1. Introduction to Project Management
Certificate Series – Day 3
Organizational Influences and
Project Life Cycle

2. Understanding Organizational Structures
Organizational structures are unique just like projects
Each has its own style and culture
They influence how projects are performed

3. Organizational Culture and Styles
Organizations are made of people aimed at accomplishing a purpose which may involve undertaking projects
Culture and style affect how it conducts projects (i.e. gets work done)
Culture and styles are group phenomena known as cultural norms which develop over time and include the way we initiate and plan projects

4. Organizational Culture and Styles
Norms include the acceptable ways
We get work done
Recognized authorities who make and influence decisions
Organizational culture is shaped by common experiences of members like
Shared visions, mission, values, beliefs, expectations
Regulations, policies, methods and procedures
Motivation and reward systems
Risk tolerance
View of leadership, hierarchy and authority relationships
Code of conduct, work ethic, and work hours
Operating environments

5. Organizational Culture and Styles
Project Managers must understand the different organizational styles and cultures that may affect a project
Project Managers must know which individuals in the organization are the decision makers or influencers and work with them to increase the probability of project success

6. Organizational Communication
Project management success is highly dependent on an effective organizational communication style
Has great influence on how projects are conducted
As a consequence, project managers in distant locations are able to more effectively communicate with all relevant stakeholders within the organizational structure to facilitate decision making

7. Organizational Structures
Organizational structure is an enterprise environmental factor, which can affect the availability of resources and influence how projects are conducted
Organizational structures range from functional to projectized, with a variety of matrix structures in between

8. Organizational Structure Type Characteristics

9. Organizational Structures Types
Functional Organizations
Projectized Organizations
Matrix Organizations
Weak
Balanced
Strong
Functional
Projectized
Weak Matrix
Balanced Matrix
Strong Matrix

10. Project manager’s authority Resource availability to the project
Organizational structure of a project influences how the project is managed. It suggests:
Project manager’s authority
Resource availability to the project
Project budget control
Project manager’s role
Project management administrative staff

11. Functional Organization
Enduring organization
PM has little or no formal authority
Clear career path with separation of functions allowing specialty skills to flourish
Multiple projects compete for limited resources and priority
One boss with clear chain of command
Team members loyal to functional manager

12. Functional Organization

13. Projectized Organizations
Project managers have ultimate authority over the project
The focus of the organization is the project
The organization’s resources are focused on projects and project work
Team members are collocated
Loyalties are formed to the project, not to a functional manager
Project teams are dissolved at the conclusion of the project

14. Projectized Organization

15. Matrix Organizations
A blend of functional and projectized characteristics
Multiple bosses
Functional managers are responsible for administrative duties and resource commitments
Project managers are more in a coordinator role

16. Focus in Matrix Organizations
Project managers and project team focus on project work
Project managers should review activity estimates for team members with functional manager to gain commitment

17. Balance of Power in Matrix Organizations
Strong Matrix - project manager has the power
Weak Matrix – functional manager has the power
Balanced Matrix – the power is balanced between the functional and project manager

18. Matrix vs. Functional and Matrix vs. Projectized
Weak Matrix
Like a functional organization
PM’s role is coordinator or expediter
Balanced Matrix
A balance of power exists between the Functional Manager and Project Manager
Strong Matrix
Like a projectized organization
Full time project managers with full authority

19. Weak Matrix Organization

20. Balanced Matrix Organization

21. Strong Matrix Organization

22. Organizational Structure Type Characteristics

23. Composite Organization
All organizational structures at various levels
A fundamentally functional organization may create a special project team – like projectized to handle a critical project
An organization may manage most of its projects in a strong matrix, but allow small projects to be managed by functional departments

24. Composite Organization

25. Class Exercise In groups of 2 discuss whether your immediate team:
Is considered functional, projectized, weak matrix, balanced matrix, or strong matrix?
List the characteristics of your that justifies your answer to the question above
Discuss what titles project managers have in your organization.

26. Another Aspect to Understanding the Project Environment
Environment is made up of internal and external factors that influence it
PM must consider more than just the project itself
Proactive management involves understanding the environment in which the project must function

27. Organizational Process Assets
Plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization
PMBOK 2.1.4, ,

28. Enterprise Environmental Factors
May enhance or constrain project management options and may have a positive or negative influence on the outcome of the project
Organizational culture, structure and processes
Gov’t/industry standards (regulatory, codes of conduct, product standards, quality standards, workmanship standards)
Infrastructure (existing facilities, capital equipment)
Existing human resources (skills, disciplines, knowledge)
Personnel administration (staffing and retention guidelines, employee performance reviews, training records, overtime policy)
Company work authorization systems
Market place conditions
Stakeholder risk tolerances
Political climate
Organization’s established communications channels
Project Management Information Systems (PMIS)

29. Project Stakeholders
A stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project
Stakeholders include all members of the project team as well as all interested entities that are internal or external to the organization

30. Project Stakeholders
The project team identifies internal and external, positive and negative, and performing and advising stakeholders in order to determine the project requirements and the expectations of all parties involved
The project manager should manage the influences of these various stakeholders in relation to the project requirements to ensure a successful outcome
When there are conflicts between stakeholders Project Managers should resolve the conflict in favor of the project’s key or main customer

31. The Relationship Between Stakeholders and the Project

32. Project Stakeholder Levels
Stakeholders have varying levels of responsibility and authority
Levels change the project’s life cycle
Involvement may range from occasional to full project sponsorship
Some stakeholders may also detract from the success of the project, either passively or actively and these require the project manager’s attention throughout the project’s life cycle, as well as planning to address any issues they may raise

33. Project Stakeholder Identification
Is a continuous process throughout the entire project life cycle
Identifying stakeholders, understanding their relative degree of influence on a project, and balancing their demands, needs, and expectations are critical to the success of the project
If you fail to identify and plan it may lead to delays, cost increases, unexpected issues, and other negative consequences including project cancellation

34. Managing Stakeholder Expectations
The Project Manager must manage stakeholder expectations, which can be difficult because stakeholders often have very different or conflicting objectives
Project Managers must balance these interests and ensure that the project team interacts with stakeholders in a professional and cooperative manner
Project managers may involve the project’s sponsor or other team members from different locations to identify and manage stakeholders that could be dispersed around the world

35. Project Governance
An oversight function that is aligned with the organization’s governance model and that encompasses the project life cycle
Framework provides the project manager and team with structure, processes, decision-making models and tools for managing the project, while supporting and controlling the project for successful delivery
Critical element of any project, especially on complex and risky projects
It provides a comprehensive, consistent method of controlling the project and ensuring its success by defining and documenting and communicating reliable, repeatable project practices

36. Project Success
Should be measured in terms of completing the project within the constraints of scope, time, cost, quality, resources, and risk as approved between the project managers and senior management
To ensure realization of benefits for the undertaken project, a test period can be part of the total project time before handing it over to the permanent operations
Project success should be referred to the last baselines approved by the authorized stakeholders
The project manager is responsible and accountable for setting realistic and achievable boundaries for the project and to accomplish the project within the approved baselines

37. Project Team
Includes the project manager and the group of individuals who act together in performing the work of the project to achieve its objectives
The project team includes the project manager, project management staff, and other team members who carry out the work but who are not necessarily involved with management of the project
This team is comprised of individuals from different groups with specific subject matter knowledge or with a specific skill set to carry out the work of the project
Structure and characteristics of a project team can vary widely, but one constant is the project manager’s role as the leader of the team, regardless of what authority the project manager may have over its members

38. Project Team Roles
Project management staff – Perform project management activities like scheduling, budgeting, reporting and control, communications, risk management and administrative support
Project staff - Carry out the work of creating the project deliverables
Supporting experts – Perform activities required to develop or execute the project management plan. These can include such roles as contracting, financial management, logistics, legal, safety, engineering, test, or quality control

39. Project Team Roles
User or Customer Representatives - Accept the deliverables or products of the project may be assigned to act as representatives or liaisons to ensure proper coordination, advise on requirements, or validate the acceptability of the project’s results
Sellers – Also called vendors, suppliers, or contractors, are external companies that enter into a contractual agreement to provide components or services necessary for the project
Business partner members - Members of business partners’ organizations may be assigned as members of the project team to ensure proper coordination

40. Project Team Roles
Business partners - External companies, but they have a special relationship with the enterprise, sometimes attained through a certification process. Provide specialized expertise or fill a specified role such as installation, customization, training, or support

41. Composition of Project Teams
Varies based on factors such as organizational type or culture, scope, and location. They may be:
Dedicated where the project team members are assigned to work full-time on the project; basically projectized
Part-Time established as temporary additional work, with functional managers maintaining resource control and PMs performing other management duties as well; basically matrixed

42. Project Life Cycle
The steps an organization performs to build the product, service or result
A series of phases a project passes through from its initiation to its closure
Phases are generally sequential
Their names and numbers are determined by the management and control needs of the organization and its area of application

43. Project Life Cycle or Phases
May be divided by functional or partial objectives, intermediate results or deliverables, specific milestones within the overall scope of work or financial availability
Are generally time bounded with a start and ending or control point
A life cycle can be documented within a methodology

44. Project Life Cycle or Phases
The project life cycle may be shaped by the unique aspects of the organization, industry or technology employed
While every project has a definite start and end, the specific deliverables and activities in between will vary widely with the project
The life cycle provides the basic framework for managing the project regardless of the work involved

45. Project Life Cycle or Phases
Can range along a continuum from predictive or plan driven approaches at one end to adaptive or change driven at the other
In a predictive life cycle the product and deliverables are defined at the beginning of the project and any changes to scope are carefully managed
In an adaptive life cycle the project is developed over multiple iterations and the detailed scope is defined for each iteration only as the iteration begins

46. Characteristics of the Project Life Cycle
Projects vary in size and complexity
All projects can be mapped to the following generic life cycle structure
Starting the project
Organizing and preparing
Carrying out the project work
Closing the project

47. Characteristics of the Project Life Cycle
The generic life cycle structure is often referred to when reporting to upper management or others less familiar with the details of the project
This should not be confused with Project Management Process Groups because the processes in a Process Group may be performed and recur within each phase of a project as well as for the project as a whole

48. Project Life Cycle Examples
Pharmaceutical Development Phases
Drug Discovery
Pre-formulation
Pharmacokinetics
Toxicology
Pharma/clinical development
Clinical Trials 1-3
Go to Market
Regulatory Approval
Regulated Production
Clinical Trials 4

49. Project Life Cycle Examples
System Development Life Cycle Phases
Problem Definition
Requirements Gathering
Analysis
Design
Development
Testing
Deployment
Maintenance

50. Project Life Cycle Examples
Medical Device Development Project Phases
Concept Phase
Program Planning
Preliminary Design
Detail Design
Drug Discovery
Pilot Production
Clinicals / FDS
Production Release

51. The characteristics of each process group reflects:
The level of a project’s costs, staffing, chances of successful completion, stakeholder influence and probability of risk

52. Project Life Cycle Characteristics
Generic Life Cycle Structure

53. Project Life Cycle Characteristics

54. Project Life Cycle Characteristics
Cost of changes/correcting errors increases significantly over time

55. Project Phases A project may be divided into any number of phases
A project phase is a collection of a logically related project activities that end in the completion of one or more deliverables
Project phases are used when the nature of the work to be performed is unique to a portion of the project

56. Project Phases
A phase may emphasize processes from a particular Project Management Process Group
Project phases typically are completed sequentially, but can overlap in some project situations

57. Project Phases and Key Terms
At the beginning of a phase a feasibility study may be performed
At the end of a phase a phase end review of the completed deliverables may be performed before handoff to the next phase can occur

58. Feasibility Studies
Typically incorporated in the beginning phase of the project
Are completed prior to the beginning of the next phase
Determines whether a project is worth undertaking and whether it will be profitable to the organization

59. Handoffs When a project progresses from one phase to the next
Phase deliverables must be reviewed for accuracy and approved
It is handed off to the next phase
Handoffs are technical transfers or phase sequences that signal the end of one phase and typically mark the beginning of the next

60. Phase End Reviews A review that takes place Also know as:
To determine whether the project should continue onto the next phase
Identify and address errors discovered during the phase
Also know as:
Phase exits or gates (stage gates, decision gates)
Milestones
Kill points

61. Phase to Phase Relationships – 2 Types
Sequential
Where one phase must end before the next phase begins
Overlapping
Where one phase starts before the previous phase completes

62. Project Governance Across the Life Cycle
Regardless of the number of phases, project governance is required
Method of controlling project ensuring success
Described in project management plan
PM and team decides how project is managed
What resources, how work will be completed, how many phases will be used
Management review used to assess accuracy of deliverable, determine phase end and if project continues

63. A Little Humor: Six Phases of a Project
Enthusiasm
Panic
Disillusionment
Search for the Guilty
I’ll find someone to blame...
Praise and Honors for the non-participants
Punishment of the innocent
Ask:
How does this match your own experience working on your projects?

64. Product Life Cycle Is a collection of product phases
Generally sequential
Sometimes overlapping
Created to provide better management control

65. Product Life Cycle Introduction Growth Maturity Decline
Market size, sales volumes and sales growth are small
Growth
When brand loyalty is built and market share increased
Maturity
When the market makes the most profit
Decline
When sales and profit start to fall

66. Product vs. Project Life Cycle Relationships
Product Phase
Project Life Cycles
New product
Existing product requires new feature/function
Feasibility study
Market research
Advertising campaign …
New project to create product
New project to add feature function
New project
New projects…

67. Product vs. Project Life Cycle Relationships
Conception
Growth
Maturity
Decline
Withdrawal
Time