1. Introduction: Why Project Management?
Chapter 1

3. Learning Goals
Understand why project management is becoming such a powerful and popular practice in business.
Recognize the basic properties of projects, including their definition.
Understand why effective project management is such a challenge.
Differentiate between project management practices and more traditional, process- oriented business functions.
Recognize the key motivators that are pushing companies to adopt project management practices.

4. Learning Goals
Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project.
Understand the concept of project “success,” including various definitions of success, as well as the alternative models of success.
Understand the purpose of project management maturity models and the process of benchmarking in organizations.
Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques.

5. Introduction Examples of projects
Chunnel between England and France
Introduce Windows 7
Passing a college course
Olympics
These are examples of project management used to; improve operations, respond rapidly to changes, achieve breakthroughs, streamline development, manage the rising challenges
A critical component of successful organizations and employees today
“Projects, rather than repetitive tasks, are now the basis for most value-added in business”
-Tom Peters

6. What is a Project?
Considered to be any series of activities and task that:
Are complex, one-time processes
Developed to resolve a clear goal or set of goals
Consume resources; time, money, people, etc.
Constrained by budget, schedule and resources
Are customer focused
A project is a temporary endeavor undertaken to create a unique product, service, or result.
-PMBOK® Guide –Fourth Edition

7. Project Definitions Summarized
A project can be considered any series of activities and tasks that have:
Specific objectives to be completed within certain specifications,
Defined start and end dates,
Funding limits,
Human and nonhuman resources, and
Multifunctional focus.

8. General Project Characteristics
Ad-hoc endeavors with a clear life cycle.
Predetermined timeline
Clear beginning and end
Building blocks in the design and execution of organizational strategies.
Responsible for the newest and most improved products, services, and organizational processes.
Provide a philosophy and strategy for the management of change.
Project management entails crossing functional and organizational boundaries.
Interrelated Tasks
Involve People

9. General Project Characteristics
The traditional management functions of planning, organizing, motivation, directing, and control apply to project management.
The principal outcomes of a project are the satisfaction of customer requirements within the constraints of technical, cost, and schedule objectives.
Projects are terminated upon successful completion of performance objectives.
Fixed Budget
Unique and Specific Deliverable (Product, Service, or Result)

10. Process vs. Project Work
Ongoing, day-to-day activities to produce goods and services
Use existing systems, properties, and capabilities
Typically repetitive
Project
Takes place outside the normal, process- oriented world
Unique and separate from routine, process- driven work
Continually evolving
A project is a temporary endeavor undertaken to create a unique product, service, or result.
-PMBOK® Guide

11. Operational vs. Project Work
The purpose of operational tasks is to carry out day- to-day activities and sustain the business while the purpose of a project is to meet specific objectives.

12. Process Management vs. Project Management (Table 1.1)
Process (day-to-day activity)
Repeated process or product
Several objectives
On-going
More homogeneous
Systems in place
Performance, cost, & time known
Part of the line organization
Bastions of established practice
Supports status quo
Project (unique activity)
New process or product
One objective
One shot – limited life
More heterogeneous
Systems must be created
Performance, cost & time less certain
Outside of line organization
Violates established practice
Upsets status quo

13. Why are Projects Important?
To help organizations achieve their strategic goals.
Due to pressures organizations find themselves facing:
Shortened product life cycles.
Narrow product launch windows.
Increasingly complex and technical products.
Emergence of global markets.
Economic period marked by low inflation.

14. What is the Project Manager?
The person responsible for meeting the project objectives.
Skilled in areas of
Leadership
Planning
Interpersonal skills
Communication
Conflict negotiation
Presentation skills
Risk taking
Time management
Role functions
Provide leadership
Provide motivation
Facilitate the work
Maintain focus
Maintain commitment
Influence the organization
Use resources efficiently

15. Project Manager Key Responsibilities
Initiate the Project
Develop Project Management Plan
Direct and Manage Project Execution
Monitor and Control Project Work
Perform Integrated Change Control
Close Project

16. Skills Needed by Project Managers
Hard Skills
Soft Skills
Managing technical issues
Planning
Contracting
Budgeting
Measuring performance
Monitoring project quality
Analyzing risks
Communicating
Negotiating
Leadership
Problem solving
Conflict resolution
Team building
Political and cultural awareness

17. Project Manager Exercise Quick Self-Evaluation
What are your strengths and weaknesses? Are you a leader or a manager? Are you proactive or reactive?

18. What is Project Management?
“Project management is the process of the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.”
- PMBOK® Guide –Fourth Edition)
It is accomplished through the application and integration of the project management process of
Initiating
Planning
Executing
Monitoring
Controlling

19. The Project Management Process
Initiating
Planning
Controlling
Executing
Closing

20. Advantages to Using Project Management
Innovative, produces new ideas and new products
Geared toward accomplishing a specific goal
Provides known dedicated resources
Aimed at customer satisfaction
Side note:
Can be used to find future company leaders: Will show a persons ability to manage both technical and human challenges

21. Typical Objections to Using Project Management
Won’t work on our projects
Too time consuming
Just busy work
Too complicated
Rigid/inflexible technique
Cost too much
Not necessary, we’re doing okay without it

22. What is a Program?
Program is “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.” -PMBOK® Guide –Fourth Edition
Common Objective
Program
Project 1
Project 2
Project 3

23. Scope of Project Management
Process Management
Project Management
Program Management
Portfolio Management

24. Collectively, these four phases make up the generic
Project Life Cycle
Conceptualization - the development of the initial goal and technical specifications.
Planning – all detailed specifications, schedules, schematics, and plans are developed.
Execution – the actual “work” of the project is performed.
Termination – project is transferred to the customer, resources reassigned, project is closed out.
Collectively, these four phases make up the generic
project life cycle.

25. The Project Phases
Conceptualization
Termination

26. Conceptualization Task
Select Project
Define Scope
Develop Project Relationship
Perform Needs Analysis
Define Requirements
Create Project Charter
Analyze Benefit-to-Cost Ratio
Determine Net Present Value and Internal Rate of Return
Get Project Approval

27. Planning Task Develop Specifications Design Reviews
Write Standard of Work (SOW)
Build a Schedule
Develop Work Breakdown Structure (WBS)
Allocate Resources
Build the Team
Configure the Budget
Plan for Procurement
Assess Change Control Process

28. Execution Task Update Requirements Manage Change Control
Delegate the Work
Manage the Team
Monitor the Project
Complete Tasks
Analyze Variances
Report Status

29. Termination Task Deliver Product Document Lessons Learned
Make Payments
Verify Customer Satisfaction
Celebrate
Recognize and Reward Team Members

30. Project Life Cycle
A project life cycle is “a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization.” -PMBOK® Guide –Fourth Edition

31. Fig 1.3 Project Life Cycle Stages
Man Hours
Conceptualization
Planning
Execution
Termination
Fig 1.3 Project Life Cycle Stages

32. Project Life Cycles and Their Effects
Client Interest
Resources
Conceptualization
Planning
Execution
Termination
Uncertainty
Creativity
Project Stake $

33. Triple Constraint of Project Success
Client
Acceptance
Quadruple
Budget
Managing project constraints involves a
constantly changing balance.
Schedule
Performance
Success

34. Remember: 94.35% of all statistics are fabricated
Project Success Rates
Remember: 94.35% of all statistics are fabricated
Software & hardware projects fail at a 65% rate
Over half of all IT projects become runaways
Up to 75% of all software projects are cancelled
Only 2.5% of global businesses achieve 100% project success
Average success of business-critical application development projects is 35%
We should not overestimate the benefits to be gained from project management while underestimating the commitment required to make it work.

35. Class Exercise
List four factors that contribute to the success or failure of a project.
Succeed
Fail

36. Possible Answers Succeed Fail Sound project management processes
Projects tied to the organization’s strategic and business goals
Senior management commitment and support
Detailed requirements
Skilled and appropriately aligned team members
Clearly defined roles and responsibilities
Realistic schedule
Lack of project requirements
Lack of defined or clear and concise requirements
Lack of senior management sponsorship and commitment
Inadequate project planning
Absences of user involvement through out the project
Lack of business ownership
Succeed
Fail

37. Project Critical Success Factors
Clear understanding of the goals and objectives
Clear understanding of the customer requirements
Involvement of clients and management
Realistic estimates and schedules
Day-to-day control of the project
Effective communication

38. Four Dimensions of Project Success
Project Completion
Time
Importance 1
Project
Efficiency 4
Preparing for
The Future 2
Impact on
Customer 3
Business Success
Most
Least
Short term
Long term

39. Developing Project Management Maturity
Allows organizations to benchmark the best practices of successful project management firms
Shows a relative assessment of an organizations project management development
Project management maturity models (rubric style) see Table 1.3 page 21
Center for business practices
Kerzner’s project management maturity model
ESI International’s project framework
SEI’s capability maturity model integration
Rubric – categorizes the specific level of performance expected for several levels of quality.

40. Project Management Maturity Generic Model

41. Spider Web Diagram a useful way to display multivariate observations
the length of each ray is made proportional to the size of that variable
a.k.a a Radar Chart
can be easily created in MS Excel

42. Project Elements and Text Organization
FIGURE 1.11  Organization of Textbook

43. Chapter 1Review and Discussion
What are some of the principle reasons why project management has become such a popular business tool in recent years?
What do you see as being the primary challenges to introducing a project management philosophy to most organizations? That is, why is it difficult to shift to a project-based approach in many companies?
What are the advantages and disadvantages to using project management?
What are the key characteristics all projects possess?
Describe the basic elements of the project life cycle. Why is an understanding of the life cycle relevant for our understanding of projects?
Think of a successful project and an unsuccessful project with which you are familiar. What would you say distinguishes the two, both in terms of the process used to develop them and their outcomes?

44. Chapter 1Review and Discussion
Consider the Expedition Everest case: What are the elements in Disney’s approach to developing their theme rides that you find particularly impressive? How can a firm like Disney balance the need for efficiency and smooth development of projects with the desire to be innovative and creative? Based on this case, what principles appear to guide their development process?
Consider the six criteria for successful IT projects. Why is IT project success often so difficult to assess? Make a case for some set of factors being more important than others.
As organizations seek to become better at managing projects, they often engage in benchmarking with other companies in similar industries. Discuss the concept of benchmarking. What are its goals? How does benchmarking work?
Explain the concept of a project management maturity model. What purpose does it serve?
Compare and contrast the four project management maturity models shown in Table 1.3.