1. Project Management EnvironmentChapter 2PMP Preparation Training
2. ObjectivesTo be able to describe:
Project life cycle
Characteristics of the project phases
Key project stakeholders
Organizational and socioeconomic influences on the project
Key management skills used in managing a project
3. Project Life CycleDefines the beginning and end of the project
Divides the project into phases that provide better management control and the appropriate links to the ongoing operations of the organization
4. Phase CharacteristicsDeliverables Tangible, verifiable work products
Reviews Evaluation of deliverables and project performance
Phase Exit Criteria Measurements used to determine if
project should go into next phase
5. Characteristics of Life CycleDefines the beginning and end of the project
Deliverables usually approved before work starts on the next phase
Sometimes a subsequent phase is begun prior to approval of the previous phase. This is called fast tracking.
Defines technical work and implementers
6. Characteristics of Life Cycle (cont.)Cost and staffing levels are low at the start, higher towards the end, and drop as project closes
Probability of project success is low at the start of the project and gets progressively higher as the project continues
Cost of changes and of error correction generally increases as the project continues
7. Phases and Resources UsageConcept 5%
Development 20%
Implement 60%
Close Out 15%
8. Project StakeholdersIndividuals and organizations who are actively involved in the project and whose interests may be positively or negatively affected by the project success or failureKey Stakeholders
Project manager Manages the project
Customer Uses the product or service
Performing organization Enterprise that does the project work
Sponsor Provides financial resources
9. Organizational InfluencesOrganizational systems
Project-based
Derive income by performing projects for others
Treat on-going operations as projects (management by projects)
Non-Project-based
No project-oriented systems in place to support project needs efficiently and effectively
10. Organizational Cultures & StylesShared values, norms, beliefs, and expectations
Reflected in policies and procedures, view of authority relationships, etc.
Directly influences the project
11. Organizational StructureFunctional organization – Hierarchy where each employee has one clear superior
Projectized organization – Most of organization’s resources are involved in project work and report to the project manager
Matrix organization – Blend of both
12. Organizational StructureProject Office
Provides services ranging from support functions to project managers, such as training, software, templates, etc. to actually being responsible for the results of the project
13. Functional OrganizationSpecialists grouped by function
Difficult to cross functional lines
Barriers exist on horizontal information flow
Functional emphasis – loyalties may impede completion
Organizational Planning
14. Matrix OrganizationMultiple-command system
Individuals from functional areas assigned on temporary basis to PM
Individuals return to functional organization
Careful plans and procedures needed to minimize effects of dual reporting
Organizational Planning
15. Matrix OrganizationAdvantages
Visible objectives
Efficient utilization of resources
Better co-ordination
Better information flow
Retention of home after project
Disadvantages
More than one boss
Complex structure to control
Differing priorities of PM and FM
Duplication of effort
Conflict
Organizational Planning
16. Projectized OrganizationEmerges from functional when latter impedes progress
Line of authority is the PM
Uncertainty where to go on completion of project
Tendency to retain assigned personnel too long
FMs feel threatened as people are removed from their areas
Organizational Planning
17. Organizational Structures Type PM Authority
Functional None
Project Expediter Low
Project Coordinator Low
Weak Matrix Low –> Medium
Strong Matrix Medium –> High
Projectized High
Organizational Planning
18. General Management SkillsLeading
Establishing direction, aligning people, motivating, and inspiring
Communicating
Reporting project performance; deciding how, when, in what form, and to whom
Negotiating
Conferring with others in order to come to terms or reach an agreement
19. Management Skills (cont.)Problem solving
Defining the causes of problems, analyzing the problems to identify viable solutions, and selecting the best one
Influencing the organization
Understanding the formal and informal structures and the mechanics of power and politics and using this knowledge to get things done
20. Social-Economic-Environmental InfluencesProjects have positive or negative impacts on people, economics, and the environment
Organizations are accountable for these impacts
21. Standards and regulations
Project plan should reflect how standards and regulations affect the project
Internationalization
Consider the effect of time-zone differences, national holidays, travel requirements, teleconferencing, and political differences
Social-Economic-Environmental Influences
22. Cultural influences
Projects operate within a context of cultural norms that affect the way people and organizations interact
Social-Economic-Environmental Sustainability
Projects have unintended positive and negative impacts on people, the economy and the environment
Organizations are increasingly accountable for project impactsSocial-Economic-EnvironmentalInfluences