Why Project Management?

(Chapter 1 and More)

 Project Management Overview
This material is based on the Fifth Edition of the Guide to the
Project Management Body of Knowledge (PMBOK® Guide*)
published by the Project Management Institute (PMI*) in 2013.

*PMI and PMBOK are registered marks of Project Management Institute, Inc. 2
 Learning Objectives
After completing this chapter, students will be able to:
Understand why project management is becoming such a powerful and popular
practice in business.
Recognize the basic properties of projects, including their definition.
Understand why effective project management is such a challenge.
Differentiate between project management practices and more traditional,
process-oriented business functions.
Recognize the key motivators that are pushing companies to adopt project
management practices.

01-02
CONTENTS
• Module 1: Elements of Project Management
• Module 2: The Project Management Context
• Module 3: Project Organizational Influences
• Module 4: The I/S Organizational Context

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Elements of Project Management

5
Project Management Institute (PMI®)
• The world’s leading project management professional organization
• Administers the globally
recognized PMP® (Project
Management Professional)
certification
• Publishes the Guide to the Project Management Body of Knowledge
– known more colloquially as the PMBOK® Guide
• The material in this series is based on the 5th Edition of the PMBOK®
Guide

*PMI, PMP and PMBOK are registered marks of Project Management Institute, Inc.

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What is a Project?
A project has:
• Requirements
• A Schedule
• A Budget
• Closure Criteria

7
 Elements of Projects
• Complex, one-time processes

• Limited by budget, schedule, and resources

• Developed to resolve a clear goal or set of goals

• Customer-focused

01-08
Process vs. Project Work
Process Project
• Ongoing, day-to-day Take place outside the
activities to produce goods normal, process-oriented
and services world
• Use existing systems, Unique and separate from
properties, and capabilities routine, process-driven
work
• Typically repetitive
Continually evolving

A project is a temporary endeavor undertaken to create a

unique product or service.

01-09
Project Management …
Project management is the application of
knowledge, skills, tools, and techniques to
project activities to meet project requirements.

Guide to the Project Management Body of

Knowledge (PMBOK® Guide)

10
 Project Definitions Summarized
A project can be considered any series of activities and tasks that have:
Specific objectives to be completed within certain specifications,
Defined start and end dates,
Funding limits,
Human and nonhuman resources, and
Multifunctional focus.

01-011
 Elements of Projects
• Complex, one-time processes

• Limited by budget, schedule, and resources

• Developed to resolve a clear goal or set of goals

• Customer-focused

01-012
 General Project Characteristics
• Entail crossing functional and organization boundaries

• Traditional management functions of planning, organizing, motivating, directing,

and controlling apply

• Principal outcomes are the satisfaction of customer requirements within

technical, cost, and schedule objectives

• Terminated upon successful completion of performance objectives

01-13
 Project Success Rates
• Software & hardware projects fail at a 65% rate,
• Over half of all IT projects become runaways,
• Only 30% of technology-based projects and programs are a success.
• Only 2.5% of global businesses achieve 100% project success and over 50% of
global business projects fail,
• Average success of business-critical application development projects is 32%, and
• Approximately 42% of the 1,200 Iraq reconstruction projects were eventually
terminated due to mismanagement or shoddy construction

01-14
 Why are Projects Important?
1. Shortened product life cycles

2. Narrow product launch windows

3. Increasingly complex and technical products

4. Emergence of global markets

5. Economic period marked by low inflation

01-15
Project Life Cycles
Man Hours

Conceptualization Planning Execution Termination

Fig 1.3 Project Life Cycle Stages

01-16
 Project Life Cycles
• Conceptualization - the development of the initial goal and technical
specifications.
• Planning – all detailed specifications, schedules, schematics, and
plans are developed
• Execution – the actual “work” of the project is performed
• Termination – project is transferred to the customer, resources
reassigned, project is closed out.

01-17
Four Dimensions of Project
Success

FIGURE 1.7 01-18

 Six Criteria for IT Project Success
• System quality

• Information quality

• Use

• User satisfaction

• Individual impact

• Organizational impact
01-19
A Sampling of Project Management Tasks
Insuring involvement of all stakeholders
Resource allocation
Resource planning
Schedule planning
Monitoring progress of the work and adjusting the
work plan accordingly
Team development and leadership
Risk management
Managing client and customer interactions
and expectations
Change management

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Importance of Processes
• The effective and reliable application of knowledge and skills is
greatly enhanced by a well-defined set of processes
• Such a set of processes can help to ensure that the application of
the appropriate knowledge skills repeatedly produces the desired
outcomes over a wide range of project types as well as over a
wide range of project teams.
• In short, robust and well-defined processes are a key component
to ensuring high degrees of predictability and repeatability in the
successful management of projects within any organization

21
Definition of a Process
A systematic series of activities directed
towards causing an end result, such that one
or more inputs will be acted upon to create
one or more outputs.

Guide to the Project Management Body of

Knowledge (PMBOK® Guide)

22
Accomplishing Tasks through Processes
 The PMBOK® Guide identifies a total of 47 fundamental
project management processes
 These processes are logically grouped in two complementary
ways: by major process group and by project management
knowledge area
 There are five process groups
 There are ten knowledge areas
 The knowledge areas are integrated across various process
groups

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 Project Manager Responsibilities
1. Selecting a team

2. Developing project objectives and a plan for execution

3. Performing risk management activities

4. Cost estimating and budgeting

5. Scheduling

6. Managing resources
01-24
 Knowledge Project Management Process Groups
Areas
Initiating Planning Executing Monitoring/Controlling Closing
• Develop • Develop Project • Direct and Manage • Monitor and Control • Close Project
Integration Project Management Plan Project Work Project Work or Phase
Management Charter • Perform Integrated
Change Control
• Plan Scope Management • Validate Scope
Scope • Collect Requirements • Control Scope
Management • Define Scope
• Create WBS
• Plan Schedule Management • Control Schedule
• Define Activities Adapted
Time • Sequence Activities from
Management • Estimate Activity Resources PMBOK®
• Estimate Activity Durations Guide
• Develop Schedule
• Plan Cost Management • Control Costs
Cost
• Estimate Costs
Management • Determine Budget
Quality • Plan Quality Management • Perform Quality • Control Quality
Management Assurance
• Plan Human • Acquire Project Team
Human Resource • Develop Project Team
Resource Management
Management • Manage Project Team
• Plan Communications • Manage • Control
Communications
Management Communications Communications
Management
• Plan Risk Management • Control Risks
• Identify Risks
Risk
• Quantitative Risk Analysis
Management • Qualitative Risk Analysis
• Plan Risk Responses
• Plan Procurement • Conduct • Control • Close
Procurement
Management Procurements Procurements Procurements
Management
• Identify • Plan Stakeholder • Manage Stakeholder • Control Stakeholder
Stakeholder Engagement
Stakeholders Management Engagement
Management
The Five Project Management Process Groups

Monitoring/Controlling

Planning

Initiating Closing

Adapted from the Guide to

Executing the Project Management
Body of Knowledge
(PMBOK® Guide)

26
 Process Groups are not Phases
• It is important to make a basic point: The project management
process groups are not project phases
• It is often tempting to identify phases and process groups, but
there are some distinct differences between the two
• A primary difference is that the process groups are inter-related in
more essential ways than phases
• In fact the Planning, Executing, and Controlling/Monitoring
process groups have an inherent iterative relationship in all
projects

27
The Iterative Heart of the Matter The Iteration is driven by the
Monitoring and Controlling
Process. This process
involves monitoring a project
Monitoring/Controlling so problems can be
corrected and plans
updated.
Planning

Initiating Closing

Executing

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Project Management at a High Level
There are three high-level three major activities that every
project manager must focus on:

 Discover and understand the project requirements

 Address the needs, concerns, and expectations of project
stakeholders as the project proceeds
 Balance competing project constraints throughout the project

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Project Management Constraints
What are some of the major competing constraints that every
project will involve?
 The project schedule
 The project budget
 The scope of the work to be done
 The quality of the project deliverables
 Resource availability
 Major risks inherent in the project
 Stakeholder characteristics

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Project Management Constraints (cont’d)
 Balancing these constraints is not an easy task, because they are
always inter-related
 If any one of them changes, at least one (and perhaps more) of
the others is likely to change as well:
 If the project schedule slips, this will almost certainly have an

effect on the project budget as work must be re-arranged and

re-planned
 Similarly, if the schedule and budget change, it is highly likely

that the scope of work, or the quality (perhaps both), will be

impacted
 Clearly, resource availability can have direct effect on the

project schedule, which puts into play all the cascading effects
just described
 And, when risk events actually occur, there will most certainly

be impacts on one or several of the other factors

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Project Management Constraints (cont’d)
 Of course, the bottom-line responsibility of the project
manager is to see that the project requirements are satisfied
on schedule and on budget
 So the project manager’s life is greatly complicated by the
inter-relationships among the various major project
constraint factors

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Project Planning is Iterative
• As conditions change, competing constraints must be managed

• So a project plan must be

progressively monitored and
elaborated

• Progressive elaboration allows a project manager to better match

the project plan to reality as the project evolves
Project Management Triple Constraints
 The specific project will determine the constraints on which
the project manager should focus
 However, in every project, the project manager must pay
close attention the so-called Triple Constraints of project
management

C
m

os
Ti

t
Triple
Constraints
A Balancing Act
Quality
(Scope, Performance)

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