session 2 mod 2 proj mgt
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PROJECT LIFE CYCLE
PRODUCT LIFE CYCLE
• It refers to stages in project’s development• Life cycles are important because they
demonstrate the logic that governs a project• They also help in developing our plans that
help us to carry out the project
PROJECT LIFE CYCLE
• PLC
MANHOURS
CONCEPTUALIZATION PLANNING EXECUTION TERMINATION
PROJECT LIFE CYCLE
• Conceptualization. refers to development of initial goals and technical specifications of a project. The scope of work is determined , necessary resources identified and stakeholders signed in
• Planning. All detailed specifications , schematics, schedules and other plans are developed.– Individual pieces of project , often called work
packages, are broken down, individual assignments and process for completion delineated
PROJECT LIFE CYCLE
• Execution. The actual work is performed, the system developed or the product created. In this phase bulk of project team labor is performed. Costs ramp up rapidly during this phase.
• Termination. This occurs when the project is transformed to customer.– As specific sub activities are completed the project
shrinks in scope and costs decline rapidly
PROJECT LIFE CYCLE
• The stages in PLC are the way points at which project teams can evaluate both in performance and project’s overall status
• The life cycle model serves the two fold function of project timing (schedule)and project requirement (resources) allowing team members to better focus on what and when resources are needed
PROJECT LIFE CYCLE
• Some components of project may change over a period of time over the course of the project
• Client Interest. The level of enthusiasm or concern expressed by the project’s intended customer ( could be internal or external)
• Project Stake. The amount of corporate investment in the project. The longer the life , the greater the investment
PROJECT LIFE CYCLE• Resources. The commitment of financial, human
and technical resources over the life of the project• Creativity. The degree of innovation required by
the project especially during development phase.• Uncertainty. The degree associated with the
project. Uncertainty is highest at the beginning because many challenges have yet to be identified, let alone addressed.
PROJECT LIFE CYCLES & THEIR EFFECTS
• PLC
INTENSITYLEVEL
CONCEPTUALIZATION PLANNING EXECUTION TERMINATION
CLIENT INTEREST
PROJECT STAKE
RESOURCES
CREATIVITY
UNCERTAINTY
PROJECT LIFE CYCLES & THEIR EFFECTS
• The information supplied in previous figure is useful for developing a sense of competing issues and challenges that a project team is likely to face over the life cycle
• Over time we see that certain characteristics begin to decrease while some begin to increase
• Balancing the requirements of these elements across the life cycle is just one of the many demands place d upon a project team
DETERMINANTS OF PROJECT SUCCESS
DETERMINANTS OF PROJECT SUCCESS
• This aspect can be very confusing• The definition of project success must take
into consideration the elements the elements that define the very nature of project – Time– Budget– Functionality– Customer satisfaction
DETERMINANTS OF PROJECT SUCCESS
• Three criteria for project success• Time. Projects are constrained by the time. They
cannot continue indefinitely. Therefore the first determinant can be classified as ‘Time’. The projects should come up within the allotted time frame
• Cost. The projects have a limited budget. It is always a challenge to ensure that projects are completed within allotted cost to ensure efficient use of resources. This is the second determinant
DETERMINANTS OF PROJECT SUCCESS
• Performance. All projects are initially developed to adhere to some technical specification. The projects clients do expect the performance of the end result as expected. This aspect can be called as ‘quality check’.
DETERMINANTS OF PROJECT SUCCESS
• A fourth criteria has been added• Client Acceptance. This principle argues that
projects are developed with customers in mind. If client acceptance is a key variable, then we also must ask whether is acceptable to the customer for whom it was intended
DETERMINANTS OF PROJECT SUCCESS
• We can think of criteria for project success in terms of internal vs external conditions
• When PM was practiced primarily by construction and other heavy industries, its chief value was in maintaining internal organizational control over money and time.
• The triple constraint made perfect sense
DETERMINANTS OF PROJECT SUCCESS• More recently the traditional triple constraint has come
under increasing criticism as a measure of project success.• The final product could be a failure , but if it has been
delivered in time and on budget and satisfies original specifications ( however flawed) the project could itself be declared a success.
• Adding external criteria of client acceptance corrects such shortcomings – It refocuses org attention outside towards the
customer– It recognizes that the final arbiter is marketplace
DETERMINANTS OF PROJECT SUCCESS
• Another approach is taking into consideration the promise that delivered product can generate future opportunities , whether commercial or technical for the org .The relevant dimensions are:-
• Proper Efficiency. Meeting budget and scheduled expectations
• Impact on the customer. Meeting technical specifications, addressing customer’s needs
DETERMINANTS OF PROJECT SUCCESS
• Business Success. Determining whether the project achieved significant commercial success
• Future Potential. Determining whether project opened new markets or new product lines.
• This approach challenges the conventional triple constraint principle for assessing project success. Corporations expect projects not only to run efficiently but be developed to meet customer’s needs, achieve commercial success and serve as a conduit to new business opportunities.
DEVELOPING PROJECT MANAGEMENT MATURITY
PM MATURITY MODELS
• PM maturity models are used by org to bench mark the best practices of successful PM firms
• PM maturity models recognize that different organizations are currently at different levels of sophistication in their best practices for managing projects
• Purpose of benchmarking. is to systematically manage the process improvement of project delivery by a single organization over a period of time
PM MATURITY MODELS
• Because there are many diverse dimensions of PM practice , for a new org that is just starting to introduce PM to their operations , it is common to ask the question, ’Where do we start”?
• This is which of the multiple PM processes should we investigate, model and apply to our org.
• Maturity models provide the necessary framework to first analyze and critically evaluate the current practices as they pertain to managing projects.
PM MATURITY MODELS
• Secondly compare these practices against those of chief competitors or some general industry standard
• Thirdly define a systematic route for improving these practices
PM MATURITY MODELS
• Spider web Diagram for measuring project maturity – Here a set of significant project management practices have first been identified for organizations within a specified industry.
• The rings in the diagram represents a critical evaluation of the manner in which the org matches with the industry standards
SPIDER WEB DIAGRAM WITH EMBEDDED ORGANIZATIONAL EVALUATION
PROJECT SCHEDULING
STRUCTURAL SUPPORT FOR PM
PORTFOLIO MANAGEMENT
COACHING AUDITING &EVALUATING PROJECTS
CONTROL PRACTICES
PROJECT STAKEHOLDER MANAGEMENT
NETWORKING BETWEEN PROJECTS
PERSONNEL DEVELOPMENTFOR PROJECTS
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PROJECT STAKEHOLDERS
STAKEHOLDER MANAGEMENT
• Organizational research tells us that org and projects teams cannot operate in ways that ignore the external effects of their decisions
• One way to understand the relationship of project managers and their projects to rest of the organization is through employing stakeholders analysis.
• Stakeholders Analysis. Is a tool for demonstrating some of the seemingly irresolvable conflicts that occur through the planned creation and introduction of new projects
STAKEHOLDER MANAGEMENT
• Project stakeholders are defined as all individuals or groups who have an active stake in the project and can potentially impact either positively or negatively its development
• Project Stakeholders Analysis, consists of formulating strategies to identify and if necessary manage for the positive results the impact of stakeholders on the project
STAKEHOLDER MANAGEMENT
• Stakeholder analysis is helpful to the degree that it compels firms to acknowledge the potentially wide ranging effect that their actions can have , both intended and unintended, on various stakeholder groups.
STAKEHOLDER MANAGEMENT• Internal Stakeholders– Top Management– Accountant– Other functional Managers– Project team member
• External Stakeholders– Clients– Competitors– Suppliers– Environmental, political, consumer and other
intervenor groups
STAKEHOLDER MANAGEMENT• Clients– Clients are concerned with receiving the project as quickly as
possible because longer the delay , the money invested sits without generating any returns
– Many projects start well before the clients needs are fully defined.– Customers usually feel that that they have a right to make
suggestions , alterations in the project features/schedules as finally the project is as good as it is acceptable and useful
– Client term does not always refer to entire organization and because of different conflicting reasons between groups the stakeholders analysis of a customer organization can be a complex undertaking
STAKEHOLDER MANAGEMENT• Competitors. –Are important because they are affected by successful
completion of project – Likewise should a rival company bring a new product
to market , the project team’s parent org could be forced to alter, delay or even abandon the project– In assessing competitor as a project
stakeholder ,project manager should try to uncover any information which could bring out certain lessons
STAKEHOLDER MANAGEMENT
• Suppliers.– Project manager needs to ensure steps that would
ensure steady deliveries of externally purchased items
– Also project manager needs to ensure that each supplier receives the input information necessary to implement their part of project in timely way.
– Secondly project manager must monitor that deliveries take place as intended
STAKEHOLDER MANAGEMENT• Intervenor group.–Any environmental, political, social or community
group that can have a positive or negative effect on the project’s development & successful launch are referred to as intervenor groups–They have the capacity to intervene in the project
development and force their concern to be included in the equation for project implementation
STAKEHOLDER MANAGEMENT• Top Management.– In most org the top management hold a great deal of control
over managers and in position to regulate their freedom of action– Top management requires that the project be timely, cost
efficient and minimal disruptive• Accounting. – They work towards maintaining cost efficiency of project team–Hence are sometime perceived as enemies of the projects
STAKEHOLDER MANAGEMENT
• Functional Managers.– In many case the project members are on
loan from various departments.– The functional members still expect a lot of
work from each member in performing their functional responsibilities–Project managers need to appreciate the
power of the organizational functional managers as a stakeholders group
STAKEHOLDER MANAGEMENT• Project Team Members– The team members have a tremendous stake in project’s
outcome–Although some may have a divided sense of loyalty
between the project and functional group, in most case they are handpicked or may be volunteers for work which can throw challenges and oppurtunities for growth.–Project managers must understand that product’s success
will depend upon the commitment and productivity of each member
MANAGING STAKEHOLDERS
MANAGING STAKEHOLDERS
• Assess Your Own Capability. Does the Project manager and the team members have the political savvy and sufficiently strong bargaining power to gain support from each of the stakeholders group?
• Define the Problem. Be able to very clearly have a foresight on the nature of problem to bring in clarity.
MANAGING STAKEHOLDERS
• Six steps as suggested by Block• Assess The Environment. It is very important
to recognize the environmental state before embarking on a project
• Identify the goals of Principal Actors. Project manager should attempt to understand and paint an accurate portrait of stakeholder concern.
MANAGING STAKEHOLDERS
• Develop Solutions.– It means to creating action plan to address as
much as possible the needs of various stakeholders in relation to other stakeholders groups.
– Do our political homework. This stage is a result of perpetual firefighting during which the project manager is a virtual pendulum swinging from crisis to crisis
MANAGING STAKEHOLDERS
• Test and Refine the Solutions.– In testing and refining solutions the project
manager and team should realize that solution implementation is an iterative process
– Project Team to make guesses on stakeholders reaction and reshape strategies accordingly.
– Along the way the notions are refined
MANAGING STAKEHOLDERS
• The six steps form an important method of acknowledging the role the stakeholders play in successful project implementation
• They allow project managers to approach ‘political stakeholders management ‘ much as they would any form of problem solving, recognizing it as a multivariate problem as various stakeholders interact with the project and with each other
• Solution to political stakeholder management can be richer more comprehensive and more accurate.
FORMS OF ORGANIZATIONAL STRUCTURE
THREE ELEMENTS OF ORGANIZATIONAL STRUCTURE
• Org structure designates formal reporting relationships including the number of level in the hierarchy and the span of control of managers and supervisors
• Org structure identifies the grouping together of individuals into departments and departments into total organization
• Org structure includes the design of systems to ensure effective communication, coordination and integrating of effort across departments
COMMON FORM OF ORGANIZATIONAL STRUCTURES
• Functional Organizations – companies are structured by grouping people performing similar activities into departments
• Project Organizations – Companies are structured by grouping people into project teams on temporary assignments
• Matrix Organizations – companies are structured by creating a dual hierarchy in which functional and projects have equal prominence
BOARD OF DIRECTORS
CHIEF EXECUTIVE
VP MARKETING VP PRODUCTION VP FINANCE VP RESEARCH
MARKET RESEARCH
SALES
AFTER MARKET SUPPORT
ADVERTISING
LOGISTICS
OUTSOURCING
DISTRIBUTION
WAREHOUSING
MANUFACTURING
ACCOUNTING SERVICES
CONTRACTING
INVESTMENTS
EMPLOYEE BENEFITS
NEW PRODUCTS
TESTING
RESEARCH LABS
QUALITY
FUNCTIONAL STRUCTURES
Strengths and Weaknesses of Functional Structures
Strengths for PM• Projects are developed
within the basic functional structure of the org requiring no disruption & change to the firm’s design
• Enables the development of in depth knowledge & intellectual capital
• Allows for standard career paths. PM members only perform their duties as needed while maintaining maximum connection with their functional group
Weaknesses for PM• Functional siloing makes it
difficult to achieve cross functional cooperation
• Lack of customer focus• Projects generally take longer
to complete due to structural problem , slower communication, lack of direct ownership of project and competing priorities among the functional departments
• Projects may be sub optimized due to varying interest or commitment across functional boundaries
Matrix Oriented Organizational Structure
STRENGTHS AND WEAKNESSES OF MATRIX STRUCTURE
Strengths for Project Management
• Suited to dynamic environment
• Emphasizes the dual importance of project management and functional efficiency
• Promotes coordination across functional units
• Maximizes scarce resources between competing project and functional responsibilities
Weaknesses for Project Management
• Dual hierarchies mean two bosses
• Requires significant time to be spent negotiating the sharing of critical resources between projects and departments
• Can be frustrating for workers caught between competing project and functional demand
Project Oriented Organizational Structure
Strengths and weakness of Project Structure
Strengths for PM• Assigns authority solely to the
Project manager• Leads to improved
communication across the org and among functional groups
• Promotes effective and speedy decision making
• Promote the creation of cadres of project management experts
• Encourages rapid response to market opportunities
Weaknesses for Project Management
• Setting up and maintaining teams can be expensive
• Potential for project team members to develop loyalty to the project rather than to the overall organization
• Difficult to maintain a pooled supply of intellectual capital
• Concern among project team members about their future once the project ends
THANK YOU
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