Introduction to Project Management

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3Objectives

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To set goals and expectations

To reduce project complexity and risks

To manage resources efficiently

To communicate with all stakeholders

To ensure business value and benefits are achieved

4Project Management

What is a Project?A temporary endeavor undertaken to produce an output such as product, service, improvement or result. It has a defined timeline with a beginning and end until the project is either completed or terminated.

What is Project Management?An application of knowledge, process, skills, tools and techniques to meet the project requirements by utilizing the 47 project management processes. The processes are grouped into 5 main process groups: Initiating, Planning, Executing, Monitoring & Controlling, and Closing.

5Project, Program, Portfolio

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What is Portfolio, Program, Project?

A portfolio is a collection of projects, programs and sub-portfolios.

A program is a group of projects and sub-programs.

A project is a temporary effort to deliver something.

Portfolio

Program

Project

Project

6Project Management Office

What is a PMO?A Project Management Office (PMO) is a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques. There are 3 types of PMO structures, each different in degree of control and influence on the projects.

Supportive – Function as a project repository, supportive PMOs provide templates, best practices, training and access to information. The PMO’s degree of control is low.

Controlling – Controlling PMOs require compliance through adopting frameworks or methodologies, using specific tools and templates, or conformance to governance. The PMO’s degree of control is moderate.

Directive – Projects are managed directly controlled by the PMOs in delivering results. The PMO’s degree of control is high.

PMO

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Progressive Benefits :

Predictable, Reusable PM Tools & Techniques

Staff Professionalism in Project Management

Culture Shift to Project Management

Organizational Improvement

Productive Project Teams

Profitability Improvement

Global Recognition

Source: The Project Office by Block & Frame

Project Management Office

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• Will be a Portfolio Office

• Will think and speak in the language of “Money”

• Will be consultative and analytical

• Will understand Value and how the business can generate it

• Can judge when an investment is going south before it’s too late and is not afraid of confrontation

• Understands that projects/programs and products are complex adaptive systems and that uncertainty and possible failure are a normal part of the equation

• Is regarded as a trusted advisor and honest broker by everyone involved.

PMO of the Future

9Business Value

What is Business Value?Tangible and intangible benefits to the organization. Business value scope can be short, medium or long term. Organizations invest in projects, programs and portfolios to obtain greater business value.

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• Type 1 or project success: The project is completed on-time and on-budget, with all features and functions as initially specified.

• Type 2 or project challenged: The project is completed and operational but over-budget, over the time estimate and offers fewer features and functions than originally specified.

• Type 3 or project impaired: The project is canceled at some point during the development cycle.

Source: www.standishgroup.com/chaos.html

Need for Project Management

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"Project stakeholders are individuals and organizations who are actively involved in the project, or whose interests may be

positively or negatively affected as a result of project execution or successful project completion."

Key stakeholders on every project include: • Sponsor. A sponsor is the person or group who provides resources and support for the project and is accountable for enabling success. The sponsor may be external or internal to the project manager’s organization. From initial conception through project closure, the sponsor promotes the project. This includes serving as spokesperson to higher levels of management to gather support throughout the organization and promoting the benefits the project brings. The sponsor leads the project through the initiating processes until formally authorized, and plays a significant role in the development of the initial scope and charter. For issues that are beyond the control of the project manager, the sponsor serves as an escalation path. The sponsor may also be involved in other important issues such as authorizing changes in scope, phase-end reviews, and go/no-go decisions when risks are particularly high. The sponsor also ensures a smooth transfer of the project’s deliverables into the business of the requesting organization after project closure.• Customers and users. Customers are the persons or organizations who will approve and manage the project’s product, service, or result. Users are the persons or organizations who will use the project’s product, service, or result. Customers and users may be internal or external to the performing organization and may also exist in multiple layers. For example, the customers for a new pharmaceutical product could include the doctors who prescribe it, the patients who use it and the insurers who pay for it. In some application areas, customers and users are synonymous, while in others, customers refer to the entity acquiring the project’s product, and users refer to those who will directly utilize the project’s product.

Project Stakeholders

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Sellers. Sellers, also called vendors, suppliers, or contractors, are external companies that enter into a contractual agreement to provide components or services necessary for the project.

Business partners. Business partners are external organizations that have a special relationship with the enterprise, sometimes attained through a certification process. Business partners provide specialized expertise or fill a specified role such as installation, customization, training, or support.

Organizational groups. Organizational groups are internal stakeholders who are affected by the activities of the project team. Examples of various business elements of an organization that may be affected by the project include marketing and sales, human resources, legal, finance, operations, manufacturing, and customer service. These groups support the business environment where projects are executed, and are therefore affected by the activities of the project. As a result, there is generally a significant amount of interaction between the various business elements of an organization and the project team as they work together to achieve project goals. These groups may provide input to requirements and accept deliverables necessary for a smooth transition to production or related operations.

Functional managers. Functional managers are key individuals who play a management role within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement. They are assigned their own permanent staff to carry out the ongoing work, and they have a clear directive to manage all tasks within their functional area of responsibility. The functional manager may provide subject matter expertise or their function may provide services to the project.

Other stakeholders. Additional stakeholders, such as procurement entities, financial institutions, government regulators, subject matter experts, consultants, and others, may have a financial interest in the project, contribute inputs to the project, or have an interest in the outcome of the project.

Project Stakeholders

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Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among: Needs (identified

requirements)

Expectations (unidentified requirements)

Quality

ScopeWhat must be done to

meet the project objectives

CostScope

What must be done to

meet the project objectives

TimeThe time need to complete the work

What is Managed in a Project

14What is a Project Management Plan?

A project plan is a formal document designed to guide the control and execution of a project. A project plan is the key to a successful project and is the most important document that needs to be created when starting any business project.

A project plan is used for the following purposes:

To document and communicate stakeholder products and project expectationsTo control schedule and deliveryTo calculate and manage associated risks

A project plan answers the following basic questions regarding the project:

Why? - What is the task related to the project? Why is the project is being sponsored?What? - What are the activities required to successfully complete the project? What are the main products or deliverables?Who? - Who will take part in the project and what are their responsibilities during the project? How can they be organized?When? - What exactly is the project schedule and when can the milestones be completed?

Project initiation requires detailed and vital documentation to track project requirements, functionalities, scheduling and budget. Poor documentation can lead to disastrous results for all project stakeholders. Formal project plans establish detailed project requirements, including human and financial resources, communications, projected time lines and risk management.

A project plan is a formal agreement between the project procurer and developer. It documents and ensures mutual project stakeholder approval while assisting management and technical teams with project tracking

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• Executive support

• User involvement

• Experienced project manager

• Clear business objective

• Minimize scope

• Standard software infrastructure

• Firm basic requirements

• Formal methodology

• Reliable estimates

Source: The Standish Group Report 1995

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Recipe for Success in Project Management

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