2. Introduction to PM Kanabar/warburton Overview of project management and how it fits with programs, portfolios, organizations and operations. 2. Introduction to PM Kanabar/warburton

Objectives Introduce terms: project, program, operation, sub-project and portfolio Identify industry trends fueling the demand for project management skills Identify responsibilities, roles, and skills required of project managers Identify project phases and life cycles Explain how the five process groups and nine knowledge areas of project management can be organized into five groups

Philosophy “There are no dumb questions” “Opinions welcome” “Backed up by data” “Question everything”

Philosophy See one Do one Teach one

Then you go back to the office! You take some training Small groups of 3 - 5 Then you go back to the office! 5

Introduction to The Project Management Institute PMI Introduction to The Project Management Institute

Growth in Market for Project Management & PM Education 15 May 2006 Boston University USA John H. Cable, RA, PMP Director, Project Management Program A. James Clark School of Engineering Chairman, GAC Board

Outline Growth in interest in Project Management Growth in PM education Global Accreditation Center Discussion

GROWTH 220,000? 5 The Kitchen Years 1969 The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs 5 1969

GROWTH Another key factor emerged in the late 80s Inexpensive, easy to use, and powerful computers The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs

GROWTH THE INTERNET Then something entirely new happened… The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs

GROWTH 1996 PMBOK® Guide coincides with uptake of the Internet The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs

GROWTH Growth of the PMP had a slightly different trigger… 180,000 The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs 10,000

GROWTH Growth was further accelerated in the late 90s by a little something called… Y 2 K The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs

And some other stuff… GROWTH Emergence of the Chinese Economy Global Outsourcing Multinational Teams Global Communications Globalization The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs

PMI estimates 16.5 million project managers worldwide GROWTH So…when will this end? PMI estimates 16.5 million project managers worldwide The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs

GROWTH Theory of Diffusion of Innovation 16.5 Million Laggards Late Majority Theory of Diffusion of Innovation Everett Rogers 8.25 Million Early Majority The graph shows our historic membership growth. I call your attention to that growth since 1999, at the height of the dot-com bubble. You can see that we grew with the dot-com economy -- but we didn’t collapse with it. This isn’t counterintuitive: organizations had to do more with less. That made project management very attractive to organizations that sponsored large projects. Project management had growing appeal for developing economies, manufacturers, and governments. Since organizations will want to do more with less in the future, we expect our membership and certification numbers to continue to grow in the coming years. A Look Back in History For first 25 years, PMI was primarily North American-centric professional association with moderate growth Interest in project management and PMI mushroomed with “dot com” economy Despite “dot com” bust in early 2001, membership and certification continued to grow, particularly outside North America Last month, nearly 215,000 members in 150+ countries and nearly 185,000 credentialed PMPs Early Adopters 2.64 Million 0.41 Million Innovators

% PMI Members % PMPs 72% 61% 9% 15% 27% 4% 3%

Discussion PM is the hottest topic in Education BU is in the lead PM Credentials are worth $$$$ PMI Certification (PMBOK) Project Management Professional (PMP) pmi.org

PMP Certification

Have to be successful every time! Project Managers Have to be successful every time!

The Fundamental Tension Project Manager (PM) Controls the $$$$$ Interfaces to the Customer Responsible for milestones, deliverables, & schedule Technical Director (TD) Responsible for the product

The Fundamental Tension There is always a PM and a TD (you just have to look) Clues: Who has what power? Who whines?

The Fundamental Tension Construction Project: Site Foreman controls the staffing, the schedule, delivering within budget. Where is the TD? The Architect

The Fundamental Tension Movie: Who controls staffing, schedule, and everything else? Who controls the Money? The Producer Who wins all the battles? Who whines?

The “Fundamental Tension” Assignment Describe a PM/TD Conflict in your own experience Who resolves the conflict: PM -- always

PMBOK Life Cycle

Process Groups Initiating Planning Controlling Executing Closing (21 Processes) Controlling Executing (8 Processes) (7 Processes) Closing (2 Processes) PMBOK® Guide, 4th Edition, Figure 3-1 (modified).

Class Exercise Identify Work Place Project Life Cycles Students identify which project life cycle is used to manage projects at their organizations Students will recommend life cycle.

… Executing Initiating Planning Controlling Closing 4. Project Integration Management … 4.2 Project Plan Execution 5. Project Scope Management 6. Project Time Management 7. Project Cost Management 8. Project Quality Management 8.2 Quality Assurance 9. Project Human Resource Management 9.3 Team Development 10. Project Communications Management 10.2 Information Distribution 11. Risk Project Management 12. Project Procurement Management 12.3 Solicitation 12.4 Source Selection 12.5 Contract Administration Process Group Knowledge Area

… Executing Initiating Planning Controlling Closing 4. Project Integration Management 4.1 Project Plan Development 4.2 Project Plan Execution 4.3 Integrated Change Control 5. Project Scope Management … 6. Project Time Management 7. Project Cost Management 8. Project Quality Management 9. Project Human Resource Management 10. Project Communications Management 11. Risk Project Management 12. Project Procurement Management Process Group Knowledge Area

Key Skills Leadership Team building Motivation Communication Influencing Decision making Political and cultural awareness Negotiation

Benefits for Project Managers Recognition of project management as a profession Growth opportunities Future source of company leaders High visibility of project results Building a reputation and network Transferable skills and knowledge

Challenge of Project Management PM’s Live in Conflict Competition for staff Compete with other projects for resources Multiple Bosses Different priorities and objectives of stakeholders Clients, Parent Org, Team, Public

Challenge for Project Manager It’s your problem!

Induce? Must induce the right people at the right time to address the right issues and make the right decisions.

The Project Manager Increased professionalism & tools Typically “Thrown into PM” Appreciation of importance Company Hierarchy vs. Projects Responsible for Outcomes without authority Projects change “Known unknowns & unknown unknowns” Trans-disciplinary  Conflicts

The Project Manager’s Job Respond to Clients Respond to Environment Identify problems (pro-active) Correct problems Build the team Conduct Trade-offs Make timely decisions Optimize the Project Lead and Manage Enthusiasm & despair are infectious Politics: naïve vs. shark Ethical reporting

References PMBOK 4th Edition, 2008 PMI MBA Fundamentals, Kanabar & Warburton.