The Project is assumed to have following characteristics:

1. It is a temporary endeavor- with a beginning and an end.

2. It creates a unique service or product.

Projects are created to provide business value and to deliver benefits defined in the business case and
the benefits management plan. Projects are designed to bring a positive change to the organization,
usually to add or improve products or services, and, in some cases, to satisfy legal or other regulatory
requirements.

Work going in companies can be either operational or project work. Operational work is ongoing work
to support the business and systems of the organization, whereas project work ends when the project is
closed. When a project is finished, the deliverables are transitioned to ongoing business operations so
the benefits of the project work can be incorporated into the organization.

Governance:

Organizational governance refers to the overall structure of an organization, and it involves setting the
policies and procedures for how work will be performed to meet high-level strategic goals. Project
governance includes the framework within which project work is performed across the organization. It
may involve the creation or enforcement of processes and policies regarding areas such as risk,
resources, communications, and change management. Project governance can be established and
administered by a project management office (PMO).

Portfolio Management:

A portfolio includes:

 Programs
 Individual Projects
 Related Operational work

They are prioritized and implemented to achieve a specific strategic business goal.

It helps optimize the use of resources, enhances the benefits to the organization, and reduces risk.

A project is included in a portfolio based on potential return on investment, strategic benefits,

alignment with corporate strategy, and other factors critical to organizational success.

Note: The programs and projects that make up a portfolio may not be related, other than by the fact
that they are helping to achieve a common strategic goal.

Program Management:

Program includes:

 Related Projects
 Related Operational work

It helps focuses on the interdependencies between the projects and may help decrease risk, achieve
economies of scale, and improve management. Projects are combined into programs to provide
coordinated control, support, and guidance. The program manager works to ensure projects and
programs achieve the benefits for which they were initiated.

Project Management:

The science is the systematic process of managing work efficiently and effectively to deliver planned
results.

Project Management Process Groups Project Management Knowledge Areas

Initiating Integration
Planning Scope
Executing Schedule
Planning and Controlling Cost
Closing Quality
Resource
Communication
Risk
Procurement
Stakeholder Management

Effective use of project management ensures that the organization is focused on the most important
work and, because of appropriately tailored planning efforts, the work is done correctly and in the most
time- and cost-effective manner. Risks are identified and planned for before they occur,
communication is managed effectively, and quality is achieved. These efforts result in satisfied
stakeholders and achievement of business objectives.

Organizational Project Management (OPM):

It serves as a guide or driver for project, program, and portfolio management as well as other
organizational practices. It is a framework for keeping the organization as a whole focused on overall
strategy. It provides direction for how portfolios, programs, projects, and other organizational work
should be prioritized, managed, executed, and measured to best achieve strategic goals and desired
benefits.

A key point is that all efforts in the organization-whether they are part of project, program, portfolio, or
operational work-should be guided by the organization and support strategic goals. Any change to the
organizational strategy will necessitate changes to the organization’s portfolio, programs, projects, and
operational work-both ongoing efforts and future initiatives.

Project Management Office:

The project management office is a departmental unit within an organization that provides or ensures
compliance with project governance. The office oversees and standardizes the management of projects.

Supportive: A supportive PMO provides the policies, methodologies, templates, and lessons learned for
managing projects within the organization. It typically exercises a low level of control over projects.
Controlling: A controlling PMO provides support and guidance on how to manage projects, trains other
in project management and project management software, assists with specific project management
tools, and ensures compliance with organizational policies. It typically has a moderate level of control
over projects.

Directive: A directive PMP provides project managers for different projects and is responsible for the
results of those projects: all projects or projects of a certain size, type, or influence are managed by this
office. A directive PMO has a high level of control over projects.

The PMO may:

1. Manage the interdependencies among projects, programs, and portfolios.

2. Integrate information from all projects to assess whether the organization is achieving its
strategic objectives.
3. Help provide resources.
4. Recommend the termination of projects when appropriate.
5. Monitor compliance with organizational processes.
6. Help gather lessons learned into a repository and make them available to other projects.
7. Provide templates for documents such as work breakdown structures or communications
management plans.
8. Provide guidance and project governance.
9. Provide centralized communication about the projects.
10. Be more heavily involved during project initiating than later in the project.
11. Have representation on the change control board.
12. Be a stakeholder.
13. Prioritize projects.

Organizational Structure:

Projects are impacted by, and have an impact on, the cultural norms, management policies, and
procedures of the organizations of which they are a part. These factors are increasingly important in
global organizations in which team members are often located in different offices and in multiple
countries.

One of the primary forms of influence is how the company is organized. The organizational structure will
dictate who the project manager goes to for help with resources, how communications must be handles,
and many other aspects of project management.

Functional: This is a common organizational structure. Functional organizations are grouped by areas of
specialization within functional areas, such as accounting, marketing, or manufacturing. Projects
generally occur within a single department. If information or project work is needed from another
department, employees transmit the request to the head of the department who communicates the
request to the other department head. Communication stays within the project. Team members
complete project in addition to normal departmental work.

Project-Oriented: The entire company is organized by projects, and the project manager has control pf
the project. Personnel are assigned and report to a project manager. No home concept is applied on
employees. Communication primarily occurs within the project. This type can also be referred to as
composite or hybrid.

Matrix: It is an attempt to maximize the strengths of both the functional and project-oriented structures.
When you see matrix, think two managers; the project manager and the functional manager.
Communication goes from team members to both managers. Team members do project work in
addition to normal departmental work.

Strong: Power rest to project manager.

Weak: Power rest to functional manager and project manager work as expeditor.

Balance: Power is shared equally.

Project Expeditor: It acts primarily as a staff assistant and communications coordinator. The expeditor
can’t personally make or enforce decisions.

Project Coordinator: Similarly, to expeditor, except the coordinator has some authority and power to
make decisions, and reports to a higher-level manager.