SECTION 1 THE PROJECT MANAGEMENT FRAMEWORK PMBOK® Fourth Edition

CHAPTER 2 PROJECT LIFE CYCLE AND ORGANIZATION

stakeholders

2.3 Stakeholders Definition: Stakeholders are persons or organizations who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project. Examples of persons or organizations customers sponsors the performing organization the public

2.3 Stakeholders Exert influence on the project, its deliverables, and the project team members. The project management team must identify both internal and external stakeholders in order to determine the project requirements and expectations of all parties involved. Furthermore, the project manager must manage the influence of the various stakeholders in relation to the project requirements to ensure a successful outcome.

stakeholders

2.3 Stakeholders Concepts: Project Team [Members] Project Management Team Operations Management Functional Managers

2.3 Stakeholders Stakeholders Responsibility and Authority: Varying levels when participating on a project Change over the course of the project life cycle. RANGE from occasional contributions to full project sponsorship Caution! Can have an adverse IMPACT on the project objectives.

2.3 Stakeholders Stakeholder Identification: Stakeholder identification is a continuous process It can be difficult. Identifying stakeholders and understanding their relative degree of influence on a project is critical. Failure to do so can extend the timeline and raise costs substantially. Impact of late recognition of a stakeholder

Organizational cultures and styles Organizational influences on project management Organizational cultures and styles

2.4 Organizational Influences on Project Management The organizational culture, style, and structure influence how projects are performed. A project manager should understand these as they affect a project. An organization’s degree of project management maturity and its project management systems can also influence the project. When a project involves more than one organizations, the project will be influenced all of them. The organizational culture is an enterprise environmental factor.

2.4 Organizational Influences on Project Management Cultures and styles may have a strong influence on a project’s ability to meet its objectives. Cultures and styles are typically known as “cultural norms” The “norms” include [Or What do the cultural norms include?] a common knowledge regarding how to approach getting the work done, what means are considered acceptable for getting the work done, and who is influential in facilitating the work getting done. The project manager must know which individuals in the organization are the decision makers and work with them to influence project success.

2.4 Organizational Influences on Project Management Most organizations have developed unique cultures that manifest in numerous ways including, but not limited to: • Shared visions, values, norms, beliefs, and expectations, • Policies, methods, and procedures, • View of authority relationships, and • Work ethic and work hours. Detailed study of ‘organizational culture’ is beyond the scope of this course.

Organizational Structure Organizational influences on project management Organizational Structure

2.4 Organizational Influences on Project Management Organizational structure is an enterprise environmental factor Why it is important to by understood? It affect the availability of resources and influence how projects are conducted. What are the different types of structures? Organizational structures range from functional to projectized, with a variety of matrix structures between them. Functional Structure Matrix Structures [Weak, Balanced, and Strong] Projectized Structure

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project Management Functional Organization: Key Points Each employee has one clear superior [Unity of Command] Employees are grouped by specialty [Finance, HR, Marketing etc] Each department will do its project work independent of other department.

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project Management Projectized Organization: Key Points Team members are co-located Most of the organization’s resources are involved in project work Project Managers have great deal of independence and authority Projectized organizations often have organizational units called departments, but these groups either report directly to the project manager or provide support services to the various projects.

2.4 Organizational Influences on Project Management Projectized Organization: Key Points

2.4 Organizational Influences on Project Management Matrix Organizations: Advantages and Disadvantages Matrix Organizations are a blend of functional and projectized characteristics. Advantages Disadvantages Highly visible project objectives Extra administration is required Improved project manager control over resources More than one boss for project teams More support from functional areas More complex to monitor and control Maximum utilization of scarce resources Tougher problems with resource allocation Better coordination Need extensive policies and procedures Better horizontal and vertical dissemination of information Functional manager may have different priorities than project managers Team members maintain a “home” Higher potential for conflict

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project Management Weak Matrix Organization: Key Points Maintain many of the characteristics of a functional organization Project Manager’s role is more of a coordinator or expediter than that of a true project manager.

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project Management Balanced Matrix Organization: Key Points Balanced Matrix organization recognizes the need for a project manager. But it does not provide the project manager with the full authority over the project and project funding.

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project Management Strong Matrix Organization: Key Points Have many of the characteristics of the projectized organization Can have a full-time project managers with considerable authority Can have full-time project administrative staff

2.4 Organizational Influences on Project Management

2.4 Organizational Influences on Project Management

Organizational Process assets Organizational influences on project management Organizational Process assets

2.4 Organizational Influences on Project Management Definition: Organizational process assets include any or all process related assets, from any or all of the organizations involved in the project that can be used to influence the project’s success. Examples: formal and informal plans, policies, procedures, and guidelines. organization’s knowledge bases such as lessons learned and historical information. completed schedules, risk data, and earned value data. Key Points: Updating and adding to the organizational process assets is necessary throughout the project Generally, is the responsibility of the project team members.

2.4 Organizational Influences on Project Management Categorization: Organizational process assets may be grouped into two categories: 1. Processes and Procedures >> for conducting work 2. Corporate Knowledge Base >> for storing and retrieving information

2.4 Organizational Influences on Project Management Processes and Procedures Organizational standard processes such as standards policies [safety and health, ethics, and project management] standard product and project life cycles quality policies and procedures [process audits, improvement targets, checklists, and standardized process definitions for use in the organization] Standardized guidelines, work instructions, proposal evaluation criteria, and performance measurement criteria Templates [risk, work breakdown structure, project schedule network diagram, and contract templates]

2.4 Organizational Influences on Project Management Processes and Procedures Guidelines and criteria for tailoring the organization’s set of standard processes to satisfy the specific needs of the project; Organization communication requirements Project closure guidelines or requirements Financial controls procedures Issue and defect management procedures Change control procedures Risk control procedures Procedures for prioritizing, approving, and issuing work authorizations.

2.4 Organizational Influences on Project Management Corporate Knowledge Base Process measurement databases used to collect and make available measurement data on processes and products, Project files Historical information and lessons learned knowledge bases Issue and defect management databases Configuration management knowledge bases Financial databases

2.4 Organizational Influences on Project Management What is the difference between Enterprise Environmental Factors And Organizational Process Assets ???