1. Project Management Chapter 2 Manager, Organization, and the Team

2. Factors Increasing The Importance Of Projects  Emphasis on time-to-market  Need for specialized knowledge from a variety of areas  Explosive rate of technological change  Accountability and control 12/25/20082-2

3. Appointing the Project Manager  Who should be appointed as the PM?  A technical expert?  Whoever is available at the moment?  Someone with good organizational skills?  A senior manager meets with PM, describes  the project  its importance to the parent organization  its importance to the future career of the PM.  PM selection is announced.  Launch meeting to initiate the project team. 12/25/20082-3

4. Who is the PM responsible to? PM is responsible to Project Stakeholders  Customer/Client  Project sponsors  Top management (especially project champion)  Project team  Subcontractors and vendors  Functional managers  Other project managers in the company  Government agencies and other organizations  Related communities 12/25/20082-4

5. Functional vs. Project Managers Functional Manager  Expert in functional area  Full authority over employees  Competes for resources with other functional dept.  Knows subordinates very well  Functional environment is fairly stable & people are comfortable in their jobs Project Manager  May not be expert in any area  May have limited authority over employees  Competes for resources with other projects  May not have known subordinates very long  Project environment is temporary & people expect changes 12/25/20082-5

6. Roles of a PM  Manager: planning, organizing, staffing, budgeting, directing, and controlling.  Facilitator : facilitator vs. supervisor.  System Thinker: 2>1+1.  Communicator: with senior management, client, project team, vendors, functional managers.  Negotiator: with senior mgmt. for more human and capital resources, with functional manager to get a particular skills, with vendor for shorter lead time, with client about project changes (scope creep).  Politician: knows how to “get things done”, how to “work the system.” 12/25/20082-6

7. Facilitator vs. Supervisor  Ensures that all resources and work are available when needed, problems are resolved, each task is properly concluded.  Resolves conflict with functional managers, the client and others. Manages conflicts by negotiation.  Assigns the responsibility for the planning and organization of tasks to team members.  Avoids Micromanagement which is one of the deadly managerial sins where s/he closely supervises and second-guesses (and instructs on) every decision a project member makes. The same is true for the relationship between the program manager and PM. 12/25/20082-7

8. Systems Approach  System:  What parts  What goal  Relationships  How it affects and is affected by the environment.  A system approach in defining the tasks and their relationships, the resources and the way they are allocated, and the deliverable and they way they are evaluated is essential for PM.  A project is a system composed of subsystems such as a group of activities leading to a milestone, individual activities, subactivities, …. 12/25/20082-8

9. Facilitator: Systems Approach  Project's objectives influence the nature of the tasks and the tasks influence the nature of the subtasks. Similarly, the program and, above it, the organization influence the nature of the project –the system.  Optimization of design and operations of a subsystem - suboptimization – usually is not in the line (and perhaps against) optimization of the total system. Ex. two sequential stations. Ex. marketing, operation, and purchasing under seasonality.  Efficiency of subsystems should be evaluated only based on their impact of efficiency of the total system. 12/25/20082-9

10. The elephant was in a dark house; some Hindus had brought it for exhibition. In order to see it, many people were going, every one, into that darkness. As seeing it with the eye was impossible, each one was feeling it in the dark with the palm of his hand. The first approached the elephant, and happening to fall Against his broad and sturdy side, at once began to bawl "God bless me! but the elephant is very like a wall!" The second, feeling of the tusk, cried, "Ho! what have we here So very round and smooth and sharp? To me 'tis mighty clear This wonder of an elephant is very like a spear!" The third approached the animal, and happening to take The squirming trunk within his hands, thus boldly up and spake "I see," quoth he, "the elephant Is very like a snake!" 12/25/20081-10

11. The fourth reached out an eager hand, and felt about the knee. "What most this wondrous beast is like, is mighty plain," quoth he; " 'Tis clear enough the elephant is very like a tree!" The fifth, who chanced to touch the ear, said: "E'en the blindest man Can tell what this resembles most; Deny the fact who can This marvel of an elephant, is very like a fan!" The sixth no sooner had begun, about the beast to grope, Than, seizing on the swinging tail, that fell within his scope, "I see," quoth he, "the elephant Is very like a rope!“ Similarly, whenever anyone heard [a description of the elephant], he understood [it only in respect of] the part that he had touched. On account of the [diverse] place [object] of view, their statements differed: If there had been a candle in each one's hand, the difference would have gone out of their words. 12/25/20081-11

12. Communicator  Must effectively communicate with senior management, client, project team, vendors, department managers,, and to anyone else who may have a stake in the project's performance as needed 12/25/200812 Senior Manageme nt Project Team Outside Interested Party PM Client

13. Communicator  Must communicate with senior management, client, project team, vendors, functional managers, and other stakeholders.  Some of these parties may create informal communication paths that may mislead others, or conflict with other messages in the system. PM has to introduce order into destructive communication lines.  Never let the boss be surprised! Build trust between the PM and senior managers (the project champion).  Formal and routine progress reports aside, the PM must keep senior management up to date on any problem or potential problem affecting time, budget, and scope of the project. 12/25/20082-13

14. Communicator  The relationship between the project team and the PM may be closer to boss-subordinate.  The PM facilitates the work of the team, and helps them succeed. S/he serves as advisor, counselor, confessor, and interested friend. S/he also takes an active interest in fostering members' future careers.  Team members of a “Virtual Project” are in different divisions or organizations in different locations. Communication between PM and virtual project team members must be frequent, open, and more importantly, two-way real time-- telephone or video conferencing, etc. 12/25/20082-14

15. Managing meetings efficiently and effectively  PM is responsible for the meeting being effective and efficient. Meetings can serve a useful purpose. Meetings can also be a waste of time.  Don’t hold meetings for the purpose of sharing information that can be provided in a report.  Distribute agenda in advance. Why?  Start and stop on time. Why?  Avoid excessive formality at project meetings  List “informational”, “for discussion”, and “action” items.  Identify what should be the outputs of the meeting. 12/25/20082-15

16. Structuring Discussion of an Item  What is the problem?  What is the background information?  What might have caused the problem?  What are some potential solutions?  Select the best solution.  The chair should keep discussion focused. 12/25/20082-16

17. Minutes of the Meeting  Chair is responsible for taking minutes.  All attendees and absentees at the meeting should be listed. Why?  Minutes should list results of each item discussed. Why?  Items requiring action should be indicated, along with who is responsible for follow-up  Minutes should be distributed reasonably soon after the meeting. Why? 12/25/20082-17

18. PM’s Responsibilities  Doing whatever it takes to get the job done  Acquiring human and capital resources  Fighting fires and obstacles  Providing leadership  Making tradeoffs between project goals  Negotiating and persuading  Resolving conflicts 12/25/20082-18

19. Helpful Skills for a PM  Leadership ability  Communication skills  Ability to develop people  Team-building skills  Interpersonal skills  Ability to handle stress  Planning skills  Organizational skills  Problem-solving skills  Administrative skills  Conflict resolution skills  Time management skills 12/25/20082-19

20. Desirable Characteristics of a PM  Strong focus on “finishing the job”  Good at flexibility and adaptability  Willing to make decisions  Technical and administrative credibility  Strong sense of ethics  Political and personal sensitivity  Effective leadership skills (can motivate)  Participative style of management  Ability to handle stress 12/25/20082-20

21. How To Develop Good PM Skills  Gain experience on the job  work on project teams, manage small projects, work in different job areas to get breadth of experience  Seek out feedback from others; look for a mentor  Conduct a self-evaluation; learn from mistakes  Interview senior or star project managers  Participate in training programs  Join PMI, Toastmasters, other organizations  Read journals, magazines, books on Project Mgmt.  Volunteer with charities to gain some skills 12/25/20082-21

22. Project Manager Challenges  Dealing with many conflicts of opinions & interests  Handling job stress  Making goal tradeoffs when things go poorly  Staying within the budget  Meeting the project deadline  Achieving all desired project outcomes  Keeping all stakeholders happy  Time management  Balancing work time and family time (hrs/week) 12/25/20082-22

23. Project Manager Rewards  Satisfaction of seeing final outcome and resulting benefits to the company  Satisfaction of making stakeholders happy  Good visibility for successful project manager  Opportunities for advancement, more responsibilities  Professional growth; enhanced career value  Financial rewards: bonus, salary increase 12/25/20082-23

24. 12 Rules for Project Managers Two researchers conducted many interviews with senior project managers in which they asked a simple question: “What information were you never given as a novice project manager that, in retrospect, could have made your job easier?” The results were summarized into 12 rules for new PMs. Source: J. Pinto and O. Kharbanda, “Lessons for an Accidental Profession,” Business Horizons, March-April 1995. 12/25/20082-24

25. 12 Rules for Project Managers 1.Understand the problems, opportunities, and expectations of a project manager. 2.Recognize that project teams will have conflicts, but this is a natural part of group development. 3.Understand who the stakeholders are and their agendas. 4.Realize that organizations are very political and use politics to your advantage. 5.Realize that project management is “leader intensive” but that you must be flexible. 12/25/20082-25

26. 12 Rules for Project Managers 6.Understand that project success is defined by four components: budget, schedule, performance criteria, and customer satisfaction. 7.Realize that you must build a cohesive team by being a motivator, coach, cheerleader, peacemaker, and conflict resolver. 8.Notice that your team will develop attitudes based on the emotions you exhibit—both positive and negative. 12/25/20082-26

27. 12 Rules for Project Managers 9.Always ask “what-if” questions and avoid becoming comfortable with the status of the project. 10.Don’t get bogged down in details and lose sight of the purpose of the project. 11.Manage your time efficiently. 12.Above all, plan, plan, plan. 12/25/20082-27

28. Project Management Institute (PMI) Purpose: PMI is a professional organization dedicated to the development and promotion of the field of project management. Founded in 1969 1990 7,500 members 1995 17,000 2000 60,000 2003 100,000 (reached this # in Jan. 2003) Now >100,000 in more than 135 countries 12/25/20082-28

29. PMI Available Resources  PMP Certification (Project Mgmt. Professional)  LA has a PMI chapter  www.pmi.org  Project Management Body of Knowledge ( PMBOK) Guidebook that you can download  Job listings, publications, web links  Code of Ethics for Project Management 12/25/20082-29

30. PMI Code of Ethics In the pursuit of the project management profession, it is vital that PMI members conduct their work in an ethical manner in order to earn and maintain the confidence of team members, colleagues, employees, employers, customers/clients, the public, and the global community. 12/25/20082-30

31. PMI Code of Ethics As professionals in the field of project management, PMI members pledge to uphold and abide by the following:  I will maintain high standards of integrity and professional conduct  I will accept responsibility for my actions  I will continually seek to enhance my professional capabilities  I will practice with fairness and honesty  I will encourage others in the profession to act in an ethical and professional manner 12/25/20082-31

32. The Pure Project Organization 12/25/2008 President Project Manager Manager Project A Manager Project B VP Marketing VP Manufacturing VP R&D Marketing Manufacturing R&D Human Resources Marketing Manufacturing R&D Human Resources 2-32

33. The Pure Project Organization  Advantages  Effective and efficient for large projects  Resources available as needed  Broad range of specialists  Short lines of communication  Drawbacks  Expensive for small projects  May have limited technological depth  May require high levels of duplication for certain specialties 12/25/20082-33

34. Functional Project Organization 12/25/2008 President Manufacturing Project MarketingR & D Human Resources Finance 2-34

35. Functional Project Organization  Advantages  technological depth  Drawbacks  slow lines of communication outside functional departments  technological breadth  project rarely given high priority 12/25/20082-35

36. Matrix Project Organization 12/25/2008 President Program Manager PM1 PM2 PM3 Manufacturing 3 1 0 Marketing 1 ½ 4 1/2 Finance ½ ¼ 3 R&D 4 1 ½ 1/2 Human Resources ½ ¼ 1 2-36 Hard and soft matrix organization?

37. Matrix Project Organization  Advantages  flexibility in the way it can interface with parent organization  strong focus on the project itself  contact with functional groups minimizes projectitis  ability to manage fundamental trade-offs across several projects  Drawbacks  violation of the unity of command principle  complexity of managing full set of projects  conflict between PM and other PMs, PM and FM 12/25/20082-37

38. Mixed Project Organization President Project M FinanceEngineering Project Z Manufacturing 12/25/20082-38

39. Project Team Members  Effective project team members  Technically competent  Politically sensitive  Problem oriented  Goal oriented  High self-esteem  Causes of Intra-team Conflict  Life cycle phase  Name-Only Team (NOT)  Functional interests  Interpersonal barriers 12/25/20082-39

40. Assignments Review Questions: 1,3,5,6,7,8,9 Discussion Questions: 11,12,13,15,20 Incidents for Discussion: 1 Problems: None Cases: 1,2 9/14/2015Ardavan Asef-Vaziri1-40