Foundations of Project

Management
Week 2

Ayesha Zareef-Senior Lecturer; Department of Management Studies, Bahria University, Islamabad Campus
 PMBOK Guide

• BOK (Body of Knowledge)

• PMBOK (project management body of knowledge)
• PMBOK Guide
• Traditional practices – innovative practices
• Published – unpublished
• Generally recognized
• Good practices

2
 PMBOK Guide

✓ Introduction
✓ A system for value delivery
✓ Project Management Principles
3
 4

PMBOK Guide
6th Edition Vs. 7th Edition
PMBok
 Why PMBok 7th Edition?
"Over the past few years, emerging technology, new approaches, and rapid
market changes disrupted our ways of working, driving the project management
profession to evolve”
• Each industry, organization and project face unique challenges, and team
members must adapt their approaches to successfully manage projects and
deliver results.
• Reflects the full range of development approaches (predictive, traditional,
adaptive, agile, hybrid, etc.);
• Focuses on project outcomes, in addition to deliverables; and
• Integrates with PMI standards+, giving users access to content that helps them
apply the PMBOK® Guide on the job.
The result is a modern guide that betters enables project team members to be
proactive, innovative, and nimble in delivering project outcomes."
5
 What are PMBOK Knowledge Areas?

• Each Knowledge Area is made up of a set of processes, each

with inputs, tools and techniques, and outputs

• These processes, together, accomplish proven project

management functions and drive project success

6
 Integration
stakeholder

Scope

Procurement

PROJECT MANAGEMENT Risk

Schedule KNOWLEDGE AREAS

Resource
Cost
Quality Communication
 10 Knowledge Areas
1. Integration Management - is the processes 6. Quality Management - the processes required to
required to ensure that the various elements of ensure the project will satisfy the needs for which it
the project are properly coordinated. was undertaken.
2. Scope Management - the processes required to 7. Resource Management - the processes required to
ensure that the project includes all the work make the most effective use of people involved with
required, and only the work required, to complete the project.
the project successfully.
8. Communications Management - the processes
3. Time Management - the processes required to required to ensure the timely and appropriate
ensure the timely completion of the project. generation, collection, dissemination, storage, and
4. Cost Management - the processes required to ultimate disposition of project knowledge.
ensure the project is completed within the 9. Procurement Management - the processes
approved budget. required to acquire the goods and services from
5. Risk Management - the processes concerned with outside the performing organization.
identifying, analyzing, and responding to project 10. Stakeholder Management - the processes that
risk. identifies and develops relationships with those
people and organizations which are impacted by the
project and which influence or determine how the
team works.
 Project Management Process Groups
Initiating a Project PMBOK divides
PM into process
groups and
Planning a Project knowledge
areas

Executing a Project

Monitoring & Controlling

a Project
✓ Process Groups bundle together processes that often operate
around the same time on a project or with similar input and
outputs.
Closing a Project
✓ Once you've got comfortable with them they are actually a very
logical way of grouping together the things you have to do.
 PROJECT MANAGEMENT
 Project Management Life Cycle/Process Groups
Monitoring

Initiation Planning Execution & Closing

Evaluation

1.Initiating Process Group: Those processes performed to define

a new project or a new phase of an existing project by obtaining
authorization to start the project or phase.

2.Planning Process Group: Those processes required to establish

the scope of the project, refine the objectives, and define the course
of action required to attain the objectives that the project was
undertaken to achieve.
 PROJECT MANAGEMENT
 Project Management Life Cycle/Process Groups
Monitoring
Initiation Planning Execution & Closing
Evaluation

3.Executing Process Group: Those processes performed to complete

the work defined in the project management plan to satisfy the project
specifications.

4.Monitoring & Controlling Process Group: Those processes

required to track, review, and regulate the progress and performance of
the project; identify any areas in which changes to the plan are
required; and initiate the corresponding changes.
 PROJECT MANAGEMENT
 Project Management Life Cycle/Process Groups
Monitoring
Initiation Planning Execution & Closing
Evaluation

4. Closing Process Group: Those processes

performed to finalize all activities across all
Process Groups to formally close the project or phase.
Project Life Cycle
 5 Process Groups
Monitoring
Initiatin
Planning Executing & Controlling Closing
g
14 (M&C)
Integration Management 1
Scope Management
Time Management
10 Knowledge Areas

Cost Management
Quality Management
Resource Management
Communication
Management
Risk Management
Procurement Management
Stakeholder Management 1
M I Minhas 2
 5 Process Groups
Monitoring
Initiatin
Planning Executing & Controlling Closing
g
15 (M&C)
Integration Management 1 1
Scope Management 4
Time Management 5
10 Knowledge Areas

Cost Management 3
Quality Management 1
Resource Management 2
Communication
1
Management
Risk Management 5
Procurement Management 1
Stakeholder Management 1 2
M I Minhas 2 25
 5 Process Groups
Monitoring
Initiatin
Planning Executing & Controlling Closing
g
16 (M&C)
Integration Management 1 1 2
Scope Management 4
Time Management 5
10 Knowledge Areas

Cost Management 3
Quality Management 1 1
Resource Management 2 3
Communication
1 1
Management
Risk Management 5 1
Procurement Management 1 1
Stakeholder Management 1 2 1
M I Minhas 2 25 10
 5 Process Groups
Monitoring
Initiatin
Planning Executing & Controlling Closing
g
17 (M&C)
Integration Management 1 1 2 2
Scope Management 4 2
Time Management 5 1
10 Knowledge Areas

Cost Management 3 1
Quality Management 1 1 1
Resource Management 2 3 1
Communication
1 1 1
Management
Risk Management 5 1 1
Procurement Management 1 1 1
Stakeholder Management 1 2 1 1
M I Minhas 2 25 10 12
 5 Process Groups
Monitoring
Initiatin
Planning Executing & Controlling Closing
g
18 (M&C)
Integration Management 1 1 2 2 1
Scope Management 4 2
Time Management 5 1
10 Knowledge Areas

Cost Management 3 1
Quality Management 1 1 1
Resource Management 2 3 1
Communication
1 1 1
Management
Risk Management 5 1 1
Procurement Management 1 1 1
Stakeholder Management 1 1 1 1
M I Minhas 2 24 10 12 1
 5 Process Groups
Monitoring
Initiatin
Planning Executing & Controlling Closing
g
19 (M&C)
Integration Management 1 1 2 2 1 7
Scope Management 4 2 6
Time Management 5 1 6
10 Knowledge Areas

Cost Management 3 1 4
Quality Management 1 1 1 3
Resource Management 2 3 1 6
Communication
1 1 1 3
Management
Risk Management 5 1 1 7
Procurement Management 1 1 1 3
Stakeholder Management 1 1 1 1 4
M I Minhas 2 24 10 12 1 49
20
 Creating Value

• Creating a new product, service, or result that meets the

needs of customers or end users;
• Creating positive social or environmental contributions;
• Improving efficiency, productivity, effectiveness, or
responsiveness;
• Enabling the changes needed to facilitate organizational
transition to its desired future state; and
• Sustaining benefits enabled by previous programs, projects,
or business operations.
 Value Delivery Components

• There are various components, such as portfolios, programs,

projects, products, and operations, that can be used
individually and collectively to create value.

• Working together, these components comprise a system for

delivering value that is aligned with the organization’s
strategy.
Example of a System for Value Delivery
Components of a Sample System for Value Delivery
Information Flow
 The Project Environment
• Project operates in internal and external environment having varying influence on value
delivery.
• The environment of projects can influence planning and other project activities.
• These influences can yield a favorable, unfavorable, or neutral impact on project
characteristics, stakeholders, or project teams.

Internal Environment
Factors internal to the organization can arise from the organization itself, a portfolio, a program,
another project, or a combination of these. Examples include but are not limited to;

✓ Process assets. Process assets may include tools, methodologies, approaches, templates, frameworks,
patterns, or PMO resources.
✓ Governance documentation. This documentation includes policies and processes.
✓ Data assets. Data assets may include databases, document libraries, metrics, data, and artifacts from
previous projects.
✓ Knowledge assets. Knowledge assets may include knowledge among project team members, subject
matter experts, and other employees.
✓ Security and safety. Security and safety measures may include procedures and practices for facility access, data
protection, levels of confidentiality, and proprietary secrets.

✓ Organizational culture, structure, and governance. These aspects of an organization include the vision, mission,
values, beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style, ethics,
and code of conduct.

✓ Geographic distribution of facilities and resources. These resources include work locations, virtual project
teams, and shared systems.

✓ Infrastructure. Infrastructure consists of existing facilities, equipment, organizational and telecommunications

channels, information technology hardware, availability, and capacity.

✓ Information technology software. Examples include scheduling software, configuration management systems,
web interfaces to online automated systems, collaboration tools, and work authorization systems.

✓ Resource availability. Examples include contracting and purchasing constraints, approved providers and
subcontractors, and collaboration agreements. Availability related to both people and materials includes
contracting and purchasing constraints, approved providers and subcontractors, and time lines.

✓ Employee capability. Examples include general and specialized expertise, skills, competencies, techniques, and
knowledge.
 The External Environment

Factors external to the organization can enhance, constrain, or have a neutral influence on project
outcomes. Examples include but are not limited to:

✓ Marketplace conditions. Marketplace conditions include competitors, market share, brand

recognition, technology trends, and trademarks.
✓ Social and cultural influences and issues. These factors include political climate, regional
customs and traditions, public holidays and events, codes of conduct, ethics, and perceptions.
✓ Regulatory environment. The regulatory environment may include national and regional laws
and regulations related to security, data protection, business conduct, employment, licensing,
and procurement.
✓ Commercial databases. Databases include standardized cost estimating data and industry risk
study information.
✓ Academic research. This research can include industry studies, publications, and
benchmarking results.
 The Organizational Structure

Three different project management structures to choose

from

1- Functional organization
2- Projected or dedicated teams
3- Matrix structure
 Functional Organization
Functional organization is a type of organizational structure that uses
the principle of specialization based on function or role.

One functional area plays a dominate role or has a dominate interest in

the success of the project.

While several functional organizations may have a role in the project the
overall project will be managed within the normal hierarchy.

The project will be part of the working agenda of top management.

Functional Organization
Projectized Organization
 Matrix Organization
✓ This form is an attempt to maximize the strengths of both the functional and project-oriented
structures. When you see "matrix", think "two managers." Team members report to two managers:
the project manager and the functional manager (for example, the engineering manager).

✓ Communication goes from team members to both managers. Team members do project work in
addition to normal departmental work.

✓ In a strong matrix, power rests with the project manager.

✓ In a weak matrix, power rests with the functional manager, and the power of the project manager is
comparable to that of a coordinator (who has some authority and can make some decisions but
reports to a higher-level manager) or expediter (who coordinates communications and assists but
cannot make or enforce decisions).

✓ In a balanced matrix, the power is shared between the functional manager and the project manager.
Weak Organization
Balanced Organization
Strong Organization
 Advantages/Disadvantage- Functional Structure
Advantages Disadvantages
Easier management of specialist People place more emphasis on their
functional specialty to project
detriment
Team members report to only one No career path in project
supervisor management
Similar resources are centralized, as Project manager has limited or no
the company is grouped by specialties authority
Clearly defined career paths in areas
of work specialization
 Advantages/Disadvantage- Project Oriented
Advantages Disadvantages
Efficient project organization No “home” for team members when
project is completed

Team loyalty to the project Lack of specialization in disciplines

More effective communications than Duplication of facilities and job

functional functions
Project manager has more power to May result in less efficient use of
make decisions resources
Example of Project Manager’s Sphere of Influence
 Project Management Office
• A Project Management Office (PMO) is a centralized organizational unit or department within
a company or organization that is responsible for defining and maintaining project
management standards and practices.

• The primary purpose of a PMO is to ensure that projects are executed efficiently, effectively,
and in alignment with the organization's strategic goals and objectives.

• A physical and organizational division which is responsible for projects and their management

• It can be tasked to do any of the following things

✓ Direct, plan, execute, manage a project
✓ Centralized location for information gathering and storage
✓ Provide back up support and guidance
✓ Provide trainings
✓ Be a check on the process (audits)
 Project Management Office (PMO)

A Project Management Office (PMO) is a centralized organizational unit or department within a

company or organization that is responsible for defining and maintaining project management
standards and practices.

The primary purpose of a PMO is to ensure that projects are executed efficiently, effectively,
and in alignment with the organization's strategic goals and objectives.

It can be tasked to do any of the following things

✓ Direct, plan, execute, manage a project
✓ Centralized location for information gathering and storage
✓ Provide back up support and guidance
✓ Provide trainings
✓ Be a check on the process (audits)
 PMO
PMO is an organizational structure that standardizes the project related governance processes and facilitates the
sharing of resources, methodologies, tools, and techniques.

➢ Supportive PMO: This type provides support and guidance to project managers but has a limited role in
project governance and decision-making.
✓ Consultative roles to projects by supplying templates, best practices, trainings, access to information,
lesson learned from other projects. Degree of control provided is low.

➢ Controlling PMO: A controlling PMO has more authority and control over project management processes
and decisions, including project budgets and resources.
✓ Provide support and require compliance through various means. Degree of control is moderate
(adoption of framework and methodologies, use of specific forms, tools and templates)

➢ Directive PMO: This type of PMO takes a direct role in managing projects and may even take on the role of
project manager for certain initiatives.
✓ Control the projects by directly managing them. Project managers are assigned by and report to PMO.
Degree of control is high
 Key Functions of PMO
Project
methodologies
& Standards

Continuous Project
Improvement Governance

PMO Resource, risk,

Support for Pm communication
Functions Management

Training & Training and

Development Development

Portfolio,
Stakeholder
Management
 Types of Resources

✓ People
✓ Equipment
✓ Material