Introduction to Project

Management

Chapter 1
Contemporary Project Management
Kloppenborg

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publicly accessible website, in whole or in part.
 Chapter
Chapter
Vignette
Vignette
The Element of Discipline
• Deaths climbing Mt. Aconcagua are an extreme
example of consequences associated with a
lack of discipline
• Discipline to act on the earlier decision to curtain
summit attempts after the agreed-to-turn-around
time or in severe weather
• Avoid pressure to cast aside or shortcut project
management practices
• Practices, like planning, are the pillars of project
management discipline
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to a publicly accessible website, in whole or in part.
 Chapter
Chapter
Vignette
Vignette
The Element of Discipline
• Managing projects at the CIA involved short
notice to acquire unspent funds
• Discipline required needed planning and quick
action
• The top 2 percent of project managers spend
twice as much time planning as the other 98
percent
• Identify those pillars that we will decide to
practice with the required levels of discipline

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to a publicly accessible website, in whole or in part.
 What is a project?
Project
Project–– “a
“atemporary
temporaryendeavor
endeavorundertaken
undertakento to
create
createaaunique
uniqueproduct,
product, service,
service, or
orresult.”
result.” PMBOK®
PMBOK®
Guide
Guide
• A project requires an organized set of work
efforts.
• Projects require a level of detail that is
progressively elaborated upon as more
information is discovered.
• Projects are subject to limitations of time and
resources such as money and people.
• Projects have a defined beginning and ending.
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to a publicly accessible website, in whole or in part.
 What is a project?

• A project has a unique combination of

stakeholders

stakeholders
stakeholders–– “persons
“personsor ororganizations
organizations……that
that are
are
actively
activelyinvolved
involvedin inthe
theproject,
project, or
orwhose
whoseinterests
interestsmay
may
be
bepositively
positivelyor
ornegatively
negativelyaffected
affectedby
byexecution
executionor
or
completion
completionofof the
theproject.”
project.” PMBOK®
PMBOK®GuideGuide

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to a publicly accessible website, in whole or in part.
 Project Management (PM)
• PM includes work processes that initiate, plan,
execute, and close work
• Work processes require tradeoffs among the
scope, quality, cost, and schedule of the project
• PM includes administrative tasks for planning,
documenting, and controlling work
• PM includes leadership tasks for visioning,
motivating, and promoting work associates.
• PM knowledge, skills, and methods apply for
most projects
Project
Projectmanagement
management–– “the “theapplication
applicationof of knowledge,
knowledge,
skills,
skills, tools
toolsand andtechniques
techniquesto toproject
project activities
activitiesto tomeet
meet
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project
project
to a publicly requirements.”
website, in whole or inPMBOK®
requirements.”
accessible PMBOK®
part. Guide
Guide
 How Can Project Work Be
Described?
• Projects are temporary and unique; operations
are more continuous.
• Project managers need “soft skills” and “hard
skills” to be effective.
• Project managers frequently have more
responsibility than authority.
• Projects go through predictable stages called a
life cycle.

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to a publicly accessible website, in whole or in part.
 Projects Versus Operations
• Projects are temporary
• Projects have both routine and unique
characteristics
• Operations consist of the ongoing work needed
to ensure that an organization continues to
function effectively

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to a publicly accessible website, in whole or in part.
 Soft Skills and Hard Skills
• Soft skills include communication and leadership
activities.
• Hard skills include risk analysis, quality control,
scheduling, and budgeting work
• A successful project manager needs both soft
and hard skills along with the judgment of when
each is more necessary.
• Training, experience, and mentoring are
instrumental in developing necessary skills.
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to a publicly accessible website, in whole or in part.
 Authority and Responsibility
• Projects are most effectively managed with one
person being assigned accountability
• Project managers negotiate with functional
managers
• A project manager needs to develop strong
communication and leadership skills to persuade
subordinates to focus on the project when other
work beckons.
Functional
Functional manager manager–– “someone “someonewithwithmanagement
management
authority
authorityover overan anorganizational
organizationalunit.…the
unit.…themanager managerof of
any
any group
group that
that actually
actually makes
makes aaproduct
product or
or performs
performs aa
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service.”
to a publicly accessiblePMBOK®
service.” website, in wholeGuide
PMBOK® Guide
or in part.
 Project Life Cycle
• All projects go through predictable stages called
a project life cycle.
• Life cycle allows for control to assure that the
project is proceeding in a satisfactory manner
and that the results are likely to serve its
customer’s intended purpose
Project
Projectlife
lifecycle
cycle–– “a
“acollection
collectionof
of generally
generallysequential
sequential
project
project phases
phaseswhose
whosename
nameand andnumber
numberare
aredetermined
determined
by
bythe
thecontrol
controlneeds
needsof of the
theorganization
organizationor
ororganizations
organizations
involved
involvedininthe
theproject.”
project.” PMBOK®
PMBOK®GuideGuide
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to a publicly accessible website, in whole or in part.
 Project Life Cycle Stages
• Selecting and initiating— a project is proposed, planned at
a high level, and key participants commit to it in broad terms
• Planning—starts after the initial commitment, includes
detailed planning, and ends when all stakeholders accept
the entire detailed plan.
• Executing—includes authorizing, executing, monitoring,
and controlling work until the customer accepts the project
deliverables.
• Closing and realizing—all activities after customer
acceptance to ensure project is completed, lessons are
learned, resources are reassigned, contributions are
recognized, and benefits are realized.

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to a publicly accessible website, in whole or in part.
 Project Life Cycle Stages
• Most companies insist that a project must pass
an approval of some kind to move from one
stage to the next
• The project life cycle is highly formalized and
very specific
• Projects are measured at selection, progress
reporting, and benefits realization points

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to a publicly accessible website, in whole or in part.
 Project Life Cycle Stages

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
 Life Cycle for Quality Improvement
Projects

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to a publicly accessible website, in whole or in part.
 Understanding Projects
• Project Management Institute
• Project Management Body of Knowledge
(PMBOK)
• Selecting and Prioritizing Projects
• Project Goals and Constraints
• Defining Project Success and Failure
• Using MS Project
• Types of Projects
• Scalability of Project Tools
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to a publicly accessible website, in whole or in part.
 The Project Management Institute

• The largest professional organization

• Publishes and regularly updates A Guide to the
Project Management Body of Knowledge
(PMBOK® Guide)
• Established a professional certification - Project
Management Professional (PMP®)
• Established a second certification—Certified
Associate in Project Management (CAPM)

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
 Project Management Body of
Knowledge (PMBOK®

• Consists of a project life cycle, five process

groups, and nine knowledge areas

Project
Projectmanagement
managementprocess
processgroup
group–– “a
“alogical
logical
grouping
groupingof
of the
theproject
project management
management inputs,
inputs, tools
toolsand
and
techniques,
techniques, and
andoutputs.”
outputs.” PMBOK®
PMBOK®Guide
Guide

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
 PMBOK® Process Groups
Initiating—“defines
Initiating—“definesand
andauthorizes
authorizesaaproject
project or
oraaproject
project
phase”
phase”
Planning—“defines
Planning—“definesand
andrefines
refinesobjectives
objectivesand
andplans
plans
actions
actionsto
toachieve
achieveobjectives”
objectives”
Executing—“directs
Executing—“directsand
andmanages
managespeople
peopleand
andother
other
resources
resourcesto
toaccomplish
accomplishproject
project work”
work”
Monitoring
Monitoringand
andcontrolling—“collects
controlling—“collectsdata
dataand
andchecks
checks
progress
progressto
todetermine
determineany
anyneeded
neededcorrective
correctiveactions”
actions”
Closing—“formalized
Closing—“formalizedacceptance
acceptanceof
of project
project outcomes
outcomes
and
andending
endingthe
theproject”
project”
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to a publicly accessible website, in whole or in part.
 PMBOK® Knowledge Areas
Integration
Integrationmanagement—“processes
management—“processesand andactivities
activities
needed
neededto todefine,
define, combine,
combine, unify,
unify, and
andcoordinate
coordinatethe the
various
variousprocesses
processesand andproject
project management
management activities”
activities”
Scope
Scopemanagement—“processes
management—“processesrequired requiredto toensure
ensure
that
that the
theproject
project includes
includesallallthe
thework
workrequired,
required, andandonly
only
the
thework
workrequired,
required, totocomplete
completethetheproject
project successfully”
successfully”
Time
Timemanagement—“processes
management—“processesrequired requiredto tomanage
manage
timely
timelycompletion
completionof of the
theproject”
project”
Cost
Costmanagement—“processes
management—“processesinvolved involvedin inestimating,
estimating,
budgeting,
budgeting, and
andcontrolling
controllingcosts
costsso sothat
that the
theproject
project can
can
be
becompleted
completedwithin
withinthetheapproved
approvedbudget”
budget”
Quality
Qualitymanagement—“processes
management—“processesand andactivities
activitiesofof the
the
performing
performingorganization
organizationthatthat determine
determinequality
qualitypolicies,
policies,
objectives,
objectives, and
andresponsibilities
responsibilitiesso sothat
that the
theproject
project will
will
satisfy
satisfythe
theneeds
needsforforwhich
whichitit was
wasundertaken”
undertaken”
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to a publicly accessible website, in whole or in part.
 PMBOK® Knowledge Areas
Human
HumanResources
Resourcesmanagement—“processes
management—“processesthat that
organize,
organize, manage,
manage, andandlead
leadthe
theproject
project team”
team”
Communications
Communicationsmanagement—“processes
management—“processesrequired required
to
toensure
ensuretimely
timelyand
andappropriate
appropriategeneration,
generation, collection,
collection,
distribution,
distribution, storage,
storage, retrieval,
retrieval, and
andultimate
ultimatedisposition
dispositionofof
project
project information”
information”
Risk
Riskmanagement—“processes
management—“processesof of conducting
conductingriskrisk
management
management planning,
planning, response
responseplanning,
planning, and
and
monitoring
monitoringand andcontrol
control……to toincrease
increasethe theprobability
probabilityandand
impact
impact ofof positive
positiveevents
eventsandanddecrease
decreasethe theprobability
probability
and
andimpact
impact of of negative
negativeevents
eventsin inthe
theproject”
project”
Procurement
Procurementmanagement—“processes
management—“processesnecessary necessaryto to
purchase
purchaseor oracquire
acquireproducts,
products, services,
services, ororresults
resultsfrom
from
outside
outsidethetheproject
project team”
team”
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to a publicly accessible website, in whole or in part.
 Selecting and Prioritizing Projects
• Identify potential projects
• All parts of the organization are involved
• Determine which projects align best with major
goals of the firm
• Ensure overall organizational priorities are
understood, communicated, and accepted

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to a publicly accessible website, in whole or in part.
 Selecting and Prioritizing Projects

What value does each potential

project bring to the organization? Are the demands of
performing each project
understood?
Are the resources
needed to perform the
project available?

Which projects will

Is there enthusiastic best help the
support both from the organization achieve
external customers its goals?
and from one or more
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internal
to a publicly accessiblechampions?
website, in whole or in part.
 Project Goals and Constraints
• Projects are undertaken to accomplish specific
goals
• Scope and quality measure performance and
should result in outputs that satisfy customers
• Consider scope and quality subject to
constraints of time and cost

Scope
Scope––“the
“thesum
sumofof all
allproducts,
products, services,
services, and
andresults
results
to
tobe
beprovided
providedas
asaaproject.”
project.” PMBOK®
PMBOK®Guide Guide

Quality
Quality –– “the
“the degree
degree to
to which
which aaset
set of
of inherent
inherent
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
characteristics
to a publicly accessible website,fulfills
characteristics fulfills requirements.”
in whole orrequirements.”
in part. PMBOK®
PMBOK®Guide Guide
 Project Goals and Constraints
• Obstacles or challenges may limit the ability to
perform
• Opportunities may allow projects to exceed
original expectations.
• Project Managers (PMs) decide which goals and
constraints take precedence

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to a publicly accessible website, in whole or in part.
 Project Customer Tradeoff Matrix

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to a publicly accessible website, in whole or in part.
 Defining Project Success and
Failure
• Project success is creating deliverables that
include all of the agreed upon features
• Outputs please the project’s customers.
• Customers use the outputs effectively as they do
their work (meet quality goals)
• The project should be completed on schedule
and on budget (meet time and cost constraints).

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to a publicly accessible website, in whole or in part.
 Defining Project Success and
Failure
• Successful projects are completed without
heroics
• People who work on the project should learn
new skills and/or refine existing skills.
• Organizational learning should take place and
be captured for future projects.
• Reap business-level benefits such as
development of new products, increased market
share, increased profitability, decreased cost,
etc.
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to a publicly accessible website, in whole or in part.
 Project Success
•Meeting Agreements
•Cost, schedule, and specifications met
•Customer’ Success
•Needs met, deliverables used, customer
satisfied
•Performing Organization’s Success
•Market share, new products, new technology
•Project Team’s Success
•Loyalty, development, satisfaction

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to a publicly accessible website, in whole or in part.
 Why Projects Fail
• Not enough resources are available for project
completion.
• Not enough time has been given to the project.
• Project expectations are unclear.
• Changes in the scope are not understood or
agreed upon by all parties involved.
• Stakeholders disagree regarding expectations
for the project.
• Adequate project planning is not used.
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to a publicly accessible website, in whole or in part.
 Types of Projects
• Classifying by industry
• Classifying by size
• Classifying by timing of determination of project
scope
• Classifying by application

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to a publicly accessible website, in whole or in part.
 PMI Communities of Practice
Aerospace and Defense Manufacturing
Agile Marketing and Sales
• Projects in Automation Systems Oil, Gas, Petrochemical
Consulting Organizational
different Design-Procurement- Performance
industries often Construction Management
have unique Diversity Pharmaceutical
E-Business Program Management
requirements Financial Services Office
• PMI specific Global Sustainability Quality
Government Retail
interest groups Healthcare Risk Management
Human Resource Scheduling
Information Systems Service and
Innovation and New Product Outsourcing
Development Students of PM
International Development Troubled Projects
Learning, Education and Utility
Development Women in PM
 Classifying by Size

Large projects often

require more
detailed planning
and control

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to a publicly accessible website, in whole or in part.
 Classifying by Timing of Project Scope
Clarity

How early in the

project the project
manager and team are
likely to be able to
determine what the
project scope will be

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to a publicly accessible website, in whole or in part.
 Classification by Application
• All projects require planning and control
• The art of project management deals with when
to use certain techniques, how much detail to
use, and how to tailor the techniques to the
needs of a specific project.

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to a publicly accessible website, in whole or in part.
 Scalability of Project Tools
• All projects require
– Determination of the wants and needs of the
customer(s)
– Understanding of the amount of work involved
– Determination of a budget and schedule
– Decisions about available workers and who will do
which tasks
– Management until the owner accepts the project
results
• Projects are scaled up or down to meet the
complexity of the task
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to a publicly accessible website, in whole or in part.
 Project Roles
• Project Executive-Level Roles
• Project Management-Level Roles
• Project Associate-Level Roles

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to a publicly accessible website, in whole or in part.
 Project Executive-Level Roles
• The steering team
– The top leader (CEO) and his/her direct reports
– Select, prioritize, and resource projects in
accordance with the organization’s strategic
planning
– Ensure that accurate progress is reported and
necessary adjustments are made.

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to a publicly accessible website, in whole or in part.
 Project Executive-Level Roles
• The chief projects officer
– Keeper, facilitator, and improver of the project
management system
– Responsible for project standards, methods,
training, documentation

Project
ProjectManagement
ManagementOffice Office(PMO) (PMO)–– “an“anorganizational
organizational
body
bodyor orentity
entityassigned
assignedvarious variousresponsibilities
responsibilitiesrelated
relatedto tothe
the
centralized
centralizedand andcoordinated
coordinatedmanagement management of of those
thoseprojects
projects
within
withinits itsdomain.
domain. The Theresponsibilities
responsibilitiesof of the
thePMO
PMO can canrangerange
from
fromproviding
providingprojectproject management
management support support functions
functionsto to
actually
actually being
being responsible
responsible for
for the
the direct
direct management
management of
of aa
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
project.”
to a project.”
PMBOK®
PMBOK®
publicly accessible
Guide
Guide
website, in whole or in part.
 Project Executive-Level Roles
• The sponsor
– Takes an active role in chartering the project and
reviewing progress reports
– Takes a behind-the-scenes role in mentoring and
assisting the project manager throughout the
project life.

Sponsor
Sponsor–– “the
“theperson
personororgroup
groupthat
that provides
providesthe
thefinancial
financial
resources,
resources, in
incash
cashor
orin
inkind,
kind, for
forthe
theproject.”
project.” PMBOK®
PMBOK®
Guide
Guide

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to a publicly accessible website, in whole or in part.
 Project Management-Level Roles
• Project manager
– Directly accountable for the project results, schedule,
and budget
– The main communicator
– Responsible for the planning and execution of the
project
– Works on the project from start to finish.
– The project manager often must get things done
through the power of influence since his or her formal
power may be limited.
Project
Projectmanager manager–– “the “theperson
personassigned
assignedby bythetheperforming
performing
organization
organization
© 2012 Cengage Learning.
to
toAllachieve
achieve the project
theMay
Rights Reserved. project objectives.”
objectives.”
not be scanned,
PMBOK®
PMBOK®
copied or duplicated, or posted
to aGuide
Guide
publicly accessible website, in whole or in part.
 Project Management-Level Roles
• Functional manager
– The department heads—the ongoing managers of the
organization
– Determine how the work of the project is to be
accomplished
– Supervise the work
– Negotiate with the project manager regarding which
workers are assigned to the project

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to a publicly accessible website, in whole or in part.
 Project Management-Level Roles
• Facilitator
– Helps the project manager with the process of running
meetings and making decisions
– Frees the project manager to concentrate on the
content of the project
– The facilitator concentrates on the process.
– A facilitator helps the PM understand organizational
politics and provides suggestions on how to handle
situations.

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to a publicly accessible website, in whole or in part.
 Project Management-Level Roles
• Senior customer representative
– Ensures that the needs and wants of constituents in
the customer’s organization are identified and
prioritized
– Ensures that project progress and decisions
continually support the customer’s desires.

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to a publicly accessible website, in whole or in part.