Lecture 02

Introduction to
Project Management

Reference: Kerzner, PMBOK, McCarville

 Lecture Topics
• Why do we care about Project Management?
• What is a project?
• Project vs. Program vs. Portfolio Management?
• So, what is project management?
• Assignment
Why do we even care about
project management?
 What is a project?
A project is a temporary endeavor undertaken to create a
unique product, service, or result. PMBOK Chapter 1.
• Have a specific objective (which may be unique or one-of-a-
kind) to be completed within certain specifications
• Have defined start and end dates
• Have funding limits (almost always)
• Consume human and nonhuman resources (i.e., money,
people, equipment)
• Be multifunctional (cut across several functional lines)
• It is not just a schedule!
Is managing a one person
project still project
management?
Can a project manager also
be one of the working team
members on the same
project?
Portfolio vs. Program vs. Project
Highest Level
Portfolio

Lower Level Higher Level

Project Project
Portfolios Programs

Higher Level Lower Level

Programs Programs

Lower Level Lower Level

Project
Programs Programs

Project Project Project

Project Project Project

Project
 Portfolio vs. Program vs. Project
Projects Programs Portfolios
Scope Projects have defined objectives. Programs have a larger scope and provide Portfolios have a business
Scope is progressively elaborated more significant benefits. scope that changes with the
throughout the project life cycle. strategic goals of the
organization.
Change Project managers expect change and The program manager must expect Portfolio managers continually
implement processes to keep change change from both inside and outside the monitor changes in the broad
managed and controlled. program and be prepared to manage it. environment.
Planning Project managers progressively Program managers develop the overall Portfolio managers create and
elaborate high-level information into program plan and create high-level plans maintain necessary processes
detailed plans throughout the project to guide detailed planning at the and communication relative to
life cycle. component level. the aggregate portfolio.
Management Project managers manage the project Program managers manage the program Portfolio managers may
team to meet the project objectives. staff and the project managers; they manage or coordinate portfolio
provide vision and overall leadership. management staff.
Success Success is measured by product and Success is measured by the degree to Success is measured in terms
project quality, timeliness, budget which the program satisfies the needs of aggregate performance of
compliance, and degree of customer and benefits for which it was undertaken. portfolio components.
satisfaction.
Monitoring Project managers monitor and control Program managers monitor the progress Portfolio managers monitor
the work of producing the products, of program components to ensure the aggregate performance and
services or results that the project was overall goals, schedules, budget, and value indicators.
undertaken to produce. benefits of the program will be met.

Source: PMBOK Chapter 1

Why is a PM System Necessary?
 What is project management?
• Project management is the discipline of planning,
organizing, securing, and managing resources to
achieve specific goals.

• The primary challenge of project management is to

achieve all of the project goals and objectives while
honoring the preconceived constraints.

Source: Wikipedia
 What is project management?
• Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet the project
requirements. PMBOK Chapter 1.
– It is not just scheduling!

• Project management is accomplished through the appropriate

application and integration of the 42 logically grouped project
management processes comprising the 5 Process Groups:
– Initiating
– Planning
– Executing
– Monitoring and controlling
– Closing

• Project management, like most management functions, must

manage within constraints.

Source: PMBOK
Overview of Project Management

LE

BU
DU

DG
HE

ET
SC

SCOPE

Budget = f(Scope, Schedule)

Where will you spend your time?
• Project Planning
– Definition of work requirements
– Definition of quantity and quality of work
– Definition of resources needed

• Project monitoring
– Tracking progress
– Comparing actual outcome to predicted outcome
– Analyzing impact
– Making adjustments
 Benefits
• Identification of functional responsibilities to ensure that all
activities are accounted for, regardless of personnel turnover.
• Minimizing the need for continuous improvement
• Identification of time limits for scheduling
• Identification of a methodology for trade-off analysis
• Measurement of accomplishment against plans
• Early identification of problems so that corrective action may
follow
• Improved estimating capability for future planning
• Knowing when objectives cannot be met or will be exceeded
 Obstacles
• Project complexity

• Customer’s special requirements and scope changes

• Organizational restructuring

• Project risks

• Changes in technology

• Forward planning and pricing

 Multiple Boss Reporting
SPONSOR GM

P LM LM LM
M

APM

APM

PM = Project Manager
APM = Assistant Project Manager
LM = Line or Functional Manager
 Most projects have a
project sponsor which
may or may not reside at
the executive levels of
management.
The Project Sponsor Interface
Project Sponsor:
Priority Projects Senior Management

Project Sponsor:
Maintenance Projects Lower/Middle Management

Relationship:
· Objective Setting
Project · Up-Front Planning
Sponsor · Project Organization
Project · Key Staffing
Manager · Master Plan
· Policies
· Monitoring Execution
Project Project · Priority-Setting
Team Manager
· Conflict Resolution
· Executive-Client Contact
 Project Necessities
• Complete task definitions

• Resource requirement definitions (and possibly skill

levels needed)

• Major timetable milestones

• Definition of end-item quality and reliability

requirements

• The basis for performance measurement

 Results of Good Planning
• Assurance that functional units will understand
their total responsibilities toward achieving
project needs.
• Assurance that problems resulting from
scheduling and allocation of critical resources are
known beforehand.
• Early identification of problems that may
jeopardize successful project completion so that
effective corrective action and replanning can
occur to prevent or resolve problems.
 Assignments
• Read Kerzner Chapter 1.
• Find PMBOK in the ASU Online Library and verify that
you can view and print selected pages.
https://app.knovel.com/web/toc.v/cid:kpGPMBKPM1/viewerT
ype:toc/root_slug:guide_to_the_project_management_body_
of_knowledge_pmbok_guide_5th_edition

• Form your teams and identify your project!

Additional Slides
 Role Of The
Project Manager
Negotiating For
Resources
The Project Kickoff
Meeting
Establishing The
Project’s Policies
and Procedures
Laying Out The
Project Workflow
And Plan
Establishing
Performance
Targets
Obtaining
Funding
Executing
The Plan
Acting As The
Conductor
Putting Out
Fires
Counseling and
Facilitation
Encouraging The
Team To Focus
On Deadlines
 Monitoring
Progress By
“Pounding The
Pavement”
 Evaluating
Performance
 Develop
Contingency
Plans
 Briefing
The Project Sponsor
 Briefing
The Team
 Briefing
The Customer
Closing Out
The Project
Overview of Project Management

LE

BU
DU

DG
HE

TE
SC

SCOPE
Overview of Project Management

CO
E
TIM

ST
RESOURCES

PERFORMANCE/TECHNOLOGY
Overview of Project Management

Co
m
Ti

st
Resources

Quality/Technology
 Classical Management
• Planning
• Organizing
• Staffing
• Controlling
• Directing

Which of the above is Usually NOT

performed by the project manager?
 Successful Culture
• A good daily working relationship between the
project manager and those line managers who
directly assign resources to projects
• The ability of functional employees to report
vertically to their line manager at the same time they
report horizontally to one or more project managers
 Interface Management
• Managing human interrelationships within the
project team
• Managing human interrelationships between the
project team and the functional organization
• Managing human interrelationships between the
project team and senior management
• Managing human interrelationships between the
project team and the customer’s organization,
whether an internal or external organization
As part of interface management, the
project manager’s role also includes
integration management.
 Integration Management

Integration
Management
Resources
· Capital
· Materials
Products
· Equipment Integrated
Inputs · Processes Services Outputs
Facilities
· Information Profits
· Personnel
 The Functional Role
• The functional manager has the responsibility to
define how the task will be done and where the task
will be done (i.e., the technical criteria)
• The functional manager has the responsibility to
provide sufficient resources to accomplish the
objective within the project’s constraints (i.e., who
will get the job done).
 Functional Obstacles
• Unlimited work requests (especially during competitive bidding)
• Predetermined deadlines
• All requests having a high priority
• Limited number of resources
• Limited availability of resources
• Unscheduled changes in the project plan
• Unpredicted lack of progress
• Unpredicted lack of progress
• Unplanned absence of resources
• Unplanned breakdown of resources
• Unplanned loss of resources
• Unplanned turnover of personnel
 Promises Made???
• Promotion
• Grade
• Salary
• Bonus
• Overtime
• Responsibility
• Future work assignments
Project Management in Non-Project-Driven Groups
• Projects may be few and far between
• Not all projects have the same project management requirements,
and therefore they cannot be managed identically. This difficulty
results from poor understanding of project management and a
reluctance of companies to invest in proper training.
• Executives do not have sufficient time to manage projects
themselves, yet refuse to delegate authority.
• Projects tend to be delayed because approvals most often follow
the vertical chain of command. As a result, project work stays too
long in functional departments.
• Because project staffing is on a “local” basis, only a portion of the
organization understands project management and sees the
system in action.
• There exists heavy dependence on subcontractors and outside
agencies for project management expertise.
 High-level Reporting
• The project manager is charged with getting results
from the coordinated efforts of many functions;
therefore should, therefore, report to the executive
who directs all those functions.
• The project manager must have adequate
organizational status to do the job effectively.
• To get adequate and timely assistance in solving
problems that inevitably appear in any important
project, the project manager needs direct and specific
access to an upper echelon of management
• The customer, particularly in a competitive
environment, will be favorably impressed if the project
manager reports to a high organizational echelon
 Low-level Reporting
• It is organizationally and operationally inefficient
to have too many projects, especially small ones,
diverting senior executives from more vital
concerns.
• Although giving a small project a high place in
the organization may create the illusion of
executive attention, its real result is to foster
executive neglect o f the project.
• Placing a junior project manager too high in the
organization will alienate senior functional
executives on whom he must rely for support.
The Tip-of-the-Iceberg Syndrome
DELEGATION
OF AUTHORITY TO
PROJECT MANAGER

EXECUTIVE
MEDDLING

LACK OF UNDERSTANDING OF HOW PROJECT

MANAGEMENT SHOULD WORK

LACK OF TRAINING IN COMMUNICATIONS /

INTERPERSONAL SKILLS

MANY OF THE PROBLEMS ASSOCIATED WITH PROJECT MANAGEMENT WILL

SURFACE MUCH LATER IN THE PROJECT AND RESULT IN MUCH HIGHER COSTS
 Project Vs. Functional Influences

Project Influence
Relative Influence

in Decision-Making

Functional Influence Dual Influence

In Decision-Making

Functional Matrix Project

Organization Organization Organization
WHY USE PROJECT MANAGEMENT ?
• Project Management and
productivity are related!
 MATURITY IN PROJECT MANAGEMENT IS LIKE
A THREE - LEGGED STOOL.

THE LEGS REPRESENT THE:

• Project Manager
• Line Manager(s)
• Executive Management (i.e... Project Sponsor)

Maturity cannot exist without stability

The Three-Legged Stool

Senior
Management
Project (I.e. Sponsor)
Manager
Line
Management
Top of the Three-Legged Stool

ORGANIZATIONAL ORGANIZATIONAL
STRUCTURE BEHAVIOR

TOOLS &
TECHNIQUES
 Critical Questions
• How important is Project
Management training ?
• Part-time Project Management - is it
good or bad ?
Additional Slides