectives and terminate
Projects
To sustain the business
Operations
To attain its objectives and terminate
Create own character, organization, and goals
Catalyst for change
Unique product or services
Heterogeneous teams
Start and end date
Producing a News letter
Examples
To sustain the business
Semi permanent charter, organization,
and goals
Maintain status quo
Standard product or services
Homogeneous teams
Ongoing
Responding to customers requests
Examples
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Producing a News letter
Writing and publishing a book
Implementing a LAN
Hiring a sales man
Arrange for a conference
Opening for a new shop
Producing the annual report
Responding to customers requests
Writing a letter to a Prospect
Hooking up a Printer to a computer
Meeting with an employee
Attending a conference
Opening the shop
Writing a progress update memo
1.3 Projects and Strategic Planning
Projects are means of organizing activities that cannot be addressed
within the organizations normal operational limits. within the organizations normal operational limits.
Projects are typically authorized as a result of one or more of the
following strategic considerations:
A Market Demand & Organizational Need
A Customer Request
A Technological Advancement
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A Legal Requirement
Ecological Impacts
Social need
1.4 What is Project Management?
The application of knowledge, skills, tools and technique to project
activities to meet project requirements
Project Management is accomplished through the application and
integration of the processes such as
Initiating
Planning
Executing
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Executing
Monitoring and Controlling
Closing
Managing Project
The Project Manager is the person responsible for accomplishing the
project objectives.
Managing a project includes:
Identifying requirements.
Establishing clear and achievable objectives.
Balancing the competing demand of quality, scope, time and cost.
Adapting the specifications, plans, and approach to the different concerns and
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Adapting the specifications, plans, and approach to the different concerns and
expectations of the various stakeholders.
Project managers strive to meet the triple constraint by balancing
project scope, time, and cost goals
Triple Constraints
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The Triple Constraint
Every project is constrained in different ways by its: Every project is constrained in different ways by its:
Scope: What work will be done as part of the project? What
unique product, service, or result does the customer or sponsor
expect from the project?
Time: How long should it take to complete the project? What is
the projects schedule?
Cost: What should it cost to complete the project? What is the
projects budget?
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projects budget?
It is the project managers duty to balance these three often
competing goals.
More on the Triple Constraint
It may be good enough to hit the target, or range of triple
constraint goals, but not the bulls-eye. constraint goals, but not the bulls-eye.
Its important to determine which aspects of the triple constraint
are the most important.
The quadruple constraint includes quality as well as scope,
time, and cost.
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Project Management Framework
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Project Management Knowledge Areas
Four core knowledge areas lead to specific project objectives. Four core knowledge areas lead to specific project objectives.
Project scope management involves defining and managing all the work required
to complete the project successfully.
Project time management includes estimating how long it will take to complete the
work, developing an acceptable project schedule, and ensuring timely completion
of the project.
Project cost management consists of preparing and managing the budget for the
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Project cost management consists of preparing and managing the budget for the
project.
Project quality management ensures that the project will satisfy the stated or
implied needs for which it was undertaken.
Project Management Knowledge Areas
(continued)
Four facilitating knowledge areas are the means through which the Four facilitating knowledge areas are the means through which the
project objectives are achieved.
Project human resource management is concerned with making effective use
of the people involved with the project.
Project communications management involves generating, collecting,
disseminating, and storing project information.
Project risk management includes identifying, analyzing, and responding to
risks related to the project.
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Project procurement management involves acquiring or procuring goods and
services for a project from outside the performing organization.
One knowledge area (project integration management) affects and is
affected by all of the other knowledge areas.
All knowledge areas are important!
Project Management Tools and Techniques
Project management tools and techniques assist project managers Project management tools and techniques assist project managers
and their teams in various aspects of project management.
Note that a tool or technique is more than just a software package.
Specific tools and techniques include:
Project charters, scope statements, and WBS (scope)
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Gantt charts, network diagrams, critical path analyses (time)
Net present value, cost estimates, and earned value management (cost)
Super Tools
Super tools are those tools that have high use and high
potential for improving project success, such as:
Software for task scheduling (such as project management software)
Scope statements
Requirements analyses
Lessons-learned reports
Tools already extensively used that have been found to
improve project importance include:
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improve project importance include:
Progress reports
Kick-off meetings
Gantt charts
Change requests
Why the Improvements?
The reasons for the increase in successful projects vary. First, the The reasons for the increase in successful projects vary. First, the
average cost of a project has been more than cut in half. Better tools
have been created to monitor and control progress and better
skilled project managers with better management processes are
being used. The fact that there are processes is significant in itself.*
*The Standish Group, CHAOS 2001: A Recipe for Success (2001).
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Project Success
There are different ways to define project success: There are different ways to define project success:
The project met scope, time, and cost goals.
The project satisfied the customer/sponsor.
The project produced the desired results.
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Relationships Among Project Management, Program
Management and Portfolio Management
Program Management Program Management
Portfolio Management
Projects and Strategic Planning
Project Management Office
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What is a Program?
A program is:
a group of related projects managed in a coordinated way to obtain a group of related projects managed in a coordinated way to obtain
benefits and control not available from managing them individually.*
A program manager provides leadership and direction for the project
managers heading the projects within the program.
ADVANTAGES
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Decreased risk
Economies of Scale
Improved Management
*Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide) (2004), p. 8.
Portfolios and Portfolio Management
A portfolio is a collection of projects or programs and other
work that are grouped together to facilitate effective
management of that work to meet strategic business
objectives.
Portfolio managers help their organizations make wise
investment decisions by helping to select and analyze
projects from a strategic perspective
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projects from a strategic perspective
The projects or programs in the portfolio may not
necessarily be interdependent or directly related.
Project Management Compared to Project Portfolio
Management
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Projects Programs Portfolios
Scope
Projects have defined
objectives. Scope is
Have a larger scope and
provide more significant
Portfolios have a
business scope that
Comparative Overview of Project, Program , and Portfolio Management
objectives. Scope is
progressively elaborated
throughout the life cycle
provide more significant
benefits
business scope that
changes with the
strategic goals of the org
Change
Project managers expect
change and implement
processes to keep
change managed and
controlled
The program manager
must expect change
from inside and outside
the program and be
prepared to manage it
Portfolio managers
continually monitor
changes in the broad
environment
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Planning
Project manages
progressively elaborate
high level information
into detailed plans
throughout the project
life cycle
Program managers
develop the overall
program plan and create
high level plans to guide
detailed planning at the
end of the component
level
Portfolio manages create
and maintain necessary
processes and
communication relative
to the aggregate portfolio
Projects Programs Portfolios
Management
Project managers
manage the project team
to meet the project
Program managers
manage the program staff
and the project managers
Portfolio managers may
manage or coordinate
portfolio management to meet the project
objectives
and the project managers
; they provide vision and
overall leadership
portfolio management
staff
Success
Success is measured by
product and project
quality , timelines ,
budget compliance, and
degree of customer
satisfaction
Success is measured by
the degree to which the
program satisfies the
needs and benefits for
which it was undertaken
Success is measured in
terms of aggregate
performance of portfolio
components
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satisfaction
Monitoring
Project managers monitor
and control the work of
producing the products ,
services , results that the
project was undertaken to
produce
Program managers
monitor the progress of
program components to
ensure the overall goals ,
schedules, budget&
benefits of the program
will be met
Portfolio managers
monitor aggregate
performance and value
indicators
1.3 Projects and Strategic Planning
Projects are means of organizing activities that cannot be
addressed within the organizations normal operational limits.
Projects are typically authorized as a result of one or more of
the following strategic considerations:
A Market Demand & Organizational Need
A Customer Request
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A Customer Request
A Legal Requirement
Projects are frequently divided into more
Subprojects
manageable components or subprojects.
Subproject are often contracted to an external enterprise or to
another functional unit in the performing organization.
Sub projects can be referred to as projects and managed as
such.
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such.
Project Management Office (PMO)
A department that centralizes the management of projects. A A department that centralizes the management of projects. A
PMO usually takes one of three roles:
Project Support: Provide project management guidance to project
managers in business units.
Project Management Process/Methodology: Develop and
implement a consistent and standardized process.
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Training: Conduct training programs or collect requirements for an
outside company.
Primary Function of PMO
A Primary function of PMO is to support project managers in a variety
of ways which may include, but are not limited to : of ways which may include, but are not limited to :
Managing shared resources across all the projects administered by the PMO
Identifying and developing project management methodology, practices &
standards
Coaching, mentoring , training and oversight
Monitoring compliance with project management standard policies, procedures ,
and templates via project audits .
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and templates via project audits .
Developing and managing project policies, procedures, templates, and other
shared documentation ( organizational process assets); and
Co coordinating communication across projects
Home for project managers: Maintain a centralized office from
Project Management Office (PMO) Cont
which project managers are loaned out to work on projects.
Internal consulting and mentoring: Advise employees about best
practices.
Project management software tools: Select and maintain project
management tools for use by employees.
Portfolio management: Establish a staff of program managers who
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Portfolio management: Establish a staff of program managers who
can manage multiple projects that are related, such as infrastructure
technologies, desktop applications and so on, and allocate
resources accordingly.
Authority of PMO
Manage the interdependencies between projects
Help provide resources Help provide resources
Terminate projects
Help gather lessons learned and make them available to other
projects
Provide templates
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Provide guidance
Provide enterprise project management software
Be more heavily involved during project initiating than later in the
project
Making PMO Work
The role of the PMO must be clearly defined.
All those who are in the PMO must be PMP certified.
The commitment of executive management is required.
The PMO will not improve your project performance without
the use of proper project management processes and
technique, so professional project management must be
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technique, so professional project management must be
encouraged.
Differences between role of a Project Managers
and PMO
Project manager focuses on the specified project objectives ,
while the PMO manages major program scope changes
which may be seen as potential opportunities to better
achieve business objectives
The project manager controls the assigned project resources
to best meet project objectives while the PMO optimizes the
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to best meet project objectives while the PMO optimizes the
use of shared organizational resources across all the projects
The project manager manages the constraints of the
Differences between role of a Project Managers
and PMO
The project manager manages the constraints of the
individual projects while the PMO manages the
methodologies , standards , overall risk/opportunity and
interdependencies among projects at the enterprise level
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Project Management and Operations
Management
Operations are an organizational function performing
ongoing execution of activities that produce the same
product or service
Projects are temporary in nature and can help the
organization achieving their goals when they are aligned
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organization achieving their goals when they are aligned
with the organizations strategy
Role of a Project Manager
The Project Manager is the person responsible for accomplishing the project
objectives.
Project managers strive to meet the triple constraint by balancing project
scope, time, and cost goals
Depending on the organization structure , a project manager may report to
functional manager.
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In other cases project manager may be one of the several project managers
who report to a portfolio or program manager that is ultimately responsible for
enterprise wide projects . In this type of structure, the project manager works
closely with the portfolio or program manager to achieve the project
objectives
In addition to area specific skills and general management
proficiencies required for the project , effective project management
Role of a Project Manager
proficiencies required for the project , effective project management
requires that the project manager possess the following
characteristics :
Knowledge : this refers to what project manager knows about
project management
Performance : this refers to what project manager is able to do or
accomplish while applying their project management knowledge
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accomplish while applying their project management knowledge
Personal : this refers to how project manager behaves when
performing the project or related activity . Personal effectiveness
encompasses attitudes, core personality characteristics and
leadership.
The Project Management Profession
Project, program, and portfolio managers need to develop
specific skills. specific skills.
Certification is available for project managers.
There are many software tools to assist in project, program,
and portfolio management.
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Suggested Skills for Project Managers
Knowledge of the following: Knowledge of the following:
All nine project management knowledge areas
The application area, including specific standards and
regulations
The project environment
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General management
Human relations
Media Snapshot Good Project Management Skills from The Apprentice
Leadership and professionalism
are crucial.
Be a team player.
are crucial.
Know what your sponsor
expects from the project, and
learn from your mistakes.
Trust your team, and delegate
decisions.
Dont be overly emotional and
stay organized.
Work on projects and for people
you believe in.
Think outside of the box.
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decisions.
Know the business.
Stand up for yourself.
Some luck is involved in project
management, and you should
always aim high.
Importance of Leadership Skills
Effective project managers provide leadership by example. Effective project managers provide leadership by example.
A leader focuses on long-term goals and big-picture objectives
while inspiring people to reach those goals.
A manager deals with the day-to-day details of meeting
specific goals.
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Project managers often take on the role of both leader and
manager.
Ten Most Important Skills and Competencies for
Project Managers
1. People skills 1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
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7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities
Different Skills Needed in Different Situations
Large projects: leadership, relevant prior experience,
planning, people skills, verbal communication, and team-
building skills are most important
High uncertainty projects: risk management, expectation
management, leadership, people skills, and planning
skills are most important
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skills are most important
Very novel projects: leadership, people skills, having
vision and goals, self-confidence, expectations
management, and listening skills are most important
Additional Skills for Program and Portfolio
Managers
Program managers normally have experience as project Program managers normally have experience as project
managers. They often rely on their past experience, strong
business knowledge, leadership capability, and communication
skills to manage programs.
Portfolio managers must have strong financial and analytical
skills and understand how projects and programs can
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skills and understand how projects and programs can
contribute to meeting strategic goals.
Project Management Certification
PMI provides certification as a Project Management PMI provides certification as a Project Management
Professional (PMP).
A PMP has documented sufficient project experience, agreed
to follow a code of ethics, and passed the PMP exam.
The number of people earning PMP certification is increasing
quickly.
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quickly.
Ethics in Project Management
Ethics is an important part of all professions. Ethics is an important part of all professions.
Project managers often face ethical dilemmas.
In order to earn PMP certification, applicants must agree to
the PMP code of professional conduct.
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Several questions on the PMP exam are related to
professional responsibility, including ethics.
Enterprise Environmental Factors
Enterprise environmental factors refer to both internal and
external environmental factors that surround or influence external environmental factors that surround or influence
projects success . These factors may constraint or enhance
project management options .
Organizational or company culture and structure
Governmental or industry standards
Infrastructure
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Existing Human Resources
Personnel Administration
Enterprise Environmental Factors
Company work authorization system
Marketplace conditions
Stakeholder risk tolerances
Commercial databases
Project Management Information Systems
Political climate
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Political climate
Organizations established communication channels
Summary
A project is a temporary endeavor undertaken to create a unique
product, service, or result. product, service, or result.
Project management is the application of knowledge, skills, tools, and
techniques to project activities to meet project requirements.
A program is a group of related projects managed in a coordinated
way to obtain benefits and control not available from managing them
individually.
Project portfolio management involves organizing and managing
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Project portfolio management involves organizing and managing
projects and programs as a portfolio of investments that contribute to
the entire enterprises success.
The project management profession continues to grow and mature.

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