Chapter 1: Project Management

Concepts

What Is a Project?
What Is Project Management?
Life Cycles of Projects and Project
Management
Project Stakeholders
Organizational Structure and Its Influence
Learning Objectives:

After completing this chapter, you will be able to:

Differentiate between projects and operational work
Describe the main concepts of project management
Explain the differences between the project life cycle and
the project management life cycle
Identify project stakeholders and their influence
Compare the different types of organizational structures
What Is a Project?
A project is:

Unique
Temporary The project is
It has a definite
undertaking something
beginning and a
that has not been
definite, measurable undertaken previously.
end. At least some aspect is
unique.

Projects embrace the concept of progressive elaboration;

that is, as time goes by, you learn more about the project
as you do the work of the project.
What Is a Project?
Projects vs. Ongoing Operations

According to the PMBOK Guide:

Projects : Temporary, unique; embrace

progressive elaboration
Operations : Ongoing, repetitive; do not fit
all the criteria of a project
What Is Project Management?
Overlapping Disciplines
Project Management
environment skills
Application
knowledge

Body of knowledge Interpersonal skills

Project Management Components
Portfolios, Programs, and Subprojects

Program

Project A Project B

Subproject Subproject Subproject Subproject

Portfolio
Program

Project A Project B

Subproject Subproject Subproject Subproject

Project Management Components
Project Management Office
What Is Project Management?
Project Management System
Life Cycles of Projects and Project Management
Project Life Cycle vs. Project Management Life Cycle
Software development project

Design Code Test Train Implement

Project management life cycle Project life cycle

Initiating Initiating Initiating Initiating Initiating

Planning Planning Planning Planning Planning

Executing Executing Executing Executing Executing

Monitoring & Monitoring & Monitoring & Monitoring & Monitoring &
Controlling Controlling Controlling Controlling Controlling

Closing Closing Closing Closing Closing

Life Cycles of Projects and Project Management
Project Life Cycle vs. Product Life Cycle
Product life cycle stages:

Introduction and creation

Growth
Maturity
Decline
Projects run in the context of the product life cycle.
Many projects can be undertaken throughout
the product life cycle.
Project Stakeholders
It is important to identify stakeholders.

Who is or should be involved?

Who is external to the
organization?
Who has bought in and who
hasnt?
Who can influence the
projects performance or
outcome?
Organizational Structure and Its Influence

Functional Weak Matrix Strong Projectized

Functional Weak Matrix Strong Projectized

 Organizational Structure and Its Influence
Functional Organization
Power resides with the
functional manager. CEO

Functional Functional Functional Functional Functional

manager manager manager manager manager

Staff Staff Staff Staff Staff

Staff Staff Staff Staff Staff

Staff Staff Staff Staff Staff

*Darkened boxes represent staff working on project activities.

Functional Organizations
Advantages and Disadvantages of
Functional Structures
Advantages
Familiar structure
One-supervisor reporting
structure
Clearly defined career paths
Employees as experts
Disadvantages
Employees job difficult to change
Need to fight for resources
and project priority
Functional manager responsible
for performance reviews and
promotions
Competition for resources
Little or no project manager
authority
No clearly defined project
management career path
 Organizational Structure and Its Influence
Matrix Organization
Two bosses:
Power resides with both
functional manager and the CEO
project manager.

Functional Functional Functional Functional Functional

manager manager manager manager manager

Staff Staff Staff Staff Staff

Staff Staff Staff Staff Staff

Project
Staff Staff Staff Staff
manager

*Darkened boxes represent staff working on project activities.

Matrix Organization
Advantages and Disadvantages of Matrix
Structures
Advantages Disadvantages
Continued visibility of Multiple bosses
objectives
Added complexity
Increased support from
functional managers Need for additional policies and
procedures
Increased control by project
manager Differing priorities or objectives

Improved flexibility
Continued job after project
completion
Multiple input on performance of
team members
 Organizational Structure and Its Influence
Projectized Organization
Power resides with
project manager. CEO

Project Project Project Project Project

manager manager manager manager manager

Staff Staff Staff Staff Staff

Staff Staff Staff Staff Staff

Staff Staff Staff Staff Staff

*Darkened boxes represent staff working on project activities.

Projectized Organization
Advantages and Disadvantages of Projectized
Structures
Advantages Disadvantages

Clear focus on project Job over at project

completion
Project loyalty
Less efficient use of
Efficient project
organization resources
Duplicated job functions
Efficient project
and facilities
communication
The Structure of Organizations and Its Influence
Summary
Organization Matrix
Project Structure Functional Balanced Strong Projectized
Weak Matrix
Aspect Matrix Matrix
Project Manager Little or Low to Moderate to High to
Limited
Authority none moderate high almost total
Resource Little or Low to Moderate to High to
Limited
Availability none moderate high almost total

Project Budget Functional Functional Project Project

Mixed
Controlled By manager manager manager manager

Role of the Project

Manager Part-time Part-time Full-time Full-time Full-time

Project
Management Part-time Part-time Part-time Full-time Full-time
Administrative Staff

*Based on the PMBOK Guide, Fourth Edition.

 Knowledge Check
Concepts You Should Know
Important terms:
Project: Temporary endeavor undertaken to produce a unique
product, service, or result
Subproject: Component of project identified by subdividing the
project into smaller, more manageable pieces
Operations: Ongoing, repetitive work of the organization

Project management: Application of knowledge, skills, tools

and techniques to project work to fulfill project requirements
Program: Interrelated group of projects and other work that are
managed together to achieve efficiencies not available by
managing them separately
Portfolio: Group of programs, projects, and other work
managed together to meet strategic business objectives
 Knowledge Check
Concepts You Should Know (cont.)
Important terms (cont.):
Project management system: Aggregated collection of
processes, tools, techniques, methods, procedures, and
resources assembled to manage projects
Project stakeholder: Any individual or group that meets one or
more of the following requirements:
Is involved in the project
Has a positive or negative interest in the project

Can exert influence over project performance or results

 Knowledge Check
Concepts You Should Know (cont.)
Triple constraint model:
All projects are constrained by time, cost (or resources), and
scope.
Changes to one set of constraints affect remaining areas of
constraint.
Project management should be focused on identifying and
managing the balance among the areas of constraint.
Three life cycles:
Product life cycle: Sequence of phases that a product goes
through between conception and retirement
Project life cycle: Sequence of phases of project work required
to meet project requirements
Project management life cycle: Sequence of phases in the
management of the work of the project (remember IPECaC)
 Knowledge Check
Concepts You Should Know (cont.)
Projects generally occur within the larger product or service
life cycle and often occur as the means of transitioning a
product from one life cycle phase to another.
Successful project managers make connections between the
following areas:
Project Management Body of Knowledge
Application area standards and regulations
Organizational environment in which the project takes place
General management skills
Interpersonal skills
 Knowledge Check
Concepts You Should Know (cont.)
The PMBOK Guide identifies four general organizational
types:
Functional organization: Hierarchical organization in which
employees are grouped based on their specialized skill set and
have a single, clear boss.
Matrix organization: Structure in which the functional manager
and the project manager share responsibility for determining
priorities and directing the work of staff. The PMBOK Guide
classifies matrix organizations as weak, balanced, or strong.
Projectized organization: Organization in which the project
manager has total authority to assign priorities, apply
resources, and direct the work of project staff.
Composite organization: Organization in which projects can be
organized and managed in functional, matrix, or projectized
ways depending on the needs of the project.