Chapter 1 Introduction - Handouts

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INTRODUCTION

Chapter 1

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Chapter 1

1.1 Purpose of the PMBOK® Guide 1.2 What is a Project? 1.3 What is Project Management? 1.4 Relationships Among Portfolio, Program, Project, and Organizational Project Management 1.5 Relationship Between Project Management, Operations Management, and Organizational Strategy 1.6 Business Value 1.7 Role of the Project Manager 1.8 Project Management Body of Knowledge


PURPOSE OF THE PMBOK® GUIDE

Chapter 1.1

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The objective of PMBOK® Guide is to identify the subset of project management body of knowledge that contains knowledge, processes, skills, tools and techniques that can influence project success.

This subset is generally recognized

and accepted as good practice.

Project Management Body of Knowledge

PMBOK® Guide Published by Project

Management Institute, USA

www.pmi.org

Purpose of the PMBOK® Guide


and also ….

• Promotes common project management vocabulary within the profession.

• PMBOK® is a global standard that guides the project. It is not a methodology (e.g., agile, PRINCE2, waterfall) for the project management framework.

• PMI standards are updated at least once in every 5 years as per the ANSI Guidelines. PMBOK® usually gets updated once in every 4 years.

• This training is completely aligned with the 5th edition.

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WHAT IS A PROJECT?

Chapter 1.2


What is a Project ?

Start End

Temporary (Not short in duration! But predefined end date)

Unique

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Start Terminated

Temporary

A temporary endeavor undertaken to create a unique product, service, or result.*

* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.

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Progressive Elaboration


Progressive Elaboration P

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Start End Villa in Dubai

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Start End Villa in Doha

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Progressive Elaboration

Pro

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Start End Villa in City A

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Start End Villa in City B


THE RELATIONSHIPS AMONG PORTFOLIOS, PROGRAMS, AND PROJECTS

Chapter 1.2.1

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•A temporary endeavor undertaken to create a unique product, service, or result.

Project

•A group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually.

Program

•Projects, programs, sub portfolios, and operations managed as a group to achieve strategic objectives.

Portfolio



Figure 1-1. Portfolio,

Program, and Project

Management Interactions

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure1-1, Page 5.

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WHAT IS PROJECT MANAGEMENT?

Chapter 1.3


What is Project Management?

* The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.


Project Management is accomplished through the application and integration of

47 Project Management Processes Categorized under the

5 Process Groups.

Initiating Planning Executing Monitoring

and Controlling

Closing

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Balancing the competing constraints such as ‘Scope, Quality, Schedule, Budget, Resources,

and Risks’.

Meeting project requirements

Requirements Identification

Addressing stakeholders

needs and expectations

Creating project

deliverables

Managing communications

Managing a project!


RELATIONSHIPS AMONG PORTFOLIO, PROGRAM, PROJECT, AND ORGANIZATIONAL PROJECT MANAGEMENT

Chapter 1.4

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• The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Project Management

• The application of knowledge, skills, tools, and techniques to a program to meet the program requirements and to obtain benefits and control not available by managing projects individually.

Program Management

• The centralized management of one or more portfolios to achieve strategic objectives.

Portfolio Management



Organizational Project Management

Project Management

Program Management


Organizational Enabler

(Culture, Structure,

Technology and HR practices)

Better performance, results and competitiveness.

Strategic Goals

OPM is a strategy execution framework.

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Organizational Project Management

Projects Programs Portfolios

Scope

Projects have defined objectives. Scope is progressively elaborated throughout the project life cycle.

Programs have a larger scope and provide more significant benefits.

Portfolios have an organizational scope that changes with the strategic objectives of the organization.

Success

Success is measured by product and project quality, timeliness, 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 the aggregate investment performance and benefit realization of the portfolio.

Monitoring

Project managers monitor and control the work of producing the products, services, or results that the project was undertaken to produce.

Program managers monitor the progress of program components to ensure the overall goals, schedules, budget, and benefits of the program will be met.

Portfolio managers monitor strategic changes and aggregate resource allocation, performance results, and risk of the portfolio.

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Table1-1, Page 8.


PROGRAM MANAGEMENT

Chapter 1.4.1

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Program Management

• Program consist of related projects and subprograms.

• It may have related work outside the scope of projects.

• Program management focuses on the project interdependencies:

– It resolves resource constraints and conflicts that affect related projects.

– Aligns strategic direction to project and program goals.


PORTFOLIO MANAGEMENT

Chapter 1.4.2

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• Portfolio is a collection of projects, programs, sub-portfolios, and operations.

• Portfolios are created to achieve strategic objectives.

• Projects and program with in portfolio may not be interdependent but it supports common strategic goals.

• Portfolio management focuses on project and program prioritization, resource allocation and maintain consistency in management.


PROJECTS AND STRATEGIC PLANNING

Chapter 1.4.3

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Projects

Projects are means to strategic objectives.

Strategic Objectives

70% increase in market

share by 2020.


PROJECT MANAGEMENT OFFICE

Chapter 1.4.4

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Project Management Office (PMO)

• PMO is an organizational body or entity, responsible for centralized and coordinated management of projects.

• The projects handled by PMO may not be related to each other.

• PMO is a key decision maker at the beginning of each project, it gives suggestions, and also terminates projects which no longer helps in achieving strategic objective of an organization.

• PMO also involves in resources sharing, allocation, and deployment.


Project Management office (PMO)

• A project management office is also known a program management office or simply program office

• Most important, PMO provides support to project managers

• Project managers working under PMO can expect training, software and mentoring for project managers

• All projects have risk, PMO can centrally monitor centrally monitor and track all risks within all projects. Thus a PMO can create risk database.

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Types of PMO structures in organization

• Supportive: – Provide consultative role to projects by supplying templates, best

practices, training, access to information and lessons learned from other projects

• Controlling: – Control exercised by PMO is moderate. Provides supports and

require compliance through various means

• Directive: – Have full control of projects by directly managing the projects. The

high degree of control


Implements organization wide project policies, procedures and practices.

Project Management compliance Audit

Sharing resources

Develop PM methodologies

Coordinates Communication

Coaching and Training

Pri

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RELATIONSHIP BETWEEN PROJECT MANAGEMENT, OPERATIONS MANAGEMENT, AND ORGANIZATIONAL STRATEGY

Chapter 1.5


Project vs. Operations

Project • Resources, Budget, Plan, Risk,

Scope, Quality, etc.

Operations • Resources, Budget, Plan, Risk,

Scope, Quality, etc.

Key Difference Project creates unique product – Operations creates standard product

Projects are temporary – Operations are permanent

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Both help achieves organizational strategy

• Operations management is responsible for business operations and it supports day-to-day routine business activities, which is also a key to achieve strategic goals of the business.

• Though project is temporary, it helps organization to achieve its goal with in the project constraints.


OPERATIONS AND PROJECT MANAGEMENT

Chapter 1.5.1

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Operations and Project Management

Projects can intersect with operations at various points

– During closeout phase

– When developing a new product, upgrading a product, etc.,

– Process improvement projects

– Through out the product life cycle


OPERATIONS MANAGEMENT

Chapter 1.5.1.1

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Operations Management

• This area of management manages ongoing production of goods and or services.

• Operations management manages the systems and processes that produces the goods and services.

• It generally takes care of:

– Forecasting, production, capacity planning, scheduling, quality control, product design and redesign, productivity etc.,


OPERATIONAL STAKEHOLDERS IN PROJECT MANAGEMENT

Chapter 1.5.1.2

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Operational Stakeholders

• While operations and project management has different objectives, projects should consider the operational stakeholders needs.

• Operational stakeholders are critical stakeholders and they should be managed proactively and ensure their engagement level at an appropriate level.

• Examples – Plant operators, help desk staff, sales persons, training officers, etc.,


ORGANIZATIONS AND PROJECT MANAGEMENT

Chapter 1.5.2

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Organizations and Project Management

• Organization is larger than the project. Organization sets strategic direction and performance metrics.

• Project management should support organizational goals and when it changes, it should re-align to the revised goals.


PROJECT-BASED ORGANIZATIONS

Chapter 1.5.2.1

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Project-based organizations (PBOs)

• PBOs refer to various organizational structure that are designed to carrying out the work.

• Different structures such as functional, matrix or projectized can influence project management approach.

• PBOs can help alienate projects from existing organization cultures, bureaucracy and hierarchy which may not be conducive for project success.


THE LINK BETWEEN PROJECT MANAGEMENT AND ORGANIZATIONAL GOVERNANCE

Chapter 1.5.2.2

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The link between project management and organizational governance

• The outcome of the project should support the existing organizational governance.

• Project manager should be knowledgeable about corporate policies and procedures.

– For e.g., if an organization embraces sustainability in their policies, project manager should ensure that his project as well as the project’s product should support this policy.


THE RELATIONSHIP BETWEEN PROJECT MANAGEMENT AND ORGANIZATIONAL STRATEGY

Chapter 1.5.2.3

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Project management and organizational strategy

• Since projects are means to achieve organizational strategy, organization should provide guidance and support to project management.

• If there is a possibility of potential conflict between organizational strategy and project goals, sponsor or the portfolio or the project manager should help resolve this conflict.


BUSINESS VALUE

Chapter 1.6

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Business value

– Defined as the entire value of the business. The total sum of all tangible and intangible elements

• Tangible elements include monetary assets, fixtures, stockholder equity, and utility

• Intangible elements include goodwill, brand name, public benefit

– Portfolio, program and project helps to bridge the gap between organizational strategy and succesfull business value realization.,


ROLE OF THE PROJECT MANAGER

Chapter 1.7

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Role of the Project Manager

• Project Manager is the person assigned to successfully complete the project objective.

• Depending on organizational structure, a project manager may report to functional manager, program manager, or portfolio manager.


RESPONSIBILITIES AND COMPETENCIES OF THE PROJECT MANAGER

Chapter 1.7.1

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Responsibilities and competencies of the project manager

• Project Manager need to be proficient in tools and technique of project management, but this alone will not be enough. He should be proficient in subject matter and general management skills. In addition he should have the following characteristics;

– Knowledge

– Performance

– Personal


INTERPERSONAL SKILLS OF A PROJECT MANAGER

Chapter 1.7.2

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Interpersonal skills of a project manager

• Effective project managers require a balance of ethical, interpersonal, and conceptual skills that help him to analyze situation and interact appropriately

– Leadership

– Team building

– Motivation

– Communication

– Decision making


PROJECT MANAGEMENT BODY OF KNOWLEDGE

Chapter 1.8

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Project Management Body of Knowledge

• The PMBOK® Guide contains the standard for managing projects of any size, scope and industry.

• This standard is limited to managing individual projects. • There are other standard specifically created for different

purposes: – The Standard for Program Management addresses the management

of programs, – The Standard for Portfolio Management addresses the management

of portfolios, – Organizational Project Management Maturity Model (OPM3®)

examines an enterprise’s project management process capabilities.


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Chapter 1 Introduction - Handouts

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