Chapter 1
Chapter 1
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Project Management, Sixth Copyright 2
Better control of financial, physical, and
human resources
Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Better internal coordination
Higher worker morale
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Project Management, Sixth Copyright 3
A project is “a temporary endeavor
undertaken to create a unique product, service,
or result”
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Project Management, Sixth Copyright 4
A project is “a temporary endeavor
undertaken to create a unique product, service,
or result”
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Project Management, Sixth Copyright 5
Projects can be large or small and take a
short or long time to complete
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Project Management, Sixth Copyright 6
A project:
◦ Has a unique purpose
◦ Is temporary
◦ Is developed using progressive elaboration
◦ Requires resources, often from various areas
◦ Should have a primary customer or sponsor
The project sponsor usually provides the direction and
funding for the project
◦ Involves uncertainty
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Project Management, Sixth Copyright 7
A technician replaces ten laptops for a
small department
A small software development team adds a new
feature to an internal software application for
the finance department
A college campus upgrades its technology
infrastructure to provide wireless Internet access
across the whole campus
A cross-functional task force in a company
decides what Voice-over-Internet-Protocol (VoIP)
system to purchase and how it will be
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implemented
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Project Management, Sixth Copyright 9
Project managers work with project sponsors, the
project team, and other people involved in a
project to meet project goals
Program: group of related projects managed in a
coordinated way to obtain benefits and control
not available from managing them individually
Program managers oversee programs; often act
as bosses for project managers
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Project Management, Sixth Copyright 1
Successful project
management means
meeting all three
goals (scope, time,
and cost) – and
satisfying the
project’s sponsor!
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Project Management, Sixth Copyright 1
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Project Management, Sixth Copyright 1
Stakeholders are the people involved in
or affected by project activities
Stakeholders include:
◦ The project sponsor
◦ The project manager
◦ The project team
◦ Support staff
◦ Customers
◦ Users
◦ Suppliers
◦ Opponents to the project
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Project Management, Sixth Copyright 1
Knowledge areas describe the key competencies
that project managers must develop
◦ 4 core knowledge areas lead to specific project objectives
(scope, time, cost, and quality)
◦ 4 facilitating knowledge areas are the means
through which the project objectives are achieved
(human resources, communication, risk, and
procurement management
◦ 1 knowledge area (project integration management) affects
and is affected by all of the other knowledge areas
◦ All knowledge areas are important!
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Project Management, Sixth Copyright 1
Project management tools and techniques assist
project managers and their teams in various
aspects of project management
Some specific ones include:
◦ Project charter, scope statement, and WBS (scope)
◦ Gantt charts, network diagrams, critical path analysis,
critical chain scheduling (time)
◦ Cost estimates and earned value management (cost)
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Project Management, Sixth Copyright 1
There are several ways to define project success:
◦ The project met scope, time, and cost goals
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Project Management, Sixth Copyright 1
1. Executive support 7. Firm basic requirements
2. User involvement 8. Formal methodology
3. Experienced project 9. Reliable estimates
manager 10. Other criteria, such as
4. Clear business objectives small milestones, proper
5. Minimized scope planning, competent
6. Standard software staff, and ownership
infrastructure
*The Standish Group, “Extreme CHAOS,” (2001).
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Project Management, Sixth Copyright 1
A program is “a group of related projects
managed in a coordinated way to obtain benefits
and control not available from managing them
individually”
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Project Management, Sixth Copyright 1
and user support
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Project Management, Sixth Copyright 1
Project managers need a wide variety of skills
They should:
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Project Management, Sixth Copyright 1
Job descriptions vary, but most include
responsibilities like planning, scheduling,
coordinating, and working with people to achieve
project goals
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Project Management, Sixth Copyright 2
1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities
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Project Management, Sixth Copyright 2
The Project Management Body of Knowledge
Application area knowledge, standards,
and regulations
Project environment knowledge
General management knowledge and skills
Soft skills or human relations skills
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Project Management, Sixth Copyright 2
Large projects: leadership, relevant prior experience,
planning, people skills, verbal communication, and team-
building skills were most important
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Project Management, Sixth Copyright 2
Effective project managers provide leadership
by example
A leader focuses on long-term goals and big-
picture objectives while inspiring people to reach
those goals
A manager deals with the day-to-day details
of meeting specific goals
Project managers often take on the role of
both leader and manager
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Project Management, Sixth Copyright 2
In a 2006 survey by CIO.com, IT
executives ranked the skills that would be
the most in demand in the next two to five
years
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Project Management, Sixth Copyright 2
SKILL PERCENTAGE OF
RESPONDENTS
Project/program management 60%
Business process management 55%
Business analysis 53%
Application development 52%
Database management 49%
Security 42%
Enterprise architect 41%
Strategist/internal consultant 40%
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The profession of project management is growing
at a very rapid pace
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Project Management, Sixth Copyright 2
Some people argue that building the Egyptian
pyramids was a project, as was building the Great
Wall of China
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Project Management, Sixth Copyright 2
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Project Management, Sixth
Copyright 2009 28
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Project Management, Sixth Copyright 2
Ethics, loosely defined, is a set of principles that
guide our decision making based on personal values
of what is “right” and “wrong”
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Project Management, Sixth Copyright 3
There are hundreds of different products to assist in
performing project management
Three main categories of tools:
◦ Low-end tools: handle single or smaller projects well, cost
under $200 per user
◦ Midrange tools: handle multiple projects and users, cost
$200-600 per user, Project 2007 most popular
◦ High-end tools: also called enterprise project management
software, often licensed on a per-user basis, like VPMi
Enterprise Online (www.vcsonline.com) – see front cover
for trial version information
See the Project Management Center Web site or
Top Ten Reviews for links to many companies that
provide project management software
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Project Management, Sixth Copyright 3
A project is a temporary endeavor undertaken to
create a unique product, service, or result
Project management is the application of knowledge,
skills, tools, and techniques to project activities to
meet project requirements
A program is a group of related projects managed in
a coordinated way
Project portfolio management involves organizing
and managing projects and programs as a portfolio of
investments
Project managers play a key role in helping
projects and organizations succeed
The project management profession continues to
grow and mature
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