1. Introduction to Project Management
Certificate Series – Day 3
Organizational Influences
Project Life Cycle

2. Understanding Organizational Structures
Organizational structures are unique just like projects
Each has its own style and culture
They influence how projects are performed

3. 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
How we initiate and plan projects
How we execute or how work gets done

4. Organizational Culture and Styles
Organizational culture is shaped by common experiences of members like
View of leadership, hierarchy and authority relationships
Code of conduct, work ethic, and work hours
Shared visions, mission, values, beliefs, expectations
Regulations, policies, methods and procedures
Risk tolerance
Operating environments
Motivation and reward systems

5. 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

6. 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

7. Organizational Structures Types
Functional Organizations
Projectized Organizations
Matrix Organizations
Weak
Balanced
Strong
Functional
Projectized
Weak Matrix
Balanced Matrix
Strong Matrix

8. 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

9. 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

10. Functional Organization

11. 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

12. Projectized Organization

13. 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

14. 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

15. 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

16. Weak Matrix Organization

17. Balanced Matrix Organization

18. Strong Matrix Organization

19. Organizational Structure Type Characteristics

20. 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

21. Composite Organization

22. Project Based Organizations
Established to achieve strategic goals
Create temporary frameworks around their projects that allow them to circumvent obstacles in their existing organizational structure regardless of organizational hierarchy
Functional, Matrix, or Projectized
Ensure successful project completion while minimizing the impact or limitations (i.e. bureaucracy) that the established organization’s structure may otherwise have on the project’s success

23. 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

24. Organizational Process Assets (OPAs)
An organization’s existing processes, procedures and historical information
They are inputs to many PM processes from initiating to closing
Provide valuable templates, records, lessons learned and other information for future projects
Are grouped into 2 categories
Processes and Procedures
Corporate Knowledge Base
See PMBOK pages 27-28

25. Enterprise Environmental Factors (EEFs)
Inputs to nearly as many processes as OPAs
Company culture and existing systems that the project will have to deal with or can make use of
Company baggage that comes with the project and is outside of the control of the project team

26. 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)

27. 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

28. 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

29. The Relationship Between Stakeholders and the Project

30. 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

31. 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

32. 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

33. 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

34. Project Life Cycle and Project Management Processes
A life cycle is a progression through a series of developmental stages
A product has a life cycle from its conception through its withdrawal
A project life cycle are the steps performed to build the product of the project

35. Project Life Cycle vs. Project Management Process Groups
There’s a difference between the project life cycle and the project management process groups
The project life cycle is what you need to do the work
The project management process groups is what you need to do to manage the work

36. Project Life Cycle Department’s methodology
Logical breakdown of what you need to do to:
Produce the deliverables of the project
or said differently
Build the product of the project
Many types of project life cycles depending on the:
Product being developed
Industry
Organizational preferences

37. Project Life Cycle
Divided by functional or partial objectives, intermediate results or deliverables, specific milestones within the overall scope of work or financial availability
Generally time bounded with a start and ending or control point

38. Project Life Cycle Ranges
Ranges from plan driven to change driven

39. Project Life Cycle Approaches – Plan Driven
Plan driven projects have predictive life cycles – Waterfall
Require scope, schedule & cost to be determined in detail in the early; before the work begins to produce the product (i.e. construction)

40. Project Life Cycle Approaches – Change Driven
Change driven projects use adaptive life cycles – Agile
Use varying levels of early planning for scope, schedule and cost
Involve fixed time and cost
Scope is broadly defined and refined as the project progresses

41. Project Life Cycle Approaches – Change Driven…
Customer requirements are documented and prioritized in the backlog which may be adjusted
Work is planned in quick brief increments to allow the customer to change and reprioritize requirements within time and cost constraints (i.e. software development)
Two other adaptive lifecycle types: incremental and iterative; page 36 Rita

42. 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

43. Project Life Cycle Examples
System Development Life Cycle Phases
Problem Definition
Requirements Gathering
Analysis
Design
Development
Testing
Deployment
Maintenance

44. 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

45. 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

46. Project Life Cycle Characteristics
Generic Life Cycle Structure

47. Project Life Cycle Characteristics

48. Project Life Cycle Characteristics
Cost of changes/correcting errors increases significantly over time

49. 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

50. 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

51. 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

52. 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

53. 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

54. 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

55. 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

56. 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

57. Product Life Cycle Is a collection of product phases
Generally sequential
Sometimes overlapping
Created to provide better management control

58. 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

59. 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…

60. Product vs. Project Life Cycle Relationships
Conception
Growth
Maturity
Decline
Withdrawal
Time