Project Management: Achieving Competitive Advantage, 4th Edition

Introduction Chapter 1 Copyright ©2016 Education, Inc. Chapter 1 Learning Objectives After completing this chapter, you should be able to: Understand why project management is becoming such a powerful and popular practice in business. Recognize the basic properties of projects, including their definition. Understand why effective project management is such a challenge. Differentiate between project management practices and more traditional, process-oriented business functions. Recognize the key motivators that are pushing companies to adopt project management practices. Copyright ©2016 Education, Inc. 1-* Chapter 1 Learning Objectives After completing this chapter, you should be able to: Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project. Understand the concept of project “success,” including various definitions of success, as well as the alternative models of success. Understand the purpose of project management maturity models and the process of benchmarking in organizations. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques. Copyright ©2016 Education, Inc. 1-* PMBOK Core Concepts Project Management Body of Knowledge (PMBoK) covered in this chapter includes: Definition of a Project (PMBoK 1.2) Definition of Project Management (PMBoK 1.3) Relationship to Other Management Disciplines (PMBoK 1.4) Project Phases and the Project Life Cycle (PMBoK 2.1) 1-* Copyright ©2016 Education, Inc. What is a Project? Projects are complex, one-time processes. Projects are limited by budget, schedule, and resources. Projects are developed to resolve a clear goal or set of goals. Projects are customer-focused. 1-* Copyright ©2016 Education, Inc. A project is a temporary endeavor undertaken to create a unique product, service, or result. PMBoK 5th edition General project characteristics Projects are ad hoc endeavors with a clear life cycle. Projects are building blocks in the design and execution of organizational strategies. Projects are responsible for the newest and most improved products, services, and organizational processes. Projects provide a philosophy and strategy for the management of change. Project management entails crossing functional and organizational boundaries. 1-* Copyright ©2016 Education, Inc. General project characteristics Traditional management functions of planning, organizing, motivation, directing, and control apply to project management. Principal outcomes of a project are the satisfaction of customer requirements within the constraints of technical, cost, and schedule objectives. Projects are terminated upon successful completion of performance objectives. 1-* Copyright ©2016 Education, Inc. Process & Project Management (Table 1.1) PROCESS Repeat process or product Several objectives Ongoing People are homogenous Well-established systems Greater certainty Part line organization Established practices Supports status quo PROJECT New process or product One objective One-shot-limited life More heterogeneous Integrated system efforts Greater uncertainty Outside of line organization Violates established practice Upsets status quo 1-* Project Success Rates Software & hardware projects fail at a 65% rate. Over half of all IT projects become runaways. Only 30% of technology-based projects and programs are a success. Ten major government contracts have over $16 billion in cost overruns and are a combined 38 years behind schedule. Only 2.5% of global businesses achieve 100% project success and over 50% of global business projects fail. More than $8 billion of $53 billion the Pentagon spent on Iraqi reconstruction projects was lost due to fraud, waste, and abuse. 1-* Copyright ©2016 Education, Inc. Why are projects important? Shortened product life cycles Narrow product launch windows Increasingly complex and technical products Emergence of global markets An economic period marked by low inflation 1-* Copyright ©2016 Education, Inc. PROJECT LIFE CYCLES (FIGURE 1.3) 1-* Project Life Cycles A project life cycle refers to the stages in a project’s development and are divided into four distinct phases: Conceptualization – development of the initial goal and technical specifications of the project. Key stakeholders are identified and signed on at this phase. Planning – all detailed specifications, schedules, schematics, and plans are developed. Execution – the actual “work” of the project is performed. Termination – project is transferred to the customer, resources reassigned, project is closed out. 1-12 Copyright ©2016 Education, Inc. Change during project life cycle * Client Interest Project Stake Resources Creativity Uncertainty 1-13 Project life cycle and their effects (Figure 1.4) 1-14 Quadruple constraint of project success (Figure 1.6) 1-* Four dimension of project success (figure 1.7) 1-* Understanding success criteria (table 1.2) 1-17 Six criteria for it project success 1-* System Quality Information Quality Use User Satisfaction Individual Impact Organizational Impact Project management maturity Project management maturity (PMM) models are used to allow organizations to benchmark the best practices of successful project management firms. Benchmarking is the practice of systematically managing the process improvements of project delivery by a single organization of a period of time. 1-* Copyright ©2016 Education, Inc. Spider web diagram (figure 1.8) 1-* Spider web with embedded organizational evaluation (figure 1.9) 1-* Project Management Maturity Generic Model (Figure 1.10) 1-* Copyright ©2016 Education, Inc. Developing Project Management Maturity Project Management Maturity (PMM) Models Center for Business Practices Kerzner’s Project Management Maturity Model ESI International’s Project Framework SEI’s Capability Maturity Model Integration 1-* Copyright ©2016 Education, Inc. Center for Business Practices PMM Level 1: Initial Phase Level 2: Structure, Process, and Standards Level 3: Institutionalized Project Management Level 4: Managed Level 5: Optimizing Copyright ©2016 Education, Inc. 1-24 KERZNER’S PMM MODEL Level 1: Common Language Level 2: Common Processes Level 3: Singular Methodology Level 4: Benchmarking Level 5: Continuous Improvement Copyright ©2016 Education, Inc. 1-25 ESI INTERNATIONAL’S PROJECT FRAMEWORK Level 1: Ad Hoc Level 2: Consistent Level 3: Integrated Level 4: Comprehensive Level 5: Optimizing Copyright ©2016 Education, Inc. 1-26 SEI’S CAPABILITY MATURITY MODEL INTEGRATION Level 1: Initial Level 2: Managed Level 3: Defined Level 4: Quantitative Management Level 5: Optimizing Copyright ©2016 Education, Inc. 1-27 Project Elements and Text Organization (Figure 1.11) Copyright ©2016 Education, Inc. 1-28 Project Manager Responsibilities Selecting a team Developing project objectives and a plan for execution Performing risk management activities Cost estimating and budgeting Scheduling Managing resources Copyright ©2016 Education, Inc. 1-29 OVERVIEW OF THE PROJECT MANAGEMENT INSTITUTE’S PMBOK KNOWLEDGE AREAS (FIGURE 1.12) 1-30 summary Understand why project management is becoming such a powerful and popular practice in business. Recognize the basic properties of projects, including their definition. Understand why effective project management is such a challenge. Differentiate between project management practices and more traditional, process-oriented business functions. Recognize the key motivators that are pushing companies to adopt project management practices. 1-31 Copyright ©2016 Education, Inc. summary Understand and explain the project life cycles, its stages, and the activities that typically occur at each stage in the project. Understand the concept of project “success,” including various definitions of success, as well as alternative models of success. Understand the purpose of project management maturity models and the process of benchmarking in organizations. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques. 1-* Copyright ©2016 Education, Inc. 1-* Copyright ©2016 Education, Inc.