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

So you want to study Project Management … Read More Sleep Less!

Introduction to Project Management

What is a Project? Has an established objective Has a defined life span with a beginning and an end. Requires across-the-organization participation. Unique -- never been done before. Has specific time, cost, and performance requirements Limited resources

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

Definition: Project A temporary endeavor undertaken to create a unique product, service, or result. PMBOK® Guide, 4th Edition, Glossary Temporary: Projects are marked by a definite beginning and end Unique: The service or product is different in some distinguishing way from other products or services

Related Definitions Operation Program Subproject Operations and projects differ primarily in that operations are ongoing and repetitive while projects are temporary and unique. PMBOK® Guide, 4th Edition , 1.2 Program A program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually. PMBOK® Guide, 4th Edition , 1.5 Subproject Projects are frequently divided into more manageable components or subprojects. PMBOK® Guide, 4th Edition , 1.5

How Projects Differ From Operations Create own temporary charter, organization, and goals Catalyst for change Unique product or service Start and end date Operations Semi-permanent charter, organization, goals Maintains status quo Standard product or service Ongoing

Definition: Project Management The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. PMBOK® Guide, 4th Edition , Glossary

Project Management Project management is a proven discipline used to deliver consistent, predictable, and repeatable project results by: Identifying milestones and deliverables Delineating steps and following the progress of the project Planning quality into the project Proactively identifying risks to eliminate negative impacts and to embrace positive impacts on the project Developing cost projections based on a timeline

Using the Project Management Approach Project management can be applied to any project regardless of size, budget, or timeline

Corporate Trends That Support Project Management Corporate globalization Stimulus packages to various initiatives Downsizing, mergers, and reorganizations Sophisticated customers requiring high-end quality goods and services Multi-national projects requiring standard processes to manage projects Constant growth

Corporate Benefits of Using Project Management Achieve project goals Enable customer focus and alignment Optimize the use of organizational resources Incorporate quality principles Put strategic plans into practice Ensure fast time-to-market Comply with regulations and standards

PMI® Framework The framework is a basic structure to understand and apply accepted practices and procedures required to manage a project such as: Project phases Project life cycles Process groups Core and facilitating processes Knowledge areas

PMBOK The PMBOK® Guide, 4th Edition, is the compilation of information required to manage a project and contains key processes that most projects will undertake.

Definition: Project Phase A collection of logically related project activities, usually culminating in the completion of a major deliverable. PMBOK® Guide, 4th Edition, Glossary

Definition: Project Life Cycle A collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project. PMBOK® Guide, 4th Edition, Glossary

Project Phases and Life Cycle Projects are usually divided into project phases Collectively, the phases are known as the project life cycle Each phase is marked by the completion of one or more deliverables Phases define: Work to be done Who should be involved Allow for Go/NoGo decisions

Sample Generic Life Cycle PMBOK® Guide, 4th Edition, Figure 2-1.

Programs versus Projects Program Definition A series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal. A higher level group of projects targeted at a common goal. Examples: Program: Completion of all courses required for a degree. Project: Completion of a course in project management.

Development Life Cycle Project Life Cycle Milestones! Req. Anal RFP Proposals Project Life Cycle Maintenance Life Cycle Development Life Cycle

Start Exercise

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

End Assignment

PMBOK Life Cycle

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

Project Management Processes Projects are composed of processes A process is a series of actions bringing about a result PMI® identifies: Five process groups 42 processes (reduced from 44 in the previous PMBOK Edition) Nine project management knowledge areas

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).

Process Groups Initiating: Authorizing the project or phase Planning: Involves defining and decomposing the project objectives Executing: Coordinating people and other resources to carry out the plan Controlling: Monitoring & measuring progress regularly to identify variances Closing: Formalizing acceptance of the project

Processes Overlap & Interact Processes overlap and interact throughout a project or phase. Process consists of: Inputs (documents, plans, designs) e.g., Scope statement Tools and Techniques (mechanisms applied to inputs) – e.g., Decomposition Outputs (documents, products) – e.g., WBS

… 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

Knowledge Areas Project Integration Management (3 processes) Project Scope Management (5 processes) Project Time Management (5 processes) Project Cost Management (4 processes) Project Quality Management (3 processes) Project Human Resource Management (3 processes) Project Communications Management (4 processes) Project Risk Management (6 processes) Project Procurement Management (6 processes)

… 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

4.2 Project Plan Execution 4.2.1 Inputs 4.2.2 Tools and Techniques Project plan Supporting detail Organizational policies Preventive action Corrective action General management skills Product skills and knowledge Work authorization system Status review meetings Project management information system Organizational procedures 4.2.3 Outputs Work results Change requests

Definition: Project Manager The individual responsible for managing a project. PMBOK® Guide, 4th Edition, Glossary

Definition: Project Manager The individual responsible for applying knowledge, skills, tools, and techniques to project activities to meet project requirements.

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 The Project Manager Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. Marshals resources for the project. Is linked directly to the customer interface. Provides direction, coordination, and integration to the project team. Is responsible for performance and success of the project. Must induce the right people at the right time to address the right issues and make the right decisions.

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

The Project Manager’s Job Manage: Constraint & Tradeoffs "Triple constraint" removed in the latest PMBOK. Constraints referenced as "balance constraints of scope, quality, schedule, budget, resources & risk." Time Cost Scope Project tradeoffs; what experiences have you had?

The Project Manager’s Job Stakeholder Analysis Manage Stakeholders

Definition: Stakeholder Individuals and organizations that are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or project completion. They may also exert influence over the project and its results. PMBOK® Guide, 4th Edition, Glossary

Stakeholders Customer Project sponsor Project team Determines the project deliverables (requirements) and provides funding; often represents or is the end-item user Project sponsor Person in management who approves and supports the project Project team The individuals that perform the required project tasks

Stakeholders Project manager Functional managers Responsible for the successful accomplishment of the project Functional managers Providers of the labor force required to perform the project’s tasks Other stakeholders include: Performing organization Government agencies/regulators Suppliers and vendors/subcontractors End-users

Summary of General Project Manager Responsibilities Use general, application area, and project managerial skills to: Ensure stakeholder satisfaction Establish and maintain quality standards Ensure compliance with regulations, state and federal laws, organizational policies, and procedures Identify and manage project risks Select and uses tools and techniques for each of the project management processes Deliver the project on time and within budget

Exercise Assess Your Organization’s Project Management Performance Students assess the project management performance level for their organization

Summary Project management is a subset of general management, and is both an art and a science Project managers must draw upon a complex skill set that allows for seamless transition among the business, social, technological, and economic issues facing management to bring balance to the triple constraints of time, scope, and budget The importance of addressing and satisfying the needs and the expectations project stakeholders must not be understated

Summary Project managers are responsible for selecting the most appropriate life cycle to support the type of project implemented Knowing the corporate culture and the authority of the project managers helps the project manager know the boundaries or limits they face within the performing organization PMI® organizes project management into five process groups and nine knowledge areas

Further Reading from Book Review Chapter 1 On your own prepare your responses to the questions at the end of the chapter. Compare them with the keys at the end of the text book.

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