Project Management

Topic 1
Project Management

Paulo Faroleiro
Project Management
Part I
Project Information Project Management Introduction

Parts Copyright 2014 Wiley

PROJECT
MANAGEMENT
PROJECT MANAGEMENT IS THE
ART OF CREATING THE
ILLUSION THAT ANY OUTCOME
IS THE RESULT OF A SERIES OF
PREDETERMINED, DELIBERATE
ACTS WHEN IN FACT IT WAS
DUMB LUCK !
PROJECT
MANAGEMENT

WHY USE PROJECT MANAGEMENT ?

PROJECT
CHARACTERISTICS
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 (if applicable)
Consume human and nonhuman resources (i.e., money,
people, equipment)

Be multifunctional (cut across several functional lines)!

WHY IS A PM SYSTEM
NECESSARY?
Different types of
organizational
structures and inner
and inter relations

Project

Project
Organic Firm

A
Organization Organization
B
PROJECT
MANAGEMENT
Project Planning Project monitoring
• Definition of work • Tracking progress
requirements • Comparing actual outcome
• Definition of quantity and to predicted outcome
quality of work • Analyzing impact
• Definition of resources • Making adjustments!
needed
CLASSICAL PROJECT
DRIVEN 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!
PROJECT MANAGEMENT
GROWTH

More money
invested

Shortening of Less
project life resources
cycles! available

Project
Management
need
Technology
increasing at
More
an
complexity
astounding
rate

More
information
available
WHAT IS PM

Time
Money
Manpower

Materials,
Equipment,
IT &
Facilities

Resources

Quality/
Project Cost
Scope
PM CRITICAL
SUCCESS FACTORS
Definition of Basis for performance
• Complete task measurement!

• Resource requirement • Focuses on the

(and possibly skill Execution Metrics of
levels needed) the Process
These are shared learning
• Major timetable topics which allow us to
milestones maximize what we do right
and correct what we do
• Focuses on the wrong.
Deliverables
• End-item quality
• Reliable requirements
DETAILED CSF
• Insist on the right to select key project team • Provide a team structure that is appropriate,
members. yet flexible and flat.
• Select key team members with proven track • Go beyond formal authority to maximize
records in their fields. influence over people and key decisions.
• Develop commitment and a sense of mission • Employ a workable set of project planning
from the outset. and control tools.
• Seek sufficient authority and a project • Avoid over-reliance on one type of control
organizational form. tool.
• Coordinate and maintain a good relationship • Stress the importance of meeting cost,
with the client, parent, and team. schedule, and performance goals.
• Seek to enhance the public’s image of the • Give priority to achieving the mission or
project. function of the end-item.
• Have key team members assist in decision • Keep changes under control.
making and problem solving.
• Seek to find ways of assuring job security for
• Develop realistic cost, schedule, and effective project team members!
performance estimates and goals.
• Have backup strategies in anticipation of
potential problems.
THE PARENT
ORGANIZATION CSF
• A willingness to coordinate efforts
• A willingness to maintain structural flexibility
• A willingness to adapt to change
• Effective strategic planning
• Rapport maintenance
• Proper emphasis on past experience
• External buffering
• Prompt and accurate communication
• Enthusiastic support
• Identification to all concerned parties that the project does, in fact, contribute to parent
capabilities!
PM
OBSTACLES NOT
OBSTACLES CONTROLLED
• Project complexity • Decreased Profits
• Increased manpower needs
• Customer’s special • Cost overruns, schedule delays, and penalty
requirements and scope occurring earlier and earlier
changes • An inability to cope with new technology

• Shortages and Soaring costs • R&D results too late to benefit existing
product lines
• Organizational restructuring • Temptation to make hasty decisions that prove
to be costly
• Project risks • Management insisting on earlier and greater
return on investment
• Changes in technology
• Greater difficulty in establishing on-target
• Forward planning and pricing! objectives in real time
• Problems in relating cost to technical
performance and scheduling during the
execution of the project!
CHANGE PROCESS
Support
Support for Change

Denial
Exploration

Resistance
Resistance

Time
TYPES OF CULTURES
Cooperative

Non-cooperative

Isolated (large companies)

Fragmented (multinational)
EARLY REASONS FOR
PROJECT FAILURE
There was no need for project management.
Employees were not informed about how project
management should work.
Executives did not select the appropriate projects or project
managers for the first few projects.
There was no attempt to explain the effect of the project
management organizational structure on the wage and salary
administration program.
Employees were not convinced that executives were in total
support of the change (to project management)!
ROLE OF PRJ MNGR
• Negotiate Resources • Encourage Team Focus
Deadlines
• Project Kickoff Meeting
• Monitor Progress “Pounding
• Establish The Project’s
The Pavement”
Policies and Procedures
• Evaluate Performance
• Laying Out Project Workflow
And Plan • Develop Contingency Plans
• Establish Performance Targets • Brief Project Sponsors
• Obtain Funding • Develop Contingency Plans
• Execute Plan • Briefing Team
• Act As Conductor • Briefing Customer
• Put Out Fires • Close Out The Project!
• Counsel And Facilitation
PROJECT
MANAGEMENT
MATURITY IN PROJECT MANAGEMENT
IS LIKE A THREE - LEGGED STOOL.
TOP of
STOOL
THE LEGS REPRESENT THE:
• Project Manager
• Line Manager(s)
• Executive Management
(i.e... Project Sponsor)

Maturity cannot Project Senior

Manager Management
exist without Line
Management
stability!
TOP OF THE THREE -
LEGGED STOOL

ORGANIZATIONAL ORGANIZATIONAL
STRUCTURE BEHAVIOR

TOOLS &
TECHNIQUES
MULTIPLE BOSS
REPORTING
SPONSOR GM

PM LM LM LM

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  Conflict Resolution
Manager  Executive-Client Contact
INTERFACE
MANAGEMENT (PM)
Managing human interrelationships within the
project team
Managing human interrelationships between the
As part of interface
project team and the functional organization management, the project
Managing human interrelationships between the
project team and senior management manager’s role also
Managing human interrelationships between the includes integration
project team and the customer’s organization,
whether an internal or external organization! management.
Integration
Management
Senior Mng

Inputs Outputs
 Capital
 Materials
Products
 Equipment Integrated
In Project Processes Services
 Facilities
Profits
 Information
Functional Customer
 Personnel
THE FUNCTIONAL ROLE
AND ITS OBSTACLES
The functional manager has the Functional Obstacles
responsibility to:
• Unlimited work requests (especially
• define how the task will be done and during competitive bidding)
where the task will be done (i.e., the
• Predetermined deadlines
technical criteria)
• All requests having a high priority
• Limited number of resources
• provide sufficient resources to
accomplish the objective within the • Limited availability of resources
project’s constraints (i.e., who will get
• Unscheduled changes in the project
the job done)!
plan
• Unpredicted lack of progress
• Unplanned absence of resources
• Unplanned breakdown of resources
• Unplanned loss of resources
• Unplanned turnover of personnel!
EXPECTATIONS
TOP MNG VS PM
TOP MNG OF PM PM OF TOP MNG
• Assume total accountability for the success or • Provide clearly defined decision channels
failure to provide results
• Take actions on requests
• Provide effective reports and information
• Facilitate interfacing with support departments
• Provide minimum organizational disruption
during the execution of a project • Assist in conflict resolution

• Present recommendations, not just alternatives • Provide sufficient resources/charter

• Have a capacity to handle most interpersonal • Provide sufficient strategic/long-range

problems information

• Demonstrate a self-starting capacity • Provide feedback

• Demonstrate growth with each assignment! • Give advice and stage-setting support
• Define expectations clearly
• Provide protection from political infighting
• Provide the opportunity for personal and
professional growth!
EXPECTATIONS
TEAM VS PM
TEAM OF PM PM OF TEAM
• Assist in the problem-solving process by • Demonstrate membership self-development
coming up with ideas
• Demonstrate the potential for innovative and
• Provide proper direction and leadership creative behavior
• Provide a relaxed environment • Communicate effectively
• Interact informally with team members • Be committed to the project
• Stimulate the group process • Demonstrate the capacity for conflict
resolution
• Facilitate adoption of new members
• Be results oriented
• Reduce conflicts
• Be change oriented
• Defend the team against outside pressure
• Interface effectively and with high morale!
• Resist changes
• Act as the group spokesperson
• Provide representation with higher
management!
TEAM EXPECTATIONS
EXPECTED TO BE FILLED
A sense of belonging
Interest in the work itself
Respect for the work being done
Protection from political infighting
Job security and gob continuity
Potential for career growth!
ROLE OF THE
PROJECT MANAGER
Negotiating For Resources Encouraging The Team To Focus
On Deadlines
The Project Kickoff Meeting
Monitoring Progress By
Establishing The Project’s
“Pounding The Pavement”
Policies and Procedures
Evaluating Performance
Laying Out The Project Workflow
And Plan Develop Contingency Plans
Establishing Performance Targets Briefing The Project Sponsor
Obtaining Funding Develop Contingency Plans
Executing The Plan Briefing The Team
Acting As The Conductor Briefing The Customer
Putting Out Fires Closing Out The Project!
Counseling And Facilitation
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
PROJECT OBSTACLES
Unstable economy
Shortages
Soaring costs
Increased complexity
Heightened competition
Technological changes
Societal Concerns
Consumerism
Ecology
Quality of work!
RESULTS OF NOT
CONTROLLING PROJECT
OBSTACLES
Decreased Profits
Increased manpower needs
Cost overruns, schedule delays, and penalty occurring
earlier and earlier
An inability to cope with new technology
R&D results too late to benefit existing product lines
Temptation to make hasty decisions that prove to be costly
Management insisting on earlier and greater return on
investment
Greater difficulty in establishing on-target objectives in real
time
Problems in relating cost to technical performance and
scheduling during the execution of the project!
EARLY REASONS FOR
PROJECT FAILURE
There was no need for project management.
Employees were not informed about how project
management should work.
Executives did not select the appropriate projects or project
managers for the first few projects.
There was no attempt to explain the effect of the project
management organizational structure on the wage and salary
administration program.
Employees were not convinced that executives were in total
support of the change (to project management)!
WHEN TO USE PROJECT
MANAGEMENT
Are the jobs complex?
Are there dynamic environmental considerations?
Are the constraints tight?
Are there several activities to be integrated?
Are there several functional boundaries to be crossed??
THE NEED FOR PROJECT
STRUCTURES
Accomplish tasks that could not be effectively handled by
the traditional structure

Accomplish onetime activities with minimum disruption to

routine business!
PROJECT
RESTRUCTURING
Project priorities and competition for talent may interrupt the
stability of the organization and interfere with its long-range
interests by upsetting the normal business of the functional
organization.
Long-range planning may suffer as the company gets more
involved in meeting schedules and fulfilling the requirements
of temporary projects.
Shifting people from project to project may disrupt the
training of new employees and specialists. This may hinder
their growth and development within their fields of
specialization!
RESTRUCTURING
IMPERATIVES
When…
• The time span between project initiation and completion
appears to be increasing.
• The capital committed to the project prior to the use of the end
item appears to be increasing.
• As technology increases, the commitment of time and money
appears to become inflexible.
• Technology requires more and more specialized manpower.
• The inevitable counterpart of specialization is organization.

The above “imperatives” prescribe the need for more

effective planning, scheduling, and control!
PROJECT MANAGEMENT
GROWTH
Technology increasing at an astounding rate
More money invested in R&D
More information available
Shortening of project life cycles!
WHY PROJECT
MANAGEMENT
Integrative Responsibility:
• Total accountability assumed by a single person

• Project rather than functional dedication

• A requirement for coordination across functional interfaces

• Proper utilization of integral planning and control!

 DRIVING FORCES FOR
PROJECT MANAGEMENT

Efficiency and Capital

Effectiveness Projects

New Product Customer

SURVIVAL Expectations
Development

Executive Competitiveness
Understanding
PM FORCE FIELD
1. Personal drive, motivation & leadership
2. Team motivation
3. Management support
4. Functional expertise
5. Technical expertise
6. Project objectives
7. Financial resources
8. Client support/commitment

Driving Forces Restraining Forces

WHEN TO USE PM
WHEN WHY
• Job complexity? • Total accountability assumed
by a single person: PMngr
• Dynamic environmental
considerations? • Project rather than functional
dedication
• Tight constraints?
• A requirement for
• Several activities to be coordination across
integrated? functional interfaces
• Several functional boundaries • Proper utilization of integral
to be crossed?? planning and control!
PM ADVANTAGES
Easy
adaptation to
an ever-
changing
environment
Ability to handle
a
Innovation in
multidisciplinary
organizational
activity within a
design!
specified period
of time

Advantages
A
Horizontal as
multidisciplinary
well as vertical
decision-
work flow
making process

Better
Easier
orientation
identification of
toward
activity
customer
responsibilities
problems
RESULTS OF GOOD
PLANNING
Early identification of
problems that may
jeopardize successful
project completion so
that effective corrective
action and replanning
can occur to prevent or
resolve problems!
Assurance that Assurance that
problems resulting from functional units will
scheduling and understand their total
allocation of critical responsibilities toward
resources are known achieving project
beforehand. needs.

Good
Planning
PROJECT 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!
OVERVIEW OF PROJECT
MANAGEMENT

RESOURCES

QUALITY/SCOPE
PERFORMANCE/TECHNOLOGY
PROJECT MANAGEMENT
IN NON-PROJECT-DRIVEN
GROUPS
Projects may be few and far Projects tend to be delayed
between because approvals most often
follow the vertical chain of
Not all projects have the same
command. As a result, project
project management
work stays too long in functional
requirements, and therefore they
departments.
cannot be managed identically.
This difficulty results from poor Because project staffing is on a
understanding of project “local” basis, only a portion of
management and a reluctance of the organization understands
companies to invest in proper project management and sees the
training. system in action.
Executives do not have sufficient There exists heavy dependence
time to manage projects on subcontractors and outside
themselves, yet refuse to agencies for project management
delegate authority. expertise.!
PAST AND PRESENT
VIEW OF PM
Control Scope
HR Needed Profitability Conflict Management
Changes

PM creates organizational
PM will require more people PM will increase the amount of
Profitability may decrease instability and increases
and add to the overhead costs scope changes
conflicts

PM allows us to accomplish
PM will provide better control PM makes the organization
more work in less time and Profitability will increase
of scope changes more efficient and effective
with less people

CRM Problem Solving PM Size Quality Management

PM is really “eye wash” Only large projects need PM will increase quality
PM will create problems
for the customer’s benefit PM problems

PM will allow us to work PM provides a means for All projects will benefit
PM increases quality
closer with our customers problem solving from PM
PAST AND PRESENT
VIEW OF PM

Authority and Organization Products vs

PM Costs
Leadership Eficiency Sollutions

PM will create power and PM focuses on suboptimization PM delivers products to a PM cost may make us
authority problems by looking at only the project customer noncompetitive

PM will reduce the majority of PM allows people to make good PM delivers solutions to a
PM will increase our business
the power struggles company decisions customer
Part I
Project Information

1. Prepare the group case

2. Prepare for Topic 1 part 2
Project Lifecycle