Project Management Book.pdf

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Team FME

Project Management Skills

Principles

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ISBN 978-1-62620-958-9 ISBN 978-1-62620-958-9

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T

able of

able of Content

s

Preface

Preface 22

Visit Our Website

Visit Our Website 33

Introduction

Introduction 44

Why Use PMBOK

Why Use PMBOK®®_?_? ₇₇

What is a Project?

What is a Project? 99

Types of Project

Types of Project 1212

What is

What is Project Management?Project Management? 1515 Understanding How Projects are

Understanding How Projects are OrganizedOrganized 1717 Matrix-Mana

Matrix-Management gement EnvironmentEnvironment 2121

Project Management Roles and Responsibilities

Project Management Roles and Responsibilities 2626

The Project Stakeholders

The Project Stakeholders 2626

The Project Sponsor

The Project Sponsor 2828

The Project Manager

The Project Manager 3030

Understanding the Project

Understanding the Project Life CycleLife Cycle 3232 The Initiation Phase

The Initiation Phase 3333

The Planning Phase

The Planning Phase 3636

The Execution Phase

The Execution Phase 3939

The Closure Phase

The Closure Phase 4141

PMBOK

PMBOK®®_Guide_Guide ₄₃₄₃

The PMBOK

The PMBOK®®_{Process Groups}_{Process Groups} ₄₄₄₄

PMBOK

PMBOK®®_{Knowledge Areas and Processes}_{Knowledge Areas and Processes} ₄₆₄₆

Summary

Summary 5050

Other Free Resources

Other Free Resources 5252

References

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Preface

Organizations are increasingly using project management techniques within their

Organizations are increasingly using project management techniques within their opera- opera-tions, and the specialist language of project management has become more and more tions, and the specialist language of project management has become more and more commonplace in managerial and executive meetings. This trend is here to stay and it commonplace in managerial and executive meetings. This trend is here to stay and it means that managers need to be familiar with project management roles, terms, and means that managers need to be familiar with project management roles, terms, and processes.

processes.

The Project Management Institute (PMI) is

The Project Management Institute (PMI) is a not-for-prot professionaa not-for-prot professional organization forl organization for the project management profession with the

the project management profession with the purpose of advancing project management.purpose of advancing project management. It is responsible for maintaining the industry standard known as ‘The Project It is responsible for maintaining the industry standard known as ‘The Project Manage-ment Body of Knowledge’ (PMBOK® Guide), which is recognized by the American ment Body of Knowledge’ (PMBOK® Guide), which is recognized by the American Na-tional Standards Institute (ANSI). The PMI is also responsible for administering the most tional Standards Institute (ANSI). The PMI is also responsible for administering the most widely recognized and respected project management credential (PMP), which is held widely recognized and respected project management credential (PMP), which is held by over 500,000 project management professionals worldwide.

by over 500,000 project management professionals worldwide.

This eBook has been designed to help managers understand the principles of project This eBook has been designed to help managers understand the principles of project management and how the processes detailed in the PMBOK® Guide support them. management and how the processes detailed in the PMBOK® Guide support them. You will learn:

You will learn:

●

● How projects are dened and How projects are dened and why they differ from business processeswhy they differ from business processes

●

● How the structure of How the structure of an organization impacts project managementan organization impacts project management

●

● How project management roles and responsibilities are denedHow project management roles and responsibilities are dened

●

● What the PMBOK® Guide is and how it can help youWhat the PMBOK® Guide is and how it can help you

●

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Visit Our Web

Visit Our Website

site

More free management eBooks along with a series of essential templates and More free management eBooks along with a series of essential templates and check-lists for managers are all available to download free of charge to your computer, iPad, or lists for managers are all available to download free of charge to your computer, iPad, or Amazon Kindle.

Amazon Kindle. W

We are adding new titles every month, so don’t e are adding new titles every month, so don’t forget to check our website regularly forforget to check our website regularly for the latest releases.

the latest releases. Visit

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Introduction

The impact of technology and its inuence on organizational processes is an essential The impact of technology and its inuence on organizational processes is an essential aspect of any growth strategy. It is hard to nd any development or procedural change aspect of any growth strategy. It is hard to nd any development or procedural change that does not have an information technology aspect and in many cases it

that does not have an information technology aspect and in many cases it is actually theis actually the changes in available technology that

changes in available technology that drive the need to drive the need to change organizational procechange organizational processes.sses. This has led to a merging of IT working practices into that of general management This has led to a merging of IT working practices into that of general management in-cluding the use of

cluding the use of project managemenproject management.t.

•

• Infor

Infor

mation

T

echnology

(IT) now plays

a signiﬁcant

r

ole in

Strategic

Gr

owth

• IT specialist

ter

ms

integrate with

management

vocabulary

IT

Pr

ocesses

• the most

signiﬁcant

methodology

is

Pr

oject

Management

Managers now nd that they are frequently involved in projects that

Managers now nd that they are frequently involved in projects that are being managedare being managed using a

using a formalized project management methodologyformalized project management methodology. Communications forms a . Communications forms a key partkey part of such projects and if you are going to be successful in your role as a manager it is of such projects and if you are going to be successful in your role as a manager it is essential that you have a thorough understanding of project management terminology, essential that you have a thorough understanding of project management terminology, processes, and procedures.

processes, and procedures.

There are various ways in which projects can be approached and a host of There are various ways in which projects can be approached and a host of ‘methodolo-gies,’ ‘frameworks,’ and ‘processes’ have been developed over the past 60 years or so. gies,’ ‘frameworks,’ and ‘processes’ have been developed over the past 60 years or so. Some of these have their origins in academic research whereas others have grown out Some of these have their origins in academic research whereas others have grown out of proprietary methods developed by organizations that are highly project focused, for of proprietary methods developed by organizations that are highly project focused, for example management

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Key Project

Management

Methodology

Agile Agile PMBOK PMBOK PRINCE2 PRINCE2 Critical Critical Chain Chain

Each of these approaches has its own way of looking

Each of these approaches has its own way of looking at projects and its own terminologyat projects and its own terminology for the documents and processes that make up project management. There has been for the documents and processes that make up project management. There has been some rationalization in recent years but there are still

some rationalization in recent years but there are still a dozen widely used methods. Thea dozen widely used methods. The ones you are most likely to encounter are PMBOK®, PRINCE2, Critical Chain, and Agile. ones you are most likely to encounter are PMBOK®, PRINCE2, Critical Chain, and Agile.

PMBOK®

PMBOK® is is short for Project Management Body of Knowledge, which describesshort for Project Management Body of Knowledge, which describes project management practices that are common to ‘most projects, most of the project management practices that are common to ‘most projects, most of the time.’ The PMBOK® is published by the Project Management Institute (PMI), time.’ The PMBOK® is published by the Project Management Institute (PMI), which was formed in the

which was formed in the USA in 1969. The PMI also offers various levels of USA in 1969. The PMI also offers various levels of certi- certi-cation and the PMBOK® is widely used and respected.

cation and the PMBOK® is widely used and respected. PRINCE2

PRINCE2 is a process-based approach for project management is a process-based approach for project management, providing an eas-, providing an eas-ily tailored and scalable methodology for

ily tailored and scalable methodology for the management of all the management of all types of projects.types of projects. The method is the standard for public sector projects in the UK and is practiced The method is the standard for public sector projects in the UK and is practiced worldwide. The acronym stands for Projects in a

worldwide. The acronym stands for Projects in a Controlled EnvironmControlled Environment and thisent and this is a project

is a project management progrmanagement program that shares more of the am that shares more of the functional and nancialfunctional and nancial authority with senior

authority with senior management, not just the management, not just the project managerproject manager.. The

TheCritical ChainCritical Chainmethod is not fundamentally different from the method is not fundamentally different from the current main-current main-stream approaches but it differs in the way that it handles risk and contingency. stream approaches but it differs in the way that it handles risk and contingency. Developed in 1997 it is a method of planning and managing project execution Developed in 1997 it is a method of planning and managing project execution designed to deal with uncertainties inherent in managing projects, while taking designed to deal with uncertainties inherent in managing projects, while taking into consideration the limited availability of

into consideration the limited availability of resourcresources.es. The

TheAgileAgile approach uses an iterative method of determining requirements for en- approach uses an iterative method of determining requirements for en-gineering and software development projects in a highly exible and interactive gineering and software development projects in a highly exible and interactive

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manner. It is most often used in small-scale projects or in cases where the nal manner. It is most often used in small-scale projects or in cases where the nal deliverables are too complex for the

deliverables are too complex for the customer to understand and specify customer to understand and specify beforebefore testing

testing prototypeprototypes.s.

The project management eBooks on this

The project management eBooks on this website follow the PMBOK® approach, but website follow the PMBOK® approach, but eveneven if your organization uses another approach most of the information and concepts will if your organization uses another approach most of the information and concepts will still be helpful if you are relatively new to the subject.

still be helpful if you are relatively new to the subject.

These books are for anyone who wants to nd out more about a

These books are for anyone who wants to nd out more about a structured approach tostructured approach to project managemen

project management and the PMBOK® Guide. Each of t and the PMBOK® Guide. Each of these eBooks is designed to pro-these eBooks is designed to pro-vide easy access to the

vide easy access to the concepts underlying the PMBOK® Guide processes in a way thatconcepts underlying the PMBOK® Guide processes in a way that can be used by team

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Why Use PMBOK

®®

_?

The Project Management Institute (PMI) is

The Project Management Institute (PMI) is the world’s largest not-for-prthe world’s largest not-for-prot membershipot membership association for the

association for the project management professioproject management profession. It n. It has more than has more than 700,000 members,700,000 members, credential holders, and volunteers in nearly every country in the world.

credential holders, and volunteers in nearly every country in the world.

The PMI is the publisher of the ‘PMBOK® Guide,’ now in its fth edition. This internation The PMI is the publisher of the ‘PMBOK® Guide,’ now in its fth edition. This internation --ally recognized standard gives project managers the essential tools to practice project ally recognized standard gives project managers the essential tools to practice project management and deliver organizational results.

management and deliver organizational results. TTranslations are available in ranslations are available in Arabic, Chi-Arabic, Chi-nese, French, German, Italian, JapaChi-nese,

nese, French, German, Italian, Japanese, KoreaKorean, Portuguese, Russian, n, Portuguese, Russian, and Spanish.and Spanish. One of the initiatives of the PMI is the development of global standards. These aim to One of the initiatives of the PMI is the development of global standards. These aim to ensure that the basic

ensure that the basic project management framewproject management framework is applied ork is applied consistently in order toconsistently in order to reinforce a common language and approach between project stakeholders.

reinforce a common language and approach between project stakeholders. The PMBOK® describes a

The PMBOK® describes a professionaprofessional approach to project management that l approach to project management that is applica-is applica-ble to most projects.

ble to most projects. This approach is based on iThis approach is based on its proven value and benets in practicets proven value and benets in practice through the contribution of

through the contribution of thousands of project managers worldwide.thousands of project managers worldwide. It is NOT a methodology but more of a

It is NOT a methodology but more of a framewframework, a structure that allows different busi-ork, a structure that allows different busi-ness processes to be grouped together. It also denes common deliverables that act as ness processes to be grouped together. It also denes common deliverables that act as inputs to and outputs from each process. The framework can help you master a complex inputs to and outputs from each process. The framework can help you master a complex topic in a relatively short

topic in a relatively short time by acting as time by acting as a map, which helps you to a map, which helps you to navigate around annavigate around an entire body of

entire body of knowledgknowledge.e.

PMBOK®

International

recognition

700,000

professional

members

Global

standards

Offers a

structured

approach

Provides a

framework

(rather than (rather than methodology) methodology)

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You do not have to create every single document that is specied in the PMBOK® or You do not have to create every single document that is specied in the PMBOK® or perform every process in exactly the way that is detailed. This 

perform every process in exactly the way that is detailed. This exibility means that youexibility means that you can use your own judgment

can use your own judgment based on your experience, taking into based on your experience, taking into account the size andaccount the size and complexity of the project, to decide which elements are and are not

complexity of the project, to decide which elements are and are not appropriate.appropriate. It is the

It is the most widely used standard referencmost widely used standard reference of industry best e of industry best practices for project man-practices for project man-agement and identies generally accepted guidelines that are applicable

agement and identies generally accepted guidelines that are applicable to a wide rangeto a wide range of projects including: of projects including: ● ● ConstructionConstruction ● ● SoftwareSoftware ●

● Engineering andEngineering and

●

● Services.Services.

Although the project management processes are described in detail, together with the Although the project management processes are described in detail, together with the tools and techniques required, it does not prescribe the exact way that things should tools and techniques required, it does not prescribe the exact way that things should be done. In practice each individual organization will ne-tune the approach depending be done. In practice each individual organization will ne-tune the approach depending upon its structure, culture, and the particular

upon its structure, culture, and the particular type of project.type of project.

Another advantage of using the Guide is that it can prevent you from treating project Another advantage of using the Guide is that it can prevent you from treating project management as a series of ad hoc individual techniques and steer you towards a more management as a series of ad hoc individual techniques and steer you towards a more structured approa

structured approach. This is particularly helpful ch. This is particularly helpful when you are working with a new teamwhen you are working with a new team and everyone needs to understand a concept quickly in order to ne-tune it to your own and everyone needs to understand a concept quickly in order to ne-tune it to your own project. Even when this ne-tuning involves signicant changes, at least everyone in project. Even when this ne-tuning involves signicant changes, at least everyone in --volved will be using the

volved will be using the same vocabulary and have the same understanding of what thesame vocabulary and have the same understanding of what the process is trying to

process is trying to achieve.achieve.

The eBooks in this series follow the structure of the PMBOK® Guide because it The eBooks in this series follow the structure of the PMBOK® Guide because it repre-sents a tried and

sents a tried and tested framewotested framework. We havrk. We have tried to e tried to ensure full alignment of our ensure full alignment of our eBookseBooks with the Guide by using

with the Guide by using the numbering convention as well as the naming convention.the numbering convention as well as the naming convention. If you need more detailed explanation of a particular subject then you can simply refer If you need more detailed explanation of a particular subject then you can simply refer to the related chapter and paragraph number in the PMBOK® Guide. Remember, many to the related chapter and paragraph number in the PMBOK® Guide. Remember, many of the

of the generic project management methodologies available refer to the PMBOK® Guidegeneric project management methodologies available refer to the PMBOK® Guide as a

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A knowledge of the PMBOK® processes will go a long way towards giving you an A knowledge of the PMBOK® processes will go a long way towards giving you an under-standing of almost any project management methodology that your organization may standing of almost any project management methodology that your organization may use.

use.

KEY POINTS

4

4 Managers now nd that they are frequently involved in projects that are beingManagers now nd that they are frequently involved in projects that are being

managed using a

managed using a formalized project management methodologyformalized project management methodology..

4

4 Each of these approaches has its own way of looking at projects and its ownEach of these approaches has its own way of looking at projects and its own

terminology for the documents and processes that make up project terminology for the documents and processes that make up project manage-ment.

ment.

4

4 The project management eBooks on this website follow the PMBOK® butThe project management eBooks on this website follow the PMBOK® but

even if you organization uses another approach most of the information and even if you organization uses another approach most of the information and concepts will still be helpful

concepts will still be helpful if you are relatively new to the subject.if you are relatively new to the subject.

4

4 The Project Management Institute (PMI) The Project Management Institute (PMI) is the is the world’s largest not-for-prworld’s largest not-for-protot

membership association for

membership association for the project management profession.the project management profession.

4

4 A knowledge of the PMBOK® processes will go a long way to giving you anA knowledge of the PMBOK® processes will go a long way to giving you an

understanding of almost

understanding of almost any project management methodology.any project management methodology.

What is a Project?

Before concerning ourselves with the details of project management documents and Before concerning ourselves with the details of project management documents and processes, it is a good idea to take a step back and think about what makes something processes, it is a good idea to take a step back and think about what makes something a project and why it needs to be managed differently from the day-to-day work of the a project and why it needs to be managed differently from the day-to-day work of the organization. In other

organization. In other words,words, ‘Why do we need project

‘Why do we need project management?’ management?’

There are many different denitions of what constitutes a project: There are many different denitions of what constitutes a project:

Project Management Institute

Project Management Institute—‘A project is a temporary endeavor undertaken—‘A project is a temporary endeavor undertaken to create a unique product, service or result.’

to create a unique product, service or result.’ PRINCE2

PRINCE2—‘A Project is a temporary organization that is created for the purpose—‘A Project is a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business of delivering one or more business products according to an agreed Business Case.’

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Association for Project Management (APM)

Association for Project Management (APM)—‘An endeavor in which human—‘An endeavor in which human material and nancial resources are organized in a novel way to deliver a unique material and nancial resources are organized in a novel way to deliver a unique scope of work of given specication often within constraints of cost and time to scope of work of given specication often within constraints of cost and time to achieve benecial changes dened

achieve benecial changes dened by quantitative and qualitative by quantitative and qualitative objectives.objectives.’’ H. Kerzner

H. Kerzner—‘Project management is the planning, organizing, directing and—‘Project management is the planning, organizing, directing and controlling of company resources for a relatively short-term objective that has controlling of company resources for a relatively short-term objective that has been established to complete specic goals and

been established to complete specic goals and objectives. Furthermorobjectives. Furthermore, projecte, project management utilizes the systems approach to management by having functional management utilizes the systems approach to management by having functional personnel (the vertical hierarchy) assigned to a specic project (the horizontal personnel (the vertical hierarchy) assigned to a specic project (the horizontal hierarchy)’ (2009).

hierarchy)’ (2009).

Many organizations also have their own denition of what constitutes a project. Which Many organizations also have their own denition of what constitutes a project. Which --ever denition you prefer does not really matter; the important thing is to be able to ever denition you prefer does not really matter; the important thing is to be able to identify work that constitutes a project so that

identify work that constitutes a project so that it can be it can be properly managed.properly managed.

Project

Characteristics

A deﬁnite start &

end point

Once the end point

is reached the

project is over

It is attempting to

achieve something

new

Projects have some or all of the

Projects have some or all of the following charactefollowing characteristics:ristics:

●

● They have a denite start and They have a denite start and endpointendpoint

●

● Once the endpoint is reached the project is overOnce the endpoint is reached the project is over

●

● They are attempting to achieve something newThey are attempting to achieve something new

Projects can vary in size and small projects can be planned and managed by the same Projects can vary in size and small projects can be planned and managed by the same person whereas larger projects may employ thousands of people working on many sites person whereas larger projects may employ thousands of people working on many sites and require a dedicated group in order to manage and coordinate the activities.

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Everything that an organization does can be categorized either as a project or process. Everything that an organization does can be categorized either as a project or process. A process is something that happens continually and has a low risk associated with it, A process is something that happens continually and has a low risk associated with it, whereas a project happens once and has a relatively high level of

whereas a project happens once and has a relatively high level of risk.risk.

To illustrate this, imagine an organization that has an annual staff appraisal process in To illustrate this, imagine an organization that has an annual staff appraisal process in which managers make a written assessmen

which managers make a written assessment of their staff t of their staff against criteria specied by theagainst criteria specied by the HR department. This is a process because even if the criteria change from year to year HR department. This is a process because even if the criteria change from year to year the procedure undertaken by everyone involved remains more or less the same.

the procedure undertaken by everyone involved remains more or less the same.

Project: occurs once

with high degree of

risk & uncertainty

Constitute

all activities

within an

organization

Process: low risk

activity that happens

continually

If the organization decided to introduce an IT system to facilitate this process then the If the organization decided to introduce an IT system to facilitate this process then the selection, implementation, and testing of the

selection, implementation, and testing of the new system would represennew system would represent a project be-t a project be-cause it would be a one-off activity which carries the risk of exceeding the budget or cause it would be a one-off activity which carries the risk of exceeding the budget or timescale allocated to it.

timescale allocated to it.

It is perfectly logical for different organizations to see the same activity in a different It is perfectly logical for different organizations to see the same activity in a different way. For example, the supplier of the computer system may see this activity as a process way. For example, the supplier of the computer system may see this activity as a process because it is something that it does every time it sells a system. Each time it does so, it because it is something that it does every time it sells a system. Each time it does so, it gains more experience, which allows it to plan and execute future installations based on gains more experience, which allows it to plan and execute future installations based on what it

what it has learned previously.has learned previously.

This distinction is important because project management is used where there is

This distinction is important because project management is used where there is a higha high degree of uncertainty and risk because there is no

degree of uncertainty and risk because there is no experience of performing the activity.experience of performing the activity. So in this

So in this scenario,scenario,

The organization buying the system would treat it as a

The organization buying the system would treat it as a project.project.

The vendor would treat it as part of

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The vendor would see it as a

The vendor would see it as a process that could be rened with process that could be rened with each iteration in order toeach iteration in order to reduce costs and increase the quality. The distinction between projects and processes reduce costs and increase the quality. The distinction between projects and processes depends on whether the organization repeats an activity often enough for it to become depends on whether the organization repeats an activity often enough for it to become routine. Once an activity is repeated often enough within an organization to become routine. Once an activity is repeated often enough within an organization to become routine it is no

routine it is no longer considered a projectlonger considered a project—it becomes one of their —it becomes one of their many managemenmany managementt processes.

processes.

Types of Project

Projects can be broadly classied into engineering projects and management projects. Projects can be broadly classied into engineering projects and management projects. Engineering projects encompass civil, electrical, and

Engineering projects encompass civil, electrical, and mechanical engineering and the mechanical engineering and the  --nal deliverables are physical objects, for example a building, reservoir, bridge, renery, nal deliverables are physical objects, for example a building, reservoir, bridge, renery, or pre-production sample. Specialist companies or

or pre-production sample. Specialist companies or consortia invariably undertake theseconsortia invariably undertake these types of project. types of project.

Engineering Projects

Physical items

Building, bridge

Reﬁnery

Pre-production

sample

Management Projects

Intangible items

Ofﬁce move

New IT system

Marketing

campaign

Management projects include things like: restructuring the organization, preparing for Management projects include things like: restructuring the organization, preparing for an exhibition, developing an IT system, launching a new marketing campaign, moving an exhibition, developing an IT system, launching a new marketing campaign, moving ofces, or indeed anything where the objective is to produce an end result that is not ofces, or indeed anything where the objective is to produce an end result that is not identiable as a physical item.

identiable as a physical item. A broad range of

A broad range of organizations does these types of organizations does these types of project, including: commerciaproject, including: commercial com-l com-panies, government departments, charities and NGOs (Non Governmental panies, government departments, charities and NGOs (Non Governmental Organiza-tions), and

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The differences betw

The differences between these types of project go further than just een these types of project go further than just the nature of the nalthe nature of the nal deliverable. For example:

deliverable. For example: Use of Specialist Staff Use of Specialist Staff

Engineering projects almost always represent the day-to-day work of the organization. Engineering projects almost always represent the day-to-day work of the organization. For example, a construction company will employ people who specialize in building For example, a construction company will employ people who specialize in building of-ce blocks, public buildings, houses, or

ce blocks, public buildings, houses, or roads.roads.

Similarly, a manufacturing company will have design engineers to take a product from Similarly, a manufacturing company will have design engineers to take a product from conception, through the design process and prototyping before the work is handed over conception, through the design process and prototyping before the work is handed over to production engineers who will then be

to production engineers who will then be responsible for mass production.responsible for mass production.

This is quite different from a management project where people who don’t usually run This is quite different from a management project where people who don’t usually run projects may nd themselves doing much

projects may nd themselves doing much the work.the work. Environmental Issues

Environmental Issues

The challenges of engineering projects are often physical in nature. For example, a The challenges of engineering projects are often physical in nature. For example, a con-struction project may be held up by bad weather, the discovery of archeological remains, struction project may be held up by bad weather, the discovery of archeological remains, or other

or other unforeseen environmenunforeseen environmental problems.tal problems.

Management projects on the other hand usually take place on the organization’s own Management projects on the other hand usually take place on the organization’s own premises and are not subject to these sorts of issues.

premises and are not subject to these sorts of issues. Specication of Final Deliverable

Specication of Final Deliverable

In the case of engineering projects the nal deliverable is usually specied in detail at In the case of engineering projects the nal deliverable is usually specied in detail at the beginning of the project because it will need to comply with existing standards or the beginning of the project because it will need to comply with existing standards or legislation. If the deliverable is a mechanical or electronic par

legislation. If the deliverable is a mechanical or electronic part then it will need t then it will need to t withto t with the rest of the nished product.

the rest of the nished product. This is not usually the c

This is not usually the case with management projects where the exact form of the nalase with management projects where the exact form of the nal deliverable may not become clear until some of the work of the project has been done. deliverable may not become clear until some of the work of the project has been done. It may also alter as

It may also alter as the project develops, or in response to market research or other de-the project develops, or in response to market research or other de-velopments.

velopments.

Generally speaking, engineering projects and management projects are quite different Generally speaking, engineering projects and management projects are quite different things and this eBook is aimed at managers undertaking management projects rather things and this eBook is aimed at managers undertaking management projects rather than engineering projects.

(16)

KEY POINTS

4

4 Everything that an organization does can be Everything that an organization does can be categorized either as a project orcategorized either as a project or

process. process.

4

4 A process is something that happens continually and has a low risk associ-A process is something that happens continually and has a low risk

associ-ated with it. ated with it.

4

4 A project happens once and has a relatively high level of A project happens once and has a relatively high level of risk.risk. 4

4 Projects are attempting to achieve something new, they have a denite Projects are attempting to achieve something new, they have a denite startstart

and endpoint, and once the endpoint is reached the project is over. and endpoint, and once the endpoint is reached the project is over.

4

4 Engineering projects encompass civil, electrical, and mechanical engineeringEngineering projects encompass civil, electrical, and mechanical engineering

and the nal deliverables are physical objects, for example a building, reser

and the nal deliverables are physical objects, for example a building, reser- -voir

voir, bridge, , bridge, reneryrenery, or , or pre-production sample.pre-production sample.

4

4 Management projects include things like: restructuring the Management projects include things like: restructuring the organization, pre-organization,

pre-paring for an

paring for an exhibition, developing an IT system, launching a new marketingexhibition, developing an IT system, launching a new marketing campaign, moving ofces, or indeed anything where the objective is to pro

campaign, moving ofces, or indeed anything where the objective is to pro- -duce an end result that is not identiable as

(17)

What is Project Management?

Projects need to be managed to meet their objectives, which are dened in terms of Projects need to be managed to meet their objectives, which are dened in terms of exex --pectations of time,

pectations of time, cost, and quality.cost, and quality.

Quality Quality Time Time Cost Cost Scope Scope For example, For example, Project Scope:

Project Scope: To move the organization’s head ofce to another location. Its re To move the organization’s head ofce to another location. Its re --quirements are:

quirements are:

●

● Time: Complete by March 2015Time: Complete by March 2015

●

● Quality: Minimize disruption to Quality: Minimize disruption to productivityproductivity

●

● Cost: Not spend more than $125,000Cost: Not spend more than $125,000

The scope of the project is dened as: The scope of the project is dened as:

the totality of the outputs, outcomes, and benets and the work required to

produce them.

This can change over time, and it is the project manager’s responsibility to ensure the This can change over time, and it is the project manager’s responsibility to ensure the project will still

project will still deliver its dened deliver its dened benets. Consequentlybenets. Consequently, a project manager must main, a project manager must main --tain focus on the

tain focus on the relative priorities of time, relative priorities of time, cost, and quality with reference to the scopecost, and quality with reference to the scope of the project.

of the project.

The Project Management Institute (PMI) denes project management in

The Project Management Institute (PMI) denes project management in the following way:the following way: ‘Project management is the application of knowledge, skills, tools and tech

‘Project management is the application of knowledge, skills, tools and tech-

-niques to meet project requirements.’

(18)

This denition begs the question ‘Exactly what knowledge, skills, tools, and techniques This denition begs the question ‘Exactly what knowledge, skills, tools, and techniques will I need to

will I need to successfully managsuccessfully manage a project?’ In order to answer this question, it e a project?’ In order to answer this question, it is help-is help-ful to

ful to look at look at project management from three different perspectives.project management from three different perspectives. 1.

1. How the project ts into the organizationHow the project ts into the organization—This refers to both the project and—This refers to both the project and the individuals who will be involved in it, including how their responsibilities are the individuals who will be involved in it, including how their responsibilities are dened and how they interact with

dened and how they interact with each othereach other.. 2.

2. How the project How the project will evolve over timewill evolve over time—This is referred to as the project life cycle—This is referred to as the project life cycle and is the chronological sequence of activities that need to happen in order to and is the chronological sequence of activities that need to happen in order to deliver the project. Whatever their differences, all projects will

deliver the project. Whatever their differences, all projects will by denition shareby denition share a similar life cycle; they will all

a similar life cycle; they will all have a beginning, middle, and an end.have a beginning, middle, and an end. 3.

3. What knowledge is required to successfully manage the projectWhat knowledge is required to successfully manage the project—These are—These are usually referred to as ‘Project Knowledge Areas’ because there are discrete areas usually referred to as ‘Project Knowledge Areas’ because there are discrete areas within project management that can be considered in isolation even though they within project management that can be considered in isolation even though they are

are interdependeinterdependent.nt.

Project managers ask 3 key questions:

1. How does the project ﬁt into the

organization?

2. How will the project evolve over time?

3. What knowledge is required to

successfully manage the project?

This might sound unnecessarily complicated, but looking at a project from each of

This might sound unnecessarily complicated, but looking at a project from each of thesethese three viewpoints will give you a much better understanding of the whole process than three viewpoints will give you a much better understanding of the whole process than using any one of them

using any one of them individuallyindividually..

To use an analogy: Imagine that a ship is traveling from London to New York. To use an analogy: Imagine that a ship is traveling from London to New York.

The organizational perspective

The organizational perspective would be concerned with which members of thewould be concerned with which members of the crew were responsible for doing what and how they communicated and crew were responsible for doing what and how they communicated and inter-acted with each other.

(19)

The

Thelife cycle of the voyagelife cycle of the voyage would be concerned with where the ship was and whatwould be concerned with where the ship was and what it was doing at

it was doing at any point from the beginning to the any point from the beginning to the end of the journey.end of the journey. The

Theknowledge areasknowledge areas would be would be things like navigation, collision avoidance, routinethings like navigation, collision avoidance, routine maintenance, etc. Even though these activities would be taking place maintenance, etc. Even though these activities would be taking place continu-ously and interdependently

ously and interdependently, it , it is still is still possible to think about possible to think about them as discrete ar-them as discrete ar-eas of

eas of knowledgknowledge.e.

Project

Perspectives

Organizational

Organizational Life CycleLife Cycle KnowledgeKnowledge_Areas_Areas

This analogy is not perfect but it does illustrate that when you are studying a complex This analogy is not perfect but it does illustrate that when you are studying a complex activity it can be helpful to look at

activity it can be helpful to look at it from a variety of perspectives in order to gain a bet-it from a variety of perspectives in order to gain a bet-ter understanding of the whole.

ter understanding of the whole.

Understanding How Projects are Organized

The way in which an organization is structured is largely a result of whether its The way in which an organization is structured is largely a result of whether its day-to-day work is

day work is process driven or project driven.process driven or project driven.

Project-Based Project-Based Organizations Organizations Construction Construction Consultants Consultants Software Software Developers Developers Advertising Advertising Agencies Agencies Process-Based Process-Based Organizations Organizations Utilities Utilities Manufacturers Manufacturers NGO’s NGO’s Government Government Departments Departments Charities Charities

(20)

Project Focused Project Focused

These organizations’ day-to-day work involves delivering unique projects for external These organizations’ day-to-day work involves delivering unique projects for external customers for a set time period. Their management structure is designed to support customers for a set time period. Their management structure is designed to support projects and everyone wo

projects and everyone working in the rking in the organization is assigned to one or more projects.organization is assigned to one or more projects. Examples include:

Examples include:

Construction companies, Consulting organizations, Software developers,

and Advertising agencies.

Process Focused Process Focused

The day-to-day work of these

The day-to-day work of these organizations predominaorganizations predominantly involves continually deliver-ntly involves continually deliver-ing products or services for

ing products or services for external customers. Their management structure is designedexternal customers. Their management structure is designed to support the process required to deliver the product or service to

to support the process required to deliver the product or service to the end customerthe end customer.. Examples include:

Examples include:

Utility companies, Manufacturing companies, Government departments,

Charities, and NGOs.

In reality, even the most

In reality, even the most process-process-focused organizations will run focused organizations will run occasional projects andoccasional projects and some may have parts of the organization that are dedicated to project-based working. some may have parts of the organization that are dedicated to project-based working. The vast majority of the staff in public utilities (electricity, gas, and water) will be The vast majority of the staff in public utilities (electricity, gas, and water) will be em-ployed to provide an ongoing service to their customer base.

ployed to provide an ongoing service to their customer base. But there will But there will be some areasbe some areas of the business concerned with physical or management infrastructure that are wholly of the business concerned with physical or management infrastructure that are wholly project driven.

project driven. For example: For example:

Staff responsible for the

Staff responsible for the developmdevelopment of new information ent of new information systems and thosesystems and those

responsible for the construction of new p

responsible for the construction of new physical infrastructure, like electricalhysical infrastructure, like electrical

substations and water treatment plants.

The extent to which your organization has the necessary assets and processes to The extent to which your organization has the necessary assets and processes to con-duct successful projects will play a signicant role in your project costs and level of risk. duct successful projects will play a signicant role in your project costs and level of risk. The less experience it has, the higher your project costs will be and the greater degree of The less experience it has, the higher your project costs will be and the greater degree of risk compared to

(21)

Every organization is unique and these classications are only useful in that they illus Every organization is unique and these classications are only useful in that they illus --trate the fact that project management is likely to present more of a challenge in trate the fact that project management is likely to present more of a challenge in pro-cess-focus

cess-focused organizations than in ed organizations than in those that are those that are project focused.project focused.

It is better to think of organizational structures existing on a continuum as described It is better to think of organizational structures existing on a continuum as described below

below. This is not . This is not only more realistic but it allows us to only more realistic but it allows us to begin thinking about how exactlybegin thinking about how exactly the organizational structure will impact a project in practical terms.

the organizational structure will impact a project in practical terms.

At one extreme are organizations in which employees are isolated within their

At one extreme are organizations in which employees are isolated within their functionalfunctional divisions as shown. divisions as shown.

Corporate Management

Division A Division A Business Line Business Line Business Line Business Line Finance, HR, Finance, HR, IT, etc IT, etc Division B Division B Business Line Business Line Business Line Business Line Business Line Business Line Division C Division C Business Line Business Line Business Line Business Line Finance, HR, Finance, HR, IT, etc IT, etc Finance, HR, Finance, HR, IT, etc IT, etc

In this scenario, senior management allocate capital to each division, which then

In this scenario, senior management allocate capital to each division, which then operateoperate autonomously to return as much prot as possible. Each division

autonomously to return as much prot as possible. Each division is completely indepenis completely indepen --dent of the others and there is no mechanism to allow communication across divisions dent of the others and there is no mechanism to allow communication across divisions other than by going

other than by going up the hierarchy to senior management who would then have to up the hierarchy to senior management who would then have to passpass the decision down to the other

the decision down to the other divisions.divisions.

This type of structure makes producing a limited amount of

This type of structure makes producing a limited amount of products or services efcientproducts or services efcient and predictable, but would make it almost impossible to run a project that cut across and predictable, but would make it almost impossible to run a project that cut across divisional boundaries.

(22)

A renement of this structure is shown below and is referred to as a weak matrix. This A renement of this structure is shown below and is referred to as a weak matrix. This is because although each division operates independently, they no longer have direct is because although each division operates independently, they no longer have direct control over support functions

control over support functions like ITlike IT, nance, and , nance, and human resources.human resources.

This type of structure makes sense because these support functions do not need to be This type of structure makes sense because these support functions do not need to be duplicated and can be shared between the divisions. This saves money and enables the duplicated and can be shared between the divisions. This saves money and enables the support departments to be bigger

support departments to be bigger and employ more specialist staff.and employ more specialist staff.

Division A

Business Line

Division B

Business Line

Division C

Business Line

Support Departments

Human

Resources

Strategic

Planning

Finance

Information

Technology

etc.

Legal

Counsel

Corporate Management

The implication for project management is that there will be mechanisms for The implication for project management is that there will be mechanisms for commu-nicating across divisions and that people

nicating across divisions and that people will be more will be more accepting of working with othersaccepting of working with others outside of their own division.

(23)

KEY POINTS

4

4 Project management can be thought of in terms of organizational, life cycle,Project management can be thought of in terms of organizational, life cycle,

and knowledge area perspectives. and knowledge area perspectives.

4

4 Organizations may be either Organizations may be either process driven or project driven.process driven or project driven. 4

4 Even the most process-focused organizations will run occasional projects andEven the most process-focused organizations will run occasional projects and

some organizations may have parts that are dedicated to project-based working.

4

4 There are various ways of There are various ways of structuring the project environment depending onstructuring the project environment depending on

the type of

the type of organization.organization.

Matrix-Management Environment

This type of structure can be taken further

This type of structure can be taken further to give what is known as a to give what is known as a pure matrix-manpure matrix-man--agement environment. agement environment. D Deeppaarrttmmeennt t AA DDeeppaarrttmmeennt t BB DDeeppaarrttmmeennt t CC DDeeppaarrttmmeennt t DD Project X Project X Project Y Project Y Project Z Project Z

This is a type of structure in which even though an individual may ‘belong to’ a particular This is a type of structure in which even though an individual may ‘belong to’ a particular department, they will be assigned to different projects and report to a project manager department, they will be assigned to different projects and report to a project manager while working on that

while working on that project. Therefoproject. Therefore, each individual may have to re, each individual may have to work under severalwork under several managers whilst performing their role.

(24)

For example, For example,

Someone who is working in Department C and who is assigned part-time to

projects X and

projects X and Z will nd Z will nd themselves reporting themselves reporting to three different to three different managers,managers,

all of whom wi

all of whom will have some degree of authority over them.ll have some degree of authority over them.

•

• Their Their line line manager manager (Dept (Dept C)C)

•

• Project Manager for project XProject Manager for project X

•

• Project Manager for project ZProject Manager for project Z

Matrix management is now fairly common and exists

Matrix management is now fairly common and exists at some level in at some level in most large organi-most large organi-zations, particularly those that have multiple business units and

zations, particularly those that have multiple business units and international operations.international operations.

Advantages of Matrix Management

•

• Efﬁcient exchange of dataEfﬁcient exchange of data •

• Democratic leadership styleDemocratic leadership style •

• Improved satisfaction & motivation forImproved satisfaction & motivation for

individual

Disadvantages of Matrix Management

•

• Conﬂict between line & project managersConﬂict between line & project managers •

• Issues of resource allocationIssues of resource allocation •

• Lack of Lack of recognitrecognition for ion for individualsindividuals

One of the advantages of implementing a matrix structure is that it can lead to a more One of the advantages of implementing a matrix structure is that it can lead to a more efcient exchange of information as people from different areas work closely together. efcient exchange of information as people from different areas work closely together. This enhances overall productivit

This enhances overall productivity because it y because it facilitates quick decision-making.facilitates quick decision-making. For example,

For example,

Individuals from the customer support and production departments may

confer with one another to x problems as soon as they appear.

Rather than the production department remaining unaware that there is a

problem until it surfaces m

(25)

The matrix structure also

The matrix structure also encouragencourages a es a democratic leadership style that incorporates thedemocratic leadership style that incorporates the input of team members before managers make decisions. The ability to

input of team members before managers make decisions. The ability to contribute valu-contribute valu-able information before decisions are

able information before decisions are made leads to made leads to employee satisfaction and increasedemployee satisfaction and increased motivation.

motivation.

A disadvantage of the matrix structure is that it i

A disadvantage of the matrix structure is that it is a recipe for disagreement between thes a recipe for disagreement between the line manager and the project managers. This is because the latter

line manager and the project managers. This is because the latter will often try will often try to mini-to mini-mize each department’s billing to the project, whereas the departmental managers will mize each department’s billing to the project, whereas the departmental managers will usually try to secure as

usually try to secure as much of the project’s budget as possible.much of the project’s budget as possible.

There can also be disagreements about resource allocation and prioritization. This There can also be disagreements about resource allocation and prioritization. This oc-curs because project managers tend to view their own project as the most important curs because project managers tend to view their own project as the most important activity and forget that the

activity and forget that the line manager may have other commitments that his line manager may have other commitments that his depart- depart-ment is expected to meet.

ment is expected to meet.

Firstly, line managers have nite resources at their disposal and often have to juggle Firstly, line managers have nite resources at their disposal and often have to juggle these in such a way as to ‘satisfy most of the demand for most of the time.’ In addition, these in such a way as to ‘satisfy most of the demand for most of the time.’ In addition, they often have numerous deadlines, relating to both

they often have numerous deadlines, relating to both departmental work-in-pdepartmental work-in-progress asrogress as well as to each project that

well as to each project that they are supplying resourcethey are supplying resources to.s to.

Secondly, projects in progress may be subject to changes, following the agreement and Secondly, projects in progress may be subject to changes, following the agreement and commitment of the line resources required. This may result from a failure to

commitment of the line resources required. This may result from a failure to achieve theachieve the expected progr

expected progress in any area of work and is ess in any area of work and is likely to have a knock-on effect on the abil-likely to have a knock-on effect on the abil-ity of the line manager to supply the resources they are committed to. As a line manager, ity of the line manager to supply the resources they are committed to. As a line manager, you may also have to accommodate unexpected resource shortages due to absenteeism you may also have to accommodate unexpected resource shortages due to absenteeism and staff turnover.

and staff turnover. All of these

All of these factors mean that conict is factors mean that conict is unavoidable in organizations that are structuredunavoidable in organizations that are structured in this way and many of these issues described may be complicated further if staff are in this way and many of these issues described may be complicated further if staff are working on more than one project at a

working on more than one project at a time.time.

Another feature of the matrix structure is that it can lead to staff members becoming Another feature of the matrix structure is that it can lead to staff members becoming concerned about the extent to which the efforts

concerned about the extent to which the efforts they expend on project-rethey expend on project-related work willlated work will be recognized and potentially rewarded nancially. This problem may be compounded if be recognized and potentially rewarded nancially. This problem may be compounded if they feel their project-related work will not be recognized within their own department they feel their project-related work will not be recognized within their own department and no matter how hard they work on the project it will not affect their chances of and no matter how hard they work on the project it will not affect their chances of ad-vancement.

(26)

This concern is primarily an issue with staff seconded to projects on a full-time basis This concern is primarily an issue with staff seconded to projects on a full-time basis as they may feel increasingly isolated and left behind in relation to their long-time as they may feel increasingly isolated and left behind in relation to their long-time col-leagues and the departmental practices with which they are familiar. Also, individuals leagues and the departmental practices with which they are familiar. Also, individuals involved with long-term projects may have worries about what happens to them at the involved with long-term projects may have worries about what happens to them at the end of the project. Their fear could be that their department has learnt to cope without end of the project. Their fear could be that their department has learnt to cope without them, or developed new procedures whilst they were assigned to the project.

them, or developed new procedures whilst they were assigned to the project. As a

As a project manager you should ensure each individual’s performance is recorded andproject manager you should ensure each individual’s performance is recorded and reported to their line manager so that it can be assessed in their annual appraisal.

reported to their line manager so that it can be assessed in their annual appraisal. Projects are all about utilizing existing resources and expertise in

Projects are all about utilizing existing resources and expertise in an efcient and an efcient and effeceffec --tive way to get things done.

tive way to get things done. The downside of this, from a staff The downside of this, from a staff perspective, may be thatperspective, may be that projects are not seen as training-oriented environments in which to develop personal projects are not seen as training-oriented environments in which to develop personal skills.

skills.

The questions raised by

The questions raised by the problem of establishing the problem of establishing a sound project management struc-a sound project management struc-ture revolve around the creation of

ture revolve around the creation of effective reporting lines. There are effective reporting lines. There are two organizationaltwo organizational extremes that can be

extremes that can be adopted:adopted: 1.

1. All of the personnel working on the project remain in their normal situation, re-All of the personnel working on the project remain in their normal situation, re-porting to their line managers. In this case, the project management staff will porting to their line managers. In this case, the project management staff will need to coordinate the required project work through the line managers.

need to coordinate the required project work through the line managers. 2.

2. A project team is A project team is created and all personnel working on the created and all personnel working on the project are drawn intoproject are drawn into a project team and report exclusively to the project manager.

a project team and report exclusively to the project manager. In practice a combination of these approac

In practice a combination of these approaches is often found to be the hes is often found to be the best solution, andbest solution, and is by far the most common method. However, this organizational framework risks is by far the most common method. However, this organizational framework risks break-ing one of

ing one of the tenets of the tenets of good managemengood management—that of matching responsibility with author-t—that of matching responsibility with author-ity. The project manager will be responsible for performance on the project but may lack ity. The project manager will be responsible for performance on the project but may lack sufcient authority where contributors report to their

sufcient authority where contributors report to their own line managers.own line managers.

All of these factors mean that unless your organization is completely project focused All of these factors mean that unless your organization is completely project focused then you can expect conict, disagreement, and compromise to be an integral part of then you can expect conict, disagreement, and compromise to be an integral part of organizing a project.

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T

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Contents

s

Preface

Preface

Visit Our Web

Visit Our Website

site

Introduction

Introduction

•

•

Infor

Infor

mation

mation

T

T

echnology

echnology

(IT) now plays

(IT) now plays

a signiﬁcant

a signiﬁcant

r

r

ole in

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Strategic

Strategic

Gr

Gr

owth

owth

• IT specialist

• IT specialist

ter

ter

ms

ms

integrate with

integrate with

management

management

vocabulary

vocabulary

IT

IT

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Pr

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• the most

• the most

signiﬁcant

signiﬁcant

methodology

methodology

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is

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Management

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