1. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall o P.I.I.M.T o American University of Leadership Ahmed Hanane, MBA, Eng, CMA, Partner email: ahanane360@gmail.com

2. o What’s a project? o Examples of projects? o Project Life Cycle? o Dimensions of a project success? o Reasons of project failures? o Triple constraints?

3. o How do we manage? o Scope o Cost o Issues o Quality o Communications o Risks o Changes o Project Management Maturity (PMM) Models? o Center for Business Practices o Kerzner’s Project Management Maturity Model o ESI International’s Project Framework o SEI’s Capability Maturity Model Integration o Project manager’s responsibilities

4. The Organizational Context: Strategy, Structure, and Culture 02-04

5. After completing this chapter, students will be able to: 1. Understand how effective project management contributes to achieving strategic objectives. 2. Recognize three components of the corporate strategy model: formulation, implementation, and evaluation. 3. See the importance of identifying critical project stakeholders and managing them within the context of project development. 4. Recognize the strengths and weaknesses of three basic forms of organizational structure and their implications for managing projects. 02-02

6. After completing this chapter, students will be able to: 1. Understand how companies can change their structure into a “heavyweight project organization” structure to facilitate effective project management practices. 2. Identify the characteristics of three forms of project management office (PMO). 3. Understand key concepts of corporate culture and how cultures are formed. 4. Recognize the positive effects of a supportive organizational culture on project management practices versus those of a culture that works against project management. 02-03

7. Strategic management – the science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives. Consists of: o Developing vision and mission statements o Formulating, implementing and evaluating o Making cross functional decisions o Achieving objectives 02-07

8. 1-8 o Why do some firms succeed while others fail? o A central objective of strategic management is to learn why this happens. o What is strategy? o An action a company takes to attain superior performance. o What is the strategic management process? o The process by which managers choose a set of strategies for the enterprise to pursue its vision.

9. Winning competitive battles through deciding how to leverage internal resources, capabilities, and core competencies. Strategic vision An application of strategic vision in terms of products to be offered, the way and markets to be served. What? How? Who? Strategic Mission Strategy

10. Example of visions statements Amazon "Our [Amazon's] vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." (Quoted from Amazon.com) Amazon.com Hair Salon “Our salon will change the way you think about a haircut. Full service comfort, friendly staff, a relaxing atmosphere, and the best prices in town give you an experience that will leave you glowing both inside and out.”

11. Facebook:Facebook: Facebook’s mission is to give people the power to share and make the world more open and connected. Google:Google: Google’s mission is to organize the world‘s information and make it universally accessible and useful. Microsoft:Microsoft: Microsoft’s mission is to enable people and businesses throughout the world to realize their full potential. Skype:Skype: Skype’s mission is to be the fabric of real-time communication on the web. Yahoo!:Yahoo!: Yahoo!’s mission is to be the most essential global Internet service for consumers and businesses YouTube:YouTube: YouTube’s mission is to provide fast and easy video access and the ability to share videos frequently Example of missions statements

12. Copyright © 2001 Houghton Mifflin Company. All rights reserved. 1-12 Defining the Mission and Setting Top-Level Goals External Analysis of Opportunities and Threats Internal Analysis of Strengths and Weaknesses Selection of Appropriate Strategies Implementation of Chosen Strategies Basic Strategic Planning Model

13. o Badouiya is a newly created business that produce and commercialize Argan products for cosmetic use. o Our argan products are extracted from freshly harvested kernels from the fruits of the Argane tree. Pressed when cold, the kernels are then filtered to extract our aromatic oil. As a result, it does not have the nutty aroma and is almost odourless. It takes 30 kg of fruits and more than 15 hours work to produce 1 litre (33,40 fl oz) of oil. The task is carried out exclusively by Berber women. o Argan oil can be used as an aliment or cosmetically. It enriches the skin and protects its elasticity. It is rich in natural ingredients which play a role of primary importance in the renewing of cell structure. In traditional Moroccan medicine, Argan oil was used for the care of body and face to counteract the effects of age and weather. It works wonderfully on wrinkles and dry skin, reduces visible scars left by acne, chicken pox, and spots and other damage like chapped, cracked skin and on burns and scalds. When used also for the care of the scalp, it restores shine to dull, lifeless hair and it strengthens brittle nails. Lastly it can relieve the pain occurring in joints and is very suitable for massage.

14. o Mission o Vision o Three strategic goals

15. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall A firm wishing to……may have a project redevelop products or processesto reengineer products or processes. changes strategic direction or product portfolio configuration to create new product lines. improve cross-organizational communication & efficiency to install an enterprise IT system. Projects are stepping stones of corporate strategy The firm’s strategic development is a driving force behind project development Some examples include: 02-015

16. Mission Objectives Strategy GoalsPrograms Figure 2.2 02-016

17. 02-07 “… the business of supplying system components to a world- wide nonresidential air conditioner market.” Mission Objectives a.14.5% ROI b.Non-decreasing dividends c.Socially-conscious image Strategies a.Existing products in existing markets with image maintenance b.Existing products in new markets (foreign, restricted) c.New products in existing markets (significantly improve image) Goals Year 1: 8% ROI, $1 dividend, maintain image, unit cost down 5% Year 2: 9% ROI, $1 dividend, improve image Year 3: 12% ROI, $1 dividend, improve image Year 4: 14% ROI, $1.10 dividend Programs 1. Product Cost Improvement Program (PCIP) 2. Image Assessment Program (IAP) 3. Product Redesign Program (PRP) 4. Product Development Program (PDP) FIGURE 2.3 Illustrating Alignment Between Strategic Elements and Projects Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

18. Using the same strategic goals you worked on before, make a list of three possible projects and discuss them with your calssmates

19. Stakeholders are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development. Sets of project stakeholders include: Internal Stakeholders Top management Accountant Other functional managers Project team members External Stakeholders Clients Competitors Suppliers Environmental, political, consumer, and other intervener groups 02-019

20. Stakeholders: Groups who are affected by a firm’s performance and who have claims on its wealth The firm must maintain performance at an adequate level in order to maintain the participation of key stakeholders OrganizationalOrganizational EmployeesManagersNon-ManagersEmployeesManagersNon-Managers FirmFirm Capital Market Stock market/Investors Debt suppliers/Banks Product Market Primary Customers Suppliers Suppliers

21. Stakeholder Involvement Each of the key stakeholders wants a piece of the same pie 11 How do you divide the pie in order to keep all of the stakeholders involved? 22 How do you increase the size of the pie so that there is more to go around?

22. Stakeholders assessment

23. Figure 2.4 02-023

24. 1. Assess the environment 2. Identify the goals of the principal actors 3. Assess your own capabilities 4. Define the problem 5. Develop solutions 6. Test and refine the solutions 02-24

25. 2. Gather information on stakeholders 7. Implement stakeholder management strategy 4. Determine stakeholder strengths and weaknesses 5. Identify stakeholder strategy 6. Predict stakeholder behavior 3. Identify stakeholders’ mission 1. Identify Stakeholders Figure 2.5 02-25

26. o Use stakeholder template to identify internal and external stakeholders for our small business of Argan products and your involvement strategy

27. Consists of three key elements: 1. Designates formal reporting relationships o number of levels in the hierarchy o span of control 2. Identifies groupings of: o individuals into departments o departments into the total organization 3. Design of systems for o effective communication o coordination o integration across departments 02-27

28. o Functional organizations – group people performing similar activities into departments o Project organizations – group people into project teams on temporary assignments o Matrix organizations – create a dual hierarchy in which functions and projects have equal prominence 02-28

29. 02-29 Figure 2.6

30. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall StrengthsWeaknesses 1.Firm’s design maintained 2.Fosters development of in-depth knowledge 3.Standard career paths 4.Project team members remain connected with their functional group 1.Functional siloing 2.Lack of customer focus 3.Projects may take longer 4.Projects may be sub- optimized 02-30

31. 02-31 Figure 2.7

32. 02-32 Figure 2.8

33. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall StrengthsWeaknesses 1.Project manager sole authority 2.Improved communication 3.Effective decision-making 4.Creation of project management experts 5.Rapid response 1.Expensive to set up and maintain teams 2.Chance of loyalty to the project rather than the firm 3.No pool of specific knowledge 4.Workers unassigned at project end 02-33

34. 02-34 Figure 2.9

35. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall StrengthsWeaknesses 1.Suited to dynamic environments 2.Equal emphasis on project management and functional efficiency 3.Promotes coordination across functional units 4.Maximizes scarce resources 1.Dual hierarchies mean two bosses 2.Negotiation required in order to share resources 3.Workers caught between competing project & functional demands 02-35

36. o It has been three years, our small business grew and currently have customers in USA, Canada, Europe and Morocco. Its sales exceed 1M dhs. It has three projects alinged with its strategy: 1. Launch of hair products 2. Set up a distribution office in North America 3. Expand its manufacturing capabilities in Agadir In a team of two, propose a project structure and share with us your arguments ………………… 10 min

37. Organizations can sometimes gain tremendous benefit from creating a fully- dedicated project organization Lockheed Corporation’s “Skunkworks” o Project manager authority expanded o Functional alignment abandoned in favor of market opportunism o Focus on external customer 02-37

38. 02-38 Figure 2.10

39. Centralized units that oversee or improve the management of projects Resource centers for: o Technical details o Expertise o Repository o Center for excellence 02-39

40. o Weather station – monitoring and tracking o Control tower – project management is a skill to be protected and supported o Resource pool – maintain and provide a cadre of skilled project professionals 02-40

41. o Performs four functions: o Establishes standards for managing projects o Consults on how to follow these standards o Enforces the standards o Improves the standards 02-41

42. 02-42 Figure 2.11

43. The unwritten rules of behavior, or norms that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company. o Unwritten o Rules of behavior o Held by some subset of the organization o Taught to all new members 02-43

45. o Technology o Environment o Geographical location o Reward systems o Rules and procedures o Key organizational members o Critical incidents 02-45

46. o Departmental interaction o Employee commitment to goals o Project planning o Performance evaluation 02-46

47. o Understand how effective project management contributes to achieving strategic objectives. o Recognize three components of the corporate strategy model: formulation, implementation, and evaluation. o See the importance of identifying critical project stakeholders and managing them within the context of project development. o Recognize the strengths and weaknesses of three basic forms of organizational structure and their implications for managing projects. 02-47

48. o Understand how companies can change their structure into a “heavyweight project organization” structure to facilitate effective project management practices. o Identify the characteristics of three forms of project management office (PMO). o Understand key concepts of corporate culture and how cultures are formed. o Recognize the positive effects of a supportive organizational culture on project management practices versus those of a culture that works against project management. 02-48