Organizational Influences and Life Cycle Project Management Organizational Influences and Life Cycle PMBOK 5th Ed. Chapter 2 Minder Chen, Ph.D. CSU Channel Islands Minder.chen@csuci.edu http://www.project-management-knowhow.com/project_management_plan.html

Organizational Culture Organizational culture is shaped by the common experiences of members of the organization and most organizations have developed unique cultures over time by practice and common usage. Common experiences include, but are not limited to: Shared visions, mission, values, beliefs, and 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; and Operating environments.

Influence of Organizational Structures on Projects

Functional Organization

Weak Matrix Organization

Balanced Matrix Organization

Strong Matrix Organization

Projectized Organization

Composite Organization

Project Governance Framework Project success and deliverable acceptance criteria; Process to identify, escalate, and resolve issues that arise during the project; Relationship among the project team, organizational groups, and external stakeholders; Project organization chart that identifies project roles; Processes & procedures for the communication of information; Project decision-making processes; Guidelines for aligning project governance & organizational strategy; Project life cycle approach; Process for stage gate or phase reviews; Process for review and approval for changes to budget, scope, quality, and schedule which are beyond the authority of the project manager; and Process to align internal stakeholders with project process requirements.

Organizational Cultures and Styles Cultures and styles may have a strong influence on a project’s ability to meet its objectives. Cultures and styles are typically known as “cultural norms.” The “norms” include a common knowledge regarding how to approach getting the work done, what means are considered acceptable for getting the work done, and who is influential in facilitating the work getting done. Most organizations have developed unique cultures that manifest in numerous ways including, but not limited to: Shared visions, values, norms, beliefs, and expectations, Policies, methods, and procedures, View of authority relationships, and Work ethic and work hours.

Identifying Cultural Characteristics Study the physical characteristics of an organization. Read about the organization. Observe how people interact within the organization. Interpret stories and folklore surrounding the organization. Google Office

Organization Culture Characteristics

Project Life Cycle Project managers or the organization can divide projects into phases to provide better management control with appropriate links to the ongoing operations of the performing organization. Collectively, these phases are known as the project life cycle.

Characteristics of the Project Life Cycle The project life cycle defines the phases that connect the beginning of a project to its end. Deliverables from one phase are usually reviewed for completeness and accuracy and approved before work starts on the next phase. However, it is not uncommon for a phase to begin prior to the approval of the previous phase’s deliverables, when the risks involved are deemed acceptable. There is no single best way to define an ideal project life cycle. Industry common practices will often lead to the use of a preferred life cycle within that industry.

Project Lifecycle Methodology Project life cycles generally define: When the deliverables are to be generated in each phase? What are the inputs required to produce the deliverables? What technical work to do in each phase? What are the tools and techniques to be used in each phase? How each deliverable is reviewed, verified, and validated? Who is involved in each phase? How to control and approve each phase?

Typical Cost & Staffing Levels Across the Project Life Cycle Cost and staffing levels are low at the start, peak during the intermediate phases, and drop rapidly as the project draws to a conclusion. Source: PMBOK 5th ed., p. 39

Project Life Cycle FIGURE 1.1

Overlap of Process Groups in a Phase

Interaction Between Phases

Impact of Variable Based on Project Time The ability of the stakeholders to influence the final characteristics of the project’s product and the final cost of the project is highest at the start, and gets progressively lower as the project continues. The ability of the stakeholders to influence the final characteristics of the project’s product and the final cost of the project is highest at the start, and gets progressively lower as the project continues. Source: PMBOK 5, p. 40

Single Phase Project

Multiple-Phase Project (Sequential)

Predictive Life Cycle

Life Cycle Approach Iterative and incremental life cycles are ones in which project phases (also called iterations) intentionally repeat one or more project activities as the project team’s understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product. These life cycles develop the product both iteratively and incrementally. Adaptive life cycles (also known as change-driven or agile methods) are intended to respond to high levels of change and ongoing stakeholder involvement. Adaptive methods are also iterative and incremental, but differ in that iterations are very rapid (usually with a duration of 2 to 4 weeks) and are fixed in time and cost. Adaptive projects generally perform several processes in each iteration, although early iterations may concentrate more on planning activities.

Characteristics of Project Phases The completion and approval of one or more deliverables characterizes a project phase. A deliverable is a measurable, verifiable work product such as a specification, feasibility study report, detailed design document, or working prototype. In any specific project, for reasons of size, complexity, level of risk, and cash flow constraints, phases can be further subdivided into subphases. Each subphase is aligned with one or more specific deliverables for monitoring and control. Formal phase completion does not include authorizing the subsequent phase. For effective control, each phase is formally initiated to produce a phase-dependent output of the Initiating Process Group.

Project Life Cycle and Product Life Cycle

Characteristics of Project Phases The deliverables are reviewed to determine whether the project should continue. This decision point is known as an Exit Gate or a Kill Point, and the decision on whether to proceed with project is usually by a person external to the project. Phase-end reviews are also called phase exits, phase gates, or kill points.

Project Data, Information and Report Flow PMBOK 5th Ed. P.59

Project Teams Roles Project management staff Project staff Supporting experts. User or Customer Representatives Sellers Business partner members

Project Team Dedicated vs. Part-time Physical vs. Virtual Team Cross-functional Areas