introduction to project management project management certificate series – day 3 organizational...
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Introduction to Project Management
Project ManagementCertificate Series – Day 3
Organizational Influences and Project Life Cycle
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Understanding Organizational Structures
Organizational structures are unique just like projects
Each has its own style and culture They influence how projects are
performed
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Organizational Culture and Styles
Organizations are made of people aimed at accomplishing a purpose which may involve undertaking projects
Culture and style affect how it conducts projects (i.e. gets work done)
Culture and styles are group phenomena known as cultural norms which develop over time and include the way we initiate and plan projects
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Organizational Culture and Styles Norms include the acceptable ways
We get work done Recognized authorities who make and influence decisions
Organizational culture is shaped by common experiences of members like Shared visions, mission, values, beliefs, expectations Regulations, policies, methods and procedures Motivation and reward systems Risk tolerance View of leadership, hierarchy and authority relationships Code of conduct, work ethic, and work hours Operating environments
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Organizational Culture and Styles
Project Managers must understand the different organizational styles and cultures that may affect a project
Project Managers must know which individuals in the organization are the decision makers or influencers and work with them to increase the probability of project success
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Organizational Communication Project management success is highly
dependent on an effective organizational communication style
Has great influence on how projects are conducted
As a consequence, project managers in distant locations are able to more effectively communicate with all relevant stakeholders within the organizational structure to facilitate decision making
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Organizational Structures
Organizational structure is an enterprise environmental factor, which can affect the availability of resources and influence how projects are conducted
Organizational structures range from functional to projectized, with a variety of matrix structures in between
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Organizational Structure Type Characteristics
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Organizational Structures Types Functional Organizations Projectized Organizations Matrix Organizations
Weak Balanced Strong
Functional
Projectized
Weak Matrix
Balanced Matrix
Strong Matrix
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Organizational structure of a project influences how the project is managed. It suggests:
Project manager’s authority Resource availability to the project Project budget control Project manager’s role Project management administrative
staff
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Functional Organization Enduring organization PM has little or no formal authority Clear career path with separation of functions
allowing specialty skills to flourish Multiple projects compete for limited
resources and priority One boss with clear chain of command Team members loyal to functional manager
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Functional Organization
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Projectized Organizations Project managers have ultimate authority
over the project The focus of the organization is the project The organization’s resources are focused on
projects and project work Team members are collocated Loyalties are formed to the project, not to a
functional manager Project teams are dissolved at the
conclusion of the project
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Projectized Organization
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Matrix Organizations A blend of functional and projectized
characteristics Multiple bosses Functional managers are responsible for
administrative duties and resource commitments
Project managers are more in a coordinator role
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Focus in Matrix Organizations
Project managers and project team focus on project work
Project managers should review activity estimates for team members with functional manager to gain commitment
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Balance of Power in Matrix Organizations
Strong Matrix - project manager has the power
Weak Matrix – functional manager has the power
Balanced Matrix – the power is balanced between the functional and project manager
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Matrix vs. Functional and Matrix vs. Projectized Weak Matrix
Like a functional organization PM’s role is coordinator or expediter
Balanced Matrix A balance of power exists between the
Functional Manager and Project Manager Strong Matrix
Like a projectized organization Full time project managers with full authority
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Weak Matrix Organization
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Balanced Matrix Organization
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Strong Matrix Organization
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Organizational Structure Type Characteristics
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Composite Organization
All organizational structures at various levels A fundamentally functional organization may
create a special project team – like projectized to handle a critical project
An organization may manage most of its projects in a strong matrix, but allow small projects to be managed by functional departments
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Composite Organization
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Class Exercise In groups of 2 discuss whether your
immediate team: Is considered functional, projectized, weak
matrix, balanced matrix, or strong matrix? List the characteristics of your that
justifies your answer to the question above Discuss what titles project managers
have in your organization.
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Another Aspect to Understanding the Project Environment
Environment is made up of internal and external factors that influence it
PM must consider more than just the project itself
Proactive management involves understanding the environment in which the project must function
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Organizational Process Assets
Plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization
PMBOK 2.1.4, 2.1.4.1, 2.1.4.2
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Enterprise Environmental Factors
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May enhance or constrain project management options and may have a positive or negative influence on the outcome of the project Organizational culture, structure and processes Gov’t/industry standards (regulatory, codes of conduct, product
standards, quality standards, workmanship standards) Infrastructure (existing facilities, capital equipment) Existing human resources (skills, disciplines, knowledge) Personnel administration (staffing and retention guidelines, employee
performance reviews, training records, overtime policy) Company work authorization systems Market place conditions Stakeholder risk tolerances Political climate Organization’s established communications channels Project Management Information Systems (PMIS)
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Project Stakeholders A stakeholder is an individual, group, or
organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project
Stakeholders include all members of the project team as well as all interested entities that are internal or external to the organization
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Project Stakeholders The project team identifies internal and external,
positive and negative, and performing and advising stakeholders in order to determine the project requirements and the expectations of all parties involved
The project manager should manage the influences of these various stakeholders in relation to the project requirements to ensure a successful outcome
When there are conflicts between stakeholders Project Managers should resolve the conflict in favor of the project’s key or main customer
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The Relationship Between Stakeholders and the Project
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Project Stakeholder Levels Stakeholders have varying levels of
responsibility and authority Levels change the project’s life cycle Involvement may range from occasional to full
project sponsorship Some stakeholders may also detract from the
success of the project, either passively or actively and these require the project manager’s attention throughout the project’s life cycle, as well as planning to address any issues they may raise
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Project Stakeholder Identification Is a continuous process throughout the entire
project life cycle Identifying stakeholders, understanding their
relative degree of influence on a project, and balancing their demands, needs, and expectations are critical to the success of the project
If you fail to identify and plan it may lead to delays, cost increases, unexpected issues, and other negative consequences including project cancellation
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Managing Stakeholder Expectations The Project Manager must manage stakeholder
expectations, which can be difficult because stakeholders often have very different or conflicting objectives
Project Managers must balance these interests and ensure that the project team interacts with stakeholders in a professional and cooperative manner
Project managers may involve the project’s sponsor or other team members from different locations to identify and manage stakeholders that could be dispersed around the world
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Project Governance An oversight function that is aligned with the
organization’s governance model and that encompasses the project life cycle
Framework provides the project manager and team with structure, processes, decision-making models and tools for managing the project, while supporting and controlling the project for successful delivery
Critical element of any project, especially on complex and risky projects
It provides a comprehensive, consistent method of controlling the project and ensuring its success by defining and documenting and communicating reliable, repeatable project practices
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Project Success Should be measured in terms of completing the project
within the constraints of scope, time, cost, quality, resources, and risk as approved between the project managers and senior management
To ensure realization of benefits for the undertaken project, a test period can be part of the total project time before handing it over to the permanent operations
Project success should be referred to the last baselines approved by the authorized stakeholders
The project manager is responsible and accountable for setting realistic and achievable boundaries for the project and to accomplish the project within the approved baselines
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Project Team Includes the project manager and the group of individuals
who act together in performing the work of the project to achieve its objectives
The project team includes the project manager, project management staff, and other team members who carry out the work but who are not necessarily involved with management of the project
This team is comprised of individuals from different groups with specific subject matter knowledge or with a specific skill set to carry out the work of the project
Structure and characteristics of a project team can vary widely, but one constant is the project manager’s role as the leader of the team, regardless of what authority the project manager may have over its members
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Project Team Roles Project management staff – Perform project
management activities like scheduling, budgeting, reporting and control, communications, risk management and administrative support
Project staff - Carry out the work of creating the project deliverables
Supporting experts – Perform activities required to develop or execute the project management plan. These can include such roles as contracting, financial management, logistics, legal, safety, engineering, test, or quality control
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Project Team Roles User or Customer Representatives - Accept the
deliverables or products of the project may be assigned to act as representatives or liaisons to ensure proper coordination, advise on requirements, or validate the acceptability of the project’s results
Sellers – Also called vendors, suppliers, or contractors, are external companies that enter into a contractual agreement to provide components or services necessary for the project
Business partner members - Members of business partners’ organizations may be assigned as members of the project team to ensure proper coordination
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Project Team Roles Business partners - External companies, but
they have a special relationship with the enterprise, sometimes attained through a certification process. Provide specialized expertise or fill a specified role such as installation, customization, training, or support
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Composition of Project Teams Varies based on factors such as organizational
type or culture, scope, and location. They may be: Dedicated where the project team members are
assigned to work full-time on the project; basically projectized
Part-Time established as temporary additional work, with functional managers maintaining resource control and PMs performing other management duties as well; basically matrixed
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Project Life Cycle The steps an organization performs to
build the product, service or result A series of phases a project passes
through from its initiation to its closure Phases are generally sequential Their names and numbers are
determined by the management and control needs of the organization and its area of application
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Project Life Cycle or Phases May be divided by functional or partial
objectives, intermediate results or deliverables, specific milestones within the overall scope of work or financial availability
Are generally time bounded with a start and ending or control point
A life cycle can be documented within a methodology
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Project Life Cycle or Phases The project life cycle may be shaped by
the unique aspects of the organization, industry or technology employed
While every project has a definite start and end, the specific deliverables and activities in between will vary widely with the project
The life cycle provides the basic framework for managing the project regardless of the work involved
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Project Life Cycle or Phases Can range along a continuum from predictive
or plan driven approaches at one end to adaptive or change driven at the other
In a predictive life cycle the product and deliverables are defined at the beginning of the project and any changes to scope are carefully managed
In an adaptive life cycle the project is developed over multiple iterations and the detailed scope is defined for each iteration only as the iteration begins
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Characteristics of the Project Life Cycle
Projects vary in size and complexity All projects can be mapped to the
following generic life cycle structure Starting the project Organizing and preparing Carrying out the project work Closing the project
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The generic life cycle structure is often referred to when reporting to upper management or others less familiar with the details of the project
This should not be confused with Project Management Process Groups because the processes in a Process Group may be performed and recur within each phase of a project as well as for the project as a whole
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Characteristics of the Project Life Cycle
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Project Life Cycle Examples Pharmaceutical Development Phases
Drug Discovery Pre-formulation Pharmacokinetics Toxicology Pharma/clinical development Clinical Trials 1-3 Go to Market
Regulatory Approval Regulated Production Clinical Trials 4
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Project Life Cycle Examples System Development Life Cycle Phases
Problem Definition Requirements Gathering Analysis Design Development Testing Deployment Maintenance
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Project Life Cycle Examples Medical Device Development Project Phases
Concept Phase Program Planning Preliminary Design Detail Design Drug Discovery Pilot Production Clinicals / FDS Production Release
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The characteristics of each process group reflects:
The level of a project’s costs, staffing, chances of successful completion, stakeholder influence and probability of risk
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Project Life Cycle Characteristics
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Generic Life Cycle Structure
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Project Life Cycle Characteristics
In the beginning of the Project Life Cycle
As project progresses through project life cycle
Cost are low Costs increase and taper off at the closing phase
Few team members are assigned Staffing increases
Potential for project success is lowest
Potential for success increases
Project risk is highest Project risk decreasesStakeholders have the greatest chance of influencing the project and the characteristics of the product
Stakeholders have less and less influences as the project progresses
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Project Life Cycle Characteristics
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Cost of changes/correcting errors increases significantly over time
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Project Phases
A project may be divided into any number of phases
A project phase is a collection of a logically related project activities that end in the completion of one or more deliverables
Project phases are used when the nature of the work to be performed is unique to a portion of the project
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Project Phases
A phase may emphasize processes from a particular Project Management Process Group
Project phases typically are completed sequentially, but can overlap in some project situations
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Project Phases and Key Terms
At the beginning of a phase a feasibility study may be performed
At the end of a phase a phase end review of the completed deliverables may be performed before handoff to the next phase can occur
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Feasibility Studies Typically incorporated in the beginning
phase of the project Are completed prior to the beginning of
the next phase Determines whether a project is worth
undertaking and whether it will be profitable to the organization
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Handoffs
When a project progresses from one phase to the next Phase deliverables must be reviewed for
accuracy and approved It is handed off to the next phase
Handoffs are technical transfers or phase sequences that signal the end of one phase and typically mark the beginning of the next
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Phase End Reviews A review that takes place
To determine whether the project should continue onto the next phase
Identify and address errors discovered during the phase
Also know as: Phase exits or gates (stage gates,
decision gates) Milestones Kill points
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Phase to Phase Relationships – 2 Types Sequential
Where one phase must end before the next phase begins
Overlapping Where one phase starts before the
previous phase completes
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Project Governance Across the Life Cycle Regardless of the number of phases, project
governance is required Method of controlling project ensuring success Described in project management plan PM and team decides how project is managed
What resources, how work will be completed, how many phases will be used
Management review used to assess accuracy of deliverable, determine phase end and if project continues
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Product Life Cycle Is a collection of product phases
Generally sequential Sometimes overlapping Created to provide better
management control
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Product Life Cycle Introduction
Market size, sales volumes and sales growth are small
Growth When brand loyalty is built and market share
increased Maturity
When the market makes the most profit Decline
When sales and profit start to fall65
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Product vs. Project Life Cycle Relationships
Product Phase New product
Existing product requires new feature/function
Feasibility study Market research Advertising campaign …
Project Life Cycles New project to create
product New project to add
feature function
New project New project New project New projects…
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Product vs. Project Life Cycle Relationships
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TimeConception MaturityGrowth WithdrawalDecline
Project
Project
Project
ProjectProject
Project
Project
Project