Introduction to Project Management Certificate Series – Day 3 Organizational Influences 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

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 How we initiate and plan projects How we execute or how work gets done

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

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

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

Organizational Structures Types Functional Organizations Projectized Organizations Matrix Organizations Weak Balanced Strong Functional Projectized Weak Matrix Balanced Matrix Strong Matrix

Project manager’s authority Resource availability to the project 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

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

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

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

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

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

Weak Matrix Organization

Balanced Matrix Organization

Strong Matrix Organization

Organizational Structure Type Characteristics

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

Project Based Organizations Established to achieve strategic goals Create temporary frameworks around their projects that allow them to circumvent obstacles in their existing organizational structure regardless of organizational hierarchy Functional, Matrix, or Projectized Ensure successful project completion while minimizing the impact or limitations (i.e. bureaucracy) that the established organization’s structure may otherwise have on the project’s success

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

Organizational Process Assets (OPAs) An organization’s existing processes, procedures and historical information They are inputs to many PM processes from initiating to closing Provide valuable templates, records, lessons learned and other information for future projects Are grouped into 2 categories Processes and Procedures Corporate Knowledge Base See PMBOK pages 27-28

Enterprise Environmental Factors (EEFs) Inputs to nearly as many processes as OPAs Company culture and existing systems that the project will have to deal with or can make use of Company baggage that comes with the project and is outside of the control of the project team

Enterprise Environmental Factors 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

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

The Relationship Between Stakeholders and the Project

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

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

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

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

Project Life Cycle and Project Management Processes A life cycle is a progression through a series of developmental stages A product has a life cycle from its conception through its withdrawal A project life cycle are the steps performed to build the product of the project

Project Life Cycle vs. Project Management Process Groups There’s a difference between the project life cycle and the project management process groups The project life cycle is what you need to do the work The project management process groups is what you need to do to manage the work

Project Life Cycle Department’s methodology Logical breakdown of what you need to do to: Produce the deliverables of the project or said differently Build the product of the project Many types of project life cycles depending on the: Product being developed Industry Organizational preferences

Project Life Cycle Divided by functional or partial objectives, intermediate results or deliverables, specific milestones within the overall scope of work or financial availability Generally time bounded with a start and ending or control point

Project Life Cycle Ranges Ranges from plan driven to change driven

Project Life Cycle Approaches – Plan Driven Plan driven projects have predictive life cycles – Waterfall Require scope, schedule & cost to be determined in detail in the early; before the work begins to produce the product (i.e. construction)

Project Life Cycle Approaches – Change Driven Change driven projects use adaptive life cycles – Agile Use varying levels of early planning for scope, schedule and cost Involve fixed time and cost Scope is broadly defined and refined as the project progresses

Project Life Cycle Approaches – Change Driven… Customer requirements are documented and prioritized in the backlog which may be adjusted Work is planned in quick brief increments to allow the customer to change and reprioritize requirements within time and cost constraints (i.e. software development) Two other adaptive lifecycle types: incremental and iterative; page 36 Rita

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

Project Life Cycle Examples System Development Life Cycle Phases Problem Definition Requirements Gathering Analysis Design Development Testing Deployment Maintenance

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

Project Life Cycle Characteristics Generic Life Cycle Structure

Project Life Cycle Characteristics

Project Life Cycle Characteristics 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

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

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

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

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

Phase End Reviews A review that takes place Also know as: 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

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

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

Product Life Cycle Is a collection of product phases Generally sequential Sometimes overlapping Created to provide better management control

Product Life Cycle Introduction Growth Maturity Decline 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 fall

Product vs. Project Life Cycle Relationships Product Phase Project Life Cycles New product Existing product requires new feature/function Feasibility study Market research Advertising campaign … New project to create product New project to add feature function New project New projects…

Product vs. Project Life Cycle Relationships Conception Growth Maturity Decline Withdrawal Time