Annika Tidstrm

The Nature of Projects

Project Management

Department of Management
Faculty of Business Studies
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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
Agenda
1. The history of projects & project management
2. Projects so what?
3. The art of project management
4. Project life cycle
5. Organizing projects
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1. The history of projects and
project managment
University of Vaasa | Department of Management
Project Management
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23.9.2014
University of Vaasa | Department of Management |
Project Management
From pyramids to business
environments
We are not sure what was the first project in the history however since from the beginning there are still similarities
how the projects are carried out. Research about project management is a pretty new field. First scientific article
came out in 50s.Most of the scientific work has been done within the project management field in 80s and 90s. It is
a very new field altough projects have existed for ages.
23.9.2014
University of Vaasa | Deparment of Management |
Project Management
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Time Project characteristics
~ 2650 B.C. Construction, lasted for a long time
500-1500 A.D. Construction, aesthetic values, long
time
15th to 17th century Time & contracts
1960 CPM, PERT
1970 Organization, leadership, teams
1980 Models & computerized solutions
1990 Multi-projects, processes
2000 Creativity & learning, strategic
perspectives of projects
Present Projects as parts of the business
environment
(Artto et al. 2011)
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2. Projects so what?
University of Vaasa | Department of Management
Project Management
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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
A project
a unique activity that adds value, expends resources, has
beginning and end dates, and has constraints and requirements
that include scope, cost, schedule performance, resources, and
value. (Vaidyanathan, 2013)

... the application of knowledge, skills, tools and techniques to
project activities in order to meet stakeholders needs and
expectations from a project. (PMBOK)

... the process of integrating everything that needs to be done as
the project evolves through its life cycle in order to meet the
projects objectives. (Peter Morris)

... the process of guiding a project from its beginning through its
performance to its closure. Project management requires
planning, organizing, and controlling.
(Portny et al. 2008)

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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
a unique set of processes consisting of coordinated and
controlled activities with start and finish dates, undertaken to
achieve an objective. Achievement of the project objective requires
deliverables confirming to specific requirements, including
multiple constraints such as time, cost and resources.
(ISO 21 500)

A project is a unique entity formed of complex and interrelated
activities, having a predefined goal that must be completed by a
specific time, within a budget, and according to specification.
(Artto et al. 2011)

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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
Characteristics
A temporary organization
Unique and non-repetitive
A work structure and interrelated activities
A start and finish
A life-cycle
Limited by time, cost and scope
The outcome may be tangible or intangible


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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
Types of projects
1. Projects delivering value-added solutions to
external customers
2. Projects developing solutions for the companys
own business
3. Investment project
4. Delivery project
5. Research project
6. Development project
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2. The art of project
management
University of Vaasa | Department of Management
Project Management
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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
Project management
project management is the act of collaborating with people
using other required resources such that a project is planned,
organized and controlled effectively to accomplish its goals and
objectives. (Vaidyanathan, 2013)

... the application of knowledge, skills, tools and techniques to
project activities in order to meet stakeholders needs and
expectations from a project. (PMBOK)

... the process of integrating everything that needs to b done as the
project evolves through its life cycle in order to meet the
projects objectives. (Peter Morris)

... the process of guiding a project from its beginning through its
performance to its closure. Project management requires
planning, organizing, and controlling.
(Portny et al. 2008)


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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
the application of methods and tools, techniques and
competences to a project. Project management includes the
integration of the various phases of the project life cycle. Project
management is accomplished through processes. (ISO 21500)

Project management is the application of management practices
aimed at achieving the project goal and objectives. (Artto et al.
2011, p. 25)
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University of Vaasa | Deparment of Management |
Project Management
Managing a project
- Identifying requirements
- Addressing the needs, concerns and expectations
of stakeholders
- Setting up, maintaining and carrying out
communications among stakeholders
- Managing stakeholders towards the goal of the
project
- Balancing the competing project constraints (time,
scope and cost)
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University of Vaasa | Deparment of Management |
Project Management
Three perspectives on project
management (Artto et al. 2011)
- Project management as:
- Knowledge areas and processes
- Competences and characteristics
- Tools and communication
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4. Project life cycle
University of Vaasa | Deparment of Management |
Project Management
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23.9.2014
University of Vaasa | Deparment of Management |
Project Management
Definition
Project lifecycle refers to the chain of phases in
which the ideas, expectations, and opportunities for
a project are identified; the project is executed; and
the benefits resulting from the use of the project
product are gained and product use is supported.
(Artto et al. 2011, p. 35)
The process
Conceptualization Planning
Implementation
Control
Closing
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University of Vaasa | Deparment of Management |
Project Management
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Phase 1: CONCEPTUALIZATION
Identify need
Gather data
Establish: goals, basic economics, stakeholders, risk level,
strategy, potential team
Guesstimate resources
Identify alternatives
A preliminary project plan
Appoint project team
Present proposal
Obtain approval for next phase
Phase 2: PLANNING
Develop scope baseline: end product(s), quality standards,
resources, activities
Establish: master plan, budget, cash flow, WBS, policies
and procedures
Obtain approval to proceed
Phase 3: IMPLEMENTING
Establish work packages, detailed schedule, information
control systems
Procure goods and services
Execute work packages
Phase 4: CONTROL

Direct/monitor/forecast/control scope, quality, cost and
time
Compare performance with specifications
Reporting
Change management

Phase 4: CLOSING
Finalize product(s)
Review and accept
Transfer product responsibility
Evaluate project
Document results
Release/redirect resources
Reassign project team
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5. Organizing projects
University of Vaasa | Department of Management
Project Management
A. Pure project organizations
Companies are structured by grouping peopel into project
teams on temporary assignments
Each project is a self-contained business unit
The project manager has sole control over resources
Board of directors
Project board A
Project manager A
Project board B Project board C
Project manager B
Project manager C
Contractors (bought in as needed)
Strengths and weaknesses of project
structures
STRENGTH WEAKNESSES
Assigns authority solely to
the project manager
Promotes effective and fast
decision making
Flexible labour force
Encourages rapid response
to market opportunities
Weak commitment to a
projects success.
It may be difficult to get
the human resources
needed
Concern among project
team members about
the future once the
project ends.
B. Matrix organizations
Companies are structured by creating a dual hierarchy in
which functions and projects have equal prominence
Suitable when
There is a pressure to share scarce resources across project opportunities
There is a need to emphasize two or more different types of output
The environment of the organization is complex and dynamic
General manager
VP
Marketing
VP
Operations
VP
Finance
VP
R&D
VP
Engineering
PM 1
PM 2
Staff P1 Staff P1 Staff P1
Staff P1 Staff P1
Staff P2 Staff P2
Staff P2 Staff P2
Staff P2
STRENGTHS WEAKNESESS
Suited to dynamic
environments
Emphasizes the dual
importance of project
management and functional
efficiency
Promotes coordination
accross functional units
Maximizes scarce resources
between competing project
and functional responsibilites
Two bosses
Difficult to share or split
resources
Long-term projects tend to
erase the line organization
Lessons-learned may not
be reported to new
projects
Strengths and weaknesses of matrix
structures
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University of Vaasa | Deparment of Management |
Project Management
Projects should be a part of
the organizations strategy
- Portfolio management
- Different strategies require different project
structures
- Cost leadership flexible structure that takes
advantage of economies of scale
- Differentiation flexible structure with highly
qualified expert resources


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University of Vaasa | Deparment of Management |
Project Management
Project Management Office
- The PMO is the department or group that defines
and maintains the standards of the process related
to project management within the company
- Assits PMs and project teams
- General support
- Training
- Software tools
- Project control
- Standardizes and maintains project management
knowledge