Modern Project Management Chapter 1 Modern Project Management
Learning Elements 1.1 Understand how projects differ from routine operational work. 1.2 Develop an understanding of the background to project management. 1.3 Understand at a broad level the concept of a project life cycle. 1.4 Make the link between an organisation’s strategy and the need for projects.
What is a Project? Characteristics An established objective A defined lifespan with a defined beginning and end (temporary) Usually the involvement of several departments and/or professionals Typically doing something that has never been done before (unique) Specific time, cost and performance requirements
What is not a Project? Routine, repetitive work Ordinary daily work that typically requires doing the same, or similar work, over and over
Comparison of Routine Work and Projects Routine, repetitive work Taking meeting notes Daily entering sales receipts into the accounting ledger Responding to a supply- chain request Practising scales on the piano Routine manufacture of an Apple iPod Projects Writing a book. Setting up a sales kiosk for a professional accounting conference Developing a supply- chain information system Writing a new piano piece Designing a new media player
Program versus Project A program is the application of knowledge, skills, tools and techniques to meet specific requirements. A program obtains benefits and control not available by managing projects individually.
Portfolio versus Program Portfolios provide an overarching umbrella for an organisation to manage all investment activity. Portfolios may be managed as a mix of programs and/or major projects.
The Project Life Cycle
The Project Manager Marshals resources for the project and relates directly to the customer Provides direction, coordination and integration to the project team Is responsible for the performance and success of the project Must induce the right people at the right time to address issues, make decisions and carry out the project’s activities Addresses the right issues and makes the right decisions
The Importance of Project Management Compression of the product life cycle Complexity Triple bottom line (planet, people, profit) Corporate downsizing Increased customer focus Organisational change management Small projects represent big problems
Project Management Today: A Holistic Approach Integrative approach The big picture: how organisational resources are being used An assessment of the risk to their portfolio of projects A rough metric for measuring the improvement of managing projects relative to others in the industry Linkages to senior management Performance management of projects A clear definition of benefits
Alignment of Projects with Organisational Strategy
Project Management Today: A Holistic Approach (cont.) Includes: Project selection Monitoring aggregate resource levels and skills Use of best practices Balancing projects in a portfolio Improving communication among all stakeholders An organisational perspective, beyond silo thinking Improving management of projects over time
The Technical and Socio-cultural Dimensions of the Project Management Process
Common Pitfalls in Project Management Not being aligned to organisational strategy Lack of top management or sponsor support Political discord or disagreement Poor or inadequate estimating Working backwards from a given drop-dead date Inexperienced project management personnel Fragmented team and team values
Common Pitfalls in Project Management (cont.) Poorly/vaguely defined requirements (Scope) Lack of user (customer) involvement Unrealistic requirements or expectations Scope creep Poor communication or lack of communication Ignoring project warning signs Poor governance
Key Terms project program portfolio project life cycle strategic alignment socio-technical perspective common pitfalls