Introduction to Project Management

Project ManagementCertificate Series – Day 3

Organizational Influences and Project Life Cycle

Understanding Organizational Structures

Organizational structures are unique just like projects

Each has its own style and culture They influence how projects are

performed

2

Organizational Culture and Styles

Organizations are made of people aimed at accomplishing a purpose which may involve undertaking projects

Culture and style affect how it conducts projects (i.e. gets work done)

Culture and styles are group phenomena known as cultural norms which develop over time and include the way we initiate and plan projects

3

Organizational Culture and Styles Norms include the acceptable ways

We get work done Recognized authorities who make and influence decisions

Organizational culture is shaped by common experiences of members like Shared visions, mission, values, beliefs, expectations Regulations, policies, methods and procedures Motivation and reward systems Risk tolerance View of leadership, hierarchy and authority relationships Code of conduct, work ethic, and work hours Operating environments

4

Organizational Culture and Styles

Project Managers must understand the different organizational styles and cultures that may affect a project

Project Managers must know which individuals in the organization are the decision makers or influencers and work with them to increase the probability of project success

5

Organizational Communication Project management success is highly

dependent on an effective organizational communication style

Has great influence on how projects are conducted

As a consequence, project managers in distant locations are able to more effectively communicate with all relevant stakeholders within the organizational structure to facilitate decision making

6

Organizational Structures

Organizational structure is an enterprise environmental factor, which can affect the availability of resources and influence how projects are conducted

Organizational structures range from functional to projectized, with a variety of matrix structures in between

7

Organizational Structure Type Characteristics

8

9

Organizational Structures Types Functional Organizations Projectized Organizations Matrix Organizations

Weak Balanced Strong

Functional

Projectized

Weak Matrix

Balanced Matrix

Strong Matrix

10

Organizational structure of a project influences how the project is managed. It suggests:

Project manager’s authority Resource availability to the project Project budget control Project manager’s role Project management administrative

staff

11

Functional Organization Enduring organization PM has little or no formal authority Clear career path with separation of functions

allowing specialty skills to flourish Multiple projects compete for limited

resources and priority One boss with clear chain of command Team members loyal to functional manager

Functional Organization

12

13

Projectized Organizations Project managers have ultimate authority

over the project The focus of the organization is the project The organization’s resources are focused on

projects and project work Team members are collocated Loyalties are formed to the project, not to a

functional manager Project teams are dissolved at the

conclusion of the project

Projectized Organization

14

15

Matrix Organizations A blend of functional and projectized

characteristics Multiple bosses Functional managers are responsible for

administrative duties and resource commitments

Project managers are more in a coordinator role

16

Focus in Matrix Organizations

Project managers and project team focus on project work

Project managers should review activity estimates for team members with functional manager to gain commitment

17

Balance of Power in Matrix Organizations

Strong Matrix - project manager has the power

Weak Matrix – functional manager has the power

Balanced Matrix – the power is balanced between the functional and project manager

Matrix vs. Functional and Matrix vs. Projectized Weak Matrix

Like a functional organization PM’s role is coordinator or expediter

Balanced Matrix A balance of power exists between the

Functional Manager and Project Manager Strong Matrix

Like a projectized organization Full time project managers with full authority

18

Weak Matrix Organization

19

Balanced Matrix Organization

20

Strong Matrix Organization

21

Organizational Structure Type Characteristics

22

23

Composite Organization

All organizational structures at various levels A fundamentally functional organization may

create a special project team – like projectized to handle a critical project

An organization may manage most of its projects in a strong matrix, but allow small projects to be managed by functional departments

Composite Organization

24

Class Exercise In groups of 2 discuss whether your

immediate team: Is considered functional, projectized, weak

matrix, balanced matrix, or strong matrix? List the characteristics of your that

justifies your answer to the question above Discuss what titles project managers

have in your organization.

25

Another Aspect to Understanding the Project Environment

Environment is made up of internal and external factors that influence it

PM must consider more than just the project itself

Proactive management involves understanding the environment in which the project must function

26

Organizational Process Assets

Plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization

PMBOK 2.1.4, 2.1.4.1, 2.1.4.2

27

Enterprise Environmental Factors

28

May enhance or constrain project management options and may have a positive or negative influence on the outcome of the project Organizational culture, structure and processes Gov’t/industry standards (regulatory, codes of conduct, product

standards, quality standards, workmanship standards) Infrastructure (existing facilities, capital equipment) Existing human resources (skills, disciplines, knowledge) Personnel administration (staffing and retention guidelines, employee

performance reviews, training records, overtime policy) Company work authorization systems Market place conditions Stakeholder risk tolerances Political climate Organization’s established communications channels Project Management Information Systems (PMIS)

Project Stakeholders A stakeholder is an individual, group, or

organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project

Stakeholders include all members of the project team as well as all interested entities that are internal or external to the organization

29

Project Stakeholders The project team identifies internal and external,

positive and negative, and performing and advising stakeholders in order to determine the project requirements and the expectations of all parties involved

The project manager should manage the influences of these various stakeholders in relation to the project requirements to ensure a successful outcome

When there are conflicts between stakeholders Project Managers should resolve the conflict in favor of the project’s key or main customer

30

The Relationship Between Stakeholders and the Project

31

Project Stakeholder Levels Stakeholders have varying levels of

responsibility and authority Levels change the project’s life cycle Involvement may range from occasional to full

project sponsorship Some stakeholders may also detract from the

success of the project, either passively or actively and these require the project manager’s attention throughout the project’s life cycle, as well as planning to address any issues they may raise

32

Project Stakeholder Identification Is a continuous process throughout the entire

project life cycle Identifying stakeholders, understanding their

relative degree of influence on a project, and balancing their demands, needs, and expectations are critical to the success of the project

If you fail to identify and plan it may lead to delays, cost increases, unexpected issues, and other negative consequences including project cancellation

33

Managing Stakeholder Expectations The Project Manager must manage stakeholder

expectations, which can be difficult because stakeholders often have very different or conflicting objectives

Project Managers must balance these interests and ensure that the project team interacts with stakeholders in a professional and cooperative manner

Project managers may involve the project’s sponsor or other team members from different locations to identify and manage stakeholders that could be dispersed around the world

34

Project Governance An oversight function that is aligned with the

organization’s governance model and that encompasses the project life cycle

Framework provides the project manager and team with structure, processes, decision-making models and tools for managing the project, while supporting and controlling the project for successful delivery

Critical element of any project, especially on complex and risky projects

It provides a comprehensive, consistent method of controlling the project and ensuring its success by defining and documenting and communicating reliable, repeatable project practices

35

Project Success Should be measured in terms of completing the project

within the constraints of scope, time, cost, quality, resources, and risk as approved between the project managers and senior management

To ensure realization of benefits for the undertaken project, a test period can be part of the total project time before handing it over to the permanent operations

Project success should be referred to the last baselines approved by the authorized stakeholders

The project manager is responsible and accountable for setting realistic and achievable boundaries for the project and to accomplish the project within the approved baselines

36

Project Team Includes the project manager and the group of individuals

who act together in performing the work of the project to achieve its objectives

The project team includes the project manager, project management staff, and other team members who carry out the work but who are not necessarily involved with management of the project

This team is comprised of individuals from different groups with specific subject matter knowledge or with a specific skill set to carry out the work of the project

Structure and characteristics of a project team can vary widely, but one constant is the project manager’s role as the leader of the team, regardless of what authority the project manager may have over its members

37

Project Team Roles Project management staff – Perform project

management activities like scheduling, budgeting, reporting and control, communications, risk management and administrative support

Project staff - Carry out the work of creating the project deliverables

Supporting experts – Perform activities required to develop or execute the project management plan. These can include such roles as contracting, financial management, logistics, legal, safety, engineering, test, or quality control

38

Project Team Roles User or Customer Representatives - Accept the

deliverables or products of the project may be assigned to act as representatives or liaisons to ensure proper coordination, advise on requirements, or validate the acceptability of the project’s results

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 partner members - Members of business partners’ organizations may be assigned as members of the project team to ensure proper coordination

39

Project Team Roles Business partners - External companies, but

they have a special relationship with the enterprise, sometimes attained through a certification process. Provide specialized expertise or fill a specified role such as installation, customization, training, or support

40

Composition of Project Teams Varies based on factors such as organizational

type or culture, scope, and location. They may be: Dedicated where the project team members are

assigned to work full-time on the project; basically projectized

Part-Time established as temporary additional work, with functional managers maintaining resource control and PMs performing other management duties as well; basically matrixed

41

Project Life Cycle The steps an organization performs to

build the product, service or result A series of phases a project passes

through from its initiation to its closure Phases are generally sequential Their names and numbers are

determined by the management and control needs of the organization and its area of application

42

Project Life Cycle or Phases May be divided by functional or partial

objectives, intermediate results or deliverables, specific milestones within the overall scope of work or financial availability

Are generally time bounded with a start and ending or control point

A life cycle can be documented within a methodology

43

Project Life Cycle or Phases The project life cycle may be shaped by

the unique aspects of the organization, industry or technology employed

While every project has a definite start and end, the specific deliverables and activities in between will vary widely with the project

The life cycle provides the basic framework for managing the project regardless of the work involved

44

Project Life Cycle or Phases Can range along a continuum from predictive

or plan driven approaches at one end to adaptive or change driven at the other

In a predictive life cycle the product and deliverables are defined at the beginning of the project and any changes to scope are carefully managed

In an adaptive life cycle the project is developed over multiple iterations and the detailed scope is defined for each iteration only as the iteration begins

45

Characteristics of the Project Life Cycle

Projects vary in size and complexity All projects can be mapped to the

following generic life cycle structure Starting the project Organizing and preparing Carrying out the project work Closing the project

46

The generic life cycle structure is often referred to when reporting to upper management or others less familiar with the details of the project

This should not be confused with Project Management Process Groups because the processes in a Process Group may be performed and recur within each phase of a project as well as for the project as a whole

47

Characteristics of the Project Life Cycle

48

Project Life Cycle Examples Pharmaceutical Development Phases

Drug Discovery Pre-formulation Pharmacokinetics Toxicology Pharma/clinical development Clinical Trials 1-3 Go to Market

Regulatory Approval Regulated Production Clinical Trials 4

49

Project Life Cycle Examples System Development Life Cycle Phases

Problem Definition Requirements Gathering Analysis Design Development Testing Deployment Maintenance

50

Project Life Cycle Examples Medical Device Development Project Phases

Concept Phase Program Planning Preliminary Design Detail Design Drug Discovery Pilot Production Clinicals / FDS Production Release

The characteristics of each process group reflects:

The level of a project’s costs, staffing, chances of successful completion, stakeholder influence and probability of risk

51

Project Life Cycle Characteristics

52

Generic Life Cycle Structure

53

Project Life Cycle Characteristics

In the beginning of the Project Life Cycle

As project progresses through project life cycle

Cost are low Costs increase and taper off at the closing phase

Few team members are assigned Staffing increases

Potential for project success is lowest

Potential for success increases

Project risk is highest Project risk decreasesStakeholders have the greatest chance of influencing the project and the characteristics of the product

Stakeholders have less and less influences as the project progresses

Project Life Cycle Characteristics

54

Cost of changes/correcting errors increases significantly over time

Project Phases

A project may be divided into any number of phases

A project phase is a collection of a logically related project activities that end in the completion of one or more deliverables

Project phases are used when the nature of the work to be performed is unique to a portion of the project

55

Project Phases

A phase may emphasize processes from a particular Project Management Process Group

Project phases typically are completed sequentially, but can overlap in some project situations

56

Project Phases and Key Terms

At the beginning of a phase a feasibility study may be performed

At the end of a phase a phase end review of the completed deliverables may be performed before handoff to the next phase can occur

57

Feasibility Studies Typically incorporated in the beginning

phase of the project Are completed prior to the beginning of

the next phase Determines whether a project is worth

undertaking and whether it will be profitable to the organization

58

Handoffs

When a project progresses from one phase to the next Phase deliverables must be reviewed for

accuracy and approved It is handed off to the next phase

Handoffs are technical transfers or phase sequences that signal the end of one phase and typically mark the beginning of the next

59

Phase End Reviews A review that takes place

To determine whether the project should continue onto the next phase

Identify and address errors discovered during the phase

Also know as: Phase exits or gates (stage gates,

decision gates) Milestones Kill points

60

Phase to Phase Relationships – 2 Types Sequential

Where one phase must end before the next phase begins

Overlapping Where one phase starts before the

previous phase completes

61

Project Governance Across the Life Cycle Regardless of the number of phases, project

governance is required Method of controlling project ensuring success Described in project management plan PM and team decides how project is managed

What resources, how work will be completed, how many phases will be used

Management review used to assess accuracy of deliverable, determine phase end and if project continues

62

64

Product Life Cycle Is a collection of product phases

Generally sequential Sometimes overlapping Created to provide better

management control

Product Life Cycle Introduction

Market size, sales volumes and sales growth are small

Growth When brand loyalty is built and market share

increased Maturity

When the market makes the most profit Decline

When sales and profit start to fall65

Product vs. Project Life Cycle Relationships

Product Phase New product

Existing product requires new feature/function

Feasibility study Market research Advertising campaign …

Project Life Cycles New project to create

product New project to add

feature function

New project New project New project New projects…

66

Product vs. Project Life Cycle Relationships

67

TimeConception MaturityGrowth WithdrawalDecline

Project

Project

Project

ProjectProject

Project

Project

Project