INTRODUCTION TO PROJECT MANAGEMENTSergey V. Nesterov MD, PhD, PMP, PgMP

WORK WE DO

CONTINUOUS

MASS

BATCH

JOBBING

PROJECT

PROCESS FLOW

PROCESS TASKS

VARIETY

VOLUME

(mod. SLACK 2009, p.92)

lowlowhigh

high

intermittent

continuous

diverse/complex

repeated/divided

What is a PROJECT?

PROJECT. A temporary endeavor undertaken to create a unique result

(mod. PMBOK 2013, p.553)

PROJECT LIFE CYCLE (PLC). The series of phases that a project passesthrough from its initiation to its closure.

PROJECT PHASE. A collection of logically related project activities thatculminates in the completion of one or more deliverables

Generic PLC STRUCTURE

1. STARTING the project

2. ORGANIZING and PREPARING

3. CARRYING OUT the project work

4. CLOSING the project

(PMBOK 2013, p.39)

NOT all projects are SUCCESSFUL

Large IT projects run 45% over budget, 7% over time, while delivering56% less value than predicted1;

Only 40% of projects met schedule, budget and quality goals2;

413 of 840 (49%) federally funded IT projects are either poorlyplanned, poorly performing or both3.

1http://www.mckinsey.com/insights/business_technology/delivering_large-scale_it_projects_on_time_on_budget_and_on_value2http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03100-usen-03-making-change-work.pdf3http://www.gao.gov/new.items/d081051t.pdf

The cost of [IT] project failure across the EU was €142 billion in 20041

A loss of $50 billion to $150 billion per year in the United States1

Project FAILURES COST

1http://www.gallup.com/businessjournal/152429/cost-bad-project-management.aspx

..COST A LOT

http://www.brookings.edu/~/media/research/files/papers/2011/1/global%20poverty%20chandy/01_global_poverty_chandy.pdf

Guaranteeing every person in the world the right not to live in absolute poverty$150 billion$66 billion1

WHY do projects FAIL?Changing priorities within organization – 40%Inaccurate requirements – 38%Change in project objectives – 35%Undefined risks/opportunities – 30%Poor communication – 30%Undefined project goals – 30%Inadequate sponsor support – 29%Inadequate cost estimates – 29%Inaccurate task time estimate – 27%Resource dependency – 25%Poor change management – 25%Inadequate resource forecasting – 23%

http://www.pmi.org/~/media/PDF/learning/translations/2015/capture-value-project-management-uk.ashx (p.25)

January 22, 2016

"Would you tell me, please, which way I ought to go from here?”

"That depends a good deal on where you want to get to," said the Cat.

"I don’t much care where—" said Alice.

"Then it doesn’t matter which way you go," said the Cat.

”—so long as I get SOMEWHERE,” Alice added as an explanation.

"Oh, you’re sure to do that," said the Cat, "if you only walk long enough."

Understand your GOAL

STRATEGY. The direction and scope of <a system> over the long term,

(mod. JOHNSON et al. 2008, p.3)

which achieves advantage in a changing environment through itsconfiguration of resources and competences with the aim of fulfilling<…> expectations.

The vocabulary of STRATEGY

(based on JOHNSON et al. 2008, p.10)

TERM EXAMPLE DEFINITION

MISSION Be extremely fitOverriding purpose in line with the values or expectations of stakeholders

VISION(STRATEGIC INTENT )

Be able to run a marathonDesired future state the aspiration of theorganisation

GOALLose weight, increase aerobic capacity, strengthen muscles

General statement of aim or purpose

OBJECTIVELose 15 kilos by 1 October and run the half-marathon next May

Quantification (if possible) or more precise statement of the goal

STRATEGICCAPABILITY

Have gear, maintain a successful dietResources, activities and processes The unique ones provide ‘competitive advantage ’

TACTICS Exercise regularly, stick to the right diet Methods for achieving the goal

CONTROLMonitor KG, KM, MIN: dynamics good –continue; not – change strategies

The monitoring of action steps

HIGHLIGHTS:

1. PROJECTS: LOW VOLUME, HIGH VARIETY, COMPLEX TASKS

2. PROJECTS HAVE A LIFE CYCLE

3. PROJECTS DO FAIL; OFTEN, ‘DOOMED’ AT THE VERY START

4. UNDERSTANDING YOUR GOALS HELPS

“Life is what happens to you while you’re busy making other plans”

or

“Failing to plan is planning to fail”

PROJECT MANAGEMENT HELPS

To reach agreements on ‘boring’ activities—planning, tasks, authorityand responsibilities—before the assignment even gets off the ground.

This initial investment pays off in the end.

PROJECT MANAGEMENT

The application of knowledge, skills, tools, and techniques to projectactivities to meet project requirements.

(PMBOK 2013, p.553)

PM KNOWLEDGE AREAS

1. INTEGRATION management

2. SCOPE

3. TIME

4. COST

5. QUALITY

6. HUMAN RESOURCES

7. COMMUNICATIONS

8. RISK

9. PROCUREMENT

10.STAKEHOLDER

PROJECT MANAGER

The person assigned by the performing organization to lead the teamthat is responsible for achieving the project objectives.

(PMBOK 2013, p.554)

A project manager MUST BE SKILLED IN

Leadership

Communication, negotiation, conflict management

Problem solving and creative thinking

Planning and estimating

Contract management

Time management

The project manager IS EXPECTED TO

DESCRIBE the intended project deliverable

INITIATE activities or efforts at each phase or stage

PREPARE the relevant decision documents and management plans

ENSURE that plans are adjusted

ACT as coordinator for the various parties involved

CLARIFY who will monitor progress and how they will do so

MODERATE internal relationships within your project

INFLUENCE the environment and ANTICIPATE changes

The PMBOK is an accepted guide

An inclusive term that describes thesum of knowledge within theprofession of project management.

The complete project managementbody of knowledge includes proventraditional practices that are widelyapplied and innovative practicesthat are emerging in the profession.

HIGHLIGHTS:

5. PM PROVIDES A STRUCTURED APPROACH TO COMPLEX TASKS

6. A PROJECT MANAGER IS OF UTMOST IMPORTANCE

7. THE MANAGER MUST BE SKILLED IN MANY AREAS

PROJECT SUCCESS

…should be measured in terms of completing the project within theconstraints of scope, time, cost, and quality, as approved between theproject managers and senior management.

(mod. PMBOK 2013, p.35)

The PROJECT MANAGEMENT TRIANGLE

TIME

SCOPECOST

QUALITY

PROJECT SUCCESS (2)

The project is only successful if it produces a worthwhile productwhich can be operated beneficially for some time after thecompletion of the project to repay the investment in it.

(TURNER and COCHRANE, 1993)

PROJECT MANAGEMENT PLAN. The document that describes how theproject will be executed monitored, and controlled.

PROJECT MANAGEMENT PLAN includes

PROJECT BASELINES:

SCOPE baseline

SCHEDULE baseline

COST baseline

SUBSIDIARY PLANS:SCOPE management planREQUIREMENTS management planSCHEDULE management planCOST management planQUALITY management planPROCESS IMPROVEMENT planHUMAN RESOURCE management planCOMMUNICATIONS management planRISK management planPROCUREMENT management planSTAKEHOLDER management plan

(PMBOK 2013, p.76-77)

BASELINE

The approved version of a work product that can be changed onlythrough formal change control procedures and is used as a basis forcomparison.

(mod. PMBOK 2013, p.529)

The four territories of the PM LANDSCAPE

(mod. WYSOCKI 2014, p.8)

CONCEPTUAL MODELS of Project Management

SCOPE PLAN LAUNCHMONITOR

&CONTROL

CLOSE Project

SCOPE PLANLAUNCH

Increment

MONITOR &

CONTROL Increment

CLOSEIncrement

CLOSE Project

Next Increment

?

SCOPEPLAN

IterationLAUNCHIteration

MONITOR &

CONTROL Iteration

CLOSEIteration

CLOSE Project

Next Iteration

?

SCOPEPhase

PLANPhase

LAUNCHPhase

MONITOR &

CONTROL Phase

CLOSEPhase

CLOSE Project

Next Phase

?

TRADITIONAL

LINEAR

TRADITIONAL

INCREMENTAL

AGILE

EXTREME

N

N

N

Y

Y

Y

HIGHLIGHTS:

8. THE MAIN PM MODELS ARE TRADITIONAL, AGILE AND EXTREME

9. PROJECT SUCCESS MIGHT BE IN THE EYE OF THE STAKEHOLDER

10. THE PROJECT TRIANGLE BINDS TOGETHER SCOPE, TIME AND COSTS