Lessons in Project Management - 1- Foundation Principles

International Project Management

Prof. Dr. Frank Habermann

Lecture 1 –

Foundation Principles of Project Management

What is a project?

A brief excursion to system theory

Types of business projects

When do we call a project a success?

Standard project management lifecycle

Content

first of all,

what is a

project?

What is a project?

Picture Source: www.infrastructurist.com

What is a project?

A construction…

What is a project?

A construction…

definite …

What is a project?

A construction…

definite …which needs

special resources … …

What is a project?

A construction…

aimingat future

improvements …

What is a project?

A construction…

aimingat future

improvements …

but meanwhilecausingtrouble!

In other words …

THEBUSINESS

regular processesproviding regular values

In other words …

THEBUSINESS

APROJECT

temporary processwith unique results

In other words …

THEBUSINESS

APROJECT

temporary processwith unique results

Negative side-effects: - cost- and time-consuming- occupies business resources (intellectual capacities)- irritating and disturbing (distroys routines/comfort zones)- unsure results (what, when, for whom, etc.)

What characterizes a project?

PROJECT RESULT

1. Temporary(a project got a

clear start and end date)

2. Unique(a project provides individual

and substantial results)

a brief

excursionto

system theory

Some brief thoughts about system theoryi- What is a system?

A set of elements which interact with each otherand build an „integrated whole“

A system is thus characterized by

- its elements (e.g. )- as well as their relationships

systemboundary

Some brief thoughts about system theoryii- What are the characteristics of a system?

Each systemhas a certain structure shows specific behavior!

Sub System C

Sub System B

Sub System A

SYSTEM

Sub-subSystem C1

Sub-subSystem C2

Static relationships(composition/decomposition)

Sub System C

Sub System B

Sub System A

SYSTEM

Sub-subSystem C1

Sub-subSystem C2

Static relationships(composition/decomposition)

system(element)

INPUT OUTPUT

acting as„receiver“(customer)

acting as„sender“(provider)

Dynamic relationships(communication/collaboration)

Some brief thoughts about system theoryiii- How about business projects?

A specific business(e.g. an automotive company)

is a system

involving elements such as

Human Resources

Information Technology, etc.

Products (Cars!)

A specific business(e.g. an automotive company)

is a system

Human Resources

Products (Cars!)

A specific projectrelated to the business

is a system as well

Human Resources

Products (Project Results!)

business project

From the businessperspective, the project

is a sub-systemof the business

The projects usescorporate resources and

is part of the business agenda

business project

From the projectperspective, thebusiness is thetarget system

The businesssets constraints for and

gets results from the project

business project

a concrete projectaims at a specific

element (sub-system) ofthe target system, e.g. IT

Improve [IT] with regards to- effectiveness (business fit)- efficiency (cost of ownership)- availability- other corporate values

so, what are the

typesof business

projects?

Major types of projects (1/3)

THE BUSINESS

1.- Projects providing results for the business

i.e. projects aiming at improvements of the businesstechnical projectsorganizational projectsproduct development projects, etc.

THE BUSINESS

2.- Projects providing results as part of the business

i.e. projects aiming at providing customer satisfactionprojects are the core businesscorporate products are created within projectsor project services are the product itself

3.- Depending on the type of the main result

PROJECT RESULT Deliverable

SERVICE PRODUCT

COULD BE

e.g. consultingprojects are

service projects

e.g. buildinga unique yacht is a

product project

=> If the customer buys a combination of qualifiedservices and products we call this a hybrid project

Implementing newmanagement methods

Types of business projects

Mergingfirms

Research

Implementingsoftware / hardware

Building a newplant

Re-designingprocesses

Re-buildingstructures

Major purchase

Organizingan event

Feasibilitystudy (pre-

project)

Marketing campaigns

Setting up a regional

subsidary

Outsourcing

Internalcost cuttinginitiatives

Pilotinginternationalpartnerships Constructing a

new product

and many more…

Finding a new CEO

What makes a project

asuccessful

project?

1. 2. 3.

it disappearson due date!

we only usethe resources

previously agreed

we deliver theexpected results

(type andquantity)

we only usethe resources

previously agreed

on time on budget on quality

Project scoping

scopingis the procedure of setting the parameters for each criteria

Project controlling

scopingis the procedure of setting the parameters for each criteria

controllingis the procedure of managing performance against predefined parameters

Project scoping and controlling need understandingthe cost-time-quality equilibrium

changing only one criteriastrongly impacts the others!

In corporate practice … what do you think, how many projects fail at least one of the three criteria?

Picture source: http://learn-wealth-creation.com/blog/

In corporate practice … what do you think, how many projects fail at least one of the three criteria?

30-70%*depending on the type of project

Picture source: http://learn-wealth-creation.com/blog/

And even in case of (officially) successful projects,one criteria actually very often isn‘t met!

The official version(told by the project manager)

And even in case of (officially) successful projects,one criteria actually very often isn‘t met!

The official version(told by the project manager)

The business reality(told by the customers/users)

What about the

project

lifecycle?

Standard project management life cycle

Project

Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23

Every project has three major phases!

INITIATE RUN COMPLETE

… which can be drilled down!

Plan Execute Close outDefine

Approve

Envision

Set-up

Kick-off

Approve

Envision

Set-up

Produce

Conceptualize

TrainKick-off

Approve

Envision

Set-up

Produce

Conceptualize

TrainKick-off

Document

Hand-over

Control & Communicate

Standard project management life cycleproject effort during the lifecycle

Define

Execute

Define

Execute

Close out

Standard project management life cycleneeded resources versus actual investment

Should-be(in theory)

Staffing,understanding, gaining speed

Highestconcentration,

getting things done

Releasingresources, handing

over to business

As-usually-is(in practice)

Initial excitment, quickly followed by

losing interest

Underestimatingamount of work orbeing frustrated by

lack of understanding

Facing the deadline, finally realizing that

things must bedone

Standard project management life cycleTypical project douments

Project Contract

Project Charter Rough

Require-ments

Definition

Project Plan

Project Contract

Require-ments

Definition

SolutionDocumentation

Test PlanConceptual

Solution(Models)

DetailedRequire-ments

Definition

TrainingPlan

Project Plan

Project Contract

Require-ments

Definition

Test Plan Approvals

(technical &organizational)

Hand-overDocumention(e.g. Support

ClosureReport

ConceptualSolution(Models)

Definition

TrainingPlan

Project Plan

Project Contract

Require-ments

Definition

Test Plan Approvals

(technical &organizational)

Hand-overDocumention(e.g. Support

ClosureReport

ConceptualSolution(Models)

Definition

TrainingPlan

ProgressReport

Project Plan

Thank you very much!

presentation by

Frank Habermann

founder of Becota and Professor of Business

http://de.linkedin.com/in/frankhabermann/en

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Lessons in Project Management - 1- Foundation Principles

Business

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