PROJECT MANAGEMENT

GROWTH: CONCEPT and

DEFINITIONS
GENERAL SYSTEM MANAGEMENT
Organizational theory and management philosophies
have undergone a dramatic change in recent years with
the emergence of the project management approach to
management. Because project management is an
outgrowth of system management, it is only fitting that
the underlying principles of general systems theory be
described.
General system theory implies the creation of a
management technique that is able to cut across many
organizational disciplines-finance, manufacturing,
engineering, marketing and so on-while still carrying out
the functions of management.
Project Management 1945-1960
 During the 1940s, line managers used the concept of over the
fence management to manage projects.

Project Management 1960-1985

 Between the middle and late 1960s, more executives began
searching for new management techniques and organizational
structures that could be quickly adapted to a changing
environment. The table below and Figure 2-1 identify two
major variables that executives consider with regard to
organizational restructuring
Type of industry Tasks Environment

A Simple Dynamic
B Simple Static
C Complex Dynamic
D Complex Static
Continue Project Management 1960-1985

Almost all type C and most type D industries have

project management-related structures. The key variable
appears to be task complexity.
In informal project management, just as the words
imply, the projects were handled on an informal basis
whereby the authority of the project manager was
minimized.
The following five questions help determine
whether formal project management is necessary:
◦ Are the jobs complex?
◦ Are there dynamic environmental considerations
◦ Are the constrains tight?
◦ Are there several activities to be integrated?
◦ Are there several functional boundaries to be crossed?
 DYNAMIC

1980S

OPERATIONAL ENVIRONMENT
R
A VIO
H
BE
MAN
HU
D ING
N 1960S : TOTALLY
(INFORMAL STA PROJECT DRIVEN
PROJECT DER
N
RU
MGT.)
FO
EED
N
TER 1970S
EA
GR
STATIC
SIMPLE COMPLEX
TYPE OF TASK

FIGURE 2-1. Matrix Implementation scheme

PROJECT MANAGEMENT 1985-2003

By the 1990s, companies had begun to realize

that implementing project management was a
necessity, not a choice. The question was not how to
Implement project management, but how fast could it
be done?
There are six driving forces that lead executives
to recognize the need for project management:
◦ Capital project
◦ Customer expectation
 Table 2-1 Life Cycle Phases for Project
Management Maturity
Embryonic Executive Line Management Growth Phase Maturity Phase
Phase Management Acceptance
Acceptance Phase
 Recognize  Visible executive  line management use of life-cycle  development of a
need support support phases management
cost/schedule
control system
Integrating cost
 Recognize  Executive  Line  development of a
and schedule
benefits understanding of management project
project commitment management control

 Recognize management methodology

application  Project sponsorship  Line Commitment to Developing an
s management planning educational
 Recognize  Willingness to education Minimization of program to
what must change way of  Willingness to “creeping scope” enhance project
be done doing business release
management skills
employees for
project Selection of a
management project tracking
training
system
 Project management can be used to help such
companies remain competitive during periods of
growth and to assist in determining capacity
constrains.
Because of the interrelatedness of these driving
forces, some people contend that the only true
driving forces is survival. This is illustrated in Figure
2-4. when the company recognizes that survival of
the firm is at stake, the implementation of project
management becomes easier
 Efficiency and Capital
Effectiveness projects

New Product Customers’

SURVIVAL
SURVIVAL Expectations
Development

Executive
Understanding Competitiveness

FIGURE 2-4. The components of survival. Source: Reprinted from H. Kerzner, In Search of
Excellence in Projeck Manegement. New York: Wiley, 1998, p.51.
 PROJECT MANAGEMENT GROWTH: CONCEPT AND DEFINITIONS

Non-
Project Driven Hybrid
Project - Driven
• PM has P & L • Primarily production • Very few projects
Responsibility • driven but with • Profitability from
• PM is a recognized • Many projects • Production
Profession • Emphasis on new • Large brick walls
• Multiple career • Product development • Long life cycle
Present Past
Paths • Marketing oriented • Products
• Income comes from • Short product life
project • Cycles
• Need for rapid
• development process

Project Program Product

Management Management Management

FIGURE 2-7. Industry Classification (by project management utilization)

 1960 – 1990 1990 – 2003

Hybrid Hybrid

Traditional Project Modern Project

Management Management

 Entrance via project  Entrance via

Driven divisions such Marketing,
as MIS and R&D engineering, and R&D

FIGURE 2-8. From hybrid to project-Driven

SYSTEMS PROGRAMS, AND
PROJECTS A DEFINITION

Business practitioners define a system as A

group of elements, either human or nonhuman, that is
organized and arranged in such a way that the
elements can act as a whole toward achieving some
common goal or objective.
If a system is significantly dependent on other
systems for its survival, then it is an extended
systems.
Once a group of tasks is selected and considered to be a
project, the next step is to define the kinds of project units.
There are four categories of projects :

 Individual projects: these are short-duration project normally

assigned to a single individual who may be acting as both a
project manager and a functional manager
 Staff projects: these are project that can be accomplished by
one organizational unit, say a department.
 Special projects: often special project occur that require
certain primary functions and/or authority to be assigned
temporarily to other individuals or units.
 Matrix or aggregate projects: these require input from a large
number of functional units and usually control vast resources
PRODUCT VERSUS PROJECT
MANAGEMENT: A DEFINITION
Project management and product management are
similar, with one major exception: the project manager
focused on the end date of this project, whereas the product
manager is not willing to admit that this product line will ever
end. The product manager wants his product to be as long
lived and profitable as possible. Even when the demand for
the product diminishes, the product manager will always look
for spin-offs to keep his product alive.
Figure 2-10 shows the relationship between project and
product management
 VICE PRESIDENT
GENERAL
MANAGER

SALES/
RESEARCH PRODUCTION ADMIN
MARKETING

NEW ONGOING ADM

MANU ENG FINANCE
BUSINESS BUSINESS PERS

MARKET
PLANNING
RESEARCH

A X

B Y

C Z

PROJECT MANAGERS PRODUCT MANAGERS

FIGURE 2-10. ORGANIZATIONAL CHART

MATURITY AND EXCELLENCE : A
DEFINITION
Maturity in project management is the
implementation of a standard methodology and
accompanying processes such that three exists a high
likelihood of repeated successes.
The definitions of excellence can be stated as
Organizations excellence in project management are
those that create the environment in which there
exists a continuous stream of successfully managed
project and where success is measured by what is in
the best interest of both the company and the project.
PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS

Failures

Successes

Projects

MATURITY EXCELLENCE

2 YEARS 5 YEARS

TIME
FIGURE 2-11. The growth of excellence
 CONVENTIONAL PROJECT MANAGEMENT
PROJECT
MANAGEMENT
WITH
CONCURRENT
ENGINEERING

Life cycle Policy and Guidelines General Checklists with

phasese Procedure Per Life Cycle Project Periodic review
manuals Phase guideliness points

1970s EARLY 1980s Mid-1980s Late 1980s 1990s

FIGURE 2-12. Evolution of policies, procedures, and guidelines.

THE MANY FACES OF SUCCESS
Success is defined as a point on the time, cost,
quality/performance grid.
Typical KPIs include
◦ Use of the project management methodology
◦ Establishment of the control processes use of interim
metrics
◦ Quality of interim metrics
◦ Quality of resources assigned versus planned for
◦ Client involvement
 RELATIVE
MAGNITUDO OF
DOCUMENTATION

POLICIES AND GUIDELINES GUIDELINES CHECKLISTS FOR

PROCEDURES PER LIFE PER PROJECT END-OF-PHASE-REVIEWS
CYCLE PHASE

• HIGH
INTENCITY
CONFLICTS • CONTINUOUS
• RESISTANCE COMPETITION • PROTECTION
TO MULTIPLE FOR MEMOS • TRUST • DEVELOP
BOSS RESOURCES • SCHEDUULE • COMMUNI-
MENT OF A
REPORTING • CONSTANTLY SLIPPAGES CATION METHODO
• RELIANCE ON CHANGING • CREEPING • COOPERA
LOGY
POLICIES/ PRIORITIES SCOPE TION • LIFE-CYCLE
CRITICAL PROCEDURES • POOR • TEAMWORK
PHASES
ISSUES • INVISIBLE MOTIVATION
• CORE SKILLS
SPONSORS TRAINING
• POWER/
AUTHORITY
PROBLEMS
• CONTINUOUS
MEETINGS

INFORMAL PROJECT
FORMAL PROJECT MANAGEMENT
MANAGEMENT

GENERAL MATURITY PATH

THE MANY FACES OF FAILURE
Failure is virtually assured since we have
defined failure as unmet expectations.
Perceived failure is the net sum of actual failure
and planning failure.
In figure 2-15, project management has planned
a level of accomplishment © lower than what is
achievable given project circumstances and resources
(D). This is a classic under planning situation. Actual
accomplishment (B), however, was less than
planned.
 None Actual Planned achievable Perfection
A B C D E

Accomplishment Perceived
Failure

Actual Failure

Planning
failure
FIGURE 2-15. Components of failure (pessimistic planning)
Perfection
None Actual Planned achievable
A B C D E

Accomplishment Perceived Failure

Actual
Failure
Planning
failure
THE STAGE-GATE PROCESS
The four most common decisions are
◦ Proceed to the next gate based upon the original objectives.
◦ Proceed to the next gate based upon revised objectives
◦ Delay making a gate decision until further information is
obtained
◦ Cancel the project
PROJECT LIFE CYCLE
During the past few years, there has been at least
partial agreement about the lifecycle phases of a
product. They include:
◦ Research and development
◦ Market introduction
◦ Growth
◦ Maturity
◦ Deterioration
◦ Death
PROJECT MANAGEMENT
METHODOLOGIES : A DEFINITION

Achieving project management excellent, or

maturity, is more likely with a repetitive process that
can be used on each and every project. This repetitive
process is referred to as the project management
methodology.
Good methodologies integrate other processes
into the project management methodology as shown
in Figure 2-24
 Project Management

Concurrent Total Quality

Engineering Management

Change
Risk Management
Management

Figure 2-24 Integrated Processes for The twenty-first

century
SYSTEMS THINKING
The system approach may be defined as a logical and disciplined
process of problem solving. The word process indicates an active ongoing
system that is fed by input from is parts.
The systems approach :
◦ Forces review of the relationship of the various subsystems
◦ Is a dynamic process that integrates all activities into a meaningful total
system.
◦ Systematically assembles and matches the parts of the system into a
unified whole
◦ Seeks an optimal solution or strategy in solving a problem
System thinking is vital for the success of a project. Project
management system urgently need new ways of strategically viewing,
questioning and analyzing project needs for alternative non technical and
technical solutions. The ability to analyze the total project, rather than the
individual parts, is essential for successful project management.
Referensi By : Kerzner, Harold, 2003. “Project
Management : a systems approach to planning,
scheduling and controlling”, John Willey & Sons