1. Introduction to Project Management
Chapter 1
Contemporary Project Management
Kloppenborg
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. The Element of Discipline
Chapter
Vignette
The Element of Discipline
Deaths climbing Mt. Aconcagua are an extreme example of consequences associated with a lack of discipline
Discipline to act on the earlier decision to curtain summit attempts after the agreed-to-turn-around time or in severe weather
Avoid pressure to cast aside or shortcut project management practices
Practices, like planning, are the pillars of project management discipline

3. The Element of Discipline
Chapter
Vignette
The Element of Discipline
Managing projects at the CIA involved short notice to acquire unspent funds
Discipline required needed planning and quick action
The top 2 percent of project managers spend twice as much time planning as the other 98 percent
Identify those pillars that we will decide to practice with the required levels of discipline

4. At the end of this chapter…
Define a project using characteristics that are common to most projects and describe reasons why more organizations are using project management.
Describe major activities and deliverables, at each project life cycle stage.
List and define the nine knowledge areas and five process groups of the project management body of knowledge (PMBOK®).

5. At the end of this chapter…
Delineate measures of project success and failure and reasons for both.
Identify project roles and distinguish key responsibilities for each.

6. What is a project?
Project – “a temporary endeavor undertaken to
create a unique product, service, or result.” PMBOK® Guide
A project requires an organized set of work efforts.
Projects require a level of detail that is progressively elaborated upon as more information is discovered.
Projects are subject to limitations of time and resources such as money and people.
Projects have a defined beginning and ending.

7. What is a project? A project has a unique combination of stakeholders
stakeholders – “persons or organizations … that are actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project.” PMBOK® Guide

8. Project Management (PM)
PM includes work processes that initiate, plan, execute, and close work
Work processes require tradeoffs among the scope, quality, cost, and schedule of the project
PM includes administrative tasks for planning, documenting, and controlling work
PM includes leadership tasks for visioning, motivating, and promoting work associates.
PM knowledge, skills, and methods apply for most projects
Project management – “the application of knowledge, skills, tools and techniques to project activities to meet project requirements.” PMBOK® Guide

9. History of Project Management
PM emerged as a formal discipline in the 1950s
Techniques for planning and controlling schedules and costs were developed for huge aerospace and construction projects in the 1950s and 1960s
Early PM involved determining project schedules based on order of project activities
Manufacturing, research and development, government, and construction projects used and refined management techniques

10. History of Project Management
Software companies offered software for planning and controlling project costs and schedules in the 1980s and 1990s
Risk management techniques for complex projects have been applied to less complex projects
Communication and leadership playa major role in project success
Rapid growth and change in information technology and telecommunications fueled use of PM in the 1990s and 2000s

11. How Can Project Work Be Described?
Projects are temporary and unique; operations are more continuous.
Project managers need “soft skills” and “hard skills” to be effective.
Project managers frequently have more responsibility than authority.
Projects go through predictable stages called a life cycle.

12. Projects Versus Operations
Projects are temporary
Projects have both routine and unique characteristics
Operations consist of the ongoing work needed to ensure that an organization continues to function effectively

13. Soft Skills and Hard Skills
Soft skills include communication and leadership activities.
Hard skills include risk analysis, quality control, scheduling, and budgeting work
A successful project manager needs both soft and hard skills along with the judgment of when each is more necessary.
Training, experience, and mentoring are instrumental in developing necessary skills.

14. Authority and Responsibility
Projects are most effectively managed with one person being assigned accountability
Project managers negotiate with functional managers
A project manager needs to develop strong communication and leadership skills to persuade subordinates to focus on the project when other work beckons.
Functional manager – “someone with management authority over an organizational unit.…the manager of any group that actually makes a product or performs a service.” PMBOK® Guide

15. Project Life Cycle
All projects go through predictable stages called a project life cycle.
Life cycle allows for control to assure that the project is proceeding in a satisfactory manner and that the results are likely to serve its customer’s intended purpose
Project life cycle – “a collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project.” PMBOK® Guide

16. Project Life Cycle Stages
Selecting and initiating— a project is proposed, planned at a high level, and key participants commit to it in broad terms
Planning—starts after the initial commitment, includes detailed planning, and ends when all stakeholders accept the entire detailed plan.
Executing—includes authorizing, executing, monitoring, and controlling work until the customer accepts the project deliverables.
Closing and realizing—all activities after customer acceptance to ensure project is completed, lessons are learned, resources are reassigned, contributions are recognized, and benefits are realized.

17. Project Life Cycle Stages
Most companies insist that a project must pass an approval of some kind to move from one stage to the next
The project life cycle is highly formalized and very specific
Projects are measured at selection, progress reporting, and benefits realization points

18. Project Life Cycle Stages

19. Life Cycle for Quality Improvement Projects

20. Understanding Projects
Project Management Institute
Project Management Body of Knowledge (PMBOK)
Selecting and Prioritizing Projects
Project Goals and Constraints
Defining Project Success and Failure
Using MS Project
Types of Projects
Scalability of Project Tools

21. The Project Management Institute
The largest professional organization
Publishes and regularly updates A Guide to the Project Management Body of Knowledge (PMBOK® Guide)
Established a professional certification - Project Management Professional (PMP®)
Established a second certification—Certified Associate in Project Management (CAPM)

22. Project Management Body of Knowledge (PMBOK®
Consists of a project life cycle, five process groups, and nine knowledge areas
Project management process group – “a logical grouping of the project management inputs, tools and techniques, and outputs.” PMBOK® Guide

23. PMBOK® Process Groups
Initiating—“defines and authorizes a project or a project phase”
Planning—“defines and refines objectives and plans actions to achieve objectives”
Executing—“directs and manages people and other resources to accomplish project work”
Monitoring and controlling—“collects data and checks progress to determine any needed corrective actions”
Closing—“formalized acceptance of project outcomes and ending the project”

24. PMBOK® Knowledge Areas
Integration management—“processes and activities needed to define, combine, unify, and coordinate the various processes and project management activities”
Scope management—“processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully”
Time management—“processes required to manage timely completion of the project”
Cost management—“processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget”
Quality management—“processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken”

25. PMBOK® Knowledge Areas
Human Resources management—“processes that organize, manage, and lead the project team”
Communications management—“processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information”
Risk management—“processes of conducting risk management planning, response planning, and monitoring and control … to increase the probability and impact of positive events and decrease the probability and impact of negative events in the project”
Procurement management—“processes necessary to purchase or acquire products, services, or results from outside the project team”

26. Selecting and Prioritizing Projects
Identify potential projects
All parts of the organization are involved
Determine which projects align best with major goals of the firm
Ensure overall organizational priorities are understood, communicated, and accepted

27. Selecting and Prioritizing Projects
What value does each potential project bring to the organization?
Are the demands of performing each project understood?
Are the resources needed to perform the project available?
Which projects will best help the organization achieve its goals?
Is there enthusiastic support both from the external customers and from one or more internal champions?

28. Project Goals and Constraints
Projects are undertaken to accomplish specific goals
Scope and quality measure performance and should result in outputs that satisfy customers
Consider scope and quality subject to constraints of time and cost
Scope – “the sum of all products, services, and results to be provided as a project.” PMBOK® Guide
Quality – “the degree to which a set of inherent characteristics fulfills requirements.” PMBOK® Guide

29. Project Goals and Constraints
Obstacles or challenges may limit the ability to perform
Opportunities may allow projects to exceed original expectations.
Project Managers (PMs) decide which goals and constraints take precedence

30. Project Customer Tradeoff Matrix

31. Defining Project Success and Failure
Project success is creating deliverables that include all of the agreed upon features
Outputs please the project’s customers.
Customers use the outputs effectively as they do their work (meet quality goals)
The project should be completed on schedule and on budget (meet time and cost constraints).

32. Defining Project Success and Failure
Successful projects are completed without heroics
People who work on the project should learn new skills and/or refine existing skills.
Organizational learning should take place and be captured for future projects.
Reap business-level benefits such as development of new products, increased market share, increased profitability, decreased cost, etc.

33. Project Success Meeting Agreements
Cost, schedule, and specifications met
Customer’ Success
Needs met, deliverables used, customer satisfied
Performing Organization’s Success
Market share, new products, new technology
Project Team’s Success
Loyalty, development, satisfaction

34. Why Projects Fail
Not enough resources are available for project completion.
Not enough time has been given to the project.
Project expectations are unclear.
Changes in the scope are not understood or agreed upon by all parties involved.
Stakeholders disagree regarding expectations for the project.
Adequate project planning is not used.

35. Types of Projects Classifying by industry Classifying by size
Classifying by timing of determination of project scope
Classifying by application

36. PMI Communities of Practice
Aerospace and Defense
Agile
Automation Systems
Consulting
Design-Procurement-Construction
Diversity
E-Business
Financial Services
Global Sustainability
Government
Healthcare
Human Resource
Information Systems
Innovation and New Product Development
International Development
Learning, Education and Development
Manufacturing
Marketing and Sales
Oil, Gas, Petrochemical
Organizational
Performance Management
Pharmaceutical
Program Management Office
Quality
Retail
Risk Management
Scheduling
Service and Outsourcing
Students of PM
Troubled Projects
Utility
Women in PM
Projects in different industries often have unique requirements
PMI specific interest groups

37. Large projects often require more detailed planning and control
Classifying by Size
Large projects often require more detailed planning and control

38. Classifying by Timing of Project Scope Clarity
How early in the project the project manager and team are likely to be able to determine what the project scope will be

39. Classification by Application
All projects require planning and control
The art of project management deals with when to use certain techniques, how much detail to use, and how to tailor the techniques to the needs of a specific project.

40. Scalability of Project Tools
All projects require
Determination of the wants and needs of the customer(s)
Understanding of the amount of work involved
Determination of a budget and schedule
Decisions about available workers and who will do which tasks
Management until the owner accepts the project results
Projects are scaled up or down to meet the complexity of the task

41. Project Roles Project Executive-Level Roles
Project Management-Level Roles
Project Associate-Level Roles

42. Project Executive-Level Roles
The steering team
The top leader (CEO) and his/her direct reports
Select, prioritize, and resource projects in accordance with the organization’s strategic planning
Ensure that accurate progress is reported and necessary adjustments are made.

43. Project Executive-Level Roles
The chief projects officer
Keeper, facilitator, and improver of the project management system
Responsible for project standards, methods, training, documentation
Project Management Office (PMO) – “an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects within its domain. The responsibilities of the PMO can range from providing project management support functions to actually being responsible for the direct management of a project.” PMBOK® Guide

44. Project Executive-Level Roles
The sponsor
Takes an active role in chartering the project and reviewing progress reports
Takes a behind-the-scenes role in mentoring and assisting the project manager throughout the project life.
Sponsor – “the person or group that provides the financial resources, in cash or in kind, for the project.” PMBOK® Guide

45. Project Management-Level Roles
Project manager
Directly accountable for the project results, schedule, and budget
The main communicator
Responsible for the planning and execution of the project
Works on the project from start to finish.
The project manager often must get things done through the power of influence since his or her formal power may be limited.
Project manager – “the person assigned by the performing organization to achieve the project objectives.” PMBOK® Guide

46. Project Management-Level Roles
Functional manager
The department heads—the ongoing managers of the organization
Determine how the work of the project is to be accomplished
Supervise the work
Negotiate with the project manager regarding which workers are assigned to the project

47. Project Management-Level Roles
Facilitator
Helps the project manager with the process of running meetings and making decisions
Frees the project manager to concentrate on the content of the project
The facilitator concentrates on the process.
A facilitator helps the PM understand organizational politics and provides suggestions on how to handle situations.

48. Project Management-Level Roles
Senior customer representative
Ensures that the needs and wants of constituents in the customer’s organization are identified and prioritized
Ensures that project progress and decisions continually support the customer’s desires.

49. Project Associate-Level Roles
Core team member
People assigned to a project from start to finish
The core team does most of the planning and makes most of the project level decisions.
Project management team – “members who are directly involved in project management activities.” PMBOK® Guide

50. Overview of the Book
Project management is integrative, iterative, and collaborative
This book has three major parts
Organizing and Initiating Projects
Planning Projects
Performing Projects

51. Part I - Organizing and Initiating Projects
Project management basics (Chapter 1)
Project selection and prioritization (Chapter 2)
Organizational structure, organizational culture, project life cycle, and project management roles of the parent organization (Chapter 3)
Chartering projects (Chapter 4)
Project charter – “a document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities.” PMBOK® Guide

52. Part II – Planning Projects
Identify project stakeholders, their wants and needs, and how to prioritize decisions among them (Chapter 5)
How to determine the project scope and outline it in the work breakdown structure (WBS) (Chapter 6)
Work breakdown structure (WBS) – “a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope of the project.” PMBOK® Guide

53. Part II – Planning Projects
Scheduling projects (Chapter 7)
Scheduling resources on projects (Chapter 8)
Project budgeting (Chapter 9)
Risk planning (Chapter 10)
Project Quality (Chapter 11)
Project schedule – “the planned dates for performing schedule activities and the planned dates for meeting schedule milestones.” PMBOK® Guide
Budget – “the approved estimate for the project or any work breakdown structure component or any schedule activity.”PMBOK® Guide

54. Part III – Performing Projects
Project supply chain management (Chapter 12)
Leading and managing project teams (Chapter 13)
Monitoring and controlling project work (Chapter 14)
Finishing projects and realizing benefits (Chapter 15)
Monitor and control project work – “the process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project plan”PMBOK® Guide
Close project – “the process of finalizing all activities across all of the project process groups to formally close a project or phase.” PMBOK® Guide

55. Summary
A project is an organized set of work efforts undertaken to produce a unique output subject to limitations of time and resources such as money and people
Project management includes work processes that initiate, plan, execute, control, and close project work.
Tradeoffs must be made between the scope, quality, cost, and schedule
All projects, regardless of size, complexity, or application, need to be planned and managed.
PMI® is a large professional organization devoted to promoting and standardizing project management understanding and methods

56. Summary
A Guide to the Project Management Body of Knowledge (PMBOK® Guide), is composed of five process groups: initiating, planning, executing, monitoring and controlling, and closing along with nine knowledge areas: cost, time, scope, quality, risk, communications, human resources, procurement, and integration.
Successful projects require an understanding of what project success is and what drives it
Successful projects require an understanding of project failure and its major causes.
Project management requires an understanding of the various executive, managerial, and associate roles in project management

57. Skyline Chili, Inc.
Cincinnati-based restaurant franchise with menu specializing in high-quality chili-related food products
Customers value unparalleled hospitality
Skyline management wanted to ensure training program aligns with business plan of unparalleled hospitality
Required outcome: high-performing, execution-ready, hospitable employees
PM in Action Example

58. Skyline Chili, Inc.
Brainstorming and prioritizing identified critical training projects
Top priority was to establish a centralized training department with a point contact person
Training department was not planned or budgeted
As a result of a business case and job analysis a director of training was put in place
PM in Action Example

59. PM in Action Example
Skyline Chili, Inc.