1. Chapter 2 Project Management Framework
Project Management Frame Work, In this chapter we will talk about,
Stake holders and how to manage them
Different organizational structures
Project Constraints
Definition of a project and how it differs from a process
Project Management Office (PMO)
Definition of a Program
Project and Product life cycles
OPM3 and,
The definition of management by objectives (MBO)
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-1

2. Project Management Framework Key Concepts
What is the definition of a Project?
Temporary endeavor with a beginning and an end
Creates a unique product service or result
Is progressively elaborated
What is the definition of a Process?
Daily routine work with no end
Let us define what a “Project” is
A project has the following characteristics
It is a temporary endeavor with a beginning and an end
It creates a unique product service or result
It is progressively elaborated
Now let us define a “Process”
A “Process” is a daily routine work with no end.
For example activities that are part of the company’s normal operating procedures such as Help desk activities etc.
Let us take an example….If your boss walked into your office and said “The system is broken. Can you figure out what is wrong with it and fix it?” Would this be a project?
Answer – No this would simply be a “routine” help desk activity as part of a company’s normal operating procedure for fixing a problem.
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-2

3. Inov8Solutions Inc – Quality Educational Services For Professionals
Key Concepts (cont…)
Project Management
Application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations for a project
Program
A group of projects managed in a coordinated way
Portfolio Management
Collection of Projects or programs grouped together to meet strategic business objectives
Note for Kamran: Can we have some animations showing high level process of the “Project Management” such as initiating, planning, executing, monitoring and controlling, and closing
Let us now take a look at “Project Management” and understand what “Project Management” really is?
It is the process of Application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations for a project
Project Management Institute (PMI) breaks Project Management into process groups and knowledge areas.
The process groups follows the high level process of the “Project Management” such as initiating, planning, executing, monitoring and controlling, and closing. These will be covered in more detail in the upcoming chapters.
The knowledge areas are integration, scope, time, cost, quality, human resource, communications, risk, and procurement management. These will be covered in more detail in the upcoming chapters.
Let us now define what a program is?
A program is a group of projects managed in a coordinated way.
By grouping related projects together into a program, an organization can help achieve decreased risk, economies of scale, and improved management.
Portfolio Management
Is Collection of Projects or programs grouped together to meet strategic business objectives
The programs and projects that make up the portfolio may not be related other than the fact that they are helping to achieve a common business strategic goal.
Project Management Office (PMO)
PMO is a department which centralizes the management of the projects
PMO provides the policies, methodologies, and templates for managing the projects with an organization
Additionally PMO provides support and guidance to the Project Managers on how to manage and execute projects.
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-3

4. Inov8Solutions Inc – Quality Educational Services For Professionals
Review Quiz
All of the following are the characteristics of a project EXCEPT?
It is temporary
It has definite beginning and end
It has interrelated activates
It repeats itself every month
The correct answer is D.
Explanation – “It repeats itself every month” implies that the whole project repeats itself every month which is the characterictics of a “Process” NOT a “Project”
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-4

5. Inov8Solutions Inc – Quality Educational Services For Professionals
Review Quiz
What is a Program?
An initiative setup by the management
A means to gain benefits and control of related projects
A group of unrelated projects managed in a coordinated way
A government regulation
The correct Answer B
A “Program” is a group of related projects managed in a coordinated way. This was a trick question. Choice “C” is not a correct choice because it has a word “unrelated” in it. Remember a “Program” is a group of related projects managed in a coordinated way.
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-5

6. Inov8Solutions Inc – Quality Educational Services For Professionals
Project Objectives
Management by objectives: Management philosophy has 3 steps -
Establish unambiguous and realistic objectives
Periodically evaluate if objectives are being met
Implement corrective action
Constraints :Constraints are used to help evaluate competing demands among:
Scope
Quality
Schedule
Budget
Resources
Risk
Change in one will most often cause a change in at least one or the other
OPM3®
PMI’s organizational project management maturity model
Model designed to help organizations determine their level of maturity in project management
Management by Objectives (MBO)
MBO is a management philosophy with the following three steps
Establish unambiguous and realistic objectives
Periodically evaluate whether objectives are being met
Implement corrective actions
What are the Constraints?
Constraints are used to help evaluate competing demands among:
Scope
Quality
Schedule
Budget
Resources
Risk
Change in one will most often cause a change in at least one or the other
What is OPM3® ?
PMI’s organizational project management maturity model
The model is designed to help organizations determine their level of maturity in project management
For the exam you should be familiar with term “OPM3” and know what it is.
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-6

7. Inov8Solutions Inc – Quality Educational Services For Professionals
Constraints
Resources
Scope
Risk
Budget
Quality
As a project manager, you must handle or juggle many things to accomplish a project, including “Project Constraints” such as schedule or time, cost or budget, risk, scope, quality, resources as well as customer satisfaction.
For example, the date a milestone is due, the date by which the project must be completed, or the maximum allowable risk a project may have are all “Constraints”
Schedule
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-7

8. Inov8Solutions Inc – Quality Educational Services For Professionals
Who are Stakeholders?
Stakeholders are individuals or organizations whose interests are positively or negatively impacted by the project
Can you think of some stakeholders in a typical project?
Why are stakeholders important?
What should be done with stakeholders?
Stakeholders are individuals or organizations whose interests are positively or negatively impacted by the project
Can you think of some stakeholders in a typical project? Stakeholders can be a performing organization, project management team, project management office, portfolio managers, program managers, functional managers, and sellers.
Why are stakeholders important? Stakeholders are very important to a project since their interests can positively or negatively impact your project
What should be done with stakeholders?
Identify all of them
Collect all of their needs
Create project requirements out of the needs
Communicate to all of them
Actively manage their expectations
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-8

9. Inov8Solutions Inc – Quality Educational Services For Professionals
Review Quiz
All of the following are parts of the team’s stakeholder management effort EXCEPT:
Giving stakeholders extras
Identifying stakeholders
Determining stakeholders’ needs
Managing stakeholders’ expectations
Correct answer A
Giving stakeholders extras is known as “Gold Plating”. A project manager should always stick to the “SCOPE” of his project.
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-9

10. Types of Organizations
Functional Organization (Most Common)
Grouped by specialization within different functional areas
Matrix Organization
Weak Matrix
Power rests with the functional manager
Project Manager can be Project Expediter / Project coordinator
Balanced Matrix
Power shared between?
Strong Matrix
Power rests with?
Projectized Organization
Composite Organization
Organization structure plays a key role in how the projects are run and managed within an organization. One of the main focus of influence is how the company is organized. The organizational structure will dictate who the project manager goes to for help with resources, how communications must be handled, and many other aspects of the project management.
Functional Organization
Functional Organization is the most common form of the organization. Such organizations are grouped by areas of specialization within different functional areas, for example accounting, marketing, software development, manufacturing etc.
Projectized Organization
In a projectized organization, the entire company is organized by projects, and the project manager has control of the project.
When you see “Projectized” on the exam, remember “no home”. Project team members once they complete a project do not have a department to go back to. They either need to be assigned to another project or get a job with a different employer
Matrix Organization
Matrix organization is an attempt to maximize the strengths of both the functional and projectized structures.
There are three types of Matrix organization, Weak Matrix, balanced matrix and strong matrix
In a weak matrix power rests with the functional manager and the project manager plays the role of either a “Project Expediter” or a “Project Coordinator”
In a Balanced Matrix power is shared between the functional manager and the project manager
In a Strong Matrix power rests with the project manager
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-10

11. Inov8Solutions Inc – Quality Educational Services For Professionals
Review Quiz
The project manager has the highest level of independence and authority in what type of organization?
Strong Matrix
Weak Matrix
Projectized
Functional
Correct Answer - C
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-11

12. Inov8Solutions Inc – Quality Educational Services For Professionals
Review Quiz
A project coordinator may typically be found in what type of organization?
Projectized
Strong Matrix
Weak Matrix
Balanced Matrix
Correct Answer C – Weak Matrix
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-12

13. Inov8Solutions Inc – Quality Educational Services For Professionals
Project Life Cycle
Defines technical work performed in each phase
Project phases can overlap (Fast tracking)
Common characteristics of Project Life cycle structure are shown:
A life cycle is a progression through a series of development stages.
There are two life cycles: A Project Life Cycle and A Product Life Cycle
Let us now talk about what a Project Life Cycle is.
The project life cycle is sometimes referred to as the performing organization’s methodology for projects. It is what you need to do to produce the deliverables of the project.
Source: PMBOK® Guide 4th edition – pg.16
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-13

14. Project Life Cycle (cont..)
Cost, Staffing levels are low at start, move higher as work is carried out and drop rapidly towards close
Stakeholder influences are high at start of project
Ability to influence final characteristics are high at start
Two methodologies are required to complete a project
Project Life cycle
Project management methodology
Some key points to remember about a “Project Life Cycle”
Cost, Staffing levels are low at the start, they move higher as work is carried out and drop rapidly towards the close
Stakeholder influences are high at the start of the project
The ability to influence final characteristics are high at start of the project
There are many different types of project life cycles, depending on the industry in which a project manager works.
For example in a “Construction” Project the typical project life cycle would go through; Feasibility, planning, design, production, turnover, and startup
IT projects would typically go through, High level design, detailed design or low level design, coding, testing, installation, documentation and turnover to operations
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-14

15. Inov8Solutions Inc – Quality Educational Services For Professionals
Product Life Cycle
Spans from Conception of a new product to its withdrawal
Product can require or spawn many projects over its life
Customer’s needs are identified during conception
Analyzing project competition is done during the maturity
The “Product” life cycle lasts from the conception of a new product to its withdrawal
A product can require or spawn many projects over its life
For example, during a products conception, there may be a project to determine the customer’s needs. When the project is mature, there be another project to analyze the product’s competition in the marketplace.
Source - PMP exam prep, 7th edition - Rita Mulcahy, pg 27
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-15

16. Inov8Solutions Inc – Quality Educational Services For Professionals
End of Chapter Quiz
Question 1. A Project is:
A set of sequential activities performed in a process or system
A revenue-generating activity that needs to be accomplished while achieving customer satisfaction
An ongoing endeavor undertaken to meet customer or market requirements
A temporary endeavor undertaken to create a unique product, service, or result
Correct Answer is D
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-16

17. Inov8Solutions Inc – Quality Educational Services For Professionals
End of Chapter Quiz
Question 2. Which of the following is not true about project stakeholders?
A. They are individuals and organizations that are actively supportive of the project
B. They are individuals and organizations that are actively involved in a project
C. They are individuals and organizations whose interests may be affected as a result of project execution or project completion
D. They are individuals and organizations that may exert influence over the projects objectives and outcomes.
Correct Answer is A
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-17

18. Inov8Solutions Inc – Quality Educational Services For Professionals
End of Chapter Quiz
Question 3. For a large complex project with cross-functional project needs, the following organizational structure gives considerable authority to the project manager:
A strong matrix organization
A balanced matrix organization
A weak matrix
A functional organization
Correct Answer is A
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-18

19. Inov8Solutions Inc – Quality Educational Services For Professionals
End of Chapter Quiz
Question 4. Operational work is different from project work in that it is:
Unique
Temporary
Ongoing and repetitive
A part of every project activity
Correct answer is C
PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK  are registered marks of Project Management Institute, Inc
Inov8Solutions Inc – Quality Educational Services For Professionals
2-19