Introduction to Project Management Certificate Series – Day 3 Organizational Influences and 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 (i.e. gets work done) Culture and styles are group phenomena known as cultural norms which develop over time and include the way we initiate and plan projects

Organizational Culture and Styles Norms include the acceptable ways We get work done Recognized authorities who make and influence decisions Organizational culture is shaped by common experiences of members like Shared visions, mission, values, beliefs, expectations Regulations, policies, methods and procedures Motivation and reward systems Risk tolerance View of leadership, hierarchy and authority relationships Code of conduct, work ethic, and work hours Operating environments

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 Communication Project management success is highly dependent on an effective organizational communication style Has great influence on how projects are conducted As a consequence, project managers in distant locations are able to more effectively communicate with all relevant stakeholders within the organizational structure to facilitate decision making

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 Structure Type Characteristics

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

Matrix vs. Functional and Matrix vs. Projectized Weak Matrix Like a functional organization PM’s role is coordinator or expediter Balanced Matrix A balance of power exists between the Functional Manager and Project Manager Strong Matrix Like a projectized organization Full time project managers with full authority

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

Class Exercise In groups of 2 discuss whether your immediate team: Is considered functional, projectized, weak matrix, balanced matrix, or strong matrix? List the characteristics of your that justifies your answer to the question above Discuss what titles project managers have in your organization.

Another Aspect to 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 Plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization PMBOK 2.1.4, 2.1.4.1, 2.1.4.2

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 Stakeholder Identification Is a continuous process throughout the entire project life cycle Identifying stakeholders, understanding their relative degree of influence on a project, and balancing their demands, needs, and expectations are critical to the success of the project If you fail to identify and plan it may lead to delays, cost increases, unexpected issues, and other negative consequences including project cancellation

Managing Stakeholder Expectations The Project Manager must manage stakeholder expectations, which can be difficult because stakeholders often have very different or conflicting objectives Project Managers must balance these interests and ensure that the project team interacts with stakeholders in a professional and cooperative manner Project managers may involve the project’s sponsor or other team members from different locations to identify and manage stakeholders that could be dispersed around the world

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 Team Roles Project management staff – Perform project management activities like scheduling, budgeting, reporting and control, communications, risk management and administrative support Project staff - Carry out the work of creating the project deliverables Supporting experts – Perform activities required to develop or execute the project management plan. These can include such roles as contracting, financial management, logistics, legal, safety, engineering, test, or quality control

Project Team Roles User or Customer Representatives - Accept the deliverables or products of the project may be assigned to act as representatives or liaisons to ensure proper coordination, advise on requirements, or validate the acceptability of the project’s results Sellers – Also called vendors, suppliers, or contractors, are external companies that enter into a contractual agreement to provide components or services necessary for the project Business partner members - Members of business partners’ organizations may be assigned as members of the project team to ensure proper coordination

Project Team Roles Business partners - External companies, but they have a special relationship with the enterprise, sometimes attained through a certification process. Provide specialized expertise or fill a specified role such as installation, customization, training, or support

Composition of Project Teams Varies based on factors such as organizational type or culture, scope, and location. They may be: Dedicated where the project team members are assigned to work full-time on the project; basically projectized Part-Time established as temporary additional work, with functional managers maintaining resource control and PMs performing other management duties as well; basically matrixed

Project Life Cycle The steps an organization performs to build the product, service or result A series of phases a project passes through from its initiation to its closure Phases are generally sequential Their names and numbers are determined by the management and control needs of the organization and its area of application

Project Life Cycle or Phases May be divided by functional or partial objectives, intermediate results or deliverables, specific milestones within the overall scope of work or financial availability Are generally time bounded with a start and ending or control point A life cycle can be documented within a methodology

Project Life Cycle or Phases The project life cycle may be shaped by the unique aspects of the organization, industry or technology employed While every project has a definite start and end, the specific deliverables and activities in between will vary widely with the project The life cycle provides the basic framework for managing the project regardless of the work involved

Project Life Cycle or Phases Can range along a continuum from predictive or plan driven approaches at one end to adaptive or change driven at the other In a predictive life cycle the product and deliverables are defined at the beginning of the project and any changes to scope are carefully managed In an adaptive life cycle the project is developed over multiple iterations and the detailed scope is defined for each iteration only as the iteration begins

Characteristics of the Project Life Cycle Projects vary in size and complexity All projects can be mapped to the following generic life cycle structure Starting the project Organizing and preparing Carrying out the project work Closing the project

Characteristics of the Project Life Cycle The generic life cycle structure is often referred to when reporting to upper management or others less familiar with the details of the project This should not be confused with Project Management Process Groups because the processes in a Process Group may be performed and recur within each phase of a project as well as for the project as a whole

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

A Little Humor: Six Phases of a Project Enthusiasm Panic Disillusionment Search for the Guilty I’ll find someone to blame... Praise and Honors for the non-participants Punishment of the innocent Ask: How does this match your own experience working on your projects?

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