2. Project Management Environment Chapter 2 PMP Preparation Training

3. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-2 Objectives To 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

4. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-3 Project Life Cycle Defines 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 Defines 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

5. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-4 Phase Characteristics Deliverables 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

6. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-5 Characteristics of Life Cycle Defines 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

7. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-6 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

8. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-7 Phases and Resources Usage Concept5% Development20% Implement60% Close Out15%

9. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-8 Project Stakeholders Individuals and organizations who are actively involved in the project and whose interests may be positively or negatively affected by the project success or failure Key Stakeholders Project manager Manages the project Customer Uses the product or service Performing organization Enterprise that does the project work Sponsor Provides financial resources

10. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-9 Organizational Influences Organizational 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

11. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-10 Organizational Cultures & Styles Shared values, norms, beliefs, and expectations Reflected in policies and procedures, view of authority relationships, etc. Directly influences the project

12. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-11 Organizational Structure Functional 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

13. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-12 Organizational Structure Project 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

14. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-13 Functional Organization Specialists grouped by function Difficult to cross functional lines Barriers exist on horizontal information flow Functional emphasis – loyalties may impede completion Organizational Planning

15. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-14 Matrix Organization Multiple-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

16. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-15 Matrix Organization Advantages –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

17. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-16 Projectized Organization Emerges 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

18. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-17 Organizational Structures TypePM Authority FunctionalNone Project Expediter Low Project CoordinatorLow Weak MatrixLow –> Medium Strong MatrixMedium –> High ProjectizedHigh Organizational Planning

19. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-18 General Management Skills Leading –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

20. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-19 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

21. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-20 Social-Economic-Environmental Influences Projects have positive or negative impacts on people, economics, and the environment Organizations are accountable for these impacts

22. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-21 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

23. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-22 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 impacts Social-Economic-Environmental Influences

24. Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-23 Summary Review Questions